________________________________________________________________________ 

 

 

 

 

 

 

TREATIES AND OTHER INTERNATIONAL ACTS SERIES 17-724
 

DEFENSE
 

Cooperation
 

Agreement Between the 

UNITED STATES OF AMERICA 

and CROATIA 

Signed at Washington and Zagreb 

June 29 and July 24, 2017 
 

 

 

NOTE BY THE DEPARTMENT OF STATE 

Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)— 

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
 

 

 

 

 

 

CROATIA 

Defense: Cooperation 

Agreement signed at Washington 

and Zagreb June 29 and 

July 24, 2017; 

Entered into force July 24, 2017. 
AGREEMENT 


BETWEEN 


THE DEPARTMENT OF DEFENSE 


OF THE UNITED ST A TES OF AMERICA 


AND 


THE MINISTRY OF DEFENCE 


OF THE REPUBLIC OF CROATIA 


CONCERNING 


COOPERATIVE UNMANNED VEHICLES IN THE MARITIME ENVIRONMENT 


(SHORT TITLE: CUV-ME AGREEMENT) 

TABLE OF CONTENTS 


PREAMBLE ....................................................................................................................... 3 


ARTICLE 1 


DEFINITIONS .................................................................................................................... 4 


ARTICLE II 


OBJECTIVE .............................................".......................................................................... 7 


ARTICLE III 


SCOPE OF \VORK ............................................................................................................. 8 


ARTICLE IV 


MANAGEMENT (ORGANIZATION AND RESPONSIBILITY) ................................. l 0 


ARTICLE V 


FINANCIAL PROVISIONS ............................................................................................ 13 


ARTICLE VI 


CONTRACTING PROVISIONS ..................................................................................... 15 


ARTICLE VII 


PROJECT EQUIPMENT .................................................................................................. 17 


ARTIC LE VIII 


DISCLOSURE AND USE OF PROJECT INFORMATION ........................................... 18 


ARTICLE IX 


CONTROLLED UNCLASSIFIED INFGRMATION ..................................................... 24 


ARTICLEX 


VISITS TO ESTABLISHMENTS .................................................................................... 25 


ARTICLE XI 


SECURITY ....................................................................................................................... 26 


ARTICLE XII 


THIRD PARTY SALES AND TRANSFERS .................................................................. 27 


ARTICLE XIII 


LIABILITY AND CLAIMS ............................................................................................. 28 


ARTICLE XIV 


PARTICIPATION OF ADDITIONAL NATIONS .......................................................... 29 


ARTICLE XV 


CUSTOMS DUTIES, TAXES, AND SIMILAR CHARGES .......................................... 30 


ARTICLE XVI 


SETTLEMENT OF DISPUTES ....................................................................................... 31 


ARTICLE XVII 


LANGUAGE .................................................................................................................... 32 


ARTIC LE XVIII 


AMENDMENT, TERMINATION, ENTRY INTO FORCE, AND DURATION .......... 33 


2 

PREAMBLE 


The Department ofDefense of the United States of America (U.S. DoD) and the Ministry of 

Defence of the Republic of Croatia (Hrvatske) (HRV MOD), hereinafter referred to as the 

"Parties": 

Having a common interest in defense, safety, and security of maritime trade; 

Recognizing the benefits to be obtained from standardization, rationalization, and 

interoperability ofmilitary equipment; 

Desiring to improve their mutual conventional defense capabilities through the application of 

emerging technologies; 

Having a mutual need for advancing combined operations between multiple unmanned systems, 

including Unmanned Aerial Vehicles (UAVs), Unmanned Underwater Vehicles (UUVs), and 

Unmanned Surface Vehicles (USVs) to satisfy common operational requirements; and 

Having independently conducted research, development, and testing of the applications of 

various technologies, and recognizing the benefits of a Cooperative Unmanned Vehicles in the 

Maritime Environment (CUV-ME) Agreement; 

Have reached the following agreement: 

3 

ARTICLE I 

DEFINITIONS 

The Parties have agreed upon the following definitions of terms used in this CUV-ME 

Agreement: 

!Classified lnfonnation Official Infonnation that requires protection in the interests of \ 

tnational security and is so designated by the application of a I 

security classification marking. This Information may be in oral, i 

!Visual, magnetic, or documentary fonn, or in the fonn of 

equipment or technology. i 

IFonnal descriptions of digital message fonnats and rules are 

!required to exchange messages in or between systems. 

Communications Protocols cover authentication, enor detection. 

