Frequency Electronics uses AI tools in compliance with licenses, laws and standards and protects IP and data.
“(bb) With respect to artificial intelligence, machine learning or similar generative, predictive, agentic or other models (collectively, “ AI Tools ”), the Company and its subsidiaries (i) use AI Tools in compliance in all material respects with all applicable license terms, consents, agreements, laws, regulations and industry standards; (ii) have not, used AI Tools in a manner that materially and adversely affects the existence, ownership, validity, or enforceability of any Intellectual Property Rights in or relating to any output created in whole or part by such AI Tool that the Company intended to own or would have owned if created by employees of the Company without the use of any AI Tool; and (iii) have not included and do not include any material Data, trade secrets or material confidential or proprietary information to train, or in any prompts or inputs into, any AI Tools.”