Document:

Document

Exhibit 10.2
    
EXECUTION VERSION

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WAIVER AND AMENDMENT NO. 2 TO CREDIT AGREEMENT
dated as of November 17, 2020

among

FIRSTENERGY TRANSMISSION, LLC, 
AMERICAN TRANSMISSION SYSTEMS, INCORPORATED,
MID-ATLANTIC INTERSTATE TRANSMISSION, LLC,
and 
TRANS-ALLEGHENY INTERSTATE LINE COMPANY,
as Borrowers,

THE LENDERS NAMED HEREIN,
as Lenders,

PNC BANK, NATIONAL ASSOCIATION, 
as Administrative Agent,

and

THE FRONTING BANKS NAMED HEREIN,
as Fronting Banks
			
	

MIZUHO BANK, LTD.,  
PNC CAPITAL MARKETS LLC,
CITIGROUP GLOBAL MARKETS INC., 
THE BANK OF NOVA SCOTIA,
BARCLAYS BANK PLC,
JPMORGAN CHASE BANK, N.A. and
MUFG BANK, LTD.,
 as Joint Lead Arrangers

WAIVER AND AMENDMENT NO. 2 TO 
CREDIT AGREEMENT

This WAIVER AND AMENDMENT NO. 2, dated as of November 17, 2020 (this “Amendment”), to the Existing Credit Agreement referred to below, is entered into by and among FirstEnergy Transmission, LLC (“FET”), American Transmission Systems, Incorporated (“ATSI”), Mid-Atlantic Interstate Transmission, LLC (“MAIT”) and Trans-Allegheny Interstate Line Company (“TrAILCo”, and together with FET, ATSI and MAIT, the “Borrowers”), each of the Lenders (as defined in the Existing Credit Agreement) party hereto, PNC Bank, National Association (“PNC”), as Administrative Agent (in such capacity, the “Administrative Agent”) for the Lenders, and each of the Fronting Banks (as defined in the Existing Credit Agreement) party hereto.
PRELIMINARY STATEMENTS
1.    The Borrowers, the Lenders, the Administrative Agent and the Fronting Banks are parties to that certain Credit Agreement, dated as of December 6, 2016 (as amended by Amendment No. 1 thereto, dated as of October 19, 2018, the “Existing Credit Agreement”, as amended by this Amendment, the “Amended Agreement”, and as the Amended Agreement may hereafter be amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Amended Agreement.  
2.    The Borrowers have requested that the Lenders irrevocably, in reliance on the representations and warranties set forth herein and the facts and circumstances disclosed by the Borrowers to the Credit Parties on or before the Amendment Effective Date (as defined below), waive (i) any breach of the representation and warranty set forth in the third sentence of Section 4.01(m) of the Existing Credit Agreement, which breach would result in an Event of Default under Section 6.01(b) of the Existing Credit Agreement, (ii) any breach of the covenant set forth in Section 5.01(i)(ii) of the Existing Credit Agreement, which breach would result in an Event of Default under Section 6.01(c)(i) of the Existing Credit Agreement, and (iii) any Event of Default that may have occurred and be continuing under Section 6.01(e) of the Existing Credit Agreement (provided, that the underlying breach or default under the applicable Indebtedness of any Borrower or any Significant Subsidiary of such Borrower that gave rise to such Event of Default under Section 6.01(e) of the Existing Credit Agreement has been irrevocably waived by the holders of such Indebtedness), in each case, solely to the extent such breach or Event of Default occurred on or before the date hereof as a consequence of the facts and circumstances described on Schedule 1 hereto (such Events of Default, collectively, the “Relevant Events of Default”, and such facts and circumstances described on Schedule 1 hereto, the “Noncompliance Event”), and the Lenders party hereto (constituting the Majority Lenders) have agreed to grant such waiver on the terms and conditions set forth herein. 
3.    In consideration thereof, the Lenders party hereto desire to amend the Existing Credit Agreement in certain particulars, including, without limitation, to amend the Applicable 

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Margin, and the parties hereto have agreed to such amendments on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
SECTION 1.    Waiver.  Subject to the satisfaction or waiver of the conditions precedent set forth in Section 3 hereof, the Administrative Agent and the Majority Lenders hereby irrevocably, in reliance on the representations and warranties set forth herein and the facts and circumstances disclosed to the Credit Parties on or before the Amendment Effective Date, waive the Relevant Events of Default solely to the extent such Relevant Events of Default occurred on or before the date hereof as a consequence of the Noncompliance Event.  The foregoing waiver shall be limited precisely as provided for herein and, for the avoidance of doubt, shall not be deemed to be a waiver of any of the rights or remedies of the Administrative Agent, the Fronting Banks and the Lenders under this Amendment or any other Loan Document for any existing or future Unmatured Default or Event of Default arising from any breach or failure to comply with any provision (other than, solely with respect to the Relevant Events of Default, the specific provisions referenced in paragraph 2 of the Preliminary Statements contained herein) under any Loan Document (including, without limitation, the representations and warranties set forth in Section 4.01(f) of the Credit Agreement and the second sentence of Section 4.01(g) of the Credit Agreement).  The Administrative Agent, the Fronting Banks and the Lenders specifically reserve the right to insist on strict compliance with the terms of the Credit Agreement and the other Loan Documents with respect to any other violation of Anti-Corruption Laws by any Covered Entity (or any director, officer, employee or agent thereof), including, without limitation, any potential violation of Anti-Corruption Laws related to the investigation by several Governmental Authorities surrounding Ohio House Bill 6 involving Mr. Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder, and the Borrowers expressly acknowledge such reservation of rights.     
SECTION 2.    Amendments to Existing Credit Agreement.  The Existing Credit Agreement is, effective as of the date hereof and subject to the satisfaction or waiver of the conditions precedent set forth in Section 3 hereof, hereby amended as follows:
(a)    The following defined terms contained in Section 1.01 of the Existing Credit Agreement are hereby amended and restated in their entirety to read as follows:
“Applicable Margin” means, for any Alternate Base Rate Advance or any Eurodollar Rate Advance made to any Borrower, the interest rate per annum set forth in the relevant row of the table immediately below, determined by reference to the Reference Ratings for such Borrower from time to time in effect:

 

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	BASIS FOR PRICING	LEVEL 1
Reference Ratings at least A- by S&P or A3 by Moody’s.
	LEVEL 2
Reference Ratings lower than Level 1 but at least BBB+ by S&P or Baa1 by Moody’s.
	LEVEL 3
Reference Ratings lower than Level 2 but at least BBB by S&P or Baa2 by Moody’s.
	LEVEL 4
Reference Ratings lower than Level 3 but at least BBB- by S&P or Baa3 by Moody’s.
	LEVEL 5
Reference Ratings lower than Level 4 but at least BB+ by S&P or Ba1 by Moody’s.
	LEVEL 6
Reference Ratings lower than BB+ by S&P and Ba1 by Moody’s, or no Reference Ratings.

	Applicable Margin for Eurodollar Rate Advances	1.125%	1.250%	1.500%	2.000%	2.250%	2.750% in the case of FET
2.500% in the case of each Borrower other than FET

	Applicable Margin for Alternate Base Rate Advances	0.125%	0.250%	0.500%	1.000%	1.250%	1.750% in the case of FET
1.500% in the case of each Borrower other than FET

For purposes of the foregoing, (i) if there is a difference of one level in Reference Ratings of S&P and Moody’s and the higher of such Reference Ratings falls in Level 1, Level 2, Level 3, Level 4 or Level 5, then the higher Reference Rating will be used to determine the Pricing Level and (ii) if there is a difference of more than one level in Reference Ratings of S&P and Moody’s, the Reference Rating that is one level above the lower of such Reference Ratings will be used to determine the Pricing Level, unless the lower of such Reference Ratings falls in Level 6, in which case the lower of such Reference Ratings will be used to determine the Pricing Level.  If there exists only one Reference Rating, such Reference Rating will be used to determine the Pricing Level.  
“Disclosure Documents” means (i) FE’s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2020 and June 30, 2020, and Current Reports on Form 8-K filed in 2020 and prior to the Amendment No. 2 Effective Date, (ii) with respect to each other Borrower, such Borrower’s (A) consolidated balance sheet as of December 31, 2019, and the related consolidated statements of income, retained earnings and cash flows for the fiscal year then ended, certified by PricewaterhouseCoopers LLP, with, in each case, any accompanying notes, and (B) unaudited consolidated balance sheet as of June 30, 2020, and the related consolidated statements of income, retained earnings and cash flows for the six-month period then ended, in each case with respect to the foregoing clauses (A) and (B), prepared in accordance with GAAP (but, in the case of such statements that are unaudited, subject to year-end adjustments and the exclusion of detailed footnotes) and copies of which have been furnished to each Lender and each Fronting Bank, and (iii) 
 

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with respect to any Borrower referenced in clause (ii) above, the matters, if any, described in the portion of Schedule V hereto applicable to such Borrower as indicated thereon.
“Material Adverse Effect” means, with respect to any Borrower, (i) any material adverse effect on, or a material adverse change in, the business, property, assets, operations, condition (financial or otherwise), liabilities (actual or contingent) or prospects of such Borrower and its Consolidated Subsidiaries, taken as a whole, (ii) any material adverse effect on the legality, validity, binding effect or enforceability against such Borrower of this Agreement or any other Loan Document to which it is a party or (iii) a material impairment of the ability of such Borrower to perform any of its obligations under this Agreement or any other Loan Document to which it is a party.
(b)    The following new definitions are hereby added to Section 1.01 of the Existing Credit Agreement in the appropriate alphabetical order:
“Amendment No. 2” means Waiver and Amendment No. 2, dated as of November 17, 2020, by and among the Borrowers, the Lenders party thereto, the Administrative Agent and the Fronting Banks party thereto, which Amendment No. 2 amended this Agreement pursuant to the terms thereof.
“Amendment No. 2 Effective Date” means the Amendment Effective Date (as defined in Amendment No. 2), which date is November 17, 2020.
“FE Borrowers” means the Borrowers (as such term is defined in the FE Credit Agreement).
“FE Credit Agreement” means that certain Credit Agreement, dated as of December 6, 2016, as amended by Amendment No. 1 thereto, dated as of October 19, 2018, and Waiver and Amendment No. 2 thereto, dated as of November 17, 2020, among FE, The Cleveland Electric Illuminating Company, Metropolitan Edison Company, Ohio Edison Company, Pennsylvania Power Company, The Toledo Edison Company, Jersey Central Power & Light Company, Monongahela Power Company, Pennsylvania Electric Company, The Potomac Edison Company and West Penn Power Company, as borrowers, the lenders party thereto, Mizuho Bank, Ltd., as administrative agent, the fronting banks party thereto and the swing line lenders party thereto.
(c)     The table contained in Section 2.04(a) of the Existing Credit Agreement is hereby amended by deleting the number “0.275%” in Level 4 therein in its entirety and substituting therefor the number “0.30%”.
 

