1. Cleared Employee Reporting Requirements

2. Reporting Regulations  Defense Security Service (DSS)  The National Industrial Security Program Operating Manual(NISPOM)1-300  Industrial Security Letter(ISL 2011-04)

3. Facility Changes  Key Management Personnel(KMP) Change  Address change  Change in Company Stock Holdings  Safeguarding no longer needed

4. Change in Personal Status  If you have a collateral CONFIDENTIAL, SECRET, or TOP SECRET clearance, you must report:  Name Change;  Change in marital status or cohabitation; Special requirements may apply if intended spouse or partner is a foreign national  Change in citizenship; cannot hold dual citizenship  when access to classified information is no longer required due to a change in job assignments.  Note that if you have access to Sensitive Compartmented Information (SCI) or Special Access Programs (SAPs), you must report other changes in personal status including family deaths and births, change of address, and inheritances.

5. Foreign Travel  Report foreign travel plans to ERC FSO for business or pleasure  Antiterrorism briefing when supporting a government contract  Additional requirements for SCI and SAP  Department of State briefs on specific countries

6. Suspicious Contacts You must report:  Any efforts by any individual, regardless of nationality, to obtain illegal or unauthorized access to classified information or to compromise any cleared employee;  Any contact by a cleared employee with known or suspected intelligence officers from any country;  Any contact which suggests you or another employee may be the target of an attempted exploitation by the intelligence services of another country.

7. Representing a Foreign Interest  You must report when you begin to act as a representative of or consultant to any foreign entity, including a government, a government agency, a commercial business, or a person.

8. Espionage, Sabotage, Subversive Activities  You must immediately report any situation related to actual, probable, or possible espionage, sabotage, or subversive activities directed at the United States.

9. Security Violations/Vulnerabilities  You must report any known or suspected security violation or vulnerability of which you become aware, independent of who is responsible or at fault for the situation.

10. Security Violations/Vulnerabilities include:  Careless or unintentional failure to comply with security requirements for safeguarding classified information;  Intentional disregard of security requirements;  Failure to comply with security requirements, regardless of intent, that has resulted in the loss, compromise, or suspected compromise of classified information;  Unauthorized receipt of classified material;  Significant vulnerabilities discovered in equipment or systems designed to protect classified information.

11. Adverse Information  Adverse information is any information that adversely reflects on the integrity or character of a cleared employee, which suggests that his/her ability to safeguard classified information may be impaired, or that his/her access to classified information clearly may not be in the interests of national security. You must report the following types of information about yourself or other employees:

12. 13 Adjudicative Guidelines to Report?  Allegiance to the United States  Foreign Influence  Foreign Preference  Sexual Behavior  Personal Conduct  Financial Considerations  Alcohol Consumption  Drug Involvement  Psychological Conditions  Criminal Conduct  Handling Protected Information  Outside Activities  Misuse of Information Technology Systems

13. Allegiance to the United States  An individual must be of unquestioned allegiance to the U.S.  The willingness to safeguard classified information is in doubt if there is any reason to suspect an individual's allegiance to the U.S.  Any act of sabotage, espionage, treason, terrorism, or sedition against the U.S.

14. Foreign Influence  Foreign contacts and interests may be a security concern due to divided loyalties or foreign financial interests,  Manipulated or induced to help a foreign person, group, organization, or government in a way that is not in U.S. interests, or is vulnerable to pressure or coercion by any foreign interest.  May be prone to provide information or make decisions that are harmful to the interests of the United States.  Family member, business associate, friend of foreign country might exploit, manipulate, pressure, or coerces.

15. Foreign Preference  When an individual acts in such a way as to indicate a preference for a foreign country over the United States, then he or she may be prone to provide information or make decisions that are harmful to the interests of the United States.

16. Sexual Behavior  Sexual behavior that involves a criminal offense  Indicates a personality or emotional disorder  Reflects lack of judgment or discretion  May subject the individual to undue influence or coercion, exploitation, or duress  Can raise questions about an individual's reliability, trustworthiness and ability to protect classified information. the basis of the sexual orientation of the individual.

