AGREEMENT BETWEEN THE TAIPEI ECONOMIC AND CULTURAL REPRESENTATI-
VE OFFICE IN THE UNITED STATES AND THE AMERICAN INSTITUTE IN TA-
IWAN FOR TECHNICAL COOPERATION IN CLEAN COAL AND ADVANCED POWER
SYSTEMS TECHNOLOGIES

ARTICLE I - SCOPE
This Agreement provides a framework through which the American
Institute in Taiwan(AIT) through the Department of Energy of the
United States of America, Fossil Energy Office of Coal and Power
Systems (DOE), AIT's designated representative, can provide tec-
hnical expertise and training to, and engage in scientific exch-
ange activities with, the Ministry of Economic Affairs, Energy
Commission(MOEAEC), the designated representative of the Taipei
Economic and Cultural Representative Office in the United States
(TECRO), on a reimbursable basis.

ARTICLE II - AUTHORIZATION
This Agreement is entered into pursuant to the Taiwan Relations
Act of April 10, 1979, Public Law 96-8 (22 USC 3301 et seq.)

ARTICLE III - OBJECTIVES
The broad objective of this Agreement is to establish a framewo-
rk through which AIT, acting through DOE, its designated repres-
entative, can carry out reimbursable technical cooperation with
TECRO's designated representative MOEAEC. The technical objecti-
ves of the cooperation are:
1.To undertake cooperative activities that will strengthen know-
ledge and capabilities for utilization of improved advanced
power systems and related technologies on Taiwan.
2.To provide technical assistance to plan and implement clean
coal and advanced power systems for Taiwan.
3.To provide education and training for Taiwan participants ide-
ntified by TECRO's designated representative, MOEAEC.
4.To provide knowledge concerning how to structure and finance
incentive programs for improved advanced power systems techno-
logies.
5.To promote joint scientific and technical exchange programs.
6.To provide training for organizations on Taiwan in the manage-
ment of research, development and technology transfer.

ARTICLE IV - COOPERATIVE ACTIVITIES
Cooperative activities under this Agreement will be determined
after consultations between AIT and its designated representati-
ve, DOE, and TECRO and its designated representative, MOEAEC.
Cooperation may include, but is not limited to the following:
1.Conduct of joint research projects;
2.Development of systems specifications and acquisition plans;
3.Exchange of information;
4.Exchange of scientific and technical personnel for participat-
ion in agreed research, development, analysis, design and exp-
erimental activities;
5.Organization of seminars and other meetings on agreed topics;
6.Training Taiwan participants;
7.Other forms of cooperation in the areas of improved advanced
power systems, clean coal technology and by-product utilizati-
on technology as may be mutually agreed.

ARTICLE V - IMPLEMENTING ARRANGEMENTS
A.When AIT and TECRO agree to undertake any form of cooperation
under this Agreement, they will conclude an Implementing Arra-
ngement, which shall refer and subject to the terms of this
Agreement.
B.Each Implementing Arrangement shall specify the technical sco-
pe of the activities, management responsibilities, specific
funding arrangements, cost and schedule estimates, procedures
to be followed, including those for review of accounts and re-
cords, treatment of intellectual property, liability and other
appropriate matters.
C.All cooperative activities undertaken pursuant to specific Im-
plementing Arrangements under this Agreement shall be subject
to (a) the applicable laws, regulations, policies, and admini-
strative procedures that govern AIT, and its designated repre-
sentative, DOE, and TECRO, and its designated representative,
MOEAEC, respectively; and (b) the availability of appropriated
funds.

ARTICLE VI - RESPONSIBILITIES OF AIT
A.AIT shall, through its designated representative, DOE, keep
accurate and systematic accounts and records with respect to
the services provided pursuant to this Agreement in such form
and detail as is customary, and shall permit TECRO, or its de-
signated representative, MOEAEC, to inspect same and make cop-
ies thereof.
B.AIT shall, through its designated representative, DOE, furnish
to TECRO, or its designated representative, MOEAEC, such info-
rmation related to the services AIT shall provide to TECRO pu-
rsuant to this Agreement as may be reasonably requested.
C.Upon completion of specific services provided to TECRO, as de-
lineated in the implementing Arrangements to this Agreement,
AIT's designated representative, DOE, shall deliver to TECRO,
or to its designated representative, MOEAEC, copies of all re-
ports, calculations, comments, suggestions, and relevant tech-
nical data compiled or prepared by AIT, or its designated rep-
resentative, DOE, under this Agreement.
D.To the extent that funds are made available to AIT by TECRO,
AIT, through its designated representative, DOE, will make av-
ailable such qualified personnel, equipment and facilities ne-
cessary to carry out activities pursuant to this Agreement.
E.To the extent that funds are made available to AIT by TECRO,
AIT, through its designated representative, DOE, will provide
all technical, administrative, and other support as may be ne-
cessary to deliver the services of personnel of AIT's designa-
ted representative, DOE, who are on Taiwan under the auspices
of AIT.