I

~~~~~~~-~~~~___,_co_rr~e_c_ti_o_n_,_ar_1d~s~ig~11_1a_l_in~g~·~~~~~~~~--~~~----~-~--": 

!Contract 	 ny mutually binding legal relationship under national laws that ; 

\ obligates a Contractor to furnish supplies or services, and : 11 KJbligates one or both of the Parties to pay for them. 	 I r--~~~~~~~~~~~-t-~'='--~~~~~~~~~~~~~~-~~~~~--~~--------j 

\Contracting 	 IThe obtaining of supplies or services by Contract from sources \ 

outside the governmental organizations of the Pm1ies. i 

Contracting includes a description (but not detennination) of ! 

supplies and services required, solicitation and selection of I 

sources, preparation and award of Contracts, and all phases of '\ 

Contract administration. 1 

Contracting Agency The entity within the governmental organization of a Party that I 

has authority to enter into, administer, or terminate Contracts. I 

Contracting Officer A person representing a Contracting Agency of a Party who hasl 

[he authority to enter into, administer, or tenninate Contract~ 

Contractor Any entity awarded a Contract by a Party's Contracting Agency. I 

Contractor Support Personnel Persons specifically identified as providing administrative, 

!managerial, scientific, or technical support services to a Party 

!under a support Contract. ! 

Controlled Unclassified tunclassified Information to which access or distribution l 

rrnfonnation 11imitations have been applied in accordance \\'ith applicable 1 

1national laws or regulations. It could include Information that has I 

.been declassified but remains controlled. II 

Cost Ceiling 	 ~he maximum amount of shared Financial and Non-financial i 

\Costs that may be dedicated to the Project without the prior \ 

iWritten approval of the Parties. 1 

\ 

\Defense Purposes Manufacture or other use in any part of the world by or for the 

anned forces of either Party. 

!Designated Security 

!Authority (DSA) 

!Financial Costs 

lrhe security authority designated by national authorities to be I 

I! !responsible for the coordination and implementation of national 1 

industrial security aspects of this Project. 

!Project costs met with monetary contributions. l 

[nformation Knowledge that can be communicated by any means, regardless o~ 

4 

I 


I
i 

I 

form or type, including, but not limited to, that of a scientific, 1 

technical, business, or financial nature, and also including I 

tphotographs, reports, manuals, threat data, experimental data, test 

klata, compl!ter software, designs, specifications, processes, 

~echni~ues, i~ven~ions, drawing~, technical writings, sound 

recordings, p1ctonal representat10ns, and other graphical 

presentations, whether in magnetic tape, computer memory, or any 

other form, and \Yhether or not subject to Intellectual Property 1 

rights. 

Intellectual Property 	 In accordance with the World Trade Organization Agreement~ 

Trade-related Aspects of Intellectual Property Rights of April 15. i 

,1994, all copyright and related rights, all rights in relation to 

jinventions (including Patent rights), all rights in registered and 

\unregistered trademarks (including service marks), registered and 

!unregistered designs, undisclosed Infonnation (including trade 

\secrets and know-how), layout designs of integrated circuits, 

~eographical indications. and any other rights resulting from 

\creative activity in the industrial, scientific. literary. and artistic 

\fields. 

11 methods for preventing or reducing damage or danger from 

mes. , 

on-financial Costs 

arty 

atent 

\-'--~--'-~~~~~~~~~-4-~~~~~~~~~~~~~~~~~~~~~~~-~----. 

roject costs met with non-monetary contributions. 

~signatory to this CUV-ME Agreement represented by its 

ilitary and civilian personnel. Contractors and Contractor 

upport Personnel shall not be representatives of a Party under \ 

his CUV-ME Agreement. 

Grant by any governrnent or a regional office acting for more th<ffil 

ne government of the right to exclude others from making, using, I · mporting. selling, or offering to sell an invention. The tenn refers 1

\ 

o any and all patents including, but not limited to. patents of , 

"mplementation, improvement or addition, petty patents, utility 

piodels, appearance design patents, registered designs. and 

~~v~~tor cert_ificates or l~ke s~atutory protection, as well_ as ~ i 

\d1v1s1ons, reissues, contmuat10ns, renewals, and extensions ot any I 

of these. _____J 

roject he cooperative efforts under this CUV-ME Agreement to i 1 

evelop and test the hardware and software protocols necessary to \ 

advance combined operations between multiple unmanned I 

~ ystems, including UAVs. UUVs, and USVs. to enhance the 

avigational accuracy of UUVs, and to improve the safety of l 

erators. 

roject Background nformation not generated in the perfonnance ofthe Project. 

Information I I 

roject Equipment ny material, equipment, end-item, subsystem. component, :1 

pecial tooling, or test equipment jointly acquired or provided for 0

~se in the Project. 1 

5 

roject Foreground 

Information 

nfonnation generated in the performance ofthe Project. I I 

ny Infonnation provided to, generated in, or used in the Project. ! 

I 

I 

roject Infonnation 

roject Invention 

roject Plan 

y invention in any field oftechnology, provided it is new. , 

· nvolves an inventive step, is capable ofindustrial application, and1

I 

·s formulated or made (conceived or "first actually reduced to 

ractice") in the course of work performed under a Project. The I 

~enn "first actually reduced to practice" means the first 

!demonstration. sufficient to establish to one skilled in the mi to · 

'hi ch the in\'ention pertains, ofthe operability of an in\'ention ror I 

'ts intended purpose and in its intended environment. 

document that provides a detailed description of the Project. 

'ncluding, but not limited to, its corresponding tasks, work 

schedule, delivery requirements, and milestones. that is updated as 

[PrOJect Security Instruction 

ecessary throughout the life of the Project. 

stablishes procedures and assigns responsibilities for the 

'mplementation of security requirements under this CUV-ME 

greement. It hannonizes security procedures between the 

arties and provides instructions for the Parties on the 

\(PSI) 

I 

I 

Prospective Contractor 

classification of Information and equipment; marking 

equirements: security procedures, including the handling and 

ransfer of classified Information and materiel; and visit 

rocedures for the Project. i 

ny entity that seeks to enter into a Contract to be ~warded by~ 

\ 

I 

arty's Contracting Agency and that, in the case of a solicitation 

·nvolving the release of export-controlled Information, is eligible 

o receive such Infonnation. 

government other than the Go\:ernment of a Party and any -J 

erson or other entity whose government is not the Government ofl 

a Party. ____J 

nmanned Aerial Vehicle vehicle that operates in the air without a human occupant. \

r(U_A_V~)--------+--------------------~----1 nmanned Surface Vehicle vehicle that operates on the surface of the water without a I 

USV) rnman occupant. i 

l,nmanned Underwater vehicle that operates undenvater without a human o~cupant.f ~chicle (UUV) I 

6 

ARTICLE II 


OBJECTIVE 


2.1. 	 The objective ofthis CUV-ME Agreement is to provide, develop, integrate, and test the 

hardware and software protocols necessary to advance combined operations between 

multiple unmanned systems, including UAVs, UUVs, and USVs, to enhance the 

navigational accuracy of UUVs, and to improve the operational safety of operators 

engaged in unexploded ordnance remediation and counter underwater explosive 

operations. 

7 

ARTICLE III 


SCOPE OF WORK 


3.1. 	 The scope of the Project includes the provision, development, integration, and testing of 

the hardware and software protocols necessary to advance combined operations between 

multiple unmanned systems, including UAVs, USVs, and UUVs, to enhance the 

navigational accuracy of UUVs, and to improve the operational safety of operators 