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(d)    Section 3.02(i)(A) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(A)    The representations and warranties of such Borrower contained in Section 4.01 (other than the first sentence of subsection (g) thereof (but solely with respect to the unaudited consolidated balance sheet of such Borrower and its Subsidiaries, as at September 30, 2016, and the related consolidated statements of income, retained earnings and cash flows for the nine months then ended) with respect to any Extension of Credit following the initial Extension of Credit) are true and correct on and as of the date of such Extension of Credit, before and after giving effect to such Extension of Credit and to the application of the proceeds therefrom, as though made on and as of such date (other than, as to any such representation or warranty that by its terms refers to a specific date other than the date of such Extension of Credit, in which case, such representation and warranty shall be true and correct as of such specific date);”
(e)    Section 3.02(i) of the Existing Credit Agreement is hereby amended by (i) deleting the word “and” at the end of clause (B) thereof and (ii) adding the following new clauses (D) and (E) at the end thereof to read as follows:

“(D)    Immediately after giving pro forma effect to such Extension of Credit, the aggregate amount of FE’s cash and cash equivalents shall not exceed $500,000,000; and

(E)    FE’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020 shall have been filed with the SEC; provided, however, that this clause (E) shall not constitute a condition to any Extension of Credit to the Borrowers (other than FET) if (and only if), immediately after giving effect to such Extension of Credit, the sum of (i) the aggregate Outstanding Credits for the account of the Borrowers (other than FET) plus (ii) the aggregate Outstanding Credits (as defined in the FE Credit Agreement) for the account of the FE Borrowers (other than FE) under the FE Credit Agreement, shall not exceed $500,000,000 in the aggregate;”
(f)    Section 4.01(m) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(m)    Anti-Corruption Laws and Sanctions.  Such Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance with Anti-Corruption Laws and Sanctions in all respects by the Covered Entities and their respective directors, officers, employees and, to the extent commercially reasonable, agents under the control and acting on behalf of the Covered Entities.  The Covered Entities are in compliance in all material respects with (i) the Trading with the Enemy Act, as amended, and each of the regulations promulgated by OFAC (31 CFR, Subtitle B, Chapter V, as amended) 
 

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and any other enabling legislation or executive order relating thereto, and (ii) the Patriot Act.  The Covered Entities and their respective officers and employees and, to the knowledge of such Borrower, the Covered Entities’ directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects, except to the extent disclosed in Schedule 1 to Amendment No. 2.  None of the Covered Entities or any of their respective directors, officers or employees or, to the knowledge of such Borrower, any agent of the Covered Entities (i) is a Sanctioned Person, (ii) has assets located in Sanctioned Countries in violation of applicable Sanctions, (iii) does business in or with, or derives its operating income from investments in, or transactions with, Sanctioned Persons or (iv) does unauthorized business in or with, or derives its operating income from unauthorized investments in, or transactions with, Sanctioned Countries.  No Borrowing or use of proceeds thereof will violate Anti-Corruption Laws or applicable Sanctions.”
(g)    Section 5.01(i) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(i)    Compliance with Anti-Corruption Laws and Sanctions. (i) Maintain in effect and enforce, and cause the other Covered Entities to maintain in effect and enforce, policies and procedures designed to ensure compliance with Anti-Corruption Laws and applicable Sanctions in all respects by the Covered Entities and their respective directors, officers, employees and, to the extent commercially reasonable, agents under the control and acting on behalf of the Covered Entities, and (ii) comply, and cause the other Covered Entities to comply, in all material respects with Anti-Corruption Laws and Sanctions applicable to it or its property.”  
(h)    Section 6.01 of the Existing Credit Agreement is hereby amended by (i) adding the word “or” at the end of clause (i) thereof and (ii) adding the following new clause (j) immediately after clause (i) thereof:

“(j)    (i) Any indictment shall be issued against FE or any of its Affiliates arising from a purported violation of any Anti-Corruption Law, or (ii) FE or any of its Affiliates shall have entered into any deferred prosecution agreement (or similar agreement) with respect to a purported violation of any Anti-Corruption Law (other than any deferred prosecution agreement (or similar agreement) solely with respect to the Noncompliance Event (as defined in Amendment No. 2));”  
 

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SECTION 3.     Conditions to Effectiveness.

This Amendment shall become effective as of the date first above written (the “Amendment Effective Date”) when, and only when, the following conditions have been satisfied (or waived by the Administrative Agent and the Lenders party hereto in their sole discretion):

(a)     The Administrative Agent shall have received, in immediately available funds, to the extent invoiced prior to the Amendment Effective Date, reimbursement or payment of all reasonable out-of-pocket costs and expenses of the Administrative Agent (including, but not limited to, the reasonable fees and expenses of counsel (including, but not limited to, one local counsel and any specialist counsel in each relevant jurisdiction) to the Administrative Agent) required to be reimbursed or paid by the Borrowers hereunder or under any other Loan Document.
(b)    The Administrative Agent shall have received the following documents, each document being dated the date of receipt thereof by the Administrative Agent (which date shall be the same for all such documents, except as otherwise specified below), in form and substance satisfactory to the Administrative Agent:
(i)    either (A) counterparts of this Amendment duly executed by each of the Borrowers, the Majority Lenders, the Administrative Agent and the Fronting Banks or (B) written evidence satisfactory to the Administrative Agent (which may include telecopy or other electronic transmission of a signed signature page of this Amendment) that such parties have signed counterparts of this Amendment; 
(ii)    copies of all the Disclosure Documents (it being agreed that those Disclosure Documents publicly available on the SEC’s EDGAR Database or on FE’s website no later than the Business Day immediately preceding the Amendment Effective Date will be deemed to have been delivered under this clause (ii) and the Lenders party hereto acknowledge receipt of each such Disclosure Document);
(iii)    an opinion of James A. Arcuri, Associate General Counsel of FirstEnergy Service Company, counsel for the Borrowers; 
(iv)    an opinion of Jones Day, special counsel for the Borrowers; 
(v)    good standing certificates with respect to FET issued no earlier than fifteen (15) days prior to the Amendment Effective Date;
(vi)    certified copies of (A) the resolutions of the Board of Directors of each Borrower approving this Amendment, the Amended Agreement and the other Loan Documents being executed and delivered in connection with this Amendment to which such Borrower is, or is to be, a party and (B) all documents evidencing any other necessary corporate action with respect to this Amendment, the Amended Agreement and such other Loan Documents;
 

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(vii)    a certificate of the Secretary or an Assistant Secretary of each Borrower certifying (A) the names and true signatures of the officers of such Borrower authorized to sign this Amendment and each other Loan Document being executed and delivered in connection with this Amendment to which such Borrower is, or is to become, a party and the other documents to be delivered hereunder, (B) that attached thereto are true and correct copies of the Organizational Documents of such Borrower, in each case as in effect on such date, and (C) that attached thereto are true and correct copies of all governmental and regulatory authorizations and approvals (including such Borrower’s Approval) required for the due execution, delivery and performance by such Borrower of this Amendment, the Amended Agreement and each other Loan Document being executed and delivered in connection with this Amendment to which such Borrower is, or is to become, a party; and
(viii)    a certificate of an Authorized Officer of each Borrower (the statements in which shall be true) certifying that, both before and after giving effect to this Amendment, (A) no event has occurred and is continuing that constitutes an Event of Default or an Unmatured Default with respect to such Borrower (other than the Relevant Events of Default) and (B) all representations and warranties of such Borrower contained in the Amended Agreement and each other Loan Document to which such Borrower is a party are true and correct in all material respects (or, in the case of any such representation or warranty already qualified by “Material Adverse Effect” or any other materiality qualification, true and correct in all respects) on and as of the Amendment Effective Date, as though made on and as of such date (other than any such representation or warranty that by its terms refers to a specific date, in which case such representation and warranty shall be true and correct as of such specific date);
(c)    The Administrative Agent shall have received evidence, in form and substance satisfactory to the Administrative Agent, that any defaults related to the occurrence of the Noncompliance Event under any agreements or instruments evidencing any existing Indebtedness of FE exceeding (or with undrawn commitments exceeding) $100,000,000 have been waived, and FET shall have certified to the Administrative Agent and the Lenders that no such defaults (other than such defaults that have been waived) exist.
(d)    (i) FET shall have executed and delivered to the Administrative Agent the fee letter agreement, dated the date hereof, between FET and the Administrative Agent and (ii) FET shall have paid (or caused to be paid) to the Administrative Agent, in immediately available funds, all of the fees payable in accordance with such fee letter agreement.
(e)    The Administrative Agent shall have received all documentation and information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the Patriot Act and the Beneficial Ownership Regulation, to the extent such documentation or information is requested by the Administrative Agent on behalf of any Lender prior to the Amendment Effective Date.

 

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SECTION 4.     Conditions Subsequent.

The Borrowers shall satisfy (or cause to be satisfied) each of the requirements set forth below on or before the date specified for such requirement (or such later date as may be agreed by the Administrative Agent in its sole discretion):
(a)    No later than December 4, 2020, the Administrative Agent shall have received the following documents, each document being dated the date of receipt thereof by the Administrative Agent (which date shall be the same for all such documents, except as otherwise specified below), in form and substance satisfactory to the Administrative Agent:
(i)    Opinions of (A) special Maryland counsel to TrAILCo, and (B) special Virginia counsel to TrAILCo; 
(ii)    Good standing certificates with respect to each Borrower (other than FET) issued no earlier than fifteen (15) days prior to the Amendment Effective Date; and 
(iii)    Such other certifications, opinions, financial or other information, approvals and documents as the Administrative Agent, any Fronting Bank or any other Lender may have reasonably requested, all in form and substance satisfactory to the Administrative Agent, such Fronting Bank or such other Lender (as the case may be).
(b)    No later than January 15, 2021, the Borrowers shall have entered into an amendment to the Credit Agreement providing for (i) updated replacement LIBOR language (based on the ARRC hard-wired fallback language), (ii) a customary limited liability company divisions provision and (iii) an updated EEA bail-in provision (reflecting the departure of the United Kingdom from the European Union), in each case, as reasonably agreed to by the Borrowers and the Administrative Agent and as customary for a facility of this type.
(c)     Prior to February 1, 2021, and at such other times thereafter as may be reasonably requested by the Administrative Agent or the Majority Lenders (but not before May 1, 2021 and no more frequently than once per fiscal quarter), FET shall deliver to the Administrative Agent (who shall provide a copy to the Lenders) a written report, in form, detail and substance reasonably satisfactory to the Administrative Agent and the Majority Lenders, describing the actions that FET has taken and will be taking in order to ensure that FET and the other Covered Entities (and their respective officers, directors and employees) have in place policies and procedures necessary to ensure compliance with Anti-Corruption Laws; provided, that FET shall not be required to provide (i) information subject to attorney-client privilege or (ii) information prohibited to be disclosed to the Credit Parties by Applicable Law.
(d)    Within one (1) Business Day after the filing of FE’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020 (the “2020 3Q 10-Q”) with the SEC, FET shall deliver to the Administrative Agent a certificate of an Authorized Officer of FET (the statements in which shall be true, as reasonably determined by the Majority Lenders) certifying that the 2020 3Q 10Q does not contain any information that varies from the information contained in the draft Form 10-Q of FE for the quarterly period ended September 30, 2020 
 

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(Confidential Draft dated November 16, 2020) delivered to the Administrative Agent and the Lenders on November 16, 2020 (the “Draft 10-Q”) in any respect materially adverse to the interests of the Lenders under the Credit Agreement and the other Loan Documents. 
SECTION 5.     Representations and Warranties.

Each Borrower represents and warrants as follows:
(a)    Due Authorization.  The execution, delivery and performance by it of this Amendment and each other Loan Document being executed and delivered in connection with this Amendment to which such Borrower is a party, and the performance by such Borrower of the Amended Agreement, have been duly authorized by all necessary corporate action on its part and do not, and will not, require the consent or approval of its shareholders or members, as the case may be, other than such consents and approvals as have been duly obtained, given or accomplished.
(b)    No Violation, Etc.  Neither the execution, delivery or performance by it of this Amendment or any other Loan Document being executed and delivered in connection with this Amendment to which it is a party, nor the consummation by it of the transactions contemplated hereby or thereby, nor compliance by it with the provisions hereof or thereof, nor the performance by it of the Amended Agreement, contravenes or will contravene, or results or will result in a breach of, any of the provisions of its Organizational Documents, any Applicable Law, or any indenture, mortgage, deed of trust, lease, license or any other agreement or instrument to which it or any of its Subsidiaries is party or by which its property or the property of any of its Subsidiaries is bound, or results or will result in the creation or imposition of any Lien upon any of its property or the property of any of its Subsidiaries, except to the extent such contravention or breach, or the creation or imposition of any such Lien, individually or in the aggregate, has not had and would not reasonably be expected to have a Material Adverse Effect with respect to such Borrower.  
(c)    Governmental Actions.  No Governmental Action is or will be required in connection with (i) the execution, delivery or performance by it of, or the consummation by it of the transactions contemplated by, this Amendment or any other Loan Document being executed and delivered in connection with this Amendment to which it is, or is to become, a party, or (ii) the performance by it of the Amended Agreement, in each case, other than such Borrower’s Approval, as applicable, which has been duly issued and is in full force and effect.  
(d)    Execution and Delivery.  This Amendment and the other Loan Documents being executed and delivered in connection with this Amendment to which it is, or is to become, a party have been or will be (as the case may be) duly executed and delivered by it, and each of this Amendment and the Amended Agreement is, and upon execution and delivery thereof each such other Loan Document will be, the legal, valid and binding obligation of it enforceable against it in accordance with its terms, subject, however, to the application by a court of general principles of equity and to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally.

