TREATIES AND OTHER INTERNATIONAL ACTS SERIES 11-418 

________________________________________________________________________ 

DEFENSE 

Research and Development 

 Memorandum of Agreement 

Between the 

UNITED STATES OF AMERICA 

and SWEDEN 

Signed at Stockholm and Washington 

April 8 and 18, 2011 

 with 

Annex 
 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.” 
SWEDEN 

 Defense: Research and Development 

 Memorandum of agreement signed at 

 Stockholm and Washington 

 April 8 and 18, 2011; 

 Entered into force April 18, 2011. 

 With annex. 
MEMORANDUM OF AGREEMENT

BETWEEN

THE DEPARTMENT OF DEFENSE OF THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF THE KINGDOM OF SWEDEN

CONCERNING

RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) PROJECTS

(SHORT TITLE - RDT&E MOA)

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TABLE OF CONTENTS

PREAMBLE 1

ARTICLE I

DEFINITIONS AND ACRONYMS 2

ARTICLE II

OBJECTIVES 7

ARTICLE III

SCOPE OF WORK 8

ARTICLE IV

MANAGEMENT (ORGANIZATION AND RESPONSIBILITY) 9

ARTICLE V

FINANCIAL PROVISIONS 14

ARTICLE VI

CONTRACTING PROVISIONS._ 17

ARTICLE VII

PROJECT EQUIPMENT 20

ARTICLE VIII

DISCLOSURE AND USE OF PROJECT INFORMATION 22

ARTICLE IX

CONTROLLED UNCLASSIFIED INFORMATION 30

ARTICLE X

VISITS TO ESTABLISHMENTS 31

ARTICLE XI

SECURITY '32

ARTICLE XII

THIRD PARTY SALES AND TRANSFERS. 35

ARTICLE XIII

LIABILITY AND CLAIMS 37

ARTICLE XIV

CUSTOMS DUTIES, TAXES, AND SIMILAR CHARGES 38

ARTICLE XV

SETTLEMENT OF DISPUTES 39

ARTICLE XVI

LANGUAGE 39

ARTICLE XVII

GENERAL PROVISIONS. 39

ARTICLE XVIII

AMENDMENT, TERMINATION, ENTRY INTO FORCE, AND DURATION 40

ANNEX A

SAMPLE PROJECT AGREEMENT 43
PREAMBLE

The Department of Defense of the United States of America (U.S.

DoD) and the Government of the Kingdom of Sweden, hereinafter

referred to as the "Parties":

Having a common interest in defense;

Having independently conducted studies, research, exploratory

development, testing, and evaluation of the applications of

various technologies;

Having a mutual need to conduct research, development, test, and

evaluation (RDT&E) to satisfy national operational requirements;

Recognizing the benefits to be obtained from standardization,

rationalization, and interoperability of military equipment;

Desiring to improve their respective conventional defense

capabilities through the application of emerging technology; and

Recognizing the benefits of cooperation on RDT&E Projects;

Have reached the following agreement:

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ARTICLE I

DEFINITIONS AND ACRONYMS

1.1. The Parties agree upon the following definitions for terms

used in this Memorandum of Agreement (MOA) and its implementing

Project Agreements (PAs).

Agreement Government officials listed in this MOA that

Authorities are authorized to act on behalf of the

Parties in matters pertinent to this MOA.

Annex Authorities Government officials listed in this MOA that

are authorized to act on behalf of the

Parties in matters pertinent to Annexes to

this MOA.

Classified Official Information that requires

Information protection in the interests of national

security and is so designated by the

application of a security classification

marking. This Information may be in oral,

visual, magnetic, or documentary form or in

the form of equipment or technology.

Contract Any mutually binding legal relationship

under national laws that obligates a

Contractor to furnish supplies or services,

and obligates one or both of the Parties to

pay for them.

Contracting The obtaining of supplies or services by

Contract from sources outside the

governmental organizations of the Parties.

Contracting includes description (but not

determination) of supplies and services

required, solicitation and selection of

sources, preparation and award of Contracts,

and all phases of Contract administration.

Contracting Agency The entity within the governmental

organization of a Party that has authority

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to enter into, administer, or terminate

Contracts.

Contracting Officer A person representing a Contracting Agency

of a Party who has the authority to enter

into, administer, or terminate Contracts.

Contractor Any entity awarded a Contract by a Party's

Contracting Agency.

Contractor Support Persons specifically identified as providing

Personnel administrative, managerial, scientific, or

technical support services to a Party under

a support Contract.

Controlled Unclassified Information to which access or

Unclassified distribution limitations have been applied

Information in accordance with applicable national laws

or regulations. It could include

Information that has been declassified hut

remains controlled.

Cooperative Project Military members or civilian employees of a

Personnel (CPP) Parent Party assigned to the Host Party's

facility who perform managerial,

engineering, technical, administrative,

Contracting, logistics, financial, planning,

or other functions in furtherance of a

Project Agreement.

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Defense Purposes Manufacture or other use in any part of the

world by or for the armed forces of either

Party.

Designated Security The security authority designated by

Authority (DSA) national authorities to be responsible for

the coordination and implementation of

national industrial security aspects of this

MOA and associated PAs.

Exceptional Any circumstances that would require a

Circumstances Contracting Officer to act outside the

Project Contract Requirements.

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Financial Costs Project costs met with monetary

contributions.

Host Party The Party that receives CPP of the other

Party sent to its facilities.

Information Knowledge that can be communicated by any

means, regardless of form or type,

including, but not limited to, that of a

scientific, technical, business, or

financial nature, and also including

photographs, reports, manuals, threat data,

experimental data, test data, computer

software, designs, specifications,

processes, techniques, inventions, drawings,

technical writings, sound recordings,

pictorial representations, and other

graphical presentations, whether in magnetic

tape, computer memory, or any other form,

and whether or not subject to Intellectual

Property rights.

Intellectual In accordance with the World Trade

Property Organization Agreement on Trade-related

Aspects of Intellectual Property Rights of

April 15, 1994, all copyright and related

rights, all rights in relation to inventions

(including Patent rights), all rights in

registered and unregistered trademarks

(including service marks), registered and

unregistered designs, undisclosed •

Information (including trade secrets and

know-how), layout designs of integrated

circuits, geographical indications, and any

other rights resulting from creative

activity in the industrial, scientific,

literary, and artistic fields.

Non-financial Costs Project costs met with non-monetary

contributions.

Parent Party The Party that sends its CPP to the Host

Party's facilities.

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Party A signatory to this MOA represented by its

military or civilian personnel. Contractors

and Contractor Support Personnel shall not

be representatives of a Party under this

MOA.