engaged in unexploded ordnance remediation and counter underwater explosive 

operations. 

The overall work to be carried out under this CUV-ME Agreement includes: 

3. l. l. Developing navigation and control methods for the simultaneous control of 

multiple UUVs and sensors addressing one or all of the following technologies: 

optical, magnetic, acoustic, and chemical; 

- 3 .1.2. 	 Developing methods for US V enhanced navigation in a maritime trial area 

representative of an underwater, un-remediated munition site; 

3 .1.3. 	 Developing methods of enhanced precision navigation of multiple UUV s to 

test/demonstrate inexpens~ve robotic Mine Counter-Measures (MCM) and other 

relevant naval missions; 

3. l .4. Providing, developing, and integrating Communications Protocols for cooperative 

UAV, USV, and UUV autonomy and robotic MCM; 

3.1.5. 	 Developing and integrating Communications Protocols through the exchange of 

infonnation, data analysis, and tests/demonstrations; 

3.1.6. 	 Developing enhanced methods for cooperative underwater control: 

3.1.7. Providing, developing, and integrating Communications Protocols required for 

UAV, USV, and UUV operation, test, and logistics support; 

3.1.8. 	 Participating in sea trials to test and evaluate improvements in unmanned systems 

protocols to advance combined operations between multiple unmanned systems: 

and 

3.1.9. 	 Developing and providing a final report. 

3.2. 	 The shaiing oftasks shall be as follows: 

3.2.1. 	 The HRV MOD shall: 

3.2.1.1. Provide a USV: 

3.2.1.2. Provide a UUV: 

8 
3.2.1.3. Provide, develop, and integrate Communications Protocols for 

cooperative UAV, USV, and UUV autonomy and robotic MCM; 

3.2.1.4. Provide, develop, and integrate Communications Protocols required 

for UAV, USV, and UUV operation, test, and logistics support; 

3.2.1.5. Develop methods for enhanced USV navigation; and 

3.2.1.6. Provide a maritime trial area representative of an underwater, unremediated munition site. 

3.2.2. The U.S. DoD shall: 

3.2.2.1. 	 Provide a USV: 

3.2.2.2. 	 Provide a UUV: 

3.2.2.3. 	 Provide a UAV; 

3 .2.2.4. 	 Provide, develop, and integrate Communications Protocols for 

cooperative UAV, USV, and UUV autonomy and robotic MCM; 

3 .2.2.5. 	 Provide, develop, and integrate Communications Protocols required 

for UAV, USV, and UUV operation, test, and logistics support; and 

3.2.2.6. 	 Develop navigation and control methods for the simultaneous control 

of multiple UUV s and sensors addressing one or all of the following 

technologies: optical, magnetic, acoustic, and chemical. 

3.2.3. The U.S. DoD and the HRV MOD shall jointly: 

3.2.3.1. 	 Develop methods of enhanced precision navigation of multiple UUVs 

to test/demonstrate inexpensive robotic MCM and other relevant naval 

m1ss1ons; 

3.2.3.2. 	 Develop and integrate Communications Protocols through the 

exchange oflnformation, data analysis, and testsidemonstrations; 

3.2.3.3. 	 Develop enhanced methods for combined underwater control: 

3.2.3.4. 	 Participate in sea trials to test and evaluate improvements in unmanned 

systems protocols to advance combined operations between multiple 

unmanned systems; and 

3.2.3.5. 	 Develop and provide a final report. 

9 

ARTICLE IV 


MANAGEMENT (ORGANIZATION AND RESPONSIBILITY) 


4.1. 	 This CUV-ME Agreement shall be directed and administered on behalf of the Parties by 

an organization consisting of a Steering Committee (SC) and Project Managers (PMs) 

appointed by the Parties. The SC shall have overall authority over the PMs in accordance 

with this CUV-ME Agreement. The PMs shall have primary responsibility for effective 

implementation, efficient management, and direction of the Project in accordance with 

this CUV-ME Agreement. The Parties shall maintain and fund their O\Vn organizations 

for managing the Project. 

4.2. 	 The SC shall consist of a representative designated by each Party. The SC shall meet 

annually, with additional meetings held at the request of either representative. Each 

meeting of the SC shall be chaired by the representative ofthe Pmty hosting the meeting. 

Decisions of the SC shall be made unanimously. In the event that the SC is unable to 

reach a timely decision on an issue, each SC representative shall refer the issue to its 

higher authority for resolution. The approved Project Plan shall continue to be 

implemented without interruption.under the direction of the PMs while the issue is being 

resolved by higher authority. 

4.3. 	 The SC shall be responsible for: 

4.3. l. 	 Exercising executive-level oversight of the Project. 

4.3.2. 	 Reviewing progress in performing the tasks as specified in Article Ill (Scope of 

Work) of this CUV-ME Agreement. 

4.3.3. 	 Approving the Project Plan submitted hy the PMs in accordance with 

subparagraph 4.6.2. of this Article, and any revisions thereto, and reviewing the 

technical progress of the Project against the Project Plan. The Project Plan shall 

include, but not be limited to. a detailed scope of work and corresponding work 

schedule, as appropriate. 

4.3.4. 	 Reviewing the technical pro!:,>ress of the Project against the Project Plan to this 

CUV-ME Agreement. 

4.3.5. 	 Reviewing the financial status of the Project to ensure compliance with the 

conditions of Article V (Financial Provisions) ofthis CUV- ME Agreement. 

4.3.6. 	 Resolving issues brought forth by the PMs. 

4.3.7. 	 Reviewing and forwarding to the Parties for approval recommended amendments 

to this CUV-ME Agreement in accordance with Article XVIII (Amendment. 

Tennination. Entry Into Force, and Duration) of this CUV-ME Agreement. 

10 

4.3.8. 	 Approving plans to manage and control the transfer of Project Equipment 

provided by either Party to support the execution of the Project in accordance 

with Article VII (Project Equipment) of this CUV-ME Agreement. 

4.3.9. 	 Employing its best efforts to resolve, in consultation with the export control 

authorities of the Party concerned, any export control issues raised by the PM in 

accordance with subparagraph 4.6.9. of this Article or raised by a Party's SC 

representative in accordance subparagraph 8.1.2.4. of Article VIII (Disclosure and 

Use of Project Infonnation) of this CUV-ME Agreement. 

4.3.10. Providing recommendations to the Parties for the addition of new Parties in 

accordance with Article XIV (Participation of Additional Nations) of this CUVME Agreement. 

4.3 .11. Maintaining oversight of the security aspects of the Project, including reviewing 

and obtaining approval from the appropriate Designated Security Authority of a 

Project Security Instructio~ (PSI) prior to the transfer of Controlled Unclassified 

Infonnation. 

4.3 .12. Monitoring Third Party sales and transfers authorized in accordance \vith Article 

XII (Third Party Sales and Transfers) ofthis CUV-ME Agreement. 

4.3 .13. Reviewing the semi-annual status report submitted by the PMs. 

4.4. 	 Project offices shall be established in San Diego, California, and in Zagreb, Croatia, to 

manage the Project. The Space and Naval Warfare Center - Pacific (SSC-PAC) shall 

appoint the U.S. DoD PM, and the HRV MOD shall appoint the HRV MOD PM. both of 

whom shall be responsible for implementing this CUV-ME Agreement and for carrying 

out the Project. 

4.5. 	 The PMs are completely and wholly responsible for management of those tasks listed as 

national responsibilities in Article HI (Scope of Work) of this CUV-ME Agreement. 

4.6. 	 For matters under their cognizance. the PMs shall be responsible for: 

4.6.1. 	 Managing the cost, schedule, perfonnance requirements, technical. security. and 

financial aspects of the Project described in this CUV-ME Agreement. 

4.6.2. 	 Developing a Project Plan, and any necessary revisions thereto, as described in 

subparagraph 4.3.3. of this Article; submitting the Project Plan and any revisions 

for SC approval; and implementing the plan and any revisions upon SC approval. 

4.6.3. 	 Executing the financial aspects of the Project in accordance with Article V 

(Financial Provisions) of this CUV-ME Agreement. 

