Environmental Covenants

1. The Supplier shall comply, and shall require its subcontractors to comply, with the following obligations:

1.1 The Supplier shall conduct its business and carry out its operations with due diligence, in an environmentally responsible manner, and adhering to any applicable environmental legislation, the Buyer’s Environmental Action Plan, and the Buyer’s Environmental Policy (the “Environmental Requirements”).

1.2 The Supplier shall ensure that its facilities, plant, and equipment are designed, built, operated and/or maintained in accordance with the requirements set forth in the Environmental Requirements. 1.4 The Supplier shall, at the request of the Buyer, allow the Buyer or any person designated by the Buyer to visit and inspect its facilities, plant, and equipment.

2. The Supplier shall, at the request of the Buyer, provide the Buyer with any such information as the Buyer reasonably requests, including about:

a. its activities and compliance with the requirements pertaining to the Environmental Requirements;

b. its implementation of the Environmental Action Plan and its compliance (or non-compliance) with the same.

3. If the Supplier or a competent authority responsible for enforcing applicable environmental legislation detects or has reason to suspect any non-compliance by the Supplier with the Environmental Requirements, the Supplier shall: subject to Clause

3.1, notify the Buyer within [five (5) Business Days] from the date of discovery of such actual or suspected non-compliance, providing a reasonably detailed written description of such actual or suspected non-compliance, including an account of the expected environmental damage resulting therefrom;

3.2 have the option to remedy any non-compliance that does not, in the reasonable opinion of the Buyer, amount to a Serious Environmental Incident within five (5) Business Days from the date the non-compliance was detected, if the Supplier reasonably finds that it is possible to do so. The Supplier shall then have a further five (5) Business Days before it is required to notify the Buyer of the non-compliance in accordance with Clause 3.1;

3.3 engage, at its own expense, the services of an appropriately qualified environmental and/or sustainability consultant or other qualified professional satisfactory to the Buyer, to investigate the actual or suspected non-compliance and prepare an overview of any environmental damage that has occurred and a draft Corrective Action Plan for approval by the Buyer;

3.4 once approved by the Buyer, diligently take, at its own expense, all the steps necessary to implement and execute the Corrective Action Plan.

4. If the Supplier commits a material breach of Clause 1 or fails to take any actions or steps necessary to implement and execute the Corrective Action Plan, the Buyer may, in its own choice a. suspend this Agreement until the breach is remedied or for a specified period, by giving written notice to the Supplier; or b. terminate this Agreement with immediate effect by giving written notice to the Supplier.

5. The Supplier must indemnify and hold the Buyer harmless from any loss suffered by the Buyer as a result of the breach, including without limitation, and notwithstanding anything to the contrary set out in the Agreement, any indirect or consequential losses, as well as any reasonably incurred public relations costs or legal fees. Definitions: Corrective Action Plan means a corrective or mitigation plan (including a cost estimate, allocation of responsibilities and an implementation schedule) which, once initiated, will enable the Supplier to:

a. correct and remediate the damage and adverse effects resulting from any failure to comply with the Environmental Requirements; or

b. correct or mitigate the adverse effects of any Serious Environmental Incident. Serious Environmental Incident means [specific definition to be inserted, depending on any specific focus areas of the Buyer, including focus areas reflected in the Environmental Action Plan and/or the Environmental Policy. Will often be relevant to include certain levels of CO2 emissions, spillage or discharge of hazardous substances.]