Patent Grant by any Government of the right to

exclude others from making, using,

importing, selling, or offering to sell an

invention. The term refers to any and all

patents including, but not limited to,

patents of implementation, improvement or

addition, petty patents, utility models,

appearance design patents, registered

designs, and inventor certificates or like

statutory protection, as well as divisions,

reissues, continuations, renewals, and

extensions of any of these.

Project Specific collaborative activity described

and defined in a Project Agreement pursuant

to the terms of this MOA.

Project Agreement An implementing arrangement pursuant to this

(PA) MOA that specifically details the terms of

collaboration on a Project.

Project Background Information not generated in the performance

Information of a specific PA.

Project Contract Project management direction developed and

Requirements (PCR) approved as part of the Project Plan in

accordance with Article IV (Management

(Organization and Responsibility)) of this

MOA, which is the basis for the Contracting

Officer to negotiate, award, and manage

Contracts. The PCR contains information that

addresses the Parties' interests regarding

technical requirements, Project objectives,

and acquisition strategy.

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Project Equipment Any material, equipment, end item,

subsystem, component, Special Tooling, or

test equipment jointly acquired or provided

for use in the performance of this MOA and

associated PAs.

Project Foreground Information generated in the performance of

Information a specific PA.

Project Information Any Information provided to, generated in,

or used in a PA.

Project Invention Any invention in any field of technology,

provided it is new, involves an inventive

step, is capable of industrial application,

and is formulated or made (conceived or

"first actually reduced to practice") in the

course of work performed under a Project.

The term "first actually reduced to

practice" means the first demonstration,:

sufficient to establish to one skilled in

the art,to which the invention pertains, of

the operability of an invention for its

intended purpose and in its intended

environment.

Project Plan A description in writing containing the

information necessary to achieve Project

objectives in accordance with Article IV

(Management (Organization and

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Responsibility)) of this MOA.

Prospective Any entity that seeks to enter into a

Contractor Contract to be awarded by a Party's

Contracting Agency and that, in the case of

a solicitation involving the release of

export-controlled Information, is eligible

to receive such Information.

Special Tooling Jigs, dies, fixtures, molds, patterns,

tapes, gauges, other equipment and

manufacturing aids, and all components of

these items that are of such a specialized

nature that without substantial modification

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or alternation their use is limited to the

development or production of particular

supplies or parts thereof or to the

performance of particular services and

excluding material, special test equipment,

facilities (except foundations and similar

improvements necessary for installing

Special Tooling), general or special machine

tools, or similar capital items.

Third Party Any government other than the Government of

a Party and any person or other entity whose

government is not the Government of a Party.

1.2. The Parties agree upon the following acronyms used in this

MOA and its PAs.

AA Annex Authority

CG Classification Guide

CPP Cooperative Project Personnel

DoD Department of Defense of the United States

of America

DSA Designated Security Authority

FMPD Financial Management Procedures Document

PA Project Agreement

PCR Project Contract Requirements

PO Project Officer

PSI Project Security Instruction

SC Steering Committee

ARTICLE II

OBJECTIVES

2.1. The objectives of this MOA are to define and establish the

general terms and conditions that shall apply to the initiation,

conduct, and management of Research, Development, Test, and

Evaluation (RDT&E) Projects detailed in separate Project

Agreements (PAs) between representatives authorized in

accordance with national procedures of the Parties. These PAs

shall be entered into pursuant to this MOA and shall incorporate

by reference the terms of this MOA. Additionally, this MOA

shall allow the exchange of Information for the purpose of

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attempting to harmonize the Parties' requirements to assist in r m

) better defining potential future cooperative efforts under this

MOA.

2.2. A separate PA shall be established for each Project that is

initiated under this MOA. Detailed terms and conditions of each

individual PA shall be consistent with this MOA. Each PA shall

include specific provisions concerning the objectives, scope of

work, sharing of work, management structure, financial

arrangements, classification, and other special provisions as

required, in accordance with the format set forth at Annex A

(Sample Project Agreement) to this MOA, to the extent applicable

and practical.

ARTICLE III

SCOPE OF WORK

3.1. The scope of work for this MOA shall encompass

collaboration on RDT&E activities to improve the defense

capabilities of the Parties. PAs may include collaboration on

basic research, applied research, advanced technology

development, concept of operation studies and analysis, advanced

concept technology demonstrations, development of system

prototypes, engineering and manufacturing development,

developmental test and evaluation, and evolutionary

acquisition/spiral development efforts.

3.2. Information may be exchanged under this MOA for the

purpose of attempting to harmonize requirements, identifying

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3.3. Individual PAs may provide for the assignment of

Cooperative Project Personnel (CPP) from one Party to facilities

of the other Party to participate in Project activities. Such

PAs shall include the provisions of Appendix 1 to Annex A

(Sample Project Agreement) to this MOA.

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ARTICLE IV

MANAGEMENT (ORGANIZATION AND RESPONSIBILITY)

4.1. The Director, International Cooperation, in the Office of

the Under Secretary of Defense (Acquisition, Technology and

Logistics) and the Director of the Department for Acquisition,

Research and Development at the Swedish Ministry for Defence, or

their equivalents in the event of reorganization, are designated

as the Agreement Authorities of the Parties.

4.2. The Agreement Authorities shall be responsible for:

4.2.1. Monitoring implementation of this MOA and

exercising executive-level oversight.

4.2.2. Monitoring the overall use and effectiveness of

the MOA.

4.2.3. Periodically assessing cooperative activities4.2.4. Resolving issues brought forth by the Annex

Authorities (AAs).

4.2.5. Recommend and propose, where appropriate,

measures to be taken in accordance with Article XVIII

(Amendment, Termination, Entry into Force, and Duration)

of this MOA.

4.3. The appropriate U.S. Service Acquisition Executive, or

Defense Agency Director, and the appropriate Swedish. Defence

Authority, or their respective equivalents, are designated as

the AAs of the Parties.

4.4. The AAs shall be responsible for:

4.4.1. Entering into PAs in accordance with this MOA and

the respective policies and procedures of the Parties.

4.4.2. Overseeing the implementation of PAs.

4.4.3. Appointing Project Officers (P0s) and, as

appropriate, Steering Committee (SC) members.

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4.4.4. When no SC is established under a PA, approving

the Project Plan in accordance with subparagraph 4.7.10.,

and any revisions thereto, submitted by the POs in

accordance with subparagraph 4.9.1 of this Article.

4.4.5. When no SC is established under a PA, upon

notification by the POs of Exceptional Circumstances that

require immediate attention, issuing updated PCR through a

timely Project Plan revision developed and approved in

accordance with subparagraphs 4.7.10. and 4.9.1. of this

Article, in order to provide Project management direction

for the Contracting Officer to manage and modify Contracts

under such Exceptional Circumstances.

4.4.6. Resolving issues brought forth by the SC or, if

no SC is established, by the POs.