 

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(e)    No Material Misstatements.  The reports, financial statements and other written information furnished by or on behalf of such Borrower to the Administrative Agent, any Fronting Bank or any Lender pursuant to or in connection with this Amendment and the transactions contemplated hereby (including, without limitation, the Draft 10-Q), when taken together with the Disclosure Documents, do not contain, when taken as a whole, any untrue statement of a material fact and do not omit, when taken as a whole, to state any fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading in any material respect.
(f)    Litigation.  There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of such Borrower, threatened against such Borrower or any of its Subsidiaries that involve this Amendment, the Amended Agreement or any other Loan Document.
(g)    No Default.  No Unmatured Default or Event of Default has occurred and is continuing (other than the Relevant Events of Default) or would occur as a result of (i) the execution, delivery or performance by such Borrower of this Amendment or any other Loan Document being executed and delivered in connection with this Amendment to which it is, or is to become, a party or (ii) the performance by such Borrower of the Amended Agreement.
(h)    Policies and Procedures Regarding Compliance with Anti-Corruption Laws.  The Borrowers have provided to the Administrative Agent on or prior to the Amendment Effective Date a true and complete (i) list and copy of all policies and procedures currently in place at each Borrower and each Covered Entity related to compliance with Anti-Corruption Laws and (ii) summary and description of all remedial actions taken by, changes made by, or other responses of each Borrower and each Covered Entity with respect to the Noncompliance Event.
(i)    Anti-Corruption Laws.  No Borrowing has been used in violation of any Anti-Corruption Law.
(j)    2020 3Q 10-Q.  Pursuant to the Form 12b-25 filed by FE with the SEC on November 9, 2020, the deadline for the filing of the 2020 3Q 10-Q with the SEC was extended to November 16, 2020.  FE is not able to meet such extended filing deadline, and intends to file the 2020 3Q 10-Q with the SEC on or before November 19, 2020, as a result of the additional time needed to provide appropriate disclosure in the 2020 3Q 10-Q with respect to (i) the Noncompliance Event, (ii) the ongoing government investigations and internal investigations regarding matters previously publicly disclosed by FE, (iii) FE’s re-evaluation of its controls framework and (iv) identification of one or more material weaknesses in its internal controls framework, but not due to any material dispute or disagreement with FE’s independent accounting firm as to the substance of any disclosure (or any omission of any disclosure) in the 2020 3Q 10-Q.
 

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SECTION 6. Reference to and Effect on the Credit Agreement and the Other Loan Documents.
(a)    Except as expressly amended or waived hereby, all of the representations, warranties, terms, covenants and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance with their respective terms and are hereby in all respects ratified and confirmed.  The waiver and amendments set forth herein shall be limited precisely as provided for herein and shall not be deemed to be a waiver of, amendment of, consent to departure from or modification of any term or provision of the Loan Documents or any other document or instrument referred to therein or of any transaction or further or future action on the part of any Borrower requiring the consent of the Administrative Agent, the Fronting Banks or the Lenders except to the extent specifically provided for herein.  Except as expressly set forth herein, the Administrative Agent and the Lenders have not and shall not be deemed to have waived any of their respective rights and remedies against the Borrowers for any existing or future Unmatured Default or Event of Default.  The Administrative Agent, the Fronting Banks and the Lenders reserve the right to insist on strict compliance with the terms of the Credit Agreement and the other Loan Documents, and the Borrowers expressly acknowledge such reservation of rights.  Any future or additional waiver or amendment of any provision of the Credit Agreement or any other Loan Document shall be effective only if set forth in a writing separate and distinct from this Amendment and executed by the appropriate parties in accordance with the terms thereof.
(b)    Upon the effectiveness of this Amendment: (i) each reference in the Existing Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Existing Credit Agreement shall mean and be a reference to the Amended Agreement; and (ii) each reference in any other Loan Document to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Existing Credit Agreement shall mean and be a reference to the Amended Agreement.  This Amendment shall constitute a “Loan Document” for all purposes under the Credit Agreement and the other Loan Documents.
(c)    The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders, the Administrative Agent or the Fronting Banks under the Existing Credit Agreement or any other Loan Document, nor constitute a waiver of any provision of the Existing Credit Agreement or any other Loan Document.
SECTION 7.    Costs and Expenses.  
Each Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent and each Fronting Bank in connection with the preparation, execution, delivery, syndication and administration of this Amendment and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel (including, but not limited to, one local counsel and any specialist counsel in each relevant jurisdiction) for the Administrative Agent and the Fronting Banks with respect thereto and with respect to advising the Administrative Agent and the Fronting Banks as to their rights and responsibilities under this Amendment. Each Borrower further agrees to pay 
 

13

on demand all reasonable out-of-pocket costs and expenses, if any (including, without limitation, reasonable fees and expenses of counsel), incurred by the Administrative Agent, the Fronting Banks and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Amendment, the Amended Agreement and the other documents to be delivered hereunder, including, without limitation, counsel fees and expenses in connection with the enforcement of rights under this Section.  The Borrowers acknowledge and agree that, pursuant to Section 8.05(a) of the Credit Agreement, they are required to pay, among other costs and expenses set forth therein, the reasonable fees and expenses of counsel for the Administrative Agent (including, but not limited to, any local counsel and any specialist counsel for the Administrative Agent), in accordance with the terms thereof.
SECTION 8.    Counterparts.  
This Amendment may be executed in any number of counterparts (and by different parties hereto in separate counterparts), each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.  Delivery of an executed signature page to this Amendment by facsimile or other electronic transmission (including, without limitation, by Adobe portable document format file (also known as a “PDF” file)) shall be as effective as delivery of a manually signed counterpart of this Amendment.  The words “execution,” “executed,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment or any document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided, that nothing herein shall require the Administrative Agent to accept electronic signatures in any form or format without its prior written consent; provided, further, that, without limiting the foregoing, upon the request of the Administrative Agent, any electronic signature shall be promptly followed by such manually executed counterpart.
SECTION 9.    Governing Law.  
This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
SECTION 10.  Miscellaneous.
This Amendment shall be subject to the provisions of Sections 8.05, 8.10, 8.11 and 8.12 of the Credit Agreement, each of which is incorporated by reference herein, mutatis mutandis.

 

14

SECTION 11.  Release.
In consideration of, among other things, the Administrative Agent’s, the Fronting Banks’ and the Lenders’ execution and delivery of this Amendment, each Borrower, on behalf of itself and its agents, representatives, officers, directors, advisors, employees, subsidiaries, affiliates, successors and assigns (collectively, “Releasors”), hereby forever agrees and covenants not to sue or prosecute against any Releasee (as hereinafter defined) and hereby forever waives, releases and discharges, to the fullest extent permitted by law, each Releasee from any and all claims (including, without limitation, crossclaims, counterclaims, rights of set-off and recoupment), actions, causes of action, suits, debts, liens, warranties, damages and consequential damages, judgments, costs or expenses whatsoever, that such Releasor now has or hereafter may have, of whatsoever nature and kind, whether now existing or hereafter arising, whether arising at law or in equity (collectively, the “Claims”), against any or all of the Credit Parties in any capacity and their respective affiliates, subsidiaries, shareholders and “controlling persons” (within the meaning of the federal securities laws), and their respective successors and assigns and each and all of the officers, directors, employees, agents, attorneys, advisors and other representatives of each of the foregoing (collectively, the “Releasees”), based in whole or in part on facts existing on or before the Amendment Effective Date, that relate to, arise out of or otherwise are in connection with: (i) any or all of the Loan Documents or transactions contemplated thereby or any actions or omissions in connection therewith; or (ii) any aspect of the dealings or relationships between or among the Borrowers, on the one hand, and any or all of the Credit Parties, on the other hand, relating to any or all of the documents, transactions, actions or omissions referenced in clause (i) hereof.  The receipt by any Borrower of any Advances or other financial accommodations made by any Credit Party after the date hereof shall constitute a ratification, adoption, and confirmation by such party of the foregoing general release of all Claims against the Releasees that are based in whole or in part on facts existing on or prior to the date of receipt of any such Advances or other financial accommodations.  In entering into this Agreement, each Borrower consulted with, and has been represented by, legal counsel and expressly disclaims any reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness of the releases set forth above do not depend in any way on any such representations, acts and/or omissions or the accuracy, completeness or validity thereof.  The provisions of this Section 11 shall survive the termination of this Amendment, the Credit Agreement, the other Loan Documents and payment in full of the Advances.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGES FOLLOW]

 

S-1

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

FIRSTENERGY TRANSMISSION, LLC 
AMERICAN TRANSMISSION SYSTEMS,
    INCORPORATED
MID-ATLANTIC INTERSTATE
    TRANSMISSION, LLC
TRANS-ALLEGHENY INTERSTATE LINE
    COMPANY 

By    /s/ Steven R. Staub            
    Name: Steven R. Staub
    Title: Vice President and Treasurer 

 

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-2

PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent, as a Lender and as a Fronting Bank

By     /s/ Kelly Sarver            
Name:  Kelly Sarver
Title:    Vice President

 
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-3

MIZUHO BANK, LTD., as a Lender

By     /s/ Raymond Ventura            
Name:  Raymond Ventura
Title:    Managing Director

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-4

JPMORGAN CHASE BANK, N.A., as a Lender 

By     /s/ Nancy R. Barwig            
Name:  Nancy R. Barwig
Title:    Executive Director

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-5

MUFG BANK, LTD., as a Lender 

By     /s/ Jeffrey P. Fesenmaier        
Name:  Jeffrey P. Fesenmaier
Title:    Managing Director

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-6

THE BANK OF NOVA SCOTIA, as a Lender 

By     /s/ David Dewar            
Name:  David Dewar
Title:    Director

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-7

CITIBANK, N.A., as a Lender 

By     /s/ Ashwani Khubani            
Name:  Ashwani Khubani
Title:    Managing Director / Vice President

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-8

BARCLAYS BANK PLC, as a Lender 

By     /s/ Sydney G. Dennis            
Name:  Sydney G. Dennis
Title:    Director
 
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-9

CANADIAN IMPERIAL BANK OF
COMMERCE, NEW YORK BRANCH, as a Lender

By     /s/ Anju Abraham            
Name:  Anju Abraham
Title:    Authorized Signatory

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-10

ROYAL BANK OF CANADA, as a Lender 

By     /s/ Justin Painter            
Name:  Justin Painter
Title:    Authorized Signatory 

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-11

MORGAN STANLEY BANK, N.A., as a Lender

By     /s/ Julie Hong                
Name:  Julie Hong
Title:    Authorized Signatory

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-12

MORGAN STANLEY SENIOR FUNDING, INC., as a Lender

By     /s/ Julie Hong                
Name:  Julie Hong
Title:    Vice President

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-13

SUMITOMO MITSUI BANKING CORPORATION, as a Lender

By     /s/ Katie Lee            
Name:  Katie Lee
Title:    Director

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-14

TD BANK, N.A., as a Lender

By     /s/ Shannon Batchman            
Name:  Shannon Batchman
Title:    Sr. Vice President 
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-15

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By     /s/ Joe Horrigan            
Name:  Joe Horrigan
Title:    Managing Director    
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-16

KEYBANK NATIONAL ASSOCIATION, as a Lender

By     /s/ Renee M. Bonnell            
Name:  Renee M. Bonnell
Title:    Senior Vice President 
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-17

SANTANDER BANK, N.A., as a Lender

By     /s/ Andres Barbosa            
Name:  Andres Barbosa
Title:    Managing Director    

By     /s/ Zara Kamal            
Name:  Zara Kamal
Title:    Vice President 
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-18

FIFTH THIRD BANK, as a Lender

By     /s/ Larry Hayes            
Name:  Larry Hayes
Title:    Director

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-19

THE BANK OF NEW YORK MELLON, as a Lender

By     /s/ Richard K. Fronaplel, Jr.        
Name:  Richard K. Fronaplel, Jr.
Title:    Director 
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-20

CITIZENS BANK, N.A., as a Lender

By     /s/ Stephen A. Maenhout        
Name:  Stephen A. Maenhout
Title:    Senior Vice President 
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-21

THE HUNTINGTON NATIONAL BANK, as a Lender

By:     /s/ Martin H. McGinty        
Name:     Martin H. McGinty    
    Title:       Director    
[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

S-22

FIRST NATIONAL BANK OF PENNSYLVANIA,
as a Lender

By:     /s/ Jeffrey Kindler            
      Name:     Jeffrey Kindler
      Title:       Senior Vice President

