AGREEMENT BETWEEN THE TAIPEI ECONOMIC AND CULTURAL REPRESENTATI-
VE OFFICE IN THE UNITED STATES AND THE AMERICAN INSTITUTE IN TA-
IWAN RELATING TO PARTICIPATION IN THE UNITED STATES NUCLEAR REG-
ULATORY COMMISSION PROGRAM OF SEVERE ACCIDENT RESEARCH

WHEREAS subject to the availability of personnel, material, and
appropriated funds, the U.S. Nuclear Regulatory Commission (her-
einafter referred to as "USNRC"), operating as the designated
representative of the American Institute in Taiwan (hereinafter
referred to as "AIT"), is carrying out programs of research into
the effects of severe accidents on nuclear power reactors;

WHEREAS the Taipei Economic and Cultural Representative Office
in the United States (hereinafter referred to as "TECRO") has an
interest in access to information which has been developed and
continues to arise from these programs and wishes to collaborate
with AIT by exchanges of reports and data and by sponsoring the
assignment of individuals to these programs;

Considering that TECRO and the AIT, hereinafter referred to as
the Parties:
1.Have a mutual interest in cooperation in the field of severe
accident safety research with the objective of improving and
thus ensuring the safety of civilian nuclear installations on
an international basis;
2.Recognize a need to equitably share both the resources result-
ing from this research and the effort required to develop tho-
se resources;
3.Have cooperated in this program under an Agreement between the
Coordination Council for North American Affairs (CCNAA) and A-
IT and, since January 1, 2000 with TECRO, its succeeding orga-
nization, for the past three years. This Agreement constitutes
a renewal for an additional three years.

They have therefore AGREED as follows:

ARTICLE I - PROGRAM COOPERATION
The Parties, in accordance with the provisions of this Agreement
and subject to applicable laws and regulations in force in the
territories they represent, have agreed to renew this Agreement
for another three years.

ARTICLE II - FORMS OF COOPERATION
Cooperation between the Parties through their designated repres-
entatives may take the following forms:
A.Exchange of information in the form of technical reports, exp-
erimental data, correspondence, newsletters, visits, joint me-
etings, and such other means as the Parties agree.
B.Temporary assignment of personnel of the designated represent-
ative of one Party or of the designated representative=s cont-
ractors to the laboratory or facilities owned by the designat-
ed representative of the other Party or in which the designat-
ed representative of the other Party sponsors research. Each
assignment will be considered on a case-by-case basis and may
be the subject of a separate attachment-of-staff arrangement
between the Parties.
C.Execution of joint programs and projects, including those inv-
olving a division of activities between the designated repres-
entatives of Parties. Each joint program and project will be
considered on a case-by-case basis and may be the subject of a
separate agreement, if determined to be necessary by either of
the Parties to this Agreement or their designated representat-
ives. Otherwise, it will be accomplished by the exchange of
letters between the designated representatives of the Parties,
subject at least to the terms and conditions of this present
Agreement.
D.Use by the designated representative of one Party of faciliti-
es that are owned by or in which research is being sponsored
by the designated representative of the other Party.
Use of facilities may be subject to commercial terms and cond-
itions.
E.If a Party or its designated representative wishes to visit,
assign personnel, or use the facilities owned or operated by
entities other than the Parties to this Agreement or their de-
signated representatives, the Parties recognize that prior ap-
proval of such entities will in general be required by the Re-
ceiving Party or its designated representative.
F.Any other form agreed between the Parties.

ARTICLE III - SCOPE OF AGREEMENT
A.AIT Scope of Responsibility
Subject to the availability of appropriated funds, the design-
ated representatives of AIT shall provide over the duration of
this Agreement the following specified goods and services rel-
ated to the USNRC severe accident safety research program spe-
cified in Appendix A.
Within the above guidelines and subject to TECRO financial co-
ntributions as indicated in Article VI, the designated repres-
entative of AIT will provide the designated representatives of
TECRO with the following:
- Copies of all pertinent technical program documents such as
quick-look reports, technical memoranda and notes, and labo-
ratory reports as soon as they have received appropriate ma-
nagement review by the designated representatives of AIT.