4.4.7. Monitoring Third Party sales and transfers

authorized in accordance with Article XII (Third Party

Sales and Transfers) of this MOA.

4.4.8. Approving plans to manage and control the

transfer of Project Equipment, in accordance with Article

VII (Project Equipment) of this MOA, when no SC is

established under a PA.

4.4.9. Approving plans for the disposal of jointly

acquired Project Equipment, in accordance with Article VII

(Project Equipment) of this MOA, when no SC is established

under a PA.

4.4.10. Maintaining oversight of the security aspects of

a Project, when no SC is established under a PA including

reviewing and obtaining approval from the appropriate

Designated Security Authority (DSA) of a Project Security

Instruction (PSI) and a Classification Guide (CG) prior to

the transfer of Classified Information or Controlled

Unclassified Information.

4.4.11. Approving assignment of CPP to work on a Project

at the Host Party's facilities in accordance with the

provisions set out in a PA, when no SC is established

under a PA.

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4.4.12. Reviewing the final Project report submitted by

the POs, when no SC is established under a PA.

4.5. Each PA shall identify the management of the Project,

which shall consist of either an SC and POs, or POs only. If

established, the SC shall have overall authority over the POs,

in accordance with this MOA. The POs shall have primary

responsibility for effective implementation, efficient

management, and direction of the PA in accordance with this MOA.

The Parties shall maintain and fund their own organizations for

managing a PA.

4.6. If established under a PA, the SC shall consist of one

representative designated by the appropriate AA of each Party.

The SC shall meet as required, normally alternating meetings

between the United States and Sweden. Each meeting of the SC 0 shall be chaired by the representative of the Party 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 his or

her respective AA for resolution.

4.7. If an SC is established under a particular PA, it shall be

responsible for:

4.7.1. Employing its best efforts to resolve, in

consultation with the export control authorities of the

Party concerned, any export control issues raised by the

POs, in accordance with subparagraph 4.9.6. of this

Article or raised by a Party's SC representative, in

accordance with subparagraph 8.1.2.4. of Article VIII

(Disclosure and Use of Project Information) of this MOA.

4.7.2. Providing policy and management direction to the

POs during PA execution.

4.7.3. Monitoring overall implementation, including

technical, cost, and schedule performance against

requirements.

4.7.4. Resolving issues brought forth by the POs.

4.7.5. Maintaining oversight of the security aspects of

a Project, including reviewing and obtaining approval from

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the appropriate Designated Security Authority (DSA) of a

Project Security Instruction (PSI) and a Classification

Guide (CG) prior to the transfer of Classified Information

or Controlled Unclassified Information.

4.7.6. Approving assignment of CPP to work on a Project

at the Host Party's facilities in accordance with the

provisions set out in a PA.

4.7.7. Reviewing the final Project report submitted by

the POs.

4.7.8. Reporting status and activity of assigned PAs on

an annual basis to the AAs.

4.7.9. Appointing POs for a PA.

4.7.10. Approving the Project Plan, and any revisions

thereto, submitted by the POs in accordance with

subparagraph 4.9.1. of this Article, and reviewing the

technical progress of the Project against the Project

Plan. The Project Plan will contain the information

necessary to achieve Project objectives, including, but

not limited to, the following elements:

4.7.10.1. Detailed scope of work and corresponding

work schedule, as appropriate.

4.7.10.2. References to applicable acquisition

approval processes and documents.

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4.7.10.3. Project Contract Requirements (PCR).

4.7.11. Upon notification by the POs of Exceptional

Circumstances that require immediate attention, issuing

updated PCR through a timely Project Plan revision

developed and approved in accordance with subparagraphs

4.7.10. and 4.9.1. of this Article, in order to provide

Project management direction for the Contracting Officer

to manage and modify Contracts under such Exceptional

Circumstances.

4.7.12. Informing the AAs of the existence of Exceptional

Circumstances as notified by the POs in accordance with

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subparagraph 4.9.3. of this Article.

4.8. The POs shall have the responsibility for managing the

cost, schedule, performance requirements, technical, security,

and financial aspects of their Project.

4.9. In particular, the POs shall be responsible for:

4.9.1. Developing a Project Plan and any necessary

revisions thereto, as described in subparagraph 4.7.10. of

this Article; submitting the Project Plan and any

revisions for SC approval or, if no SC is established, for

the AAs' approval; and implementing the Project Plan and

any revisions upon SC or, if no SC is established, AAs'

approval.

4.9.2. Providing the approved Project Plan (including he

PCR), and any approved revisions thereto, to the

Contracting Officer.

4.9.3. Informing the SC or, if no SC is established, the

AAs, of the existence of Exceptional Circumstances raised

by the Contracting Officer in accordance with paragraph

6.3. of Article VI (Contracting Provisions) of this MOA.

4.9.4.. Cooperating, as requested, with the Contracting

Officer in the areas of Contracting strategies, requests

for proposal, Contract negotiation, evaluation of offers,

Contract awards, and Contract modifications.

4.9.5. Informing immediately the SC or, if no SC is

established, the AAs, of any significant cost growths,

schedule changes, or performance problems under the

Project Plan.

4.9.6. Monitoring export control arrangements required

to implement the PA and, if applicable, referring

immediately to the SC or, if no SC is established, to the

AAs any export control issues that could adversely affect

the implementation of the PA.

4.9.7. Executing the financial aspects of the PA in

accordance with Article V (Financial Provisions) of this

MOA, the PA, and the detailed financial management

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procedures under which the Project shall operate.

4.9.8. Referring issues to the SC that cannot be

resolved by the POs or, if no SC is established, to the

AAs.

4.9.9. Establishing and obtaining approval on the plan

to manage and control the transfer of Project Equipment,

in accordance with Article VII (Project Equipment) of this

MOA and the PA, as well as maintaining a list of all

Project Equipment transferred by the Parties under the PA.

4.9.10. Developing and forwarding for DSA approval a PSI

and a CG within three months after PA signature for any PA

involving the transfer of Classified Information or

Project Equipment, and implementing the PSI and CG upon .

final approval.

4.9.11. Appointing a Project security officer, if

necessary.

4.9.12. Reporting status and activity of the Project on

an annual basis to the SC or, if no SC is established, to

the AAs.

4.9.13. Preparing and submitting a final Project report

to the SC or, if no SC is established, to the AAs.

ARTICLE V

O FINANCIAL PROVISIONS

5.1. This MOA creates no financial or non-financial commitments

regarding individual PAs. Detailed descriptions of the

financial provisions for a specific Project, including the total

cost of the Project and each Party's cost share, shall be

contained in the specific PA.