[Signature Page to Waiver and Amendment No. 2 to FirstEnergy Transmission, LLC Revolving Credit Agreement]

Schedule 1

Noncompliance Event

    Payment by FE in January 2019 to an individual (the “Individual”) or the consulting firm related to such Individual of approximately $4.3 million in connection with the termination of a purported consulting agreement (which had been in place since 2013) and the conduct corresponding to such payment of such consulting firm and the Individual (acting at the request or for the benefit of FE as a consequence of receiving such payment) and of FE (or any of FE’s directors, officers or employees) during the time period after such payment during which the Individual was acting in any governmental or regulatory capacity, in each case, as previously disclosed to the Administrative Agent and the Lenders on or prior to the date hereof.   Following such payment, in February 2019 such Individual was appointed (and assumed such position in April 2019) to a full-time role as an Ohio governmental official directly involved in regulating The Cleveland Electric Illuminating Company, Ohio Edison Company and The Toledo Edison Company, including with respect to distribution rates.EX-10.3

 Exhibit 10.3 

Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

Supply Agreement 
 EXECUTION
VERSION 
  

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly
disclosed. 
 BETWEEN 
 Idemia France SAS, 

a company existing and organized under the laws of France with a capital of 42,959,506.60€, whose registered office is located at 2 Place Samuel de
Champlain, 92400 Courbevoie, France, registered under number 340 709 534 with the Nanterre Trade and Companies Registry, acting in its own name as well in the name and on behalf of its Affiliates, 

hereinafter referred to as “Purchaser” or “Idemia” 

AND 
 IDEX Biometrics ASA, 

having its head office at Dronning Eufemias gate 16, 0191 Oslo, Norway, registered in the Norwegian Register of Business Enterprises under number 976846923,

 Hereinafter referred to as the “Supplier”, 

hereinafter collectively referred to as the “Parties” and individually as the “Party”. 

IN WITNESS WHEREOF, THE PARTIES HAVE AGREED AND DECIDED AS FOLLOWS: 

Object: 
 This Agreement is a framework agreement which sets forth
the terms and conditions applicable to the purchase of supply through issuance of Orders by Idemia, as accepted in writing by Supplier (the “Supply”). Nothing in the Contract shall be interpreted as a commitment to issue Orders or intent
of issuance of Orders. Only Orders placed in accordance with the provisions of this Agreement shall be binding upon Idemia. 
 This Agreement consists of
three parts: the Special Terms and Conditions and the General Terms and Conditions. 
 EXECUTION VERSION 

 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

					
	 1.  ORDER OF THE SUPPLY
	  	 	4	 
		
	 2.  TERM OF THE AGREEMENT
	  	 	4	 
		
	 3.  SUPPLIER’S PERFORMANCE AT THE PURCHASER’S SITE
	  	 	4	 
		
	 4.  INSURANCE
	  	 	5	 
		
	 5.  SUPPLY OR PROCESS CHANGE
	  	 	5	 
		
	 PART 2: GENERAL TERMS AND CONDITIONS 
	  	 	7	 
		
	 1 -DEFINITIONS 
	  	 	7	 
		
	 2 -CONTRACTUAL DOCUMENTS 
	  	 	8	 
		
	 3 -ORDERING PROCEDURE 
	  	 	9	 
		
	 4 -DELIVERY 
	  	 	10	 
		
	 5 -DEADLINES 
	  	 	11	 
		
	 6 - ACCEPTANCE 
	  	 	12	 
		
	 7 -TRANSFER OF OWNERSHIP 
	  	 	12	 
		
	 8 -PRICE – INVOICING – PAYMENT TERMS 
	  	 	12	 
		
	 9 -WARRANTY - MAINTENANCE 
	  	 	13	 
		
	 10 -CONTINUITY 
	  	 	13	 
		
	 11 -INDUSTRIAL AND INTELLECTUAL PROPERTY 
	  	 	14	 
		
	 12 -LIABILITY 
	  	 	15	 
		
	 13 -COMPLIANCE WITH LABOUR REGULATIONS 
	  	 	16	 
		
	 14 -COMPLIANCE OF THE SUPPLY WITH REGULATIONS AND STANDARDS AND CSR COMMITMENTS 
	  	 	16	 
		
	 15 -SUPPLIER’S PERSONNEL 
	  	 	16	 
		
	 16 -CONFIDENTIALITY 
	  	 	17	 
		
	 17 -FORCE MAJEURE 
	  	 	18	 
		
	 18 -TRANSFER – ASSIGNMENT – SUBCONTRACTING 
	  	 	18	 
		
	 19 -EXPORT CONTROL 
	  	 	19	 
		
	 20 -TERMINATION 
	  	 	20	 
		
	 22 -ETHICS 
	  	 	21	 
		
	 23 -MISCELLANEOUS 
	  	 	22	 
		
	 24 -APPLICABLE LAW – JURISDICTION 
	  	 	22	 

  

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 PART 1: SPECIAL TERMS AND CONDITIONS 

The below Special Terms and Conditions supplement or derogate from, as the case may be, the General Terms and Conditions. In case of discrepancy between the
General Terms and Conditions and the Special Terms and Conditions, the Special Terms and Conditions shall prevail over the General Terms and Conditions. 

The definitions set out in the General Terms and Conditions shall also apply in respect of the Special Terms and Conditions. 

 

	1.	 ORDER OF THE SUPPLY 

All orders referencing this Agreement are subject to its provisions. 
  

	2.	 TERM OF THE AGREEMENT 

This Agreement shall enter into force on the date of signature by both Parties. This Agreement shall remain in full force and effect for an initial term of
three (3) years unless terminated pursuant to the provisions of Article 20 of the General terms and Conditions. The Agreement will automatically renew for an additional one-year period unless terminated
by either Party in writing no later than thirty (30) days prior to expiry of the initial term. 
  

	3.	 SUPPLIER’S PERFORMANCE AT THE PURCHASER’S SITE 

If the Supply is performed (either fully or partially) at the Purchaser’s sites, the Supplier shall: 

 

	 	•	 	 forward in advance a list with the names of the members of its personnel susceptible of accessing the
Purchaser’s site, the Purchaser reserving the right to refuse any person access to its site for security reasons. The Supplier will take the necessary measures to ensure that if any persons have to be replaced, this will not have a negative
impact on the performance and the quality of the Supplies, 

  

	 	•	 	 respect and ensure that the Supplier’s personnel and any subcontractor respect the rules of access to the
site, security requirements, including in relation to information technology (IT), confidentiality rules, as well as the provisions of the internal rules of conduct which apply to all persons within one of the Purchaser’s establishment as
employees of an external company, including hygiene and safety rules and general working conditions. The Supplier shall, in particular, comply with the provisions of the French Labor Code (if applicable) relating to hygiene and safety applicable to
“work carried out within the premises by an external company”. The Parties agree that the prevention plan provided by these provisions shall be implemented before the performance of the Order. 

When necessary, the Purchaser will make available to the Supplier premises that will be allocated to it to enable it to intervene without disrupting the
organization of the Purchaser’s company. The Supplier will be able to place its equipment there, including in particular computer equipment (PCs, workstations, office furniture, etc.) necessary for the performance of the Supplies that are
subject of the Order. The disposal of the premises will end once the Order has been performed, or if the Supplier’s presence in the Purchaser’s premises is no longer justified. The Supplier will retain full and entire ownership and custody
of equipment, software and software programs belonging to it that it has occasion to use and/or store at the Purchaser’s site. 
 The Purchaser may
also: 
  

	 	•	 	 provide the IT services strictly necessary for performance of the Order in accordance with procedures and
modalities that it will define on a case by case basis in order to preserve the security of its IT systems; 

  

	 	•	 	 provide access to its internal messaging system and to a directory for the exchange of data with the Supplier.

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 When the Supplier is authorized to access the Purchaser’s information system, this authorization is
strictly limited only to performing the Order. The Supplier shall, in all events, respect the Idemia Group’s Information System Utilization and Security Charter and all other instructions provided. 

Should the Supplier’s personnel be present on the Purchaser’s site, the Supplier shall appoint a project manager having hierarchical and
disciplinary authority over its personnel. 
 Each member of the Supplier’s personnel present at the Purchaser’s site must, on request, state
their name, the manager of their mission, and the name and contact details of the Supplier’s project manager. 
 At the end of the completion of the
Supply at the Purchaser’s site, the Supplier’s personnel must: 
  

	 	•	 	 return to the Purchaser’s security manager the badges and other means of access that had been given to them,

  

	 	•	 	 where applicable, return to the department concerned the words, codes and keys used to access the hardware and
software allocated to it, 

  

	 	•	 	 and more generally, return all information, documents and other items which were supplied to it by the Purchaser
for the performance of the Order. 

  

	 	4.	 INSURANCE 

The Supplier undertakes to take out and maintain in effect a general liability insurance policy for a limit of guarantee at least equal to USD [***] against
the consequences of its liability under this Agreement. The limit of the general liability insurance shall be increased to [***] within thirty (30) days after the end of the calendar year 2020. Any increase in the limit over and above [***]
requires the mutual written consent of both Parties. In this respect, the Supplier shall provide proof, at the Purchaser’s first request, of the validity of the insurance policies it has taken out by producing certificates issued by its
insurers, indicating the type and amount of guarantees granted. Moreover, the Supplier shall produce proof that it has paid its premiums and shall provide annual certificates confirming the renewal of its policies for the following period, for as
long as its contractual obligations remain in force. In the case of insufficient coverage, the Purchaser shall have the right to require that the Supplier take out additional coverage at its own expense. Neither the presentation of insurance
certificates by the Supplier nor the content of the insurance policies taken out shall limit the Supplier’s liability vis-à-vis the Purchaser. 

 

	 	5.	 SUPPLY OR PROCESS CHANGE 

The Supplies may be subject to regulatory approval and, if so, no change of definition or configuration or Supply process that may impact such regulatory
approval shall be implemented by Supplier without Purchaser’s prior written approval (such approval not to be unreasonably withheld or delayed by the Purchaser). 

The obligations set out in this Article “Supply or Process Change” apply for the duration of this Agreement and afterwards, for each reference of
Supply, until the expiry of the warranty period of the last Supply delivered pursuant to this Agreement. 
 5.1 Supplies or components of the Supply
Discontinuity Notice (PDN) 
 5.1.1 Supplier shall monitor the obsolescence risk and occurrences of any obsolescence of components of the Supplies
through an adequate monitoring system that will enable Purchaser to follow the impacts of such obsolescence phenomenon. 
 Supplier shall use its best
efforts to impose on its subcontractors at all levels the adoption of similar obsolesence monitoring system. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 Supplier will deliver to Purchaser a specific form reporting the above obsolescence status every year and
within 3 months of Purchaser’s written request. 
 5.1.2 The Supplier shall, as soon as the Supplier has knowledge of a component obsolescence and at
least [***] before manufacture stoppage send a PDN to the Purchaser and to the concerned Purchasing Department. In any event, the Supplier shall continue to deliver the Products subject to the obsolescence, referred to in the PDN, for a period of
[***] months as from the discontinuation date effect, and accept last-time-buy orders for such Products. Last-time-buy orders may not be cancelled or rescheduled. For
the avoidance of doubt, all provisions including but not limited to the warranty section shall fully apply to the Products subject to last time orders. 

The PDN shall include the following data: 
  

	 	(i)	 for the obsolete component: 

 

	 	•	 	 part number and description of the component involved 

 

	 	•	 	 availability of stock 

  

	 	•	 	 date of expected production discontinuity 

 

	 	•	 	 part number and description of the replacing component together with its impact, if any, on fit, form, function,
weight, reliability & maintainability, qualification, design performance of the Supply and delivery schedule 

  

	 	•	 	 manufacturer/distributor name of the obsolete component 

 

	 	•	 	 justification of the obsolescence (manufacturer obsolescence release note, including the Last Buy Order date)

  

	 	(ii)	 for the Supply 

  

	 	•	 	 any possible consequences on its qualifications or regulatory approval, 

 

	 	•	 	 the application date of the change (date-code), 

 

	 	•	 	 Supply new identification and/or part number. 

5.1.3 Supplier shall submit an action plan for each obsolete component, among the following options and in the following order of preference: 

 

	 	(i)	 Action A: identification of a completely equivalent component 

Supplier must prove that the proposed new component is equivalent with the obsolete one. No additional qualification will be required. 