4.6.4. 	 Referring issues to the SC that cannot be resolved by the PM. 

11 

4.6.5. 	 Developing and recommending amendments to this CUV-ME Agreement to the 

SC. 

4.6.6. 	 Developing and forwarding to the SC a PSI for the Project within three months 

after signature ofthis CUV-ME Agreement, and implementing the PSI upon final 

approval. 

4.6.7. 	 Developing and implementing SC-approved plans to manage and control the 

transfer of Project Equipment provided by either Party in accordance with Article 

VII (Project Equipment) af this CUV-ME Agreement. 

4.6.8. 	 Forwarding recommendations to the SC for the addition of new Parties in 


accordance \Yith Article XIV (Participation of Additional ations) of this CUV­


ME Agreement. 


4.6.9. 	 Monitoring export control arrangements required to implement this CUV-ME 

Agreement and, if applicable, referring immediately to the SC any export control 

issues that could adversely affect the implementation. 

4.6. l 0. Providing a semi-annual status report to the SC, and other such reports as directed 

by the SC. 

4.6.11. Appointing a Project security officer. 

12 

ARTICLE V 


FINANCIAL PROVISIONS 


5.1. 	 Each Party shall contribute its equitable share ofthe full Financial Costs and Nonfinancial Costs of the Project, including overhead costs, administrative costs, and costs of 

claims. The assignment of work represents a sharing of\"rnrk to be performed under the 

Project, and each Party shall receive an equitable share of the results of the Project. 

5.2. 	 Each Party shall fund the full extent of its participation in the Project. The Parties 

estimate that the perfonnance of the obligations under this CUV-ME Agreement shall not 

cost more than a Cost Ceiling of 6,896,000 2015 U.S. Dollars. The U.S. Dollar shall be 

the reference currency for the Project, and the Project fiscal year shall be the U.S. fiscal 

year. 

5.3. 	 The full Financial Costs and Non-.financial Costs of the Project as identified in this 

Article, shall be shared according to the following percentages: 

Party 	 Percentage Share 

U.S. DoD 50% 


HRVMOD 50% 


5.4. 	 The Parties shall use their best efforts to perform, or to have performed, the work 


specified in Article III (Scope of Work) of this CUV-ME Agreement and fulfill all the 


obligations under this CUV-ME Agreement within the Cost Ceiling specified in 


paragraph 5.2. ofthis Article. 


5.5. 	 Each Party shall bear the full Financial Costs and Non-financial Costs it incurs for 

performing, managing, and administering its activities under this CUV-ME Agreement, 

and all such costs shall be included as part of each Party's contributions to the Project. 

These costs include financial and non-financial contributions (e.g., salaries, travel, and 

per diem costs for each Party's Project personnel), as well as any Contract costs. Values 

have been mutually determined for Project non-financial contributions. 

5.6. 	 Cooperative efforts of the Parties over and above the jointly determined work set forth in 

Article III (Scope ofWork) of thfa CUV-ME Agreement shall be subject to future mutual 

consent of the Parties. 

5.7. 	 The following costs shall be borne entirely by the Party incurring the costs: 

5.7.1. 	 Costs associated with any unique national requirements identified by a Party. 

5.7.2. 	 Any other costs outside the scope of this CUV-ME Agreement. 

5.8. 	 A Party shall promptly notify the other Party if available funds are not adequate to fulfill 

its obligations under this CUV-ME Agreement. If a Party notifies the other Party that it 

13 

is terminating or reducing its funding for this CUV-ME Agreement, both Parties shall 

immediately consult with a view toward continuation on a modified basis. 

14 

ARTICLE VI 


CONTRACTING PROVISIONS 


6.1. 	 If either Party detennines that Contracting is necessary to fulfill that Party's obligations 

under Article III (Scope of Work) of this CUV-ME Agreement, that Party shall contract 

in accordance with its respective national laws, regulations, and procedures. 

6.2. 	 Each Party shall be solely responsible for its own Contracting, and the other Party shall 

not be subject to any liability arising from such Contracts without its prior consent. 

6.3. 	 For all Contracting activities perfonned by either Party, the PMs shall, upon request be 

provided a copy of all statements of work prior to the issuance of solicitations. 

6.4. 	 Each Party's Contracting Agency shall negotiate to obtain the rights to use and disclose 

Project Infomrntion required by Article VIII (Disclosure and Use of Project lnfonnation) 

of this CUV-ME Agreement. Each Party's Contracting Agency shall inse11 into its 

prospective Contracts (and require its subcontractors to insert in subcontracts) suitable 

provisions to satisfy the requirements of this CUV-ME Agreement. including Article VIII 

(Disclosure and Use of Project Infonnation), Article IX (Controlled Unclassified 

Infonnation), Article XI (Security), At1icle XII (Third Party Sales and Transfers), and 

Article XVIII (Amendment, Tennination, Entry Into Force, and Duration) of this CCVME Agreement, and including export control provisions in accordance with this CUVME Agreement, in particular paragraphs 6.5. and 6.6. of this Article. During the 

Contracting process, each Party's Contracting Officer shall advise Prospective 

Contractors of their responsibility to notify immediately the Contracting Agency, before 

Contract award, if they are subject to any license or agreement that will restrict that 

Party's freedom to disclose Infonnation or permit its use. The Contracting Officer shall 

also advise Prospective Contractors to employ their best efforts not to enter into any new 

agreement or arrangement that will result in restrictions. 

6.5. 	 Each Party shall legally bind its Contractors to a requirement that the Contractor shall not 

retransfer or otherwise use export-controlled lnfonnation furnished by the other Party for 

any purpose other than the purposes authorized under this CUV-ME Agreement. The 

Contractor shall also be legally bound not to retransfer the export-controlled Infonnation 

to another Contractor or subcontractor unless that Contractor or subcontractor has been 

legally bound to limit use of the Information to the purposes authorized under this CUVME Agreement. Export-controlled Infonnation furnished by one Party under this CC'VME Agreement may only be retransferred by the other Party to its Contractors if the legal 

obligations required by this paragraph have been established. 

6.6. 	 Each Party shall legally bind its Prospective Contractors to a requirement that the 

Prospective Contractor shall not retransfer or otherwise use export-controlled Information 

furnished by the other Party for any purpose other than responding to a solicitation issued 

in furtherance of the purposes authorized under this CUV-ME Agreement. Prospective 

Contractors shall not be authorized use for any other purpose ifthey are not awarded a 

Contract. The Prospective Contractors shall also be legally bound not to retransfer the 

15 

export-controlled Information to a prospective subcontractor unless that prospective 

subcontractor has been legally bound to limit use ofthe export-controlled Infonnation for 

the purpose of responding to the solicitation. Export-controlled Infomrntion furnished by 

one Party under this CUV-ME Agreement may only be retransferred by the other Party to 

its Prospective Contractors if the legal obligations required by this paragraph have been 

established. Upon request by the furnishing Party, the receiving Party shall identify its 

Prospective Contractors and prospective subcontractors receiving such export-controlled 

Infonnation. 

6.7. 	 In the event a Party's Contracting Agency is unable to secure adequate rights to use and 

disclose Project Infonnation as required by Article VIII (Disclosure and Use of Project 

Infomrntion) of this CUV-ME Agreement, or is notified by Contractors or Prospective 

