"Requirement. The Harpoon Block II missile weapon system is accorded Category III protection as addressed in Department of Defense (DoD) 5100.76-M "Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives," current version. The Guidance Control Unit (GCU) is accorded Category II storage protection with an Intrusion Detection System (IDS) or is continuously manned or under constant surveillance in such a manner that unauthorized entry into and around the storage structures can be detected. Specific physical security requirements will be documented and agreed upon during the site visit referenced in paragraph 6 of this note and implemented prior to delivery of the missile system. The purchaser agrees to adhere to the security requirements as outlined in the following paragraphs. The purchaser agrees to perform inventory checks and allow U.S. Government (U.S. Government) inventory verification. The purchaser will ensure that these requirements are conveyed to any unit and/or personnel having custody of these items and to their higher headquarters.

Storage. The weapon system will be stored in facilities that are at least equivalent in strength to U.S. Government requirements. Specific requirements for storage must be agreed upon and met prior to delivery of the missile system. U.S. Government representatives will be allowed to verify security measures and procedures prior to the delivery of the weapon system.

1. Inventory and Accountability Documentation. Purchaser will have procedures in place that provide a continuous accounting of missile receipt, transfer, storage, shipment, and/or destruction/demilitarization. The purchaser agrees to inventory 100% of the missiles on this LOA (missile to serial number) and verify from the logbook that the appropriate serial number GCU is contained in the associated missile on a semi-annual basis. The U.S. Government will be permitted, at its discretion, to conduct an assessment of accountability measures and, if required, inventory 100% of all missiles transferred under this LOA. Inventory and accountability documentation maintained by the purchaser must be retained throughout the period of ownership and will be made available for review upon U.S. Government request. purchaser will immediately notify the U.S. Government (through the Security Cooperation Organization (SCO) to DSCA) of any missile expenditures, compromises, or losses and provide necessary assistance if the U.S. Government desires to initiate recovery operations.

2. Storage of Hardware and Technical Data. Storage of missile hardware and technical data will meet U.S. standards for safeguarding the missile. The purchaser will maintain strict accountability records on all classified information provided by the U.S. Government related to the missiles including extracts and copies. These records will include documentary evidence of any weapon systems or components that are lost or destroyed. Such records will be centralized, to the extent possible.

3. Doors, Locks, and Keys. Exterior doors will be class five steel vault doors secured by a key-operated high security padlock and hasp. Use of a master or multiple key system is prohibited.

4. Fencing. Fencing will be six-foot (minimum) steel chain link with a one-foot overhang mounted on steel or reinforced concrete posts over firm base. Clear zones will be established 30 feet inside and 12 feet outside the perimeter. A 45-degree outrigger or "Y" configuration with 3 strands of barbwire is required on the fencing. The bottom of the fence will extend 2 inches into the ground.

Reporting. The purchaser will report immediately to the SCO or other appropriate U.S. Government representative any allegations, confirmed or unconfirmed, of missile hardware, technology or software released, or compromised to unauthorized nations, third country nationals, or a foreign government. The purchaser will also report any allegations, report, or evidence of unauthorized attempts to collect information on the missile program.

Organizational (O-Level) and Intermediate (I-Level) Maintenance. Military or civilian employees of the purchaser at military establishments will accomplish organizational and intermediate level maintenance. Third-country nationals, industries or their representatives cannot perform maintenance functions unless approved in writing by the U.S. Government.

Depot Level Maintenance. Missiles or subcomponents that require depot level repair will be transported to designated depot level repair facilities in the U.S. under proper security procedures unless the U.S. Government specifically authorized the purchaser to accomplish Depot Level maintenance.

Site Survey. In accordance with the Security Assistance Management Manual (SAMM), Chapter 8, prior to the delivery of the missiles, the U.S. Government will conduct an in-country site survey of the physical security measures at all facilities of the purchaser designated for storage or maintenance of the weapon system. This includes the missile and all support equipment such as loaders, trailers, and cable harnesses.

1. The U.S. Government will provide to the purchaser a security checklist and serial numbers that should be referenced during the site survey and throughout the life of the weapon system. The checklist is used to indicate that the integrity of security measures in place for weapon system maintenance and storage will insure the same level of security protection as the U.S. Government.

2. Deficiencies identified during the site survey must be corrected prior to any weapon system deliveries.

3. The purchaser agrees to adhere to security requirements associated with the weapon system for the life cycle of the system. The purchaser agrees to allow U.S. Government verification of security arrangements for the protection of the weapon system on both a scheduled and unscheduled basis.

End Use Monitoring. The purchaser understands that this system has been designated for Enhanced End-Use Monitoring. This will include, but not be limited to, a U.S. Government inventory of missiles listed in this offer by serial number, and a U.S. Government review of security controls and procedures, inventory and accountability documentation, distribution of assets (i.e., a plan for in-country movement), or plan for repair and return, transportation, access controls, storage of hardware and technical data.

Transportation. Transportation of the weapon system will meet U.S. standards for safeguarding classified materiel in transit. The transportation plan must be coordinated and approved by Naval Air Systems Command (NAVAIR), AIR-7.4.2, prior to delivery of the weapon system to the purchaser.

Disposition. The purchaser will obtain U.S. Government disposition instructions that either direct transporting missile sections back to the U.S. Government or another designated staging area, and/or provide comprehensive guidance on demilitarization/disposal management for in-country incineration. The U.S. Government disposition instructions indicate parties in the U.S. Government that must be contacted prior to any demilitarization/disposal effort."