- On request, make available to TECRO through their designated
representatives the computer codes specified in Appendix A
and related documentation developed under this program and
accommodate reasonable requests for assistance in the insta-
llation of these codes in the computation system of the des-
ignated representative of TECRO, including consultation on
resolving problems encountered by personnel using these cod-
es sponsored by the designated representatives of TECRO.

- Permit personnel sponsored by the designated representatives
of TECRO to participate in technical review meetings and te-
chnical progress meetings except for those meetings primari-
ly concerned with administrative and fiscal matters.

- Facilitate visits by personnel sponsored by the designated
representatives of TECRO to sites at which work relevant to
the objective is being carried out.

- Permit the assignment of personnel sponsored by the designa-
ted representatives of TECRO to visit or work in the design-
ated representative of AIT's program on severe accident res-
earch and to have full and ready access to relevant documen-
tation, codes and results as described above.

- Permit the invited designated representative experts of AIT
to visit TECRO=s designated representative to make presenta-
tions on specific topics and/or review on-going work in the
area of severe accident research.

B.TECRO Scope of Responsibility
Subject to the availability of appropriated funds, the design-
ated representatives of TECRO shall provide, over the duration
of this Agreement, the following specified goods and services
related to the nuclear reactor safety research areas specified
in this Agreement.
1.Severe Accident Research Program
The designated representatives of TECRO will participate in
the designated representatives of AIT's severe accident pro-
gram and future related programs in this area of nuclear sa-
fety research. The designated representatives of TECRO will
be considered a full partner in this international program
upon making financial contributions as indicated in Article
VI.

Assessments will be done by the designated representatives
of TECRO or the designated representative=s contractors in
applications of severe accident codes received from the des-
ignated representatives of AIT under the scope of this Agre-
ement. The assessments will consist of applications done on
experimental facilities at which the designated representat-
ive of TECRO has access to and/or in nuclear power plants on
Taiwan.

To the extent possible, the designated representative of TE-
CRO will provide the designated representative of AIT with
the results of the collaboration resulting from the designa-
ted representatives of TECRO=s severe accident research cor-
responding to technical areas under the scope of this Agree-
ment.

ARTICLE IV - ADMINISTRATION OF THE AGREEMENT
A.The designated representatives of AIT and TECRO will each name
/appoint an Administrator to coordinate and determine the det-
ailed implementation of this Agreement.
These Administrators may, at their discretion, delegate this
responsibility to the appropriate technical staff with respect
to a given issue.
B.The Agreement states restrictions concerning dissemination of
proprietary, confidential, or privileged information. Other
information that may be restricted includes matters related to
organization, budget, personnel, or management.
C.The designated representatives of AIT and TECRO will endeavor
to select technical personnel for assignment to these coopera-
tive programs who can contribute positively to the programs.
The designated technical personnel assigned for extended peri-
ods will be considered visiting scientists (non-salaried) wit-
hin the programs in this Agreement and will be expected to pa-
rticipate in the conduct of the analysis and/or experiments as
necessary.
D.Each Party to this Agreement and their designated representat-
ives will have access to all reports written by technical per-
sonnel of the other Party=s designated representative assigned
to the respective programs that derive from the first Party=s
participation in those programs.
E.Travel costs, living expenses, and salaries will be borne by
the Parties who incurred them unless specified otherwise.

ARTICLE V - EXCMANGE AND USE OF INFORMATION AND INTELLECTUAL PR-
OPERTY
A.General
The Parties support the widest possible dissemination of info-
rmation provided or exchanged under this Agreement, subject
both to the need to protect proprietary or other confidential
or privileged information as may be exchanged hereunder, and
to the provisions of the Intellectual Property Addendum, which
is an integral part of this Agreement.