Contractors of any restrictions on the disclosure and use of lnfonnation, that Party's PM 

shall notify the other Party's PM of the restrictions. 

6.8. 	 Each Party's PM shall promptly advise the other Party's PM of any cost growth. schedule 

delay, or perfonnance problems under any Contract for which its Contracting Agency is 

responsible. 

16 

ARTICLE VII 


PROJECT EQUIPMENT 


7 .1. 	 Although not anticipated, each Party may provide Project Equipment identified as being 

necessary for executing this CUV-ME Agreement to the other Party. Project Equipment 

shall remain the property ofthe providing Party. Ifthe Parties mutually determine that 

the cooperative efforts under this CUV-ME Agreement require the transfer of Project 

Equipment, a list of all Project Equipment provided by one Party to the other Party shall 

be developed and maintained by the PM and approved by the SC. 

7.2. 	 The receiving Party shall maintain any such Project Equipment in good order. repair, and 

operable condition. Unless the providing Party has authorized the Project Equipment to 

be expended or otherwise consumed without reimbursement to the providing Party, the 

receiving Party shall return the Project Equipment to the providing Party in as good 

condition as received, nonnal wear and tear excepted, or return the Project Equipment 

and pay the cost to restore it. Ifthe Project Equipment is damaged beyond economical 

repair, the receiving Party shall return the Project Equipment to the providing Party 

(unless otherwise specified in writing by the providing Party) and pay the replacement 

value, which shall be computed pursuant to the providing Party's national laws and 

regulations. Ifthe Project Equipment is lost while in the custody of the receiving Party, 

the receiving Party shall issue a certificate ofloss to the providing Party and pay the 

replacement value. 

7.3. 	 The providing Party shall deliver Project Equipment to the receiving Party at a mutually 

detennined location. Possession, of the Project Equipment shall pass from the providing 

Party to the receiving Party at the time ofreceipt of the Project Equipment. Any further 

transportation is the responsibility of the receiving Party. 

7.4. 	 All Project Equipment that is transferred shall be used by the receiving Party only for the 

purposes of carrying out this CUV-ME Agreement, unless otherwise agreed to in writing 

by the providing Party. In addition, in accordance with Article XII (Third Party Sales 

and Transfers) ofthis CUV-ME Agreement, Project Equipment shall not be re-transferred 

or sold to a Third Party without the prior \vritten consent of the providing Party. 

7.5. 	 Project Equipment transferred to one Party under this CUV-ME Agreement shall be 

returned to the providing Party prior to the termination or expiration of this CUV-ME 

Agreement. 

17 

AR TIC LE VIII 


DISCLOSURE AND USE OF PROJECT INFORMATION 


8.1. General 

8 .1.1. 	 Both Parties recognize that successful collaboration depends on full and prompt 

exchange of Information necessary for carrying out this Project. The Parties 

intend to acquire sufficient Project Infonnation and rights to use such 

Infonnation to enable the development of CUV-ME technologies. The nature 

and amount of Project Infonnation to be acquired shall be consistent with the 

objective stated in Article II (Objective) and Article III (Scope of Work) of this 

CUV-ME Agreement. 

8.1.2. 	 The following export control provisions shall apply to the transfer of Project 

lnfonnation: 

8 .1.2.1. 	 Transfer of Project Information shall be consistent with the furnishing 

Party's applicable export control laws and regulations. 

8.1.2.2. 	 Unless otherwise restricted by duly authorized officials of the 

furnishing Party at the time oftransfer to the other Party, all cxportcontrolled Infonnation furnished by one Party to the other Party may 

be retransferred to the other Party's Contractors, subcontractors, 

Prospective Contractors, and prospective subcontractors, subject to the 

requirements of paragraphs 6.5. and 6.6. of Article VI (Contracting 

Provisions) of this CUV-ME Agreement. 

8.1.2.3. 	 Export-controlled Information may be furnished by Contractors, 

subcontractors, Prospective Contractors, and prospective 

subcontractors-of one Party's nation to the Contractors, subcontractors, 

Prospective Contractors, and prospective subcontractors of the other 

Party's nation pursuant to this CUV-ME Agreement. subject to the 

conditions established in licenses or other approvals issued by the 

Government of the former Party in accordance with its applicable 

export control laws and regulations. 

8.1.2.4. 	 If a Party finds it necessary to exercise a restriction on the retransfer of 

export-controlled Information as set out in subparagraph 8.1.2.2. of 

this Article, it shall promptly infonn the other Party. If a restriction is 

then exercised and the affected Party objects, that Party's SC 

representative shall promptly notify the other Party's SC representative 

and they shall immediately consult in order to discuss ways to resolve 

such issues or mitigate any adverse effects. 

8.2. Government Project Foreground Information 

18 

8.2.1. 	 Disclosure: All Project Foreground Information generated by a Party's military 

or civilian employees (hereinafter referred to as "Government Project Foreground 

Infonnation") shall be disclosed promptly and without charge to the Parties. 

8.2.2. 	 Use: Each Party may use or have used all Government Project Fore.ground 

Infonnation without charge for Defense Purposes. TI1e Party generating 

Government Project Foreground Information shall also retain all its rights of use 

thereto. Any sale or other transfer to a Third Party shall be subject to the 

conditions of Article XII (Third Party Sales and Transfers) of this CUV-ME 

Agreement. 

8.3. 	 Govenunent Project Background Infornrntion 

8.3.1. 	 Disclosure: Each Paiiy, upon request, shall disclose promptly and without charge 

to the other Party any relevant Government Project Background lnfonnation 

generated by its military or civilian employees, provided that: 

8.3.1.1. 	 Such Government Project Background Information is necessary to or 

useful in the Project, with the Party in possession of the Information 

determining, after consulting with the requesting Party, whether it is 

"necessary to" or "useful in" the Project. 

8.3 .1.2. 	 Such Government Project Background Infonnation may be made 

available only.if the rights of holders oflntellectual Property rights are 

not infringed. 

8.3 .1.3. Disclosure of such Government Project Background Infornrntion is 

consistent with national disclosure policies and regulations of the 

furnishing Party. 

8.3.1.4. 	 Any disclosure or transfer of such Government Project Background 

Infonnation to Contractors is consistent with the furnishing Party's 

export control laws and regulations. 

8.3.2. 	 Use: Government Project Background Infonnation furnished by one Party to the 

requesting Party may be used without charge by or for the requesting Party for 

Project purposes. However, subject to Intellectual Property rights held by entities 

other than the Parties, such Government Project Background Information may be 

used for Project Purposes by the requesting Party, without charge, when such 

Information is necessary for the use of Project Foreground Information. The 

furnishing Party, in consultation with the other Party, shall determine \Vhether the 

Government Project Background Information is necessary for the use of Project 

Foreground Information-: The furnishing Party shall retain all its rights with 

respect to such Government Project Background Information. 

8.4. 	 Contractor Project Foreground Information 

19 

8.4.1. 	 Disclosure: Project Foreground Information generated and delivered by 

Contractors (hereinafter referred to as "Contractor Project Foreground 

Information") shall be disclosed promptly and without charge to both Parties. 

8.4.2. 	 Use: Each Party may use or have used without charge for Defense Purposes all 

