IMPLEMENTING ARRANGEMENT NUMBER 7 CONSULTANCY SERVICES FOR THE
ADVANCED OPERATIONAL AVIATION WEATHER SYSTEM (AOAWS) TO THE AGR-
EEMENT BETWEEN THE TAIPEI ECONOMIC AND CULTURAL REPRESENTATIVE
OFFICE IN THE UNITED STATES AND THE AMERICAN INSTITUTE IN TAIWAN
FOR TECHNICAL COOPERATION ASSOCIATED WITH ESTABLISHMENT OF ADVA-
NCED OPERATIONAL AVIATION WEATHER SYSTEM

ARTICLE I-SCOPE
This Implementing Arrangement describes the cooperative scienti-
fic, technical, engineering and administrative activities to be
undertaken by the American Institute in Taiwan (AIT) and its de-
signated representative, the University Corporation for Atmosph-
eric Research (UCAR), to provide consultancy services for the
Advanced Operational Aviation Weather System (AOAWS). The AOAWS
is a cooperative effort between the Taipei Economic and Cultural
Representative Office in the United States (TECRO), through its
designated representative, the Civil Aeronautics Administration
(CAA), of the Ministry of Transportation and Communications (MO-
TC), and AIT, through its designated representative UCAR. This
Implementing Arrangement pertains to the Agreement (dated August
14, 1998, hereinafter referred to as the Agreement) between TEC-
RO and AIT for Technical Cooperation associated with the Establ-
ishment of Advanced Operational Aviation Weather Systems and is
a part of the Agreement.

ARTICLE II-AUTHORIZATION
The activities described in this Implementing Arrangement will
be carried out under the general terms conditions established by
the Agreement. The Agreement was entered into by the parties pu-
rsuant to the Taiwan Relations Act of April 10, 1979, Public Law
96-8 (22 USC 3301 et seq.).

ARTICLE III-SERVICES
The AOAWS provides TECRO's designated representative, CAA, the
airlines and the flying public on Taiwan with state-of-the-art
aviation weather technology for: 1) hazardous weather phenomena
that affect aviation operations, 2) weather phenomena that affe-
ct airspace capacity and safety at major hub airports, and 3)
weather phenomena that affect overall efficiency of aviation op-
erations. The AOAWS is a complex system utilizing several advan-
ced weather sensing subsystems, integrated communications, adva-
nced software developed by AIT's designated representative, UCAR
, advanced numerical weather forecast models developed by UCAR,
and advanced display technology for TECRO's designated represen-
tative, CAA, and airline end users. The ongoing success of the
AOAWS is dependent on technical cooperation and technology tran-
sfer between the designated representatives of TECRO and AIT in
accordance with the terms and conditions of the Agreement, this
Implementing Arrangement, and future Implementing Arrangements
to be agreed upon by the parties.

This Implementing Arrangement is specifically focused on : a)
providing support and software maintenance services for the AOA-
WS system and b) developing and implementing system enhancements
based on system performance and user feedback.

The technical cooperation to be undertaken under the auspices of
this Implementing Arrangement is defined by the following tasks.
Task details, including specific work to be performed, performa-
nce period, and estimated cost of each task are contained in the
attached Statement of Work.

A summary description of the tasks to be performed during this
period is provided below.

Task #1 - System Support and Maintenance Services
System administration and software engineering support will be
provided for the AOAWS system during FY2004. Defects in the AOA-
WS System software that arise or develop during this period will
be addressed and resolved. Support and maintenance services cov-
er only software components of the AOAWS. TECRO's designated re-
presentative, CAA, will be responsible for hardware maintenance.
AIT's designated representative, UCAR, will provide support as
necessary to TECRO's designated representative, CAA, on Taiwan
to ensure the AOAWS system serviceability level remains consist-
ently high.

Task #2 - Development & Implementation of System Enhancements
AOAWS system enhancements will be developed, tested and impleme-
nted during FY2004. System refinements will include a) upgrading
the 3DVAR component of the MM5 weather forecast model and b) ad-
ding components to the Multidimensional Display System (MDS) and
Web Multidimensional Display System (WMDS).

Task #3 - AOAWS Project Management
The project management task includes developing, scheduling and
managing the work, responding to requests from TECRO's designat-
ed representative, CAA, preparing quarterly reports and partici-
pating in AOAWS-related meetings.

ARTICLE IV - FINANCIAL PROVISIONS
In accordance with the Agreement, UCAR is undertaking this tech-
nical cooperation as the designated representative of AIT. TECRO
will reimburse AIT and AIT will make necessary arrangements to
transfer such funds to UCAR for all costs incurred in associati-
on with this Implementing Arrangement. UCAR's costs for this te-
chnical cooperation will be assessed on the basis of actual lab-
or time and materials utilized, plus a 3% management fee. TECRO
has agreed that fifty percent (50%) of the estimated cost for
the tasks associated with this Implementing Arrangement will be
transferred in advance to AIT and that the remaining costs will
be reimbursed within 30 days after acceptance of the deliverabl-
es by TECRO and its designated representative, CAA. It is agreed
and understood that the payment will be provided in US$. The up-
per limit for expenditures incurred under this Implementing Arr-
angement is US$207,000. UCAR will submit an invoice to AIT for
transmittal to TECRO for payment at the beginning of the contra-
ct period and at the end of the contract period listing actual
costs incurred.

ARTICLE V - INTELLECTUAL PROPERTY CONSIDERATIONS
The deliverables produced under the auspices of this Implementi-
ng Arrangement shall be the sole property of TECRO and its desi-
gnated representative, CAA. AIT's designated representative, UC-
AR, shall have the right to reference these documents in scient-
ific publications and other reports as necessary.

ARTICLE VI - EFFECTIVE DATE, AMENDMENT, AND TERMINATION
This Implementing Arrangement takes effect 1 January 2004 and
the completion date of tasks described in this Implementing Arr-
angement is 31 December 2004. This Implementing Arrangement may
be amended and/or terminated in accordance with the terms and
conditions of the Agreement.

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


Lee Chen-hsiung Barbara J. Schrage
─────────────── ─────────────
Name of person signing Name of person signing
Position: Deputy Representative Position: Deputy Managing
Director
Date: 01/27/2004 Date: 12/22/2003