B.Definitions (As used in this Agreement)
1.The term "information" means nuclear energy-related regulat-
ory, safety, safeguards, waste management, scientific, or
technical data, including information on results or methods
of assessment, research, and any other knowledge intended to
be provided or exchanged under this Agreement,
2.The term "proprietary information" means information created
or made available under this Agreement which contains trade
secrets or other privileged or confidential commercial info-
rmation (such that the person having the information may de-
rive an economic benefit from it or may have a competitive
advantage over those who do not have it), and may only incl-
ude information which:
a.has been held in confidence by its owner;
b.is of a type which is customarily held in confidence by
its owner;
c.has not been transmitted by the owner to other entities (
including the receiving Party or its designated represent-
ative) except on the basis that it be held in confidence;
d.is not otherwise available to the receiving Party or its
designated representative from another source without res-
triction on its further dissemination; and
e.is not already in the possession of the receiving Party or
its designated representative.
3.The term "other confidential or privileged information" mea-
ns information, other than "proprietary information," which
has been transmitted and received in confidence and which is
protected from public disclosure under the laws and regulat-
ions of the territory represented by the Party providing the
information.

3.Marking Procedures for Documentary Proprietary Information
A Party receiving documentary proprietary information pursuant
to this Agreement will respect the privileged nature thereof,
provided such proprietary information is clearly marked with
the following (or substantially similar) restrictive legend:

"This document contains proprietary information furnished in
confidence under an Agreement dated ________ between the Amer-
ican Institute in Taiwan and the Taipei Economic and Cultural
Representative Office and will not be disseminated outside th-
ese organizations, their designated representatives, consulta-
nts, contractors, and licensees, and concerned departments and
agencies of the authorities in the territories represented by
the AIT and TECRO without the prior approval of (name of tran-
smitting Party). This notice shall be marked on any reproduct-
ion hereof, in whole or in part. These limitations will autom-
atically terminate when this information is disclosed by the
owner without restriction.

This restrictive legend shall be respected by the receiving
Party and proprietary information bearing this legend will not
be used for commercial purposes, made public, or disseminated
in any manner unspecified by or contrary to the terms of this
Agreement without the consent of the transmitting Party.

4.Dissemination of Documentary Proprietary Information
1.In general, proprietary information received under this Agr-
eement may be freely disseminated by the receiving Party wi-
thout prior consent to persons within or employed by the re-
ceiving Party, and to concerned authorities in the territory
represented by the receiving Party.
2.In addition, proprietary information may be disseminated wi-
thout prior consent:
a.to prime or subcontractors or consultants of the receiving
Party or its designated representative located within the
geographical limits of the territory represented by that
Party for use only within the scope of work of their cont-
racts with the receiving Party in work relating to the su-
bject matter of the proprietary information;
b.to domestic organizations permitted or licensed by the au-
thorities of the territory represented by the receiving
Party to construct or operate nuclear production or utili-
zation facilities, or to use nuclear materials and radiat-
ion sources, provided that such proprietary information is
used only within the terms of the permit or license; and
c.to domestic contractors of organizations identified in D.2
.b., above, for use only in work within the scope of the
permit or license granted to such organizations;
Provided that any dissemination of proprietary information
under D.2.a., b., and c., above, shall be on an as-needed,
case-by-case basis, shall be pursuant to an agreement of co-
nfidentiality, and shall be marked with a restrictive legend
substantially similar to that appearing in C. above.
3.With the prior written consent of the Party furnishing prop-
rietary information under this Agreement, the receiving Par-
ty may disseminate such proprietary information more widely
than otherwise permitted in subsections 1. and 2. The Parti-
es will cooperate in developing procedures for requesting
and obtaining approval for such wider dissemination, and ea-
ch Party will grant such approval to the extent permitted by
its policies, regulations, and laws.