Contractor Project Foreground Infonnation generated and delivered by 

Contractors of the Parties.. The Party whose Contractors generate and deliver 

Contractor Project Foreground Infonnation shall also retain all its rights of use 

thereto in accordance with the applicable Contracts. Any sale or other transfer to 

a Third Party ofContractor Project Fore ground Infonnation shall be subject to the 

conditions ofArticle XII (Third Party Sales and Transfers) of this CUV-ME 

Agreement. 

8.5. 	 Contractor Project Background Information 

8.5.1. 	 Disclosure: A Contracting Paiiy shall make available to the other Party promptly 

and without charge all Contractor Project Background Information generated by 

Contractors that is delivered under Contracts awarded in accordance with this 

CUV-ME Agreement. Any other Project Background Infonnation that is 

generated by Contractors and that is in the possession of one Party shall be made 

available promptly and w,ithout charge to the other Party, upon its request, 

provided the following conditions are met: 

8.5.1.1. 	 Such Contractor Project Background Information is necessary to or 

useful in the Project, with the Party in possession of the Information 

detennining, after consultation with the requesting Party, whether it is 

"necessary to".or "useful in" the Project. 

8.5.1.2. 	 Such Contractor Project Background Infonnation may be made 

available only if the rights of holders oflntellectual Property tights are 

not infringed. 

8.5.1.3. 	 Disclosure of such Contractor Project Background Information is 

consistent with national disclosure policies and regulations of the 

furnishing Party. 

8.5.1.4. 	 Any disclosure or transfer of such Contractor Project Background 

Infonnation to Contractors is consistent with the furnishing Party's 

export control la\vs and regulations. 

8.5.2. 	 Use: All Contractor Project Background Information delivered by Contractors 

under Contracts awarded in accordance with this CUV-ME Agreement may be 

used by or for the receiving Party, without charge, for Project purposes, subject to 

any restrictions by holders of Intellectual Property rights other than the Parties. 

Any other Contractor Project Background Information furnished by one Party's 

20 

·--.~-----------------------

Contractors and disclosed to a requesting Party may be used without charge by 

the requesting Party for Pr9ject purposes, subject to any restrictions by holders of 

Intellectual Property rights other than the Parties; also, when necessary for the use 

of Project Foreground Information, such other Contractor Project Background 

Information may be used by the requesting Party for Project purposes, subject to 

such fair and reasonable terms as may be necessary to be arranged with the 

Contractor. The furnishing Party, in consultation with the requesting Party. shall 

determine whether such other Contractor Project Background Info1mation is 

necessary for the use of Project Foreground Infomrntion. The furnishing Party 

shall retain all its rights with respect to Contractor Project Background 

Information. 

8.6. 	 Alternative Uses of Project Infonnation 

8.6.1. 	 Any Project Background Infom1ation provided by one Party shall be used by the 

other Party only for the purposes set forth in this CUV-ME Agreement, unless 

otherwise consented to in writing by the providing Party. 

8.6.2. 	 The prior written consent of each Party shall be required for the use of Project 

Foreground Information for purposes other than those provided for in this CUVME Agreement. 

8.7. 	 Proprietary Project Information 

8.7.1. All Project Infonnation that is subject to disclosure and use restrictions with 

respect to Intellectual Property rights shall be identified and marked, and it shall 

be handled as Controlled Unclassified Information or as Classified Information, 

depending on its security classification. 

8.7.2. 	 The provisions of the NATO Agreement on the Communication ofTeclmical 

Information for Defence Purposes. done at Bmssels on October 19, 1970. and the 

Implementing Procedures for the NATO Agreement on the Communication of 

Technical Information for Defence Purposes, approved by the North Atlantic 

Council on January 1, 1971 (or any successor agreement and procedures). shall 

apply to Project Information that is subject to Intellectual Property rights. 

8.8. 	 Patents 

8.8.1. 	 Each Party shall include in all its Contracts for the Project a provision governing 

the disposition ofrights in regard to Project Inventions and Patent rights relating 

thereto that either: 

8.8. l.l. Provides that the Party shall hold title to all such Project Inventions 

together with the right to make Patent applications for the same. free 

of encumbrance from the Contractor concerned; or 

21 

8.8.1.2. 	 Provides that tlie Contractor shall hold title (or may elect to retain title) 

for such Project Inventions together with the right to make Patent 

applications for the same, while securing for the Parties a license for 

the Project Inventions, and any Patents thereto, on tem1s in compliance 

with the conditions of subparagraph 8.8.2. of this Article. 

8.8.2. 	 In the event that a Contractor owns title (or elects to retain title) to any Project 

Invention, the Contracting Party shall secure for the other Party non-exclusive. 

irrevocable, royalty-free licenses under all Patents secured for that invention. to 

practice or have practiced the patented Project Invention throughout the world for 

Defense Purposes. 

8.8.3. 	 The conditions of subparagraphs 8.8.4. through 8.8.7. of this Article shall apply in 

regard to Patent rights for all Project Inventions made by the Parties' military or 

civilian employees, including those within Government-owned facilities. and for 

all Project Inventions made by Contractors for \vhich the Contracting Party holds 

title or is entitled to acquire title. 

8.8.4. 	 When a Party has secured or can secure the right to file a Patent application with 

regard to a Project Invention, that Party shall consult with the other Pm1y 

regarding the filing of such Patent application. The Party that has or receives title 

to such Project Invention shall, in other countries, file, cause to he filed. or 

provide the other Party with the opportunity to file on behalf of the Party holding 

title, Patent applications covering that Project Invention. A Party shall 

immediately notify the other Party that a Patent application has been filed. If a 

Party, having filed or caused to be filed a Patent application. abandons 

prosecution of the application or ceases maintaining the Patent granted or issued 

on the application, that Party shall notify the other Party of that decision and 

permit the other Party to continue the prosecution or maintain the Patent as the 

case may be. 

8.8.5. 	 Each Party shall be furnished with copies of Patent applications filed and Patents 

granted with regard to Project Inventions. 

8.8.6. 	 Each Party shall grant to the other Party a non-exclusive, irrevocable, royalty-free 

license under its Patents for Project Inventions, to practice or have practiced the 

Project Invention throughout the world for Defense Purposes. 

8.8.7. 	 Patent applications to be filed, or assertions of other Intellectual Property rights, 

under this CUV-ME Agreement that contain Classified Infonnation shall he 

protected and safeguarded in a manner no less stringent than the requirements 

contained in the NATO Agreement for the Mutual Safeguarding of Secrecy of 

Inventions Relating to Defence and for Which Applications for Patents Have 

Been Made, done in Paris on September 21, 1960, and its Implementing 

Procedures (or any successor agreement and procedures). 

22 

8.9. 	 Each Party shall notify the other Party of any Intellectual Property infringement claims 

brought against that Party arising in the course of work performed under the Project on 

behalf ofthe other Party. Insofar as possible, the other applicable Party shall provide 

Infonnation available to it that may assist in defending such claims. Each Party shall be 