5.2. Each Party shall contribute its equitable share of the

full Financial Costs and Non-financial Costs of each Project, as

mutually determined by the Parties and set out in each PA,

including overhead costs, administrative costs, and, consistent

with Article XIII (Liability and Claims) of this MOA, costs of

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claims. Each Party shall receive an equitable share of the

results of each Project.

5.3. The Financial Costs and Non-financial Costs for a PA,

including the total cost and each Party's share of the total

cost, shall be included in the PA.

5.4. Each Party shall perform, or have performed, its tasks and

shall use its best efforts to perform the tasks within the cost

estimates specified in each PA. Each Party shall bear the full

Financial Costs and Non-financial Costs it incurs for

performing, managing, and administering its activities under

this MOA and participation in PAs and all such costs shall be

included as part of each Party's contributions to the PA. These

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

salaries, travel, and per diem costs for each Party's 0 personnel), as well as any Contract costs.

5.5. The following costs shall be borne entirely by the Party

incurring the costs:

5.5.1. Costs associated with any unique requirements

identified by a Party.

5.5.2.. Any other costs not expressly stated as shared

costs or any costs that are outside the scope of this(1.40A

and its PAs.

5.6. For each PA, the POs shall be responsible for establishing

the detailed financial management procedures under which the O

Project shall operate. These procedures may be specified in a

Financial Management Procedures Document (FMPD) proposed by the

POs and subject to the approval of the. AA, if no SC is

established for the PA.

5.7. Participation in a PA is subject to the availability of

funds for such purpose. A Party shall promptly notify the other

Party if available funds are not adequate to fulfill its

obligations under a PA. If a Party notifies the other Party

that it is terminating or reducing its funding for a Project,

both Parties shall immediately consult with , a view toward

continuation on a modified basis.

5.8. Cooperative efforts of the Parties over and above the

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jointly determined work set forth in Article III (Scope of Work)

of this MOA and shall be subject to future mutual consent of the

Parties.

5.9. The Parties shall bear costs related to the assignment of

any CPP under a PA as follows:

5.9.1. The Host Party shall bear the following costs:

5.9.1.1. All pay and allowances of Host Party

personnel assigned to the Host Party's office.

5.9.1.2. Host Party office costs including, but not

limited to, CPP assignment-related administrative and

support services costs such as CPP costs of CPP-related

training costs, Contract award, Contract

administration, office space, security services,

Information technology services, communications

services, and supplies.

5.9.2. The Parent Party shall bear the following costs:

5.9.2.1. All pay and allowances of CPP assigned to

the Host Party's office, including travel incurred in

support of Project efforts.

5.9.2.2. Transportation of CPP, CPP dependents, and

their personal property to the Host Party location

prior to commencement of the CPP assignment at a

location specified by the Host Party, and return

transportation of the foregoing from this location upon •

completion or termination of the CPP assignment.

5.9.2.3. Compensation for loss of, or damage to, the

personal property of CPP or CPP dependents, subject to

the national laws and regulations of the Parent Party.

5.9.2.4. Preparation and shipment of remains in the

event of the death of CPP or CPP dependents.

5.10. When a Party contracts on behalf of the other Party or on

behalf of both Parties pursuant to a PA, the POs shall be

responsible for establishing the detailed financial management

procedures under which the PA shall operate prior to the

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transfer of funds between the Parties. The procedures, which

shall accord with national accounting and audit requirement of

the Parties, shall be specified in the FMPD. Each Party shall

provide funds in the amounts and at the times set out in the

estimated schedule for monetary contributions, as specified in

the FMPD.

5.11. For PAs, and subject to the provisions of this MOA and, in

particular, this Article, Article IV (Management (Organization,

and Responsibility)), Article VI (Contracting Provisions), and

Article XVIII (Amendment, Termination, Entry Into Force, and

Duration) of this MOA, the Parties recognize that it may become

necessary for one Party to incur contractual or other

obligations for the benefit of the other Party or both of the

Parties prior to receipt of the other Party's funds. In the

event that one Party incurs such contractual or other

obligations, the other Party shall pay its equitable share of

the Contract or other obligation, and will make such funds

available in such amounts and at such times as may be required

by the Contract or other obligation and shall pay its equitable

share of any damages and costs that may accrue from the

performance of or cancellation of the Contract or other

obligation in advance of the time such payments, damages, or

costs are due.

5.12. Each Party shall be responsible for the audit of its

activities or its Contractors' activities pursuant to a PA. A

Party's audits will be in accordance with its own national

practices. For PAs in which funds are transferred between the

Parties, the receiving, Party . shall be responsible for the

internal audit regarding administration of the other Party's

funds in accordance with the receiving Party's national

practices. Audit reports of such funds shall be promptly made

available by the receiving Party to the other Party.

ARTICLE VI

CONTRACTING PROVISIONS

6.1. If either Party determines that Contracting is necessary

to fulfill that Party's responsibilities under the scope of work

of any PA, that Party shall contract in accordance with its

respective national laws, regulations, and procedures.

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under a PA to this MOA, it 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 written

consent.

6.3.. For all Contracting activities performed by either Party,

for the benefit of the other Party or both Parties,

the POs shall be responsible for the coordination of activities

relating to a PA and shall cooperate with the Contracting

Officer in the areas of Contract procedures, Contract

negotiation, evaluation of offers, Contract award, and Contract

modifications. The Parties shall review statements of work prior

to the issuance of solicitations to ensure that they are in

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accordance with this MOA and applicable PA. The Contracting

Officer shall keep the POs advised of all significant

developments associated with award and performance of Project

Contracts, and shall keep the POs advised of all financial

agreements or arrangements with the Contractor. The Contracting

Officer shall incur contractual obligations consistent with this

MOA, the applicable PA, and the approved Project Plan, including

the PCR, provided by the POs. In the unlikely event that

Exceptional Circumstances arise, the Contracting Officer shall

consult with the POs and the SC or, if no SC is established, the

AAs, and execute Contracting actions consistent with any revised

PCR. If such consultation does not result in a revised PCR, the

Contracting Officer shall act considering the interests of the

Parties when incurring obligations beyond the scope of the

Project Plan. In the event that the other Party disagrees with O the action taken by the Contracting Officer, the disagreement

shall be resolved in accordance with Article XV (Settlement of

Disputes) of this MOA.

6.4. The POs may make use of a Party's Contracting Agency in

the event that Contracting on behalf of the other Party or both

Parties is required to implement the Project. The Contracting

Agency so used shall place Contracts in accordance with its

respective national laws, regulations, and procedures with such

waivers and deviations its procedures permit and as deemed

necessary to implement the provisions of this MOA and the

applicable PA. The Contracting Party's Contracting Officer

shall be the exclusive source for providing contractual

direction and instructions to the Contractors.