17. Personal Conduct  Conduct involving questionable judgment, lack of candor, dishonesty, or unwillingness to comply with rules and regulations can raise questions about an individual's reliability, trustworthiness and ability to protect classified information.  Of special interest is any failure to provide truthful and candid answers during the security clearance process or any other failure to cooperate with the security clearance process

18. Financial Considerations  Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information.  An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.  Compulsive gambling is a concern as it may lead to financial crimes including espionage.  Affluence that cannot be explained by known sources of income is also a security concern. It may indicate proceeds from financially profitable criminal acts.  Wage garnishments.

19. Alcohol Consumption  Excessive alcohol consumption often leads to the exercise of questionable judgment or the failure to control impulses, and can raise questions about an individual's reliability and trustworthiness.  DUI, fighting, child or spouse abuse, disturbing the peace  Reporting to work intoxicated or drinking on the job  Loose lips, sink ships!

20. Drug Involvement  Use of an illegal drug  Misuse of a prescription  Individual's reliability and trustworthiness  Person's ability or willingness to comply with laws, rules, and regulations.

21. Psychological Conditions  Certain emotional, mental, and personality conditions can impair judgment, reliability, or trustworthiness.  A formal diagnosis of a disorder is not required for there to be a concern under this guideline.  No negative implication concerning may be raised solely on the basis of seeking mental health counseling.

22. Criminal Conduct  Criminal activity creates doubt about a person's judgment, reliability and trustworthiness.  By its very nature, it calls into question a person's ability or willingness to comply with laws, rules and regulations.  Report anytime that you are arrested to your security officer

23. Handling Protected Information  Deliberate or negligent failure to comply with rules and regulations for protecting classified or other sensitive information raises doubt about an individual's trustworthiness, judgment, reliability, or willingness and ability to safeguard such information, and is a serious security concern.  Includes Sensitive But Unclassified(SBU), For Official Use Only(FOUO), Export Control and International Traffic and Arms Regulations(ITAR), Controlled Unclassified Information(CUI)

24. Outside Activities  Involvement in certain types of outside employment or activities is of security concern if it poses a conflict of interest with an individual's security responsibilities and could create an increased risk of unauthorized disclosure of classified information.

25. Misuse of Information Technology  Noncompliance with rules, procedures, guidelines or regulations pertaining to information technology systems may raise security concerns about an individual's reliability and trustworthiness, calling into question the willingness or ability to properly protect sensitive systems, networks, and information.  Information Technology Systems include all related computer hardware, software, firmware, and data used for the communication, transmission, processing, manipulation, storage, or protection of information.

26. Court Cases  Two court cases  Becker vs. Philco  Taglia vs. Philco  Protect you from reporting on someone else.

27. The Defense Hotline The DoD maintains a hotline to provide an unconstrained avenue for employees to report, without fear of reprisal, known or suspected instances of serious security irregularities concerning government contracts, programs, or projects. Security recommends that the hotline number be used only when an employee feels that reporting a matter to ERC Security would not be prudent. The Defense Hotline numbers are (800) 424-9098 or (703) 693-5080. In most instances, however, reports of suspected incidents of espionage/sabotage or serious security violations should be made to your local Security organization at the numbers listed above.

28. Other HOTLINE Numbers  Federal Bureau of Investigation The FBI has 56 field offices. The phone number of the nearest office is listed under United States Government in your local phone book.  Air Force Office of Special Investigations (202)767-5199  Department of Commerce/Office of Export Enforcement (202) 482-1208 or 1-800-424-2980 (to report suspicious targeting of US export-controlled commodities)  NASA Security Hot Line: NASA Security Operations Center (SOC) 877-627-2732

29. Who to Contact  ERC Facility Security Officer  Sean R DOyle  seandoyle@erc-incorporated.com seandoyle@erc-incorporated.com  256-327-9155