ARTICLE VII - RESPONSIBILITIES OF TECRO
A.Pursuant to this Agreement, TECRO shall assist AIT in obtaini-
ng visas and other documents necessary for personnel of AIT's
designated representative, DOE, who visit Taiwan under the au-
spices of AIT in order to carry out this Agreement.
B.Pursuant to this Agreement, TECRO shall assist AIT in obtaini-
ng the necessary permits and authorizations for carrying out
the assistance specified in the Implementing Arrangements to
this Agreement, including access to facilities and areas under
the jurisdiction of TECRO's designated representative, MOEAEC,
by personnel of AIT's designated representative, DOE, who are
on Taiwan under the auspices of AIT.
C.TECRO shall, pursuant to this Agreement, ensure that AIT, and
its designated representative, DOE, are exempt from all custo-
ms duties and imposition of charges by the authorities in the
territory represented by TECRO. Neither AIT nor its designated
representative, DOE shall be required to pay any duties, taxes
, or similar charges of any kind in executing the terms and
conditions of this Agreement.

ARTICLE VIII - FINANCIAL ARRANGEMENTS
A.Activities under this Agreement shall be conducted on a fully
reimbursable basis unless other arrangements are agreed to in
Implementing Arrangements to this Agreement.
B.AIT through its designated representative, DOE, shall provide
TECRO with documentation supporting requests for reimbursement
in accordance with standard financial regulations and practice
of AIT and its designated representative, DOE.
C.Pursuant to Article V, each Implementing Arrangement shall sp-
ecify funding and payment arrangements for activities covered
by the Implementing Arrangement and shall include an estimated
budget for at least the first year of activity.
D.TECRO shall make necessary arrangements to reimburse AIT for
all actual costs incurred by AIT, or its designated represent-
ative, DOE, relating to activities under this Agreement.

ARTICLE IX - INTELLECTUAL PROPERTY
A.AIT and its designated representative, DOE, and TECRO, and its
designated representative, MOEAEC, support the widest possible
dissemination of information provided, exchanged, or arising
under this Agreement subject to the need to protect proprieta-
ry information, inventions, copyrights, and other intellectual
property.
B.Details concerning the protection and allocation of intellect-
ual property and the dissemination of information will be spe-
cified in each Implementing Arrangement to this Agreement.
C.Information transmitted by either Party to this Agreement to
the other Party shall be accurate to the best knowledge and
belief of the transmitting Party, but the transmitting Party
does not warrant the suitability of the information transmitt-
ed for any particular use or application by the receiving Par-
ty or by any third party. Information developed jointly by the
Parties shall be accurate to the best knowledge and belief of
both Parties. Neither Party warrants the accuracy of the join-
tly developed information or its suitability for any particul-
ar use or application by either Party or by any third party.

ARTICLE X - LIABILITY
TECRO shall assist in the defense against any suit brought agai-
nst the Government of the United State, AIT, AIT's designated
representative, DOE, or any instrumentality or officer of the
Government of the United States or of AIT arising out of activi-
ties under this Agreement. TECRO further agrees to hold the Uni-
ted States, AIT, AIT's designated representative, DOE, or any
instrumentality or officer of the United States or of AIT, harm-
less against any claim by TECRO, its designated representative
MOEAEC, or any entity or person on Taiwan or elsewhere for pers-
onal injury, death or property damage arising out of work perfo-
rmed under this Agreement.

Except for damage to, or destruction of, property of AIT, or its
designated representative, DOE, caused by personnel of AIT, or
its designated representative, DOE, TECRO agrees to reimburse
AIT, or its designated representative, DOE, for any damage to or
destruction of property belonging to AIT, or its designated rep-
resentative, DOE, arising out of activities under this Agreement
.

ARTICLE XI - EFFECTIVE DATE
This Agreement will become effective on the date of the last si-
gnature hereafter.

ARTICLE XII - AMENDMENT AND TERMINATION
A.This Agreement and its Implementing Arrangements may be amend-
ed by written agreement of AIT and TECRO.
B.This Agreement may be terminated by either Party at any time
by written notification to the other Party and its designated
representative at least sixty days in advance of the desired
termination date. It is understood that an attempt will be ma-
de to reach mutual agreement on the termination dates to allow
orderly termination of activities and repatriation of personn-
el.

ARTICLE XIII - RESOLUTION OF DIFFICULTIES
AIT and TECRO shall consult, upon request of either Party, rega-
rding any matter related to the terms of this Agreement, and sh-
all endeavor jointly, in a spirit of cooperation and mutual tru-
st, to resolve any difficulties or misunderstandings that may
arise.

FOR THE TAIPEI ECONOMIC AND FOR THE AMERICAN INSTITUTE
CULTURAL REPRESENTATIVE OFFICE IN TAIWAN:
IN THE UNITED STATES:
Chen-Hsiung Lee Barbara J. Schrage
Deputy Representative Deputy Managing
Director
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Date: 01/20/04 Date: 10/31/03