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6.5. Each Party's Contracting Agency shall insert into its

prospective Contracts (and require its Contractors to insert in

subcontracts) suitable provisions to satisfy the requirements of

this MOA, including Article VIII (Disclosure and Use of Project

Information), Article IX (Controlled Unclassified Information),

Article XI (Security), Article XII (Third Party Sales and

Transfers), and Article XVIII (Amendment, Termination, Entry

Into Force, and Duration) of this MOA, and including export

control provisions in accordance with this MOA, in particular

paragraphs 6.6. and 6.7. of this Article. Each Party's

Contracting Agency shall negotiate to obtain the rights to use

and disclose Project Information required by Article VIII

(Disclosure and Use of Project Information) of this MOA. During

the Contracting process, each Party shall also advise

Prospective Contractors of their responsibility to notify 0 immediately their respective Party's Contracting Agency, before

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

that will restrict their Government's freedom to disclose .

Information or permit its use, and to employ their best efforts

not to enter into any new agreement or arrangement that will

result in restrictions.

6.6. Each Party shall legally bind its Contractors to a

requirement that the Contractor shall not retransfer or

otherwise use export-controlled Information furnished by the

other Party for any purpose other than the purposes authorized

Under . this MOA. The Contractor shall also be legally bound not

to retransfer the export-controlled Information 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 MOA. .Exportcontrolled Information furnished by one Party under this MOA may

only be retransferred by the other Party to its Contractors if

the legal obligations required by this paragraph have been

established.

6.7. 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 MOA. Prospective Contractors

shall not be authorized use for any other purpose if they are

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not awarded a Contract. The Prospective Contractors shall also

be legally bound not to retransfer the export-controlled

Information to a prospective subcontractor unless that

prospective subcontractor has been legally bound to limit use of

the export-controlled Information for the purpose of responding

to the solicitation. Export-controlled Information furnished by

one Party under this MOA may only be retransferred by the other

Party to its Prospective Contractors and prospective

subcontractors 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 Information.

6.8. In the event a Party's Contracting Agency is unable to

secure adequate rights to use and disclose Project Information

as required by Article VIII (Disclosure and Use of Project

Information) of this MOA, or is notified by Contractors or

Prospective Contractors of any restrictions on the disclosure

and use of Project Information, that Party's Contracting Agency

shall refer the matter to the POs who shall submit it to the AAs

for resolution, if no SC is established.

6.9. The Contracting Officer shall promptly inform the POs of

any significant cost growths, schedule changes, or performance

problems under any Contract for which the Contracting Officer is

responsible. In such cases the POs shall promptly advise the SC

or, if no SC is established, the AAs.

6.10. Upon mutual written consent, consistent with Article II

(Objectives) of this MOA, a Party may contract for the unique 0 national requirement of the other Party.

ARTICLE VII

PROJECT EQUIPMENT

7.1. Each Party may provide Project Equipment identified as

being necessary for executing a Project under this MOA to the

other Party. Project Equipment shall remain the property of the

providing Party. A list of all Project Equipment provided by

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one Party to the other Party, including the replacement value of

the Project Equipment, if known, shall be developed and

maintained by the POs, and approved by the AAs, or the SC if

established, prior to any such transfers.

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, normal wear and tear excepted, or return the Project

Equipment and pay the cost to restore it. If the 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) 0 and pay the replacement value as computed pursuant to the

providing Party's national laws and regulations. If the Project

Equipment is lost while in the custody of the receiving Party,

the receiving Party shall issue a certificate of loss to the

providing Party and pay the replacement value as computed

pursuant to the providing Party's national laws and regulations.

If known at the time of entry into force, the replacement value

of the Project Equipment shall be specified in the PA.

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7.3. The providing Party shall deliver Project. Equipment to the

receiving Party at a mutually determined location. Possession

of the Project Equipment shall pass from the providing Party to

the receiving Party at the time of receipt of the Project

Equipment. Any further transportation shall be at the expense

and 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 a PA

under this MOA, unless otherwise agreed to in writing by the

providing Party. In addition, in accordance with Article XII

(Third Party Sales and Transfers) of this MOA, Project Equipment

shall not be re-transferred or sold to a Third Party without the

prior written consent of the providing Party.

7.5. Project Equipment transferred to one Party for the

purposes of carrying out a PA under this MOA shall be returned

by that Party to the providing Party as determined by the AAs,

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or the SC if established, prior to the termination or expiration

of the applicable PA.

7.6. Any Project Equipment that is jointly acquired on behalf

of both Parties for use in carrying out a PA under this MOA.

shall be disposed of during the Project or when the Project

ceases, as determined by the AAs, or the SC if established.

7.7. Disposal of jointly acquired equipment may include a

transfer of the interest of one Party in such Project Equipment

to the other Party, or the sale of such Project Equipment to a

Third Party in accordance with Article XII (Third Party Sales

and Transfers) of this MOA. The Parties shall share the

consideration from jointly acquired Project Equipment

transferred or sold to a Third Party in the same ratio as costs

are shared under the applicable PA under this MOA.

ARTICLE 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 MOA and its

PAs. The Parties intend to acquire sufficient Project

Information and rights to use such Information to enable

collaboration for the purposes of this MOA. The nature

and amount of Project Information to be acquired shall be

consistent with the objectives stated in Article II

(Objectives), Article III (Scope of Work), and Article VI

(Contracting Provisions) of this MOA, and the objectives

and scope of the applicable PA.

8.1.2. The following export control provisions shall

apply to the transfer of Project Information:

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

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authorized officials of the furnishing Party at the

time of transfer to the other Party, all exportcontrolled Information furnished by one Party to the

other Party may be retransferred to that other Party's

Contractors, subcontractors, Prospective Contractors,

and prospective subcontractors, subject to the

requirement of paragraphs 6.6. and 6.7. of Article VI

(Contracting Provisions) of this MOA.

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 MOA,

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 inform the other Party. If

a restriction is then exercised and the affected Party

objects, that Party's AA representative shall promptly

notify the other Party's AA representative and they.

shall immediately consult in order to discuss ways to

resolve such issues or mitigate any adverse effects.

8.2. Information exchange in contemplation of a PA: The.

disclosure and use provisions that govern exchange of

Information authorized in Article III (Scope of Work),

paragraph 3.2., of this MOA, are as follows:

8.2.1. Disclosure: Each Party, upon request, shall

disclose to the other Party any Information, provided

that:

8.2.1.1. Such Information is necessary to or, useful

for the purposes of this MOA, with the Party in

possession of the Information determining whether it is

"necessary to or useful for" the purposes of the MOA.

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8.2.1.2. Such Information may be made available if

the rights of holders of Intellectual Property rights

are not infringed.

8.2.1.3. Disclosure is consistent with national

disclosure policies, and export control laws and

regulations of the furnishing Party.

