"Whether it's in the defense space whether it's in commercial Aviation, whether it's Customs and Border Patrol or whether it's in the Life Sciences business, [customers] have to be able to trust us and so every employee right has a role in making sure that happens. Part of that trust campaign is stepping back and recognizing where are those areas we must focus, where are those areas where we need to empower people and then what are the steps we need to do to make sure that happens and we take that responsibility very seriously."

Scott BaumVICE PRESIDENT, STRATEGY & GROWTH

LEVERAGING OVER 30 YEARS OF POSITIVE U.S. DEFENSE TRACK RECORD

Special Security Agreement (SSA)

Elbit Systems of America’s SSA mitigates the potential impact of Foreign Ownership, Control, or Influence, and allows Elbit Systems of America and its subsidiaries to perform contracts on an equal footing with other US-companies. There is a robust mitigation structure:

No parental governance clauses in SSA
Separate physical and network infrastructure
Robust visitation and communications controls and procedures
All ESA senior officers are security-cleared U.S. citizens

Elbit America has operated under a DoD Special Security Agreement for 30+ years, with recent DCSA approval to operate a Proxy as a “non-Affiliate” company.

Increasingly aligned R&D efforts with growing U.S. customer needs and priorities – ESA's U.S. R&D investments exceeded $65m in 2021.

Increased classified engineering development infrastructure and capabilities in Fort Worth TX, Merrimack NH, Roanoke VA, Reston, VA, Orlando, FL, and DeLeon Springs, FL.

PROXY Board

Sparton operates under a Proxy Agreement as a subsidiary of Elbit Systems of America

Executing programs with higher level security classification and sensitivities
Employees retain current security clearance
Sparton and Elbit Systems of America are considered non-affiliates thus facilitating enhanced collaboration and synergies
The Proxy provides an additional layer of separation by placing ESA as the buffer between Sparton and any Affiliate

The independent U.S. Proxy Board oversees all of Sparton’s business activities