 

	 	(ii)	 Action B: identification of a partially equivalent component: 

Supplier must prove that the proposed new component does not substantially affect the form, fit and functionality of the Supply and the interchangeability of
the Supply including the obsolete component. An additional qualification may be required. 
  

	 	(iii)	 Action C: No equivalent component identified: 

Supplier shall reasonably demonstrate the absence of equivalent component and that Action A or Action B are not possible. 

Supplier shall then propose a redesign of the Supply including the obsolete component and the constitution of a strategic stock of the obsolete component.

  

	 	•	 	 The quantity of obsolete components constituting the strategic stock shall be agreed between Supplier and
Purchaser based on the relevant data, including but not limited to the data listed here-after, which Supplier shall be responsible for collecting and processing: 

 

	 	•	 	 Remaining number of units to be produced, 

 

	 	•	 	 Total number of units to be maintained, 

 

	 	•	 	 Maintenance period, 

  

	 	•	 	 Profile of use of the equipment, 

 

	 	•	 	 Periodicity of preventive maintenance, 

 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

	 	•	 	 The redesign of the Supply including the obsolete component by the Supplier shall not affect its
interchangeability. 

 Purchaser will notify the Supplier, within two (2) months of its receipt of Supplier’s proposal to
redesign a Supply, of its decision to have a Supply redesigned and/or the constitution of a strategic stock of the obsolete component. In case the Purchaser decides to have a strategic stock implemented, all stock of components for obsolescence must
be covered by firm Orders from the Purchaser. 
 5.1.4 Supplier shall not carry out the Action Plan proposed to Purchaser without Purchaser prior written
approval (such approval not to be unreasonably withheld or delayed). 
 5.2 Supply or Process change notification (PCN) 

5.2.1 Supplier may incorporate modifications to the Supplies; provided, however, that any Change shall be subject to Purchaser’s prior written agreement
(not to be unreasonably withheld or delayed), as it deems advisable for facilitating the manufacturing of the Supplies in order to enhance or optimize Supply performance or Supply pricing, or for other justified reason, provided that no such
modification shall in any way affect the interchangeability of the components of the Supplies, degrade the performance, increase the prices or postpone the delivery of the Supplies. 

5.2.2 Supplier undertakes to inform Purchaser in writing of any change occurring either before or after mass-production has started and thus including in
particular changes made between sample manufacturing and mass-production manufacturing, whether or not they cause modifications in the characteristics of the Supplies and at least six (6) months when in mass production before implementation of
Change. 
 Supplier shall send a PCN to Quality department of Purchaser and to the concerned Purchaser buyer. 

The PCN shall include the following data: 
  

	 	(i)	 Description of the change, including but not limited to: 

 

	 	•	 	 Technological evolution (raw material, design, process), 

 

	 	•	 	 Manufacturing evolution (process, packing, etc.), 

 

	 	•	 	 Test and inspection evolution, 

 

	 	•	 	 Site evolution (diffusion, assembly, test, packing), 

 

	 	•	 	 Official approval or loss of official approval of a component, especially for safety component.

  

	 	(ii)	 For the Supply: 

  

	 	•	 	 any possible consequences on its qualifications or regulatory approval, 

 

	 	•	 	 the application date of the change (date-code), 

 

	 	•	 	 Supply new identification and/or part number. 

Unless otherwise stated in writing by Supplier, samples submitted by Supplier for qualification or evaluation by Purchaser must be representative of mass
production in terms of performance and characteristics. 
 5.2.3 Purchaser must approve in writing any such Supply Process Change before it is implemented by
Supplier. The approval by Purchaser of any such modification shall not relieve Supplier from the obligations contained in an Order. 
 5.2.4 In regard to
subcontractors of Supplier that supply raw materials, Purchaser acknowledges that minor changes in raw materials may occur absent Supplier’s knowledge, however, Supplier will use its best efforts to obtain information of and report in writing
within 10 Working Days to Purchaser any changes in the materials. For the purposes of this paragraph, a “minor change” shall mean any small process, material or product change that does not impact fit, form and functionality of the Product
and would be backward compatible with existing product. A major change either by process, specification or materials is defined as impacting the fit, form and functionality of the Product. 

 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 PART 2: GENERAL TERMS AND CONDITIONS 

1 -DEFINITIONS 
 Acceptance report: Document issued
by the Purchaser, signed by both Parties, confirming the acceptance of the Supply. 
 Agreement: The present document consisting of the Special Terms
and Conditions and the General Terms and Conditions. 
 Documentation: Any document issued or provided by the Supplier, such as but not limited to,
datasheet and certificate of conformity, plan, description, model or instruction necessary for the achievement, installation, use, operation and maintenance of the Supply by the Purchaser. 

Final Client: Client of the Purchaser, purchaser of a product and/or service incorporating the Supply. 

Official Authorities: Any national or international organization with the authority (including by delegation of a public authority) to monitor the
performance of the Supply ordered, in particular certification organizations for products or services or business audit organizations. 
 Order:
Document, regardless of the form, issued by the Purchaser and sent to and acknowledged in signed writing by the Supplier, concerning the purchase or the lease of a Supply and including, in particular, the designation of the Supply ordered, the
deadlines, the price as well as the reference to these Agreement. 
 Product: Fingerprint sensors including fingerprint sensor components,
fingerprint sensor modules and loaded firmware. The parties acknowledge that the remote enrolment solution is already subject to the IP license agreement effective on 30 September 2019 (“IP License Agreement”). Any license for Idemia
to Supplier matcher software, or other Supplier software shall be the subject of a separate license agreement by and between the parties. 

Purchaser: Idemia or the Idemia Affiliate placing the Order. 

Affiliate: any company controlling, controlled by or under common control with either Party, where control means direct or indirect ownership of at
least fifty per cent (50%) of the voting stock or interest in a company or control of the composition of the board of directors, including, if any, the respective successors and assigns of any or all of them. 

Specifications: Any document setting out the requirements and performance conditions of the Supply, including the statement of work description,
applicable standards and quality requirements. 
 Supply: Supplies of Products and/or services, which are identified in and the subject of the Order.

 Working Days: From Monday to Friday, excluding Saturday, Sunday and Public Holidays in France, England and/or Norway. 

2 -CONTRACTUAL DOCUMENTS 
 2.1 The purpose of this
Agreement is to set forth the contractual relationship between the Supplier and the Purchaser within the framework of the Supply Orders. The relationship between the Purchaser and the Supplier related to the Supply is governed by the following
contractual documents, listed in order of decreasing priority (“Contractual Documents”): 
  

	 	•	 	 The Order; 

  

	 	•	 	 The Special Terms and Conditions of the Supply Agreement; 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

	 	•	 	 The Specifications as defined or referenced in a statement of work. 

 

	 	•	 	 The General Terms and Conditions of the Supply Agreement. 

Following execution of this Agreement, the Parties will also negotiate in good faith the terms and conditions of a Quality Agreement, which, upon its
completion and execution, will have the same priority as the Special Terms and Conditions of the Supply Agreement. For the avoidance of doubt, this Agreement shall be in full force and effect upon execution by the Parties and shall not be
conditional upon the later execution of a Quality Agreement. 
 In the event of contradiction between two documents with a different ranking, the document
with the higher ranking shall prevail. Notwithstanding the foregoing, if an Order deviates from the other Contractual Documents (including but not limited to the specifications, incoterms) , such deviation shall be clearly and unambiguously spelled
out in the Order, explicitly describing the deviation in question with specific reference to the conflicting language in the other Contractual Documents. For the avoidance of doubt, any such deviation in the Order shall be subject to the express
prior written consent of the Supplier in order to become effective. 
 The Parties agree that any documents in relation to Supply Orders other than the
documents listed above, that include their own general commercial conditions such as general terms and conditions of purchase or general terms and conditions of sale, are not applicable. 

2.2 The Purchaser hereby agrees to provide the Supplier with a six (6) month rolling non-binding forecast of
Supply to be provided by the Supplier under this Agreement. The forecast will be provided monthly. The forecast is for manufacturing capacity planning purposes only and the Purchaser will provide written authorization in the form of an Order if any
specific Supply should be purchased against a forecast. Unless otherwise agreed in a future amendment integrating a service level agreement, the Order lead time shall be [***] weeks from Supplier’s Order acknowledgement if such Order is in
accordance with forecast (unless another lead time is set out in the Order and acknowledged by Supplier). 
 2.3 The Order issued by the Purchaser shall be
subject to written signed acknowledgement by the Supplier, which acknowledgement (or non-acknowledgement) shall be provided by the Supplier to the Purchaser within five (5) Working Days from the date of
the Order from the Purchaser. The Supplier acknowledgment will relate to the technical specifications, commercial terms, quantity, and delivery date provided in the Order. The Supplier’s written Order acknowledgement shall include the committed
delivery date(s) for the Supply covered by the Order (the “Committed Delivery Date”). In case an Order has to be re-issued by the Purchaser, the Supplier’s acknowledgement (or non-acknowledgement) shall be given within three (3) Working Days. 
 By signing and acknowledging the Order, the
Supplier accepts the Contractual Documents without any reservation. These Contractual documents constitute the entire agreement between the Parties for Supply. For the avoidance of doubt, the non-disclosure
agreement between the Parties dated [***] and the [***] Agreement shall remain in full force and effect in accordance with their terms. 
 No supplement or
modification to the Contractual Documents shall be binding unless it is in writing and signed by the Parties. 
 3 -ORDERING PROCEDURE 

3.1 The Supplier undertakes to perform the accepted Order in accordance with the provisions of the Contractual Documents and applicable laws and regulations
and applicable required standards in force. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 3.2 The Supplier is solely and fully responsible for determining the resources required to perform the Order.
The Supplier shall, in particular, obtain all necessary rights, elements and information to perform the Order. It is deemed that the Supplier obtained all necessary elements and information to carry out the Order before its implementation. Moreover,
the Supplier shall promptly inform the Purchaser of any existing or future difficulties or anomalies during the implementation of the Order. 
 3.3 The
Supplier has a duty to inform (i.e. to provide the Purchaser with all the relevant details and information associated with the ordered Supply) and provide reasonable advice (i.e. providing to the Purchaser with a personalized advice at a reasonable
level as regard to the Purchaser’s stated aim when buying the Supply) to the Purchaser. The Supplier will not be held liable if the Supplier provided advice and the Purchaser decides not to follow such advices. The Supplier shall as soon as
reasonably practicable inform the Purchaser in writing of any situation concerning the latter of which the Supplier becomes aware that might jeopardize the proper performance of the Order. The Purchaser acknowledges that the Supplier intends to
provide such information and advice in the Supply development phase and during the term of this Agreement through the relevant issued Product data sheets. In particular, the Supplier shall inform the Purchaser should its business become the subject
of bankruptcy proceedings (insolvency, receivership or liquidation subject to court supervision), or should any equivalent situation occur, such as the winding-up or total or partial transfer of its business
activity, or in the event of any modification of its organizational structure that reasonably might jeopardize the proper performance of the Order. 
 When
authorizations, whatever their nature, are required to be obtained by the Supplier in respect of an Order, the Supplier, before the completion of the Order, shall ensure that all the necessary authorizations have been obtained, so that the Purchaser
is free from any actions or proceedings in this respect. 
 3.4 The Supplier’s quality system shall meet the quality requirements set out in the Quality
Agreement (if and when implemented). 
 Throughout the duration of the Supply performance, and upon prior notice, the Supplier undertakes to grant the
Purchaser and the representatives of any relevant Official Authorities controlled and monitored access, during business hours upon reasonable advance written notice, subject to appropriate confidentiality undertakings, to its premises and to any
document for the monitoring purpose and which the Supplier is free to disclose. The Supplier shall use its best efforts to impose the same right on its relevant subcontractor(s). 