8.2.2. Use: Information disclosed by one Party to the

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

for Information and evaluation purposes only. Written

permission from the furnishing Party shall be required for

any other use.

8.3. Government Project Foreground Information

8.3.1. Disclosure: All Project Foreground Information

generated by a Party's military or civilian employees

(hereinafter referred to as "Government Project Foreground

Information") shall be disclosed promptly and without.

charge to the other Party.

8.3.2. Use: Each Party may use or have used all

Government Project Foreground Information without charge

for Defense Purposes. The 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 MOA.

8.4. Government Project Background Information

8.4.1. Disclosure: Each.Party, upon request, shall

disclose promptly and without charge to the other Party

any relevant Government . Project Background information .

generated by its military or civilian employees

(hereinafter referred to as "Government Project Background

Information"), provided that:

8.4.1.1. 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

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Project.

8.4.1.2. Such Government Project Background

Information may be made available only if the rights of

holders of Intellectual Property rights are not

infringed.

8.4.1.3. Disclosure of such Government Project

Background Information is consistent with national

disclosure policies and regulations of the furnishing

Party.

8.4.1.4. Any disclosure or transfer of such

Government Project Background Information to

Contractors is consistent with the furnishing Party's

export control laws and regulations.

8.4.2. Use: Government Project Background Information

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 whether

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.

8.5. Contractor Project Foreground Information

8.5.1. - Disclosure: Project Foreground Information

generated by Contractors (hereinafter referred to as

"Contractor Project Foreground Information") shall.be

disclosed promptly and without charge.to both Parties.

8.5.2. Use: Each Party may use or have used without

charge for Defense Purposes all Contractor Project

Foreground Information generated by Contractors of the

Parties. The Party whose Contractors generate Contractor

Project Foreground Information shall. also retain all its

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rights of use thereto in accordance with the applicable

Contract(s). Any sale or other transfer to a Third Party

of Contractor Project Foreground Information shall be

subject to the conditions of Article XII (Third Party

Sales and Transfers) of this MOA.

8.6. Contractor Project Background Information

8.6.1. Disclosure: A Contracting Party shall make

available to the other Party promptly and without charge

all Contractor Project Background Information generated by

Contractors (hereinafter referred to as "Contractor

Project Background Information") that is delivered under

Contracts awarded in accordance with this MOA. Any other

Contractor Project Background Information (including

Information subject to Intellectual Property rights), that

is generated by Contractors and that is in the possession

of one Party, shall be made available promptly and without

charge to the other Party, upon its request, provided the

following conditions are met:

8.6.1.1. Such Contractor Project Background

Information is necessary to or useful in the Project,

with the Party in possession of the Information

determining, after consultation with the requesting

Party, whether it is "necessary to" or "useful in" the

Project.

8.6.1.2. Such Contractor Project Background

Information may be made available only if the rights of

holders of Intellectual Property rights are not

infringed.

8.6.1.3. Disclosure of such Contractor Project

Background Information is consistent with national

disclosure policies and regulations of the furnishing

Party.

8.6.1.4. Any disclosure or transfer of such

Contractor Project Background Information to

Contractors is consistent with the furnishing Party's

export control laws and regulations.

8.6.2. Use: All Contractor Project Background

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Information delivered by Contractors under Contracts

awarded in accordance with this MOA 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 Contractors and disclosed to a requesting Party

may be used without charge by the requesting Party for

Project 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

Defense 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 Information is necessary for

the use of Project Foreground Information. The furnishing

Party shall retain all its rights with respect to 

Contractor Project Background Information.

8.7. Alternative Uses of Project Information

8.7.1. Any Project_Background Information provided by

one Party shall be used by the-other Party only for the

purposes set forth in this MOA, unless otherwise consented

to in writing by the providing Party.

8.7.2. .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 MOA.

8.8. Proprietary Project Information

8.8.1. All Project Information 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.

8.8.2. The provisions of the General Security of

Military Information Agreement between the Government of

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Sweden and the Government of the United States, which

entered into force on December 23, 1981, and the Security

Implementing Agreement for Industrial Operations between

the Government of the Kingdom of Sweden and the Department

of Defense of the United States, which entered into force

on May 20, 2004 (or any successor agreement and

procedures), shall apply to Project Information that is

subject to Intellectual Property rights.

8.9. Patents

8.9.1. Each Party shall include in all its Contracts for

a Project a provision governing the disposition of rights

in regard to Project Inventions and Patent rights relating

thereto that either:

8.9.1.1. 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

8.9.1.2. Provides that the 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 terms in compliance with the

provisions of subparagraph 8.9.2. of this Article.

8.9.2. In the event that a Contractor holds title (or

elects to retain title) to any Project Invention, the

Contracting Party shall secure for the other Party nonexclusive, 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.

8.9.3. The provisions of subparagraphs 8.9.4. through

8.9.7. 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 which the Contracting

Party holds title or is entitled to acquire title.

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8.9.4. When a Party has or can secure the right to file

a Patent application with regard to a Project Invention,

that Party shall consult with the other Party 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 be 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.

8.9.5. Each Party shall furnish the other Party with

copies of Patent applications filed and Patents granted . with regard to Project Inventions.

8.9.6. Each Party shall grant to the other Party a nonexclusive, irrevocable, royalty-free license under its

Patents for Project Inventions, to practice or have . practiced the Project Invention throughout the world for

Defense Purposes.

8.9.7. Patent applications to be.filed, or assertions of

other Intellectual Property rights, under this MOA that

contain Classified Information shall be protected and

safeguarded in a manner no less stringent than the

requirements contained in the Security Implementing

Agreement for Industrial Operations between the Government

of the Kingdom of Sweden and the Department of. Defense of

the United States, which entered into force on May 20,

2004 (or any successor agreement and procedures).

8.10. 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 a Project on

behalf of the other Party. Insofar as possible, the other Party

shall provide Information available to it that may assist in

defending such claims. Each Party shall be responsible for

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handling such Intellectual Property infringement claims brought

against it, and shall consult with the other Party during the

handling, and prior to any settlement, of such 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 VII (Financial

Arrangements) of the applicable PA.

8.11. The Parties shall, as permitted by their national laws,

regulations, and practices, give their authorization and consent

for all use and manufacture in the course of work performed

under a Project of any invention covered by Patent, or as

determined by them to be necessary for the purposes of the

Project, authorization and consent for non-commercial copyright,

granted or otherwise provided by their respective countries.

8.12. Contractors shall indentify all Patents to be used for the

purposes provided for in a Project and inform the Parties.