responsible for handling such Intellectual Property infringement claims brought against 

it, and shall consult with the other Party during the handling, and prior to any settlement, 

ofsuch claims. The Parties shall share the costs of resolving such Intellectual Property 

infringement claims in proportion to their financial contributions for that work specified 

in Article V (Financial Provisions) of this CUV-ME Agreement. 

8.10. 	 The Parties shalL as pennitted by their national la\vs, regulations, and practices, give their 

authorization and consent for all use and manufacture in the course of work perfonned 

under the Project of any invention covered by Patent or as detem1ined to be necessary for 

work under the Project, authorization and consent for non-commercial copyright, t,rranted 

or otherwise provided by their respective countries. 

23 

ARTICLE IX 


CONTROLLED UNCLASSIFIED INFORMATION 


9 .1. 	 Except as otherwise provided in this CUV-ME Agreement or as authorized in writing by 

the originating Party, Controlled Unclassified Information proYided or generated pursuant 

to this CUV-ME Agreement shall be controlled as follows: 

9 .1.1. 	 Such Controlled Unclassified Infonnation shall be used only for the purposes 

authorized for use of Project Information as specified in Article VIII (Disclosure 

and Use of Project Information) of this CUV-ME Agreement. 

9 .1.2. 	 Access to such Controlled Unclassified Information shall be limited to perso1mcl 

whose access is necessary for the pennitted use under subparagraph 9.1.1. of this 

Article, and shall be subject to the conditions of Article XII (Third Party Sales 

and Transfers) of this CUV-ME Agreement. 

9.1.3. 	 Each Party shall take all lawful steps a\'ailable to it, including national 

classification, to keep suc_h Controlled Unclassified Infonnation free from fmiher 

disclosure (including requests under any legislative provisions), except as 

provided in subparagraph 9.1.2. of this Article, unless the originating Party 

consents to such disclosure. In the event of unauthorized disclosure, or if it 

becomes probable that the Controlled Unclassified Infonnation may have to be 

further disclosed under any legislative provision, immediate notification shall be 

given to the originating Party. 

9.2. 	 To assist in providing the appropriate controls, the originating Party shall ensure that 

Controlled Unclassified Information is appropriately marked to ensure its "in confidence" 

nature. The Parties' export-controlled Infonnation shall be marked in accordance with 

the applicable Party's export control markings as documented in the PSI. The Parties 

shall also decide, in advance and in writing, on the markings to be placed on any other 

types of Controlled Unclassified lnfonnation and describe such markings in the PSI. 

9.3. 	 Controlled Unclassified Infonnation provided or generated pursuant to this CUV-ME 

Agreement shall be handled in a manner that ensures control as pro\'ided for in paragraph 

9.1. ofthis Article. 

9.4. 	 Prior to authorizing the release of Controlled Unclassified Infomrntion to Contractors, the 

Parties shall ensure the Contractors are legally bound to control such Controlled 

Unclassified Information in accordance with the conditions of this Article. 

24 

ARTICLE X 


VISITS TO ESTABLISHMENTS 


l 0.1. Each Party shall pem1it visits to its Government establishments, agencies and 

laboratories, and Contractor industrial facilities by employees of the other Party or by 

employees of the other Party's Contractors. provided that the visit is authorized by both 

Parties and the employees have any necessary and appropriate security clearances and a 

need-to-know. 

l 0.2. 	 All visiting personnel shall be required to comply with security regulations of the hosting 

Party. Any Infonnation disclosed or made available to visitors shall be treated as if 

supplied to the Party sponsoring the visiting personnel, and shall be subject to the 

conditions of this CUV-ME Agreement. 

10.3. 	 Requests for visits by personnel of one Party to a facility of the other Party shall be 

coordinated through official channels, and shall confonn with the established visit 

procedures of the hosting Party. Requests for visits shall bear the name of the CUV-!\lE 

Agreement. 

10.4. 	 Lists of personnel of each Party required to visit, on a continuing basis, facilities of the 

other Party shall be submitted through official channels in accordance with recurring 

international visit procedures. 

25 

ARTICLE XI 


SECURITY 


11.1. 	 It is the intent of the Parties that the Project carried out under this CUV-ME Agreement 

shall be conducted at the unclassified level. No Classified Infonnation shall be proYided 

or generated under this CUV-ME Agreement. 

26 

ARTICLE XII 


THIRD PARTY SALES AND TRANSFERS 


12.1. 	 Except to the extent pennitted in paragraph 12.2. of this Article, the Parties shall not sell, 

transfer title to, disclose, or transfer possession of Project Foreground Infonnation or any 

item produced either wholly or in part from Project Foreground Information to any Third 

Party without the prior written consent ofthe Government of the other Party. 

Furthennore, neither Party shall pennit any such sale, disclosure, or transfer, including by 

the owner, without the prior written consent of the Government of the other Party. Such 

consent shall not be given unless the Government of the intended recipient confinns in 

writing \Vith the Parties that it shall: 

12.1.1. Not retransfer, or pennit the further retransfer of. any equipment or lnfonnation 

provided. 

12.1.2. Use, or pem1it the use of, the equipment or Information provided only for the 

purposes specified by the Parties. 

12.2. 	 Each Party shall retain the right to sell, transfer title to, disclose, or transfer possession of 

Project Foreground lnfonnation or any item produced wholly, or in part, from Project 

Foreground Infomrntion: 

12.2.1. That is generated solely by either that Party or that Party's Contractors in the 

performance ofthat Party's work allocation under Article III (Scope of Work) of 

this CUV-ME Agreement. 

12.2.2. That does not include any Project Foreground Infonnation or Project Background 

Information of the other Party, and whose generation, test, or evaluation has not 

relied on the use of Project Equipment ofthe other Party. 

12.3. 	 In the event questions arise as to whether the Project Foreground Infonnation (or any 

item produced either wholly or in part from the Project Foreground Information) that a 

Party intends to sell, transfer title to, disclose, or transfer possession of to a Third Paiiy is 

within the scope of paragraph 12.2. of this Article, the matter shall be brought to the 

immediate attention ofthe other Party's PM. The Parties shall resolve the matter prior to 

any sale or other transfer of such Project Foreground Inforn1ation (or any item produced 

either wholly or in part from the Project Foreground Information) to a Third Party. 

12.4. 	 A Party shall not sell, transfer title to, disclose, or transfer possession of Project 

Equipment or Project Background Information provided by the other Party to any Third 

Party without the prior written consent of the Government of the other Party that 

provided such equipment or Information. The providing Party's Government shall be 

solely responsible for authorizing such transfers and, as applicable, specifying the method 

and conditions for implementing such transfers. 

27 

ARTICLE XIII 


LIABILITY AND -CLAIMS 


13 .1. For liability arising out of, or in connection with, activities undertaken in the perfomrnnce 

of official duty in the execution ofthis CUV-ME Agreement, the following conditions 

shall apply: 

13.1.1. Claims against a Party or its military or civilian personnel shall be dealt with in 

accordance with the terms of applicable multilateral or bilateral treaties and 

agreements of the Parties. 

13 .1.2. For those claims for which multilateral or bilateral treaties or agreements do not 