3.5 For Supply Orders whose completion is staggered over time, the Supplier undertakes to keep the Purchaser regularly informed of the progress of the Order.
The Order may specify the conditions relating to the provision of such information. 
 4 -DELIVERY 

4.1 Any delivery of Supply shall be accompanied by a delivery slip affixed to the outer packaging, with a copy of the said delivery slip inside the package,
containing the following information: 
  

	 	•	 	 Identification number of the delivery slip; 

 

	 	•	 	 Order number and item number of the Order; 

 

	 	•	 	 Reference of the Supply; 

 

	 	•	 	 Description of the Supply as specified in the Order; 

 

	 	•	 	 Declaration of Conformity, where applicable; 

 

	 	•	 	 Quantity delivered and, where applicable, the serial number and the individual number of 

 

	 	•	 	 products/parts; 

  

	 	•	 	 If necessary, the number of packages; 

 

	 	•	 	 Unit of purchase; 

  

	 	•	 	 Number of the possible dispensation(s); 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

	 	•	 	 If necessary, a customs document and a transport document in compliance with applicable regulations, as well as
any other documents required for customs clearance operations within the framework of imports. 

 4.2 The delivery or availability of the
Documentation and the documents required by applicable regulations and standards is an integral part of the Supply. 
 4.3 Unless otherwise provided in the
Order, the delivery of the Supply shall be [***] (Incoterms 2010 -International Chamber of Commerce). To the extent the Purchaser should request a delivery of Supply on different Incoterms, the Supplier shall provide the Purchaser with a quotation
for Supply on such different Incoterms for the Purchaser to consider. 
 4.4 Packaging shall be carried out in compliance with the Contractual Documents,
regulations and standards in force. It shall include, if necessary, instructions and provide sufficient protection to reasonably ensure that the Supply undergoes no deterioration during transport and/or storage. 

5 -DEADLINES 
 5.1 Time is of the essence with respect to
the Contractual Documents. The deadlines agreed between the Parties are mandatory subject to the provisions of this Article 5 and respecting these deadlines constitutes an essential condition without which the Purchaser would not have contracted.

 5.2 The Supplier shall promptly inform in writing the Purchaser of any foreseeable delay in respect to the contractual deadlines, including, in reasonable
detail, the (a) anticipated length of delay, (b) cause of the delay, (c) corrective measures taken or proposed to prevent or minimize the delay, and (d) the schedule for the implementation of such measures. Except for force
majeure events or delays primarily attributable to the Purchaser, the Supplier shall bear any reasonable expenses resulting from this delay limited however as set forth in Section 5.3 below. 

5.3 In the event of a delay of the Supplier to meet contractual delivery deadlines which delay is not primarily attributable to the Purchaser or to a Force
Majeure Event, the following shall apply: 
  

	 	•	 	 In case of a delay of [***] days or more from the Committed Delivery Date, (i) Supplier shall use at its own
expense any expedited method of delivery as reasonably requested by the Purchaser; (ii) the Purchaser has a right of escalation whereby a senior executive officer from the Supplier shall meet a senior executive officer of the Purchaser to
discuss and diligently seek to find a resolution of the matter; and (iii) the Purchaser shall have the right to impose penalties, by written notice to the Supplier, equivalent to [***] of the price of the goods affected by the delayed delivery
per calendar day delay (meaning that penalties shall only be imposed in regard to any delay in excess of seven (7) days; provided, however, that such penalties shall in aggregate not exceed [***] of the price of the goods affected by the
delayed delivery. The right for the Purchaser to impose penalties shall not apply from such time as the parties agree on a rescheduled delivery date. 

  

	 	•	 	 In case of continued delay in delivery following exhaustion of the foregoing procedure and remedies and if no
agreement for a rescheduled delivery date has been reached by the parties, the Purchaser may terminate the Order under the terms and conditions referred to in Article 20. 

The penalties set out in this Section 5.3 do not discharge the Supplier from its obligations and cannot be considered as a final, lump-sum compensation for the damage incurred by the Purchaser; provided, however, that the Purchaser’s right to seek damages due to non-compliance by the Supplier under
this Section 5 shall (i) be limited to the value of the goods affected by the delay; (ii) be subject to the limitation of liability provisions set out in Section 12; and (iii) shall only apply to any delay in excess of [***]
days (and then only in respect of such excess delay). 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 5.4 In the event of early delivery (“early” being more than [***] business days before the
scheduled delivery date) or excessive quantity, the Purchaser reserves the right either (i) to accept the Supply, or (ii) to make the Supply available to the Supplier at the Supplier’s own risk, or (iii) to return the Supply at
the Supplier’s own cost and risk. 
 6 - ACCEPTANCE 

The Contractual Documents may provide an acceptance procedure for the Supply along with the issuance of an Acceptance report. Issuance of an Acceptance report
shall in no event be interpreted as a waiver of any sort or affect the extent of the warranty or other commitments made by the Supplier hereunder or any legal warranty. 

In case of non-conforming Supply to the Contractual Documents, the Purchaser shall inform the Supplier in writing, no
later than [***] days from delivery of the Supply, to allow the latter to inspect the non-conformity within [***] days. Should the Supplier neither inspect nor dispute the
non-conforming Supply, the Purchaser may refuse the Supply. The Purchaser shall make available the Supply to the Supplier for removal at the latter’s own expense and risk within [***] calendar days of the
date of notification of non-conformity by the Purchaser. 
 The
non-conforming Supply refused by the Purchaser following the foregoing procedure shall be deemed undelivered and the Purchaser reserves in such case the right to cancel the Order and/or seek damages for the
Supplier’s non-compliance limited to the value of the goods affected (subject to the limitation of liability provisions in Section 12). 

7 -TRANSFER OF OWNERSHIP 
 The transfer of ownership to
the Purchaser takes place, notwithstanding any reservation of title clause contained in the Supplier’s documents: 
  

	 	•	 	 upon delivery of the Supply with respect to the products or parts elements of the services,

  

	 	•	 	 or, at the signature of the Acceptance report if acceptance is specified in the Contractual Documents,

 As stated in Article 4.3, the delivery of the Supply shall be [***], with title passing to the Purchaser on collection of the Supply by
the Purchaser. 
 8 -PRICE – INVOICING – PAYMENT TERMS 

8.1 Unless otherwise agreed upon by the Parties in a signed document, the prices stated in the Order are firm and
non-revisable, and include all taxes except VAT. These prices include all the costs and expenses incurred by the Supplier for the performance of the Supply as well as expenses to travel to the Purchaser’s
sites. 
 8.2 The Supplier undertakes to invoice the Supply in accordance with the Contractual Documents and, in any case, not before the delivery of the
products, and not before the performance of the services. When an invoicing schedule is mentioned in the Order, the Supplier shall comply with it. Invoices shall be drawn by the Supplier in accordance with applicable regulations and include, in
addition to legal notices, the following elements: 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

	 	•	 	 The Order number; 

  

	 	•	 	 The item number in the Order; 

 

	 	•	 	 The date and number of the delivery slip or the performance report; 

 

	 	•	 	 The identification Supplier’s code, as provided by the Purchaser; 

 

	 	•	 	 A detailed description of the Supply as described in the Order (price per unit, quantity). 

8.3 In the event that the Purchaser grants the Supplier advances or down payments on the amount of the Order, the Purchaser may require that payment thereof
shall be covered by a first demand guarantee. 
 8.4 The deadline for payment of invoice shall be [***] days end of the month following the receipt of the
invoice by the Purchaser. In the event of late payment, late penalties shall be due starting from the day after the deadline for payment specified on the invoice, without any reminder being necessary. In this case, the interest rate for penalties
shall be in accordance with the Swiss Code of Obligations, as amended (currently 5 % per annum). 
 9 -WARRANTY - MAINTENANCE 

9.1 The Supplier warrants that the products, subject of the Supply, shall be free from defects in design, in manufacturing or in operating defects as well as
against any defects in materials and parts comprising an assembly. The Supplier warrants the proper performance of the services, subject of the Supply, in accordance with the Contractual Documents. No warranty shall extend to any Supply which has
been the subjected to abuse, misuse, neglect, faulty repair, alteration, tampering, as well as to improper or unauthorized storage, installation or use by the Purchaser, the Final Client or any other third party. 

The duration of the warranty is [***] months from the date of the delivery of the Supply. In case of a breach of the Supplier’s warranty, the Supplier
shall cover, at the Purchaser’s option, (i) any refurbishment or replacement of the product parts or service correction or (ii) reimbursement of the product or service. The warranty covers parts and labour for the workmanship of
refurbishment or replacement and includes reasonable transport and travel costs and custom duties. 
 If the Supply does not comply with the warranties in
this Article 9, the Supplier, at its discretion and at its own expense and cost, shall repair or replace the Supply or credit or refund the original price invoiced by Supplier for the Supply of the affected goods. 

9.2 In case of replacements or repairs of the Supply under the warranty provided in this article, such replacement or repairs shall be performed within a
maximum period of [***] days following the written notice of the defect sent by the Purchaser. 
 9.3 Any product replaced or repaired or any service
corrected shall be guaranteed, under the same conditions as above, until the end of the original warranty period but at minimum during a period of [***] months from the time of the repair/correction. In the event the Supplier has breached its
warranties in this Article 9 and does not perform its warranty duties in accordance with Sections 9.1 and 9.2, the Purchaser reserves the right, upon written notice to the Supplier, to perform or have a third party perform the necessary works at the
Supplier’s expense. 
 9.4 If, following a root cause analysis performed by the Supplier and duly documented to the Purchaser, it is demonstrated that
the alleged defects in the Supply was not caused by a breach of the Supplier’s warranty, the Purchaser shall duly reimburse and compensate the Supplier for all direct costs incurred in connection with the alleged warranty breach under this
Article 9. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 10 -CONTINUITY 

The Supplier shall inform the Purchaser at least [***] months in advance of any production stoppage or withdrawal from its catalogue of the Supply. 

11 -INDUSTRIAL AND INTELLECTUAL PROPERTY 
 11.1 The
Purchaser has full right of disposal of the Supply in accordance with this Agreement. The Supplier shall retain all right, title and interest in and to its intellectual property rights, such as, but not limited to, patents, copyrights and design
rights in the Supply (the “Supplier IP”). In consideration for the payment by Purchaser to Supplier for Supply and Purchaser’s performance of its other obligations under this Agreement, the Supplier hereby grants to the Purchaser a
worldwide, non-exclusive, royalty-free, non-transferable license under the Supplier IP during the term of this Agreement solely to the extent necessary to use the Supply
in accordance with this Agreement and to sublicense usage rights which are necessary for the use and operation of the Supply in accordance with this Agreement. 

11.2 Subject to the exceptions set out below and the limitation of liability provisions set out in Article 12, the Supplier shall indemnify and hold harmless
the Purchaser against [***] arising out of any claim, demand, suit or action brought against the Purchaser to the extent that such claim, demand, suit or action is based on a claim that the Supply infringes upon any intellectual property rights any
third party. 
 Notwithstanding any other provision of this Agreement, the Supplier shall not be obliged to indemnify the Purchaser against any cost, loss
or damage arising out of any claim, demand, suit or action brought against the Purchaser by a third party alleging that any Purchaser or third party product included in or provided with the Supply infringes upon any intellectual property rights of
such third party. 
 If a claim, demand, suit or action alleging infringement is brought or the Supplier believes one may be brought, the Supplier shall
have the option at its expense to (1) modify the Supply to avoid the allegation of infringement or (2) obtain for the Purchaser at no cost to the Purchaser a license to continue to use the Supply in accordance with this Agreement free of
any liability or restrictions or (3) terminate the Agreement with a full refund to the Purchaser of the price paid for the alleged infringing Supply. 

