DRAFT 5/19/2019

[Recipient Company Letterhead]

[DATE]

NIC Industries, Inc.

7050 6th Street

White City, OR 97503

U.S.A.

Attention: John Weinbrecht, Title...

Re: Written Assurance Related to Technology Obtained from NIC Industries, Inc.

Dear Sir or Madam:

NIC Industries, Inc., manufactures a variety of formulated coatings for high performance applications. Due to the demanding requirements of these applications, some of the coatings/resin which are sold by NIC Industries incorporate high performance ingredients which are export restricted by the Department of Commerce of the United States government under Export Classification Number (ECCN) 1C007 for National Security, Terrorism Suppression, and Trade Embargo purposes. Such considerations apply for Country Groups D:1, E:1 and E:2. The coating/resin products which are restricted by such regulatory constraints are those which are classified under NIC Industries' “V”, “C”, and “MC” product designations and all resin products.

NIC Industries' “H-Series” coatings also employ proprietary technology which combines certain high performance resins and pigments to achieve a unique combination of coating attributes. These coatings/resins, however, as well as coated products derived from them, are only restricted by the Department of Commerce of the United States government under the Export Administration Regulations (EAR) to countries where Terrorism Suppression and Trade Embargo restrictions apply. These countries include Country Groups E:1 and E:2. Similarly, “H-Series” coatings, as well as coated products derived from them which exhibit certain special performance characteristics, are not subject to U.S. State Department controls under the U.S. Munitions List (22 C.F.R. 12). Except as noted above, the re-export of “H-Series” coatings, or the sale of coated products derived from them, is unrestricted.

On behalf [RECIPIENT COMPANY], I hereby provide the following written assurance:

1.Unless specifically licensed or otherwise authorized to do so by the U.S. Department of Commerce under the Export Administration Regulations (EAR), [RECIPIENT COMPANY] will not knowingly, directly or indirectly:

(a)Re-export any “V”, “C”, or “MC” coating and all resin products from NIC Industries, Inc. to a national or entity of a Controlled Country listed in 1(e), below.

(b)Export any product derived from these coatings and all resins to any of the Controlled Countries listed in 1(e), below.

(c)Re-export any “V”, “C”, or “MC” coating and all resin product in violation of the restrictions defined in Export Classification Control Number (ECCN) 1C007, or re-export to countries which are subject to State Department controls under the U.S. Munitions List (22 C.F.R. 12).\

(d)Re-export any product derived from these coatings and all resins in violation of the restrictions defined in Export Classification Control Number (ECCN) 1C007, or re-export to countries which are subject to State Department controls under the U.S. Munitions List (22 C.F.R. 12).

(e)As set forth in Country Groups D:1, E:1 and E:2 and other provisions of the EAR, Controlled Countries for “V”, “C”, and “MC” and all resin coatings and coated products include: Armenia, Azerbaijan, Belarus, Burma, Cambodia, China, Cuba, Georgia, Iran, Iraq, Kazakhstan, Kyrgyzstan, Laos, Libya, Macau, Moldova, Mongolia, North Korea, Russia, Sudan, Syria, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, and Vietnam. As this list of countries is subject to change, before exporting or re-exporting the direct product of the licensed technology, [RECIPIENT COMPANY] will confirm that the intended country or destination is not one of the "Controlled Countries" as defined above.

2. Unless specifically licensed or otherwise authorized to do so by the U.S. Department of Commerce under the Export Administration Regulations (EAR), [RECIPIENT COMPANY] will not knowingly, directly or indirectly:

(a)Re-export any “H” coating product from NIC Industries, Inc. to a national or entity of a Controlled Country listed in 2(e), below.

(b)Export any product derived from these coatings to any of the Controlled Countries listed in 2(e), below.

(c)Re-export any “H” coating product in violation of the restrictions defined in the EAR or re-export to countries which are subject to State Department controls under the U.S. Munitions List (22 C.F.R. 12).

(d)Re-export any product derived from these coatings in violation of the restrictions defined in the EAR or re-export to countries which are subject to State Department controls under the U.S. Munitions List (22 C.F.R. 12).

(e)As set forth in Country Groups E:1 and E:2 and other provisions of the EAR, Controlled Countries for “H” coatings and coated products include: Cuba, Iran, North Korea, Sudan, and Syria. As this list of countries is subject to change, before exporting or re-exporting the direct product of the licensed technology, [RECIPIENT COMPANY] will confirm that the intended country or destination is not one of the "Controlled Countries" as defined above.

*.*.*.*.*.*

Please contact the undersigned at [INSERT PHONE NUMBER] if you have any

questions concerning this matter.

Respectfully submitted,

[NAME]

(d)

[TITLE]

*.*.*.*.*.*

Please contact the undersigned at [INSERT PHONE NUMBER] if you have any questions concerning this matter.

Respectfully submitted,

[NAME]

[TITLE]