5.Marking Procedures for Other Confidential or Privileged Infor-
mation of a Documentary Nature
A Party receiving under this Agreement other confidential or
privileged information will respect its confidential nature,
provided such information is clearly marked so as to indicate
its confidential or privileged nature and is accompanied by a
statement indicating:
1.that the information is protected from public disclosure by
the authorities of the territory represented by the transmi-
tting Party or their designated representative; and
2.that the information is transmitted under the condition that
it be maintained in confidence.

6.Dissemination of Other Confidential or Privileged Information
of a Documentary Nature Other confidential or privileged info-
rmation may be disseminated in the same manner as that set fo-
rth in paragraph D., Dissemination of Documentary Proprietary
Information.

7.Non-Documentary Proprietary or Other Confidential or Privileg-
ed Information Non-documentary proprietary or other confident-
ial or privileged information provided in seminars and other
meetings arranged under this Agreement, or information arising
from the attachments of staff, use of facilities, or joint pr-
ojects, shall be treated by the Parties according to the prin-
ciples specified for documentary information in this Agreement
; provided, however, that the Party or designated representat-
ive communicating such proprietary or other confidential or
privileged information has placed the recipient on notice as
to the character of the information communicated.
8.Consultation
If, for any reason, one of the Parties becomes aware that it
will be, or may reasonably be expected to become, unable to
meet the non-dissemination provisions of this Agreement, it
will immediately inform the other Party. The Parties shall th-
ereafter consult to define an appropriate course of action.

I Other
Nothing contained in this Agreement will preclude a Party from
using or disseminating information received without restricti-
on by a Party from sources outside of this Agreement.

ARTICLE VI - FINANCIAL CONSIDERATIONS
In addition to the technical contributions indicated under Arti-
cle 111.8, TECRO will contribute financially to AIT and its des-
ignated representative=s program described in this Agreement.
Specifically, TECRO will contribute $35,000 USD per year for th-
ree years through AIT to the Cooperative Severe Accident Resear-
ch Program. The first payment is to be made upon signature for
calendar year 2003. Successive payments are to be made on or be-
fore the last day of June of each year.

ARTICLE VII - DISPUTES AND WARRANTY OF INFORMATION
A.All costs arising from implementation of this Agreement will
be borne by the Party or designated representative that incurs
them except when specifically agreed to otherwise. It is unde-
rstood that the ability of the Parties and their designated
representative to carry out their obligations is subject to
the availability of funds.
B.Cooperation under this Agreement will be in accordance with
the laws and regulations of the respective territories repres-
ented by AIT and TECRO. Any dispute or questions, between the
Parties concerning the interpretation or application of this
Agreement arising during its term shall be settled by mutual
agreement of the Parties.
C.Information furnished by one Party to the other under this Ag-
reement will be accurate to the best knowledge and belief of
the Party supplying the information. However, the application
or use of any information exchanged or transferred between the
Parties under this Agreement will be the responsibility of the
Party receiving the information, and the transmitting Party
does not warrant the suitability of the information for any
particular use or application.
4.The AIT and the designated representative make no warranties,
whatsoever, for the ability or suitability of any code or oth-
er analytical technique to perform in any particular manner
for any particular purpose, or to accomplish any particular
task. The AIT and its designated representative do not accept
liability for damages of any type that may result from the use
of codes or other analytical techniques provided under this
Agreement.

ARTICLE VIII - FINAL PROVISIONS
A.This Agreement shall enter into force upon signature with eff-
ect from January 1, 2003 and will remain in force for a period
of three years. All information protected by provisions of th-
is Agreement as proprietary, confidential, privileged, or oth-
erwise subject to restriction on disclosure will remain so pr-
otected indefinitely, unless mutually agreed to in writing.
B.Either Party may withdraw from the present Agreement after pr-
oviding the other Party written notice at least 180 days prior
to its intended date of withdrawal. The Party not withdrawing
shall reserve the right to determine if the withdrawal will
result in the other Party receiving a disproportionate share
of the expected benefit from this Agreement. If so, both Part-
ies will endeavor to reach an equitable settlement of the mat-
ter through negotiation.
C.The Parties to this Agreement reserve the right to modify or
extend the specific activities described in Article III within
the intended scope of the Agreement upon written concurrence
of its Administrators or their designated representatives.
D.The designated representatives of AIT and TECRO recognize the
benefits of international cooperation and will endeavor to ob-
tain a mutually agreeable continuation of this Agreement befo-
re its expiration.
E.All AIT designated representative=s computer codes disseminat-
ed under this Agreement are to be considered privileged infor-
mation unless otherwise noted, are protected as such by the
designated representatives of AIT, and shall be treated likew-
ise by the designated representatives of TECRO. They are, in
particular, subject to all the provisions of this Article inc-
luding the requirements for an agreement of confidentiality (
Article V) prior to dissemination, with the exception that th-
ey need not be marked with the restrictive designation. The
codes are subject to this protection in both object and source
forms and as recorded in any media.