apply, the following conditions shall apply: 

13 .1.2.1. With the exception of claims for loss of or damage to Project 

Equipment, which are addressed in Article VII (Project Equipment) of 

this CUV-ME Agreement, each Party waives all claims against the 

other Party in respect to injury to or death of its military or civilian 

personnel and for damage to or loss of its property (including its 

interest in jointly acquired equipment) caused by such personnel of the 

other Party. However, if the Parties determine that such injury. death, 

damage, or loss results from reckless acts or reckless omissions, 

willful misconduct or gross negligence of a Party's military or civilian 

personnel, the costs of any liability shall be borne by that Party alone. 

13.1.2.2. 	 Claims from any other persons for injury, death, damage, or loss of 

any kind caused by one ofthe Parties' military or civilian personnel 

shall be processed by the most appropriate Party, as determined by the 

Parties. Any costs detennined to be owed the claimant shall be borne 

by the Parties in the same ratios as their financial and non-financial 

contributions specified in this CUV-ME Agreement. Ho\\ ever, if the 

Parties determine that such injury, death, damage, or loss results from 

reckless acts or reckless omissions, willful misconduct, or gross 

negligence of a Party's military or civilian personnel, the costs of any 

liability shall be borne by that Party alone. 

13.2. 	 Claims arising under any Contract awarded under this CUV-ME Agreement shall be 

resolved in accordance with the conditions of the Contract. 

13 .3. Employees and agents of Contractors are not considered civilian personnel of a Party for 

the purposes of this Article. 

28 

ARTICLE XIV 


PARTICIPATION OF ADDITIONAL NATIONS 


14.1. 	 It is recognized that other national defense organizations may wish to join the Project. 

14.2. 	 The mutual consent ofthe Parties shall be required to conduct discussions with potential 

additional Parties. The Parties shall discuss the conditions under \Vhich another Party 

might join, including the furnishing of releasable Project lnfonnation for evaluation prior 

to joining. Ifthe disclosure of Project Infonnation is necessary to conduct discussions, 

such disclosure shall be in accordance \Vith Article VIII (Disclosure and Use of Project 

Infonnation), Article IX (Controlled Unclassified Infonnation), and Artide XII (Third 

Party Sales and Transfers) of this CUV-ME Agreement. 

14.3. 	 The Parties shall jointly formulate the conditions under which additional Parties might 


join. The addition of nev,; Parties to the Project shall require amendment of this CUV­


ME Agreement by the Parties. 


29 

ARTICLE XV 


CUSTOMS DUTIES, TAXES, AND SIMILAR CHARGES 


15.1. Customs duties, import and export taxes, and similar charges shall be administered in 

accordance with each Party's respective laws and r~gulations. Insofar as existing 

national laws and regulations pennit, the Parties shall endeavor to ensure that such 

readily identifiable customs duties, import and export taxes, and similar charges, as well 

as quantitative or other restrictions on imports and exports, are not imposed in connection 

with work carried out under this Project. 

15.2. 	 Each Party shall use its best efforts to ensure that customs duties, import and expmi 

taxes, and similar charges are adn;inistered in a manner favorable to the efficient and 

economical conduct of the work of this Project. If any such customs duties, import and 

export taxes, or similar charges are levied, the Party in whose country they are levied 

shall bear such costs over and above that Pmiy's shared costs of the Project. 

15.3. 	 If, in order to apply European Union (EU) regulations, it is necessary to levy duties, then 

these shall be met by the EU merriber end recipient. To this end, parts or components of 

the equipment coming from outside the EU shall proceed to their final destination 

accompanied by the relevant customs document enabling settlement of duties to take 

place. The duties shall be paid as a cost over and above that EU Party's shared cost of 

the Project. 

30 

ARTICLE XVI 


SETTLEMENT OF DISPUTES 


16.1. 	 Disputes between the Parties arising under or relating to this CUV-ME Agreement shall 

be resolved only by consultation between the Parties and shall not be referred to a 

national court, an international tribunal, or to any other person or entity for settlement. 

31 

ARTICLE XVII 


LANGUAGE 


17.1. 	 The working language for this CUV-ME Agreement shall be the English language. 

17.2. 	 All Information provided or generated under this CUV-ME Agreement shall be in the 

English language. 

32 

ARTICLE XVIII 


AMENDMENT, TERMINATION, ENTRY INTO FORCE, AND DURATION 


18 .1. All activities of the Parties under this CUV-ME Agreement shall be carried out in 

accordance with their respective national laws and regulations, including their respective 

export control laws and regulations. The obligations ofthe Parties shall be subject to the 

availability of funds for such purposes. 

18.2. 	 In the event of a conflict between-an Article of this CUV-ME Agreement and any 

subordinate documents to this cUV-ME Agreernent. the Article ofthe-CUV-ME: 

Agreement shall control. 

18.3. 	 Except as othenvise provided. this CUV-ME Agreement may be amended by the mutual 

written consent ofthe Parties. 

18.4. 	 This CUV-ME Agreement may be tenninated at any time upon the written consent of the 

Parties. In the event both Parties consent to tenninate this CUV-ME Agreement, the 

Parties shall consult prior to the date oftennination to ensure tennination in the most 

economical and equitable marmer. 

18 .5. Either Party may tenninate this CUV-ME Agreement upon 180 days written notification 

to the other Party of its intent to tenninate. Such notice shall be the subject ofimmediate 

consultation by the SC to decide upon the appropriate course of action to conclude the 

activities under this CUV-ME Agreement. In the event of such termination. the 

following rules apply: 

18.5.1. The Party terminating this CUV-ME Agreement shall continue participation. 

financial or othenvise, UP, to the effective date of tennination. 

18.5.2. Each Party shall be responsible for its own Project-related costs associated with 

termination of this CUV-ME Agreement. 

18.5.3. All Project Information and rights therein received under the conditions of this 

CUV-ME Agreement prior to the tem1ination ofthis CUV-ME Agreement shall 

be retained by the Parties, subject to the conditions of this CUV-ME Agreement. 

18.6. 	 The respective rights and obligations ofthe Parties regarding Article VII (Project 

Equipment), Article VIII (Disclosure and Use of Project Infonnation). Article IX 

(Controlled Unclassified Information). Article XI (Security), Article XII (Third Party 

Sales and Transfers), Article XIII (Liability and Claims). Article XVI (Settlement of 

Disputes), and this Article XVIII (Amendment, Termination, Entry Into Force, and 

Duration) of this CUV-ME Agreement shall continue to apply notwithstanding 

termination or expiration ofthis CUV-ME Agreement. 

33 

---

18.7. 	 This CUV-ME Agreement, which consists of eighteen (18) Articles, shall enter into force 

upon signature by both Parties and shall remain in force for four ( 4) years. It may be 

extended by written concurrence of the Parties. 

IN WITNESS WHEREOF, the undersigned, being duly authorized by their Governments, have 

signed this CUV-ME Agreement. 

DONE. in duplicate, in the English language. 

THE MINISTRY OF DEFENCE 

OF THE REPUBLIC OF CROATIA 

#CA~.. => 

Signature I 

F. D. Morley 

Rear Admiral, U.S. Navy 

Name 

Deputy Assistant Secretary of the 

Navy International Programs 

Title 

_..-;, -.,··· 	 -·-\- _, v~.· ·,_; ·, -JI ,7 -----~-~----··---

Date 

Washington, D. C. 

Location 

R,c(;~T H-teA-li/J 

R.&~ . ,t/IJl11~ 4L 

Name 

./)/J?..f e.rc,e t·r t?Fwc~A-L ci1tfF 

tt2o 1tf7lrIJ /r1Gl1 r?Jj fi.e ct:.;I 

Title 

_!..~J'!!::J__ 17_____________ --­ Date 

Location 

34