The Supplier shall not be obliged to indemnify Purchaser against any cost, loss or damage arising out of any claim, demand, suit or action brought against
Purchaser with respect to any alleged infringement of the intellectual property rights of any third party, to the extent that such claim arises from (i) modifications of the Supply by the Purchaser or any third party (but only to the extent
that such claim relates to such modification and such modification had been made without the written agreement of the Supplier and such modification is not explicitly contemplated by the Contractual Documents (as defined in Article 2 of the General
Terms and Conditions)); (ii) combination or use of the Supply with the Purchaser or third party hardware or software not supplied by the Supplier and without the written agreement of the Supplier and such combination or use is not explicitly
contemplated by the Contractual Documents, or any other unauthorized use, if such claim would not have arisen but for such combinations or use; (iii) the Supplier’s modification of the Supply in compliance with written specifications
provided by the Purchaser (but only to the extent that such claim relates to such modification); or (iv) use of other than the latest version of the Product provided to the Purchaser by the Supplier if the use of the latest version would have
avoided the infringement and if Supplier notified Purchaser of such risks. This Article 11 states the sole liability of the Supplier and the exclusive remedy of the Purchaser in connection with infringement of intellectual property rights. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 11.3 The Purchaser will settle and/or defend at its own expense and indemnify the Supplier against any [***]
arising out of any claim, demand, suit or action brought against the Supplier with respect to an alleged infringement of the intellectual property rights of any third party, to the extent that such claim arises from (i) modifications of the
Supply by the Purchaser or any third party on its behalf (but only to the extent that such claim relates to such modification and such modification had been made without the written agreement of the Supplier and such modification is not explicitly
contemplated by the Contractual Documents); (ii) a combination or use of the Supply with the Purchaser or third party hardware or software not supplied by the Supplier and without the written agreement of the Supplier and such combination or use is
not explicitly contemplated by the Contractual Documents, or any other unauthorized use, if such claim would not have arisen but for such combinations or use; (iii) the Supplier’s modification of the Supply in compliance with written
specifications provided by the Purchaser (but only to the extent that such claim relates to such modification); or (iv) use of other than the latest version of the Supply provided to the Purchaser by the Supplier under this Agreement if the use
of the latest version would have avoided the infringement. 
 12 -LIABILITY 

12.1 Subject to the limitation of liability provision set out in Article 12.3, the Supplier is liable for any damage or loss sustained by the Purchaser as a
result of the Supplier’s breach of this Agreement or the Order, except for punitive damages, loss of profit and loss of image. Consequently, subject to the same limitation of liability provision, the Supplier shall indemnify the Purchaser for
any loss or damage sustained by the latter as a result of such breach. 
 Subject to the limitation of liability provision set out in Article 12.3, the
Purchaser is liable for any damage or loss sustained by the Supplier or any third party as a result of the Purchaser’s breach of this Agreement, except for punitive damages, loss of profit and loss of image. Consequently, subject to the same
limitation of liability provision, the Purchaser shall indemnify the Supplier for any loss or damage sustained by the latter as a result of such breach. 

The Purchaser shall solely be responsible towards the Final Client and shall assume sole liability vis-à-vis the Final Client for the sales and services provided to such Final Client (for the avoidance of doubt, the foregoing shall not limit the Purchaser’s rights against the Supplier under
this Agreement if the Purchaser’s liability towards the Final Client is caused by the Supplier’s breach of this Agreement or as a result of the Supplier’s non-performance or improper performance
of the Order). 
 12.3 Notwithstanding anything to the contrary, neither Party shall be liable for any claim arising from or relating to this Agreement in
excess of: 
 For any event arising during the first contractual year: (i) the fees paid under this Agreement during the twelve (12) months
preceding the claim, or (ii) the amount of USD [***], whatever is the greater (subject always to the other limitation of liability provisions set out in this Article 12); 
  

	 	•	 	 For any event arising during the second contractual year: (i) the fees paid under this Agreement during the
twelve (12) months preceding the claim, or (ii) the amount of USD [***], whatever is the greater (subject always to the other limitation of liability provisions set out in this Article 12); 

 

	 	•	 	 For any event arising during the third contractual year and any subsequent years thereafter: (i) the fees
paid under this Agreement during the twelve (12) months preceding the claim, or (ii) the amount of USD [***], whatever is the greater (subject always to the other limitation of liability provisions set out in this Article 12).

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 The foregoing limitation of liability shall not apply for breaches of confidentiality obligations,
intellectual property rights (provided, however, that each Party’s liability under the indemnification obligations set out in Section 11 shall be limited to the amount of USD [***] unless falling under any of the other exceptions set out
in this paragraph) or breaches caused by gross negligence or willful misconduct. 
 For the avoidance of doubt, nothing in this Article 12 shall affect or
be deemed to limit Purchaser’s payment obligations towards the Supplier for the Supply under this Agreement and the Orders hereunder. 
 13
-COMPLIANCE WITH LABOUR REGULATIONS 
 The Supplier guarantees that it complies with the labour legislation to which it is subject. It also guarantees
that the Supply shall be performed in compliance with the labour laws in force in the countries in which the Supply is performed. 
 14 -COMPLIANCE OF
THE SUPPLY WITH REGULATIONS AND STANDARDS AND CSR COMMITMENTS 
 14.1 Through the performance of the Order, the Supplier guarantees to the Purchaser the
compliance, of the Supply with the applicable regulations and standards in force in the country where the product or service, subject of the Supply, is delivered or rendered to the Purchaser. 

For this purpose, the Supplier shall hand over upon delivery or undertake to hand over at first demand by the Purchaser, the certificates required by the
applicable regulations and relating to the Supply. 
 14.2 In addition, the Supplier shall: 

 

	 	•	 	 put in place all necessary measures when implementing its supply chains relative to the following minerals:

  

	 	•	 	 tantalum, 

  

	 	•	 	 tin, 

  

	 	•	 	 tungsten, 

  

	 	•	 	 gold, 

in order to guarantee that the above minerals are not sourced from suppliers that could be linked in any way–– with armed conflicts or finance them
directly or indirectly, and 
  

	 	•	 	 hand over upon request from the Purchaser the duly filled-in EICC
declaration concerning the minerals origin, or any other document required by a Recognized Authority. 

 14.3 Irrespective of the place in
which the Supply is produced or rendered (in France or abroad), the Supplier also warrants that the Supply will comply with applicable legal provisions and regulations to quality requirements and standards, including health, hygiene, safety,
traceability of products and protection of the environment. 
 14.4 The Supplier warrants the Purchaser that the Supply is compliant with the REACh and RoHS
regulations in their latest version in force. 
 Unless agreed in writing, any delivery of Supply which percentage of substances regulated by REACh or RoHS
exceeds prohibited or warning thresholds is not authorized. 
 14.5 The Supplier undertakes to release to the Purchaser upon the delivery of the Supply all
information it has to enable the safe use of the Supply. 
 14.6 The Supplier undertakes to inform the Purchaser of any modification of applicable legal
provisions and regulations and standards of which the Supplier becomes aware, which affect the conditions in which the Supply is delivered or performed. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 14.7 The Supplier warrants that the products or services delivered by its company, or by one of its
affiliates, have not been produced by children labour, nor forced or compulsory labour and are not linked to any other human rights violation. 
 15
-SUPPLIER’S PERSONNEL 
 The Supplier is solely responsible for the administrative, accounting and labour management and supervision of its
personnel assigned to the performance of the Order. 
 The Supplier will expressly retain hierarchical and disciplinary authority over its employees,
including during the time when they are present at the Purchaser’s site. 
 The Supplier alone is responsible for the definition of the profile and the
appointment of the members of its personnel that it assigns to the performance of the Order. It certifies that throughout the performance of the Order, the members of its personnel assigned to the task will be competent, qualified and sufficient in
number to ensure that the Supply is in compliance with the Contractual Documents. 
 16 -CONFIDENTIALITY 

16.1 Each Party (the “Receiving Party”) shall keep confidential all information received from the other Party (the “Disclosing Party”) in
connection with the Order, as well as all information the Receiving Party might have access as a result of its presence at the Disclosing Party’s premises, without the Disclosing Party having to specify or mark such information as confidential
(“Confidential Information”). 
 16.2 Confidential Information shall remain the property of the Disclosing Party, subject to the rights of third
parties. The disclosure of Confidential Information by the Disclosing Party shall in no event be interpreted as granting or conferring upon the Receiving Party, expressly or implicitly, any right whatsoever (under a license or by any other means) in
respect to this Confidential Information. 
 16.3 The Receiving Party undertakes to: 

 

	 	•	 	 use Confidential Information exclusively for the purposes contemplated in this Agreement; 

 

	 	•	 	 disclose Confidential Information only to those of its employees for whom it may be strictly necessary for the
purposes contemplated in this Agreement and then only a “need to know” basis; 

  

	 	•	 	 not disclose Confidential Information or make it available, either in full or in part, to any third party without
the prior written consent of the Disclosing Party; 

  

	 	•	 	 ensure that the confidentiality obligations incumbent upon it under the present article
“Confidentiality” are complied with by its employees and other persons authorized by the Disclosing Party to access Confidential Information. 

16.4 Nevertheless, the confidentiality obligations shall not apply to any information which: 

 

	 	•	 	 is already in, or it had entered the public domain prior to its disclosure or after it, otherwise than through
the fault of the Receiving Party; 

  

	 	•	 	 is already known or available to the Receiving Party at the date of receipt of Confidential Information, as
evidenced by written records of the Receiving Party; 

  

	 	•	 	 is lawfully obtained by the Receiving Party from third parties, with full rights of disclosure, as evidenced by
written records of the Receiving Party. 

 16.5 Should the Receiving Party be required to disclose Confidential Information of the
Disclosing Party, pursuant to a mandatory or a judicial or administrative decision, the Receiving Party shall immediately inform the Disclosing Party of such request. In addition, the Receiving Party shall ask the persons and entities to which the
Confidential Information is disclosed to treat it as confidential. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 16.6 The Parties agree that they are permitted to disclose Confidential Information to any of their
Affiliates who have a reasonable need for such information for the purpose set forth in the Preamble above. The Parties shall ensure that such Affiliates comply with the provisions of this Agreement. 

16.7 In the event of termination of the Order or this Agreement for whatever reason, the Receiving Party undertakes to return Confidential Information
immediately to the Disclosing Party and/or to destroy any medium containing in whole or in part of Confidential Information. The Receiving Party shall provide a statement certifying the aforementioned complete return or destruction. The return or
destruction of Confidential Information shall not release the Receiving Party from its confidentiality obligations under this article. Notwithstanding the foregoing, the Receiving Party may retain any Confidential Information received or derived
from the Disclosing Party as part of the Receiving Party’s automatic electronic archiving and backup procedures, provided however that the Receiving Party does not use or access such Confidential Information, and that such Confidential
Information remains confidential indefinitely. 
 16.8 Each Party undertakes not to publish any article or advertisement relating to the Order, this
Agreement and/or to the Supply and/or any other information in connection with its business with the other Party without the prior written consent of the other Party. The Purchaser acknowledges that the Supplier’s shares are listed on the Oslo
Stock Exchange and that the Supplier may make such disclosures as are required under applicable securities laws and regulations. 
 16.9 Unless otherwise
provided for in the Order, the confidentiality obligations provided in this article shall remain in full force and effect throughout the Order’s performance and for a period of five (5) years from the end of the warranty period of the
Supply. 
 16.10 If Confidential Information that is the property of a third party is disclosed to the Receiving Party, any more restrictive confidentiality
requirements that may be imposed by this third party will be passed on to the Receiving Party. 
 16.11 In order to ensure the security of the Disclosing
Party’s Confidential Information and the media containing it, the Receiving Party will take all necessary measures to ensure its protection. 
 17
-FORCE MAJEURE 
 For the application of this clause, only an event meeting simultaneously all the conditions described hereinafter shall be considered
an event of force majeure: 
 a) This event must be unavoidable, unforeseeable and totally independent of the will of the Parties. 

b) Subsequent to this event, the Party invoking the event of force majeure was unable to perform its obligations in accordance with the Contractual Documents.

 Each Party shall inform the other Party immediately, with confirmation by written notice, no later than five (5) calendar days after the occurrence
of force majeure preventing it from performing its obligations under the Contractual Documents. 
 The obligations whose performance is rendered impossible
by the occurrence of an event of force majeure shall be suspended for the duration of this event. 
 The Party invoking force majeure undertakes to take
every measure possible to limit the prejudicial consequences of this event for the other Party. 
 The Supplier shall not be able to invoke delays on the
part of its own suppliers or subcontractors unless the cause for these delays may be considered an event of force majeure under this clause. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 18 -TRANSFER – ASSIGNMENT – SUBCONTRACTING 

18.1 Neither Party shall assign, delegate or subcontract any portion of its rights, duties or obligations under this Agreement without the prior written
consent of the other Party and any such attempt to do so shall be void. Notwithstanding the foregoing, either Party may, without the written consent of the other Party but always subject to a prior written notice to the other Party, assign this
Agreement, and its rights and obligations hereunder (on the same commercial terms and conditions), in connection with the transfer or sale of all or substantially all of its business related to this Agreement, or in the event of its merger,
consolidation, change of control or similar transaction (provided, however, that the prior written consent of the other Party is required in case the contemplated assignee is a competitor of such other Party). 

However, the Supplier may assign to third party debts held by the Purchaser. 

