OCAP Directive.docxVIP

1.IntroductionFollowing some changes in the organization structure, it has been decided to update the internal contract approval procedure, FA instruction 005/11PL also known as OCAP.The revised ONE Contract Approval Process for Lighting is hereafter referred to as OCAP and applies only to Material Contracts (i.e. a contract presenting significant (legal) risk). Please note that we have for the approval of material contracts the web based OCAP approval tool in place. It is mandatory to make use of this web based tool for the approval process of ALL Material Contracts. If you do not have access to the OCAP tool yet, read the instructions in paragraph 5a) below on how to get an OCAP account.2.Definitions used within this directiveMaterial contracts:A Material Contract is an external commitment of Philips Lighting, presenting significant (legal) risk, in one of the categories as listed in paragraph 4 below. Not only contracts or agreements can be qualified as a ‘Material Contracts’, but also Letters of Intent, MoU’s, Letter Agreements or any other type of external commitment, to the extent they fall in one of the categories as listed in paragraph 4 below.Red Flag issues:Issues that have a material impact on the business. OCAP tool:A web based tool that supports the internal approval process of Material Contracts.3.Scope and applicabilityThis directive is applicable for commitments on behalf of Philips Lighting for Material Contracts with third parties. OCAP will apply in addition and next to all other existing sign-off or internal approval procedures (which will remain fully effective) as issued by Corporate Philips departments. OCAP does not apply to the following contracts:All HR related contracts including employment and union agreements which are subject to the existing HR approval procedures.Financing contracts (including managing and funding of assets) involving Koninklijke Philips Electronics N.V. (“KPENV” or Royal Philips Electronics) and/or any of its affiliat