ARTICLE IX

CONTROLLED UNCLASSIFIED INFORMATION

9.1. Except as otherwise provided in this MOA, or as authorized

in writing by the originating Party, Controlled Unclassified

Information provided or generated pursuant to this MOA and any

of its PAs shall be controlled as follows:

9.1.1. Such Information 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 MOA.

9.1.2. Access to such Information shall be limited to

personnel whose access is necessary for the permitted use

under subparagraph 9.1.1. of this Article, and shall be

subject to the provisions of Article XII (Third Party

Sales and Transfers) of this MOA.

9.1.3. Each Party shall take all lawful steps available

to it, including national or organizational

classification, to keep such Information free from further

disclosure (including requests under any legislative

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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 Information 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 Information

shall be marked in accordance with the applicable Party's export

control markings as documented in the CG. The Parties shall

also decide, in advance and in writing, on the markings to be

placed on any other types of Controlled Unclassified Information

and describe such markings in the PSI.

9.3. Controlled Unclassified Information provided or generated

pursuant to this MOA shall be handled in a manner that ensures

control as provided for in paragraph 9.1. of this Article.

9.4. Prior to authorizing the release of Controlled

Unclassified Information to Contractors, the Parties shall

ensure that the Contractors are legally bound to control such

Information in accordance with the provisions of this Article.

ARTICLE X

VISITS TO ESTABLISHMENTS

10.1. Each Party shall permit 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 all

necessary and appropriate security clearances and a need-toknow.

10.2. All visiting personnel shall be required to comply with

security regulations of the hosting Party. Any Information

disclosed or made available to visitors shall be treated as if

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supplied to the Party sponsoring the visiting personnel, and

shall be subject to the provisions of this MOA.

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 conform with the established visit

procedures of the Host Party. Requests for visits shall bear

the name of the Project.

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.

ARTICLE XI

SECURITY

11.1. All Classified Information provided or generated pursuant

to this MOA and any of its PAs shall be stored, handled,

transmitted, and safeguarded in accordance with the General

Security of Military Information Agreement between the

Government of Sweden and the Government of the United States of

America, which entered into force on December 23, 1981 (or any

successor agreement and procedures). Classified Information

exchanged under this MOA shall be marked and safeguarded in

accordance with the Security Implementing Agreement for

Industrial Operations between the Government of the Kingdom of

Sweden and the Department of Defense of the United States, which

entered into force on May 20, 2004 (or any successor agreement

and procedures).

11.2. Classified Information shall be transferred only through

official Government-to-Government channels or through channels

approved by the Designated Security Authorities (DSAs) of the

Parties. Such Classified Information shall bear the level of

classification, denote the country of origin, the conditions of

release, and the fact that the Information relates to this MOA

and the applicable. PA.

11.3. Each Party shall take all lawful steps available to it to

ensure that Classified Information provided or generated

pursuant to this MOA and any of its PAs is protected from

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further disclosure, except as permitted by this Article, unless

the other Party consents to such disclosure. Accordingly, each

Party shall ensure that the recipient:

11.3.1. Shall not release the Classified Information to

any government, national, organization, or other entity of

a Third Party without the prior written consent of the

originating Party in accordance with the procedures set

forth in Article XII (Third Party Sales and Transfers) of

this MOA.

11.3.2. Shall not use the Classified Information for

other than the purposes provided for in this MOA and any

of its PAs.

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11.3.3. Shall comply with any distribution and access

restrictions on Classified Information that are provided

under this MOA and any of its PAs.

11.4. The Parties shall investigate all cases in which it is

known or when there are grounds for suspecting that Classified

Information provided or generated pursuant to this MOA or any of

its PAs has been lost or disclosed to unauthorized persons.

Each Party also shall promptly and fully inform the other Party

of the details of any such occurrence, and of the final results

of the investigation and of the corrective action taken to

preclude recurrence.

11.5. The POs shall prepare, as appropriate, a PSI and a CG for

each Project. The PSI and the CG shall describe the methods by

which Project Information shall be classified, marked, used,

0 transmitted, and safeguarded, and shall require that markings

for all export-controlled Classified Information shall also

include the applicable export control markings identified in the

PSI and the CG in accordance with paragraph 9.2. of Article IX

(Controlled Unclassified Information) of this MOA. The PSI and

CG shall be developed by the POs within three months after the

applicable PA enters into force. They shall be reviewed and

forwarded to the Parties' DSAS for approval and shall be

applicable to all Government and Contractor personnel

participating in the Project. The CG shall be subject to

regular review and revision with the aim of downgrading the

classification whenever this is appropriate. The PSI and the CG

shall be approved by the appropriate DSA prior to the transfer

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of any Classified Information or Controlled Unclassified

Information.

11.6. The DSA of a Party that awards a classified Contract shall

assume responsibility for administering within its territory

security measures for the protection of the Classified

Information, in accordance with its national laws and

regulations. Prior to the release to a Contractor, Prospective

Contractor, or subcontractor of any Classified Information

received under this MOA or any of its PAs, the DSAs or their

designees shall:

11.6.1. Ensure that such Contractor, Prospective

Contractor, or subcontractor (and their facilities) have

the capability to protect the Classified Information

adequately.

11.6.2. Grant a security clearance to the facilities, if

appropriate.

11.6.3. Grant a security clearance for all personnel with

duties that require access to the Classified Information,

if appropriate.

11.6.4. Ensure that all persons having access to the

Classified Information are informed of their obligations

to protect the Classified Information in accordance with

national security laws and regulations, and the provisions

of this MOA and any of its PAs.

11.6.5. Carry out periodic security inspections of

cleared facilities to ensure that the Classified

Information is properly protected.

11.6.6. Ensure that access to the Classified Information

is limited to those persons who have a need-to-know for

purposes of this MOA or any of its PAs.

11.7. Contractors, Prospective Contractors, or subcontractors

that are determined by DSAs to be under financial,

administrative, policy, or management control of nationals or

entities of a Third Party, may participate in a Contract or

subcontract requiring access to Classified Information provided

or generated pursuant to this MOA or any of its PAs only when

34
enforceable measures are in effect to ensure that nationals or

other entities of a Third Party shall not have access to

Classified Information. If enforceable measures are not in

effect to preclude access by nationals or other entities of a

Third Party, the other Party shall be consulted for approval

prior to permitting such access.

11.8. For any facility in which Classified Information is to be

used, the responsible Party or Contractor shall approve the

appointment of a person or persons to exercise effectively the

obligations for safeguarding at such facility the Information

pertaining to this MOA and any of its PAs. These officials

shall be responsible for limiting access to Classified

Information involved in this MOA and any of its PAs to those

persons who have been properly approved for access and have a

need-to-know.

11.9. Each Party shall ensure that access to Classified

Information is limited to those persons who possess requisite

security clearances and have a specific need for access to the

Classified Information in order to participate in this MOA or

any of its PAs.