The Purchaser reserves the right to transfer or assign to any Idemia Group Company, all or part of the Order or the related rights and obligations, subject to
prior written notice thereof sent to the Supplier. 
 18.2 The Supplier undertakes not to subcontract all of the Order. Moreover, the Supplier undertakes not
to subcontract part of the Order to a third party in any way without the prior written agreement of the Purchaser. When the Supplier is authorized to subcontract, it undertakes to pass on the obligations contained in the Contractual Documents to its
subcontractors. The Purchaser may, if necessary, approve in writing the subcontractor’s payment terms at the request of the Supplier. Notwithstanding the approval of the Purchaser to the Supplier’s subcontracting of the performance of the
Order, or to the choice of the subcontractor and its payment terms, the Supplier shall remain solely liable to the Purchaser for the performance of the Supply subcontracted. No default of its subcontractors shall exclude or limit the Supplier’s
liability. 
 19 -EXPORT CONTROL 
 19.1 The Parties
agree to comply with export control laws and regulations that are applicable to the Supply (including its components), as well as to the software, information and products that the Parties may exchange within the framework of the performance of the
Order. It is reminded that the Supply containing cryptographic elements are likely to be subject to special provisions under, including but not limited to, French and US regulations. 

19.2 Each Party undertakes to inform the other Party of the export control classification concerning the elements hereinabove, and undertakes to notify it of
any changes to – or any plans to change – this classification no later than fifteen (15) days after receiving notice of said change. 
 19.3
In the event that the export or re-export of all or part of the Supply is subject to obtaining an export license or an export authorization and unless otherwise requested by the Purchaser, the Supplier
undertakes to apply to the competent government authorities, at no cost to the Purchaser, for any license or governmental authorization necessary to enable the Purchaser to use the Supply and to deliver such to customers or to any other final user
specified by the Purchaser to the Supplier. The Supplier undertakes to immediately notify the Purchaser of the issuance of the export license or the export authorization by the competent government authorities or of the existence of a dispensation,
and to provide it with a copy of said license or authorization or a certificate describing in particular any restrictions applicable to the re-export or re-transfer by
the Purchaser of all or part of the Supply to a third party. It is specified that notice by the Supplier to the Purchaser of the classification of all or part of the Supply and the issuance of the export license or the export authorization described
hereinabove constitute conditions precedent to the Order coming into force. 
 In the event that the Purchaser applies to the competent government
authorities for the export license or export authorization, the Supplier undertakes to provide the Purchaser with all documentation necessary to the Purchaser. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 19.4 The Supplier undertakes to implement all necessary security measures to prevent the transfer, by any
means whatsoever, of information provided by the Purchaser and identified as being subject to applicable laws and regulations on export control to any person not authorized to access such information, by dispensation or by an export license or
export authorization granted by the competent government authorities. 
 19.5 Should the export license or authorization be withdrawn, not renewed or
invalidated for reasons attributable to the Supplier, the Purchaser reserves the right to automatically terminate the Order, without prejudice to its right to claim compensation for the damage sustained, if such damage is caused by the Supplier.

 20 -TERMINATION 
 20.1 Either Party shall be entitled
to terminate the Agreement and/or the Order as of right by registered letter with acknowledgement of receipt in the following cases: 
  

	 	•	 	 When the other Party materially breaches any of its contractual obligations and does not cure such breach within
30 (thirty) days from receipt of formal notice thereof sent by registered letter with acknowledgement of receipt; 

  

	 	•	 	 When the other Party becomes the subject of judicial protection, receivership or liquidation, subject to public
policy provisions; 

  

	 	•	 	 Subject to a thirty (30) days’ written notice when one of such Party’s competitors acquires a
controlling stake in the other Party’s capital (“controlling” meaning the ownership of more than fifty percent (50%) of the stock or other equity interests entitled to vote for the election of directors or an equivalent governing
body); 

  

	 	•	 	 Subject to a thirty (30) days’ written notice, in the event of a major change in the social and/or
industrial organization of the other Party that reasonably could jeopardize the proper performance of this Agreement. 

  

	 	•	 	 When there is a force majeure event the duration of which exceeds one month from the date on which one of the
Parties informs the other Party thereof. 

 20.2 In addition, the Purchaser may terminate the Agreement and/or the Order as of right by
registered letter with acknowledgement of receipt in the following cases: 
 With immediate effect when the Supplier fails to materially comply with any of
its obligations set forth in articles 13 (“Compliance with Labour Regulations”) or comply with any of its obligations set forth in articles 19 (“Export control”) and/or 21 (“Ethics”) of this Agreement and more generally
in case of any material breach by the Supplier of any of its contractual obligations which cannot be remedied; 
 20.3 In all the cases of termination
referred to hereinabove, each Party shall still be required to comply with all its contractual obligations until the effective date of termination, without prejudice to any damage that the non-defaulting Party
may be able to claim as compensation for the damage incurred as a result of the non-performance by the defaulting Party of the obligations set forth in the Contractual Documents. 

21 -ESCROW AGREEMENT 
 Concurrently with their execution
of this Agreement, to guarantee that Purchaser will be able to procure the Supply in accordance with the terms of the Agreement, the Parties agree that Supplier will, pursuant to the terms of therein, provide Purchaser future access and an Escrow
License Grant (as hereinafter defined) to all Supplier’s materials, documentation and information reasonably necessary for the development, manufacture, supply and support of the Supply as integrated with Purchaser’s products, including,
without limitation, designs, data, schematics, databases (layout, simulation etc.), manuals, “read me” files, open source, firmware source code, object code software, software tools (debugging, support, test and validation), hardware tools
(including masks, evaluation, and test hardware), libraries, specifications, RTL code and other materials necessary to allow a reasonably skilled third party to design, use, initialize, operate, integrate, manufacture, supply, maintain, test and
support the Supply as integrated with Purchaser’s products (the “Escrow Materials”). 
  

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 For that purpose, within a maximum period of [***] as from the Effective Date of the Agreement, the Parties
shall enter into an escrow agreement (“Escrow Agreement”) with a reputable third-party escrow agent (“Escrow Agent”) chosen by Purchaser and deposit the Escrow Materials within a time period to be agreed in the escrow agreement
with such Escrow Agent. The costs of the Escrow Agent and any costs arising from the Escrow Agreement shall be borne by Purchaser. Supplier will also, during the term of this Agreement, deposit within a maximum period of [***] Working Days any
update or new version of such Escrow Materials with the Escrow Agent. All terms and conditions of the Escrow Agreement are a part of, and by this reference are incorporated in this Agreement, and any breach thereof by either Party shall be a breach
of this Agreement. For the avoidance of doubt, nothing in this Article 21 or the Escrow Agreement shall mean or be construed to mean that Supplier’s warranty and/or indemnification obligations under this Agreement are extended to relate to or
include Escrow Materials other than the Supply. Escrow Materials other than the Supply will be provided on an “AS IS” basis under this Article 21 and the Escrow Agreement without warranties of any kind. 

Release Events: Each of the following shall constitute a “Release Event” for purposes of this Agreement and the Escrow Agreement should they occur
at any time during the term of this Agreement: 
 Supplier (i) is the named debtor in any bankruptcy or insolvency proceeding; (ii) has made a
general assignment of substantially all of its assets for the benefit of its creditors; or (iii) has terminated its ongoing business operations making Supplier unable to meet its Supply obligations under this Agreement. 

All rights, title and interest to the Escrow Materials and Supplier’s intellectual property within the Escrow Materials shall remain the exclusive
property of Supplier notwithstanding the Escrow Agreement and any Release Events thereunder, subject, however, to the Escrow License Grant to Purchaser below in case of a Release Event. 

Escrow License Grant: Upon the Escrow Materials being released to Purchaser by the Escrow Agent in accordance with the Escrow Agreement, Supplier grants
Purchaser, a non-exclusive, royalty-free, non-transferable and non-sublicensable, right to use the Escrow Materials and to reverse engineer, disassemble, decompile,
decode, adapt, develop, modify the Escrow Materials and make any related modifications to specifications and documentation, and use all resulting corrections, repairs, translations, enhancements, and other derivative works and improvements for and
in connection with Purchaser’s continued procurement of the Supply in accordance with this Agreement and solely for a period of [***] after the expiration or termination of the Agreement, solely upon and after the occurrence of a Release Event.

 22 -ETHICS 
 The Supplier solemnly declares that:

  

	 	•	 	 It has not infringed any anti-corruption laws or regulations, 

 

	 	•	 	 It has not been subject to any civil or criminal sanctions, in Norway or abroad, for infringement of
anti-corruption laws or regulations and that no investigation or proceedings which could lead to such sanctions have been brought against it, 

  

	 	•	 	 To the best of its knowledge, no executive or manager of its company has been subject to any civil or criminal
sanctions, in Norway or abroad, for infringement of anti-corruption laws or regulations and that no investigation or proceedings which could lead to such sanctions have been brought against such persons. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 The Supplier warrants that: 
  

	 	•	 	 It complies and shall comply with the legal provisions against corruption in accordance with the OECD Convention
of 1997 and the United Nations Convention Against Corruption of 2003 (UNCAC), 

  

	 	•	 	 It has not granted and shall not grant, directly or indirectly, any gift, present, payment, remuneration or
benefit whatsoever (trip, etc.) to anyone with a view to or in exchange for the conclusion of the Order. 

 The Supplier shall notify the
Purchaser’s Purchasing Department of any gift, present, payment, remuneration or benefit whatsoever that it might grant either directly or indirectly to any employee, officer or representative of the Purchaser or to anyone that might influence
their decision within the framework of the performance of the Order. 
 In the event of failure to comply with this clause, the Purchaser shall
automatically have the right to terminate the Orders in progress with immediate effect and without compensation, and without prejudice to any other remedies the Purchaser may request from the Supplier. 

23 -MISCELLANEOUS 
 Neither Party’s failure to
exercise or delay in exercising any of its rights with respect to the Contractual Documents shall be construed or be deemed a waiver of these rights. 

Should any provision of the Contractual Documents be held to be invalid, the remainder shall continue to be valid and enforceable. The Parties shall then seek
to replace this provision with a valid provision in order to maintain the contractual balance. 
 The Supplier acts in its own name and on its own behalf as
an independent entrepreneur. The Supplier has neither the power nor the authorization to enter into any commitment whatsoever in the name and for the account of the Purchaser. 

No provision of the Contractual Documents may be construed as creating an agent/principal, parent/subsidiary or employer/employee relationship between the
Supplier and the Purchaser. 
 Those provisions in this Agreement, which by their nature need to survive the termination or expiration of this Agreement,
shall survive termination or expiration of the Agreement, including but not limited to Articles such as “Liability”, “Confidentiality”, “Industrial and Intellectual Property”, “Escrow Agreement” and
“Applicable Law – Jurisdiction”. 
 24 -APPLICABLE LAW – JURISDICTION 

By express agreement between the Parties, the Contractual Documents are governed by the laws of Switzerland, excluding the application of 1980 United Nations
Convention on Contracts for the International Sale of Goods. 
 All disputes between the Parties arising out of or in connection with this Agreement will be
settled by the Parties amicably through good faith discussions upon the written request of either Party. In the event that any such dispute cannot be resolved thereby within a period of sixty (60) days after such written request has been
delivered, such dispute will be submitted to the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) and will be finally settled under the rules of Arbitration of the ICC (the “Rules”) by three
(3) arbitrators appointed in accordance with the said Rules. 
 The seat, or legal place, of arbitration shall be Geneva, Switzerland. 

The language to be used in the arbitral proceedings shall be English. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 The award rendered by arbitration will be final and binding upon the Parties concerned and may be enforced
through any court having jurisdiction thereof. 
 However, the Parties may by mutual agreement decide to have recourse to mediation, before going to
arbitration. 

  
 EXECUTION VERSION 

 Certain information in this document, marked by brackets and asterisks, has been excluded pursuant to
Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

 In two (2) signed original copies: 

 

									
	FOR PURCHASER:	 		 	FOR SUPPLIER:
					
	Name:	 	 [***]
	 		 	Name:	 	 [***]

					
	Title:	 	 [***]
	 		 	Title:	 	 [***]

					
	Date:	 	 13/02/2020
	 		 	Date:	 	 6 February 2020

					
	Signature:	 	/s/ [***]	 		 	Signature:	 	/s/ [***]

  
 EXECUTION VERSION

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