The AIT=s designated representative=s codes and other related
analytical techniques covered under this Agreement and any im-
provements, modifications or updates to such codes or techniq-
ues are for the purpose of reactor and plant systems safety
research and licensing and will not be used for commercial pu-
rposes, or for other benefits not related to the study of rea-
ctor safety without the prior consent of AIT=s designated rep-
resentative.

Among the code uses that will be permitted under this Agreeme-
nt are those related to research in the reactor safety area
and analyses performed by the Parties or their contractors th-
at can assist regulators and plant personnel in assessing the
safety of the plant, analyzing operating events, and training
operators. Specific examples of permitted analyses include:
design basis accidents (e.g., loss-of -coolant-accidents) ,
anticipated transients, accident management and emergency ope-
rating procedures, mid-loop operation, analysis to support PRA
success criteria, power upgrades and reload.

Prohibited uses of the code include: (1) analyses to develop a
new reactor design and (2) analyses to support power upgrades
and reload in the AIT=s designated representative=s territory,
unless performed by a subsidiary in the AIT=s designated repr-
esentative=s territory.

AIT=s designated representative=s codes and other related ana-
lytical techniques will not be advertised directly or by impl-
ication to obtain contracts related to the construction or se-
rvicing of nuclear facilities, nor will advertising imply that
the AIT=s designated representative has endorsed any particul-
ar analyses or techniques.

In witness whereof, the Parties have hereto executed this Agree-
ment.

FOR THE TAIPEI FOR THE AMERICAN
ECONOMIC AND INSTITUTE
CULTURAL IN TAIWAN:
REPRESENTATIVE
OFFICE:



───────── ─────────
Chen-Hsiung Lee Barbara Schrage
Deputy Representative Deputy Managing
Director
2003.8.8 2003.8.8


APPENDIX A
AIT AND DESIGNATED REPRESENTATIVE SEVERE ACCIDENT RESEARCH PROG-
RAM AREAS
1.Inteclrated Severe Accident Code
- MELCOR code development, assessment, and maintenance
- MELCOR Cooperative Assessment Program (WICAP)
2.Detailed In-Vessel Analysis Code
- SCDAP/RELAP 5 code can be made available upon request


