**1.** The Competent Security Authority of the Originating Party shall notify the Competent Security Authority of the Receiving Party of any Classified Contract prior to any exchange of Classified Information. This notification must specify the highest level of classification of the information involved in the Contract.
**2.** A Party that intends to enter into or to authorise one of its Contractors to enter into a Classified Contract with a Contractor of the other Party shall check with the Competent Security Authorities of the Receiving Party that the latter has the suitable clearance level required in order to perform the Classified Contract.
**3.** Upon request of the Originating Party, the Competent Security Authority of the Receiving Party shall confirm that a proposed Contractor has been issued an appropriate Personnel and/or Facility Security Clearance. If the proposed Contractor does not hold an appropriate security clearance, the Competent Security Authority of the Originating Party may request the Competent Security Authority of the Receiving Party to issue the appropriate security clearance.
**4.** The Competent Security Authority in which jurisdiction the Classified Contract is to be performed, shall assume the responsibility for prescribing and administering security measures for the respective Classified Contract under the same standards and requirements that rule the protection of the Classified Contracts of the respective Parties in accordance with article 3 of this Agreement.
**5.** A Classified Contract shall include a specific section or security annex identifying the security requirements of the Classified Contract. The security annex shall be an integral part of each Classified Contract, or sub-contract, by which the Originating Party shall specify which Classified Information is to be released to the Receiving Party, which security classification level has been assigned to that information and the Contractor and/or Sub-contractor’s obligations to protect the Classified Information. These instructions shall be consistent with those given by the Competent Security Authority of the Originating Party. The Competent Security Authority of the Originating Party shall send a copy of the security annex to the Competent Security Authority of the other Party.
**6.** Each Classified Contract concluded in accordance with this Agreement shall include:
obligation of the Contractor to ensure that its premises have necessary conditions for handling and storing Classified Information of appropriate security classification level;
obligation of the Contractor to ensure that persons who perform duties requiring access to Classified Information are granted the appropriate level of Personnel Security Clearance;
obligation of the Contractor to ensure that all persons with access to Classified Information are informed of their responsibility towards the protection of Classified Information in accordance with the national laws and regulations;
obligation of the Contractor to allow periodical security inspections of its premises;
list of Classified Information and list of areas in which Classified Information may arise;
list of communication means and electronic means for transmission;
instructions for the handling, storage, destruction and returning of Classified Information;
procedure for the transportation of Classified Information;
list of appropriate authorised individuals or legal entities responsible for the coordination of the safeguarding of Classified Information related to the Classified Contract;
procedure for reporting any changes in the security classification level of Classified Information;
the obligation of the Contractor to notify any Breach of Security to the Competent Security Authority;
contact details of the Competent Security Authorities responsible for overseeing the protection of Classified Information related to the Classified Contract;
obligation of the Contractor to forward a copy of the Classified Contract to its own Competent Security Authority;
a statement that Classified Information exchanged or generated pursuant to the Classified Contract shall be protected by the Contractor in accordance with this Agreement and applicable laws and regulations; and
in case a Classified Contract in whole or in part is sub-contracted to a Sub-contractor, the obligation to impose all the stipulations concerning Contractors in this Agreement to the Sub-contractor.
**7.** Prior to the release to either Party’s Contractors or prospective Contractors of any Classified Information received from the other Party, the Receiving Party shall, in accordance with its national laws and regulations, ensure that Contractors or prospective Contractors can afford adequate security protection to Classified Information and:
perform an appropriate Facility Security Clearance procedure of the Contractors and Sub-contractors;
perform an appropriate Personnel Security Clearance procedure for all personnel whose duties require access to Classified Information;
ensure that all persons having access to Classified Information are informed of their responsibilities and obligations;
carry out periodic security inspections of relevant security-cleared facilities.
**8.** As soon as pre-contractual negotiations begin between a potential Contractor under the jurisdiction of one Party and another possible Contractor under the jurisdiction of the other Party, aiming at the signing of Classified Contracts, the Competent Security Authority shall inform the other Party of the security classification level given to the Classified Information related to those pre-contractual negotiations.
**9.** Copy of each Classified Contract shall be forwarded to the Competent Security Authority of the Party where the work is to be performed, to allow adequate security supervision and control.
**10.** If a Classified Contract allows the Contractor that part of the Classified Contract is performed by a Sub-contractor:
Prior to executing a Classified Contract with a Sub-contractor, the Contractor shall, through its Competent Security Authority, obtain the authorisation of the Competent Security Authority falling under the jurisdiction of the Sub-contractor;
All the articles in this Agreement, concerning the Contractor, shall also apply to and be imposed on the Sub-contractor;
Whenever a Contractor engages a Sub-contractor outside the jurisdiction of one of the Parties, prior written approval of the Originating Party of the involved Classified Information in the Classified Contract is required.
**11.** Classified Contracts shall be concluded and implemented in accordance with national laws and regulations.
Artikel 10
Classified Contracts
Onderdeel van Verdrag tussen het Koninkrijk der Nederlanden en de Republiek Malta inzake de wederzijdse beveiliging en uitwisseling van gerubriceerde gegevens· Staats- en bestuursrecht