INTELLECTUAL PROPERTY
ADDENDUM
Pursuant to Article V of this Agreement:
AIT and TECRO shall ensure adequate and effective protection of
intellectual property created or furnished under this Agreement
and relevant implementing arrangements. AIT and TECRO agree thr-
ough their designated representatives to notify one another in a
timely fashion of any inventions or copyrighted works arising
under this Agreement and to seek protection for such intellectu-
al property in a timely fashion. Rights to such intellectual pr-
operty shall be allocated as provided in this Addendum.
I.SCOPE
A.This Addendum is applicable to all cooperative activities
undertaken pursuant to this Agreement, except as otherwise
specifically agreed by AIT and TECRO through their designees
.
B.For purposes of this Agreement, "intellectual property" sha-
ll have the meaning found in Article 2 of the Convention Es-
tablishing the World Intellectual Property Organization, do-
ne at Stockholm, July 14, 1967; viz.,'intellectual property'
shall include the rights relating to:
- literary, artistic and scientific works,
- performances of artists, phonograms, and broadcasts,
- inventions in all fields of human endeavor,
- scientific discoveries,
- industrial designs,
- trademarks, service marks, and commercial names and desig-
nations,
- protection against unfair competition,
and all other rights resulting from intellectual activity in
the industrial, scientific, literary or artistic fields.
C.This Addendum addresses the allocation of rights, interests,
and royalties between AIT and TECRO and their designated re-
presentatives. Acting through their designated representati-
ves, AIT and TECRO shall ensure that the other Party can ob-
tain rights to intellectual property allocated in accordance
with the Addendum by obtaining those rights from its own pa-
rticipants through contracts or other legal means, if neces-
sary. This Addendum does not otherwise alter or prejudice
the allocation between:
- AIT and nationals of the territory represented by AIT whi-
ch shall be determined by the laws and practices applicab-
le in that territory or
- TECRO and nationals of the territory represented by TECRO
which shall be determined by laws and practices applicable
in that territory.
D.Disputes concerning intellectual property arising under this
Agreement should be resolved through discussions between AIT
and TECRO and their designees. Upon mutual agreement of the
designated representative of AIT and TECRO, a dispute shall
be submitted to an arbitral tribunal for binding arbitration
in accordance with the applicable rules of international law
. Unless AIT and TECRO or their designees agree otherwise in
writing, the arbitration rules of the United Nations Commis-
sion on International Trade Law (UNCITRAL) shall govern.
E.Termination or expiration of this Agreement shall not affect
rights or obligations under this Addendum.

II.ALLOCATION OF RIGHTS
A.The designated representatives of AIT and TECRO shall be
entitled to a non-exclusive, irrevocable, royalty-free lic-
ense in all countries to translate, reproduce, and publicly
distribute scientific and technical journal articles, repo-
rts, and books directly arising from cooperation under this
Agreement. All publicly Distributed copies of copyrighted
work prepared under this provision shall indicate the names
of the authors of the work unless an author explicitly dec-
lines to be named.
B.Rights to all forms of intellectual property, other than
those rights described in Section II(A) above, shall be al-
located as follows:
1.Visiting researchers, for example, scientists visiting
primarily in furtherance of their education, shall recei-
ve intellectual property rights under the policies of the
host institution. In addition, each visiting researcher
named as an inventor shall be entitled to share in a por-
tion of any royalties earned by the host institution from
the licensing of such intellectual property.
2.(a) For intellectual property created during joint resea-
rch, for example, when the designated representatives of
AIT and TECRO, participating institutions, or participat-
ing personnel have agreed in advance on the scope of work
, the designated representatives of AIT and TECRO shall
be entitled to obtain all rights and interests in the te-
rritory they represent. For inventions made in the terri-
tory represented by AIT, AIT=s designated representative
shall have first option to acquire all rights and intere-
sts in territories not represented by AIT or TECRO. For
inventions made in the territory represented by TECRO,
TECRO=s designated representative shall have first option
to acquire all rights and interests in territories not
represented by TECRO or AIT. If research is not designat-
ed as "joint research," rights to intellectual property
arising from the research will be allocated in accordance
with paragraph II.B.1. In addition, each person named as
an inventor shall be entitled to share in a portion of
any royalties earned by either institution from the lice-
nsing of the property.
(b) Notwithstanding paragraph ll.B.2.(a), if a type of
intellectual property is available under the laws of the
territory represented by AIT but not under the laws and
practices applicable in the territory represented by TEC-
RO, the designated representative of AIT shall be entitl-
ed to all rights and interests worldwide. Notwithstanding
paragraph II.B.2.(a), if a type of intellectual property
is available under the laws and practices applicable in
the territory represented by TECRO but not under the laws
of the territory represented by AIT, the designated repr-
esentative of TECRO shall be entitled to all rights and
interests worldwide. Persons named as inventors of the
property shall nonetheless be entitled to royalties as
provided in paragraph II.B.2.(a).