11.10. Information provided or generated pursuant to this MOA

may be classified as high as Secret. The existence and the

contents of this MOA are unclassified. The classification of any

PA and its contents shall be stated in that PA.

ARTICLE XII

0 THIRD PARTY SALES AND TRANSFERS

12.1. Except to the extent permitted in paragraph 12.2. of this

Article, the Parties shall not sell, transfer title to,

disclose, or transfer possession of Project Foreground

Information, any item produced either wholly or in part from the

Project Foreground Information, or equipment to any Third Party

without the prior written consent of the Government or

appropriate authority of the other Party. Furthermore, neither

Party shall permit any such sale, disclosure, or transfer,

including by the owner of the item, without the prior written

consent of the Government or appropriate authority of the other

Party. Such consent shall not be given unless the Government or

35
appropriate authority of the intended recipient confirms in

writing with the Parties that it shall:

12.1.1. Not retransfer, or permit the further retransfer

of, any such Information, item, or equipment provided.

12.1.2. Use, or permit the use of, such Information,

item, or equipment 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

Information or any item produced wholly from Project Foreground

Information:

12.2.1. That is generated solely by either that Party or

that Party's Contractors in the performance of that

Party's work allocation in accordance with the Scope of

Work statement in the applicable PA.

12.2.2. That does not include any Project Foreground

Information or Project Background Information of the other

Party, and whose generation, test, or evaluation has not

relied on the use of Project Equipment of the other Party.

12.3. In the event questions arise as to whether the Project

Foreground Information (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 Party is within the scope of paragraph

13.2. of this Article, the matter shall be brought to the

immediate attention of the other Party's PO. The Parties shall

resolve the matter prior to any sale or other transfer of such

Project Foreground Information (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 or the

appropriate authority of the other Party that provided such

Project Equipment or Information. The providing Party's

Government or appropriate authority shall be solely responsible

36
0

C

for authorizing such transfers and, as applicable, specifying

the method and conditions for implementing such transfers.

ARTICLE XIII

LIABILITY AND CLAIMS

13.1. For liability arising out of, or in connection with,

activities undertaken in the performance of official duty in the

execution of this MOA or any of its PAs, the following

provisions 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 MOA, 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 of the

Parties' military or civilian personnel shall be

processed by the most appropriate Party, as determined

by the Parties. Any costs determined to be owed the

claimant shall be borne by the Parties in the same

ratios as their financial and non-financial

contributions specified in the PAs. However, if the

O

37
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. If a person or entity, other than the Party's military or

civilian personnel, damages jointly acquired equipment, and the

cost of making good such damage is not recoverable from such

person or entity, such cost shall be borne by the Parties in the

same ratios as their financial and non-financial contributions

specified in the PA.

13.3. Claims arising under any Contract awarded under this MOA

shall be resolved in accordance with the conditions of the

Contract.

13.4. The Parties shall not indemnify Contractors against Third

Party liability claims. Employees and agents of Contractors are

not considered civilian personnel of a Party for the purposes of

this Article.

ARTICLE XIV

CUSTOMS DUTIES, TAXES, AND SIMILAR CHARGES

14.1. Customs duties, import and export taxes, and similar

charges shall be administered in accordance with each Party's

respective national laws and regulations. Insofar existing laws

and regulations permit, 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 MOA and its PAs.

14.2. Each Party shall use its best efforts to ensure that

customs duties, import and export taxes, and similar charges are

administered in a manner favorable to the efficient and

economical conduct of the work under this MOA and its PAs. 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 Party's shared costs

of the PA.

0

0

38
14.3. Sweden shall settle any customs duties or similar charges

that may become due to the European Union (EU) under this MOA or

its PAs in order to comply with EU legislation with respect to

parts, components, and equipment needed for a PA and for which

Sweden shall be the final consignee. Any such duties or charges

shall be borne by Sweden as a cost over and above its shared

costs of the PA.

ARTICLE XV

SETTLEMENT OF DISPUTES

15.1. Disputes between the Parties arising under or relating to

this MOA or any of its PAs shall be resolved only by

0 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.

ARTICLE XVI

LANGUAGE

16.1. The working language for this MOA and its PAs shall be the

English language.

16.2. All data and Information generated under this MOA, its

PAs, and implementing Contracts and provided by one Party to the

other Party shall be furnished in the English language.

ARTICLE XVII

GENERAL PROVISIONS

17.1. All activities of the Parties under this MOA and any PA

shall be subject to their respective national laws and

regulations, including their respective export control laws and

regulations, and to the availability of funds for such purposes.

39
17.2. In the event of a conflict between the terms of this MOA

and any PA under this MOA, the provisions of the MOA shall

control.

17.3. No requirement shall be imposed by either Party on the

other Party for work sharing or other industrial or commercial

compensation in connection with this MOA or applicable PA that

is not in accordance with this MOA or applicable PA.

ARTICLE XVIII

AMENDMENT, TERMINATION, ENTRY INTO FORCE, AND DURATION

18.1. Except as otherwise provided, this MOA or any of its PAs

may be amended by the mutual written consent of the Parties.

18.2. This MOA or any of its PAs may be terminated at any time

upon the written consent of the Parties. In the event both

Parties consent to terminate this MOA or any of its PAs, the

Parties shall consult prior to the date of termination to ensure

termination in the most economical and equitable manner.

18.3. Either Party may terminate this MOA or any of its PAs upon

90 days , written notification to the other Party of its intent to

terminate. Such notice shall be the subject of immediate

consultation by the POs, or an SC if established, to decide upon

the appropriate course of action to conclude the activities

under this MOA or a PA. In the event of such termination, the

following rules shall apply:

18.3.1.. The Party terminating this MOA or any PA under

this MOA shall continue participation, financial or

otherwise, up to the effective date of termination.

18.3.2. Except as to Contracts awarded on behalf of both

Parties, each Party shall be responsible for its Project-.

related costs associated with termination of the Project.

For Contracts awarded on behalf of both Parties, the Party

terminating this MOA or any PA under this MOA shall pay

all Contract modification or termination costs that would

not otherwise have been incurred but for the decision to

terminate. However, in the event of termination, in no

event shall a terminating Party's total financial

contribution, including Contract termination costs, exceed

40
that Party's total financial contribution for the PA.

18.3.3. All Project Information and rights therein

received under the provisions of this MOA or its PAs prior

to the termination of this MOA or a PA shall be retained

by the Parties, subject to the provisions of this MOA and

its PAs.

18.4. The respective rights and obligations of the Parties

regarding Article VII (Project Equipment), Article VIII

(Disclosure and Use of Project Information), Article IX

(Controlled Unclassified Information), Article XI (Security),

Article XII (Third Party Sales and Transfers), Article XIII

(Liability and Claims), Article XV (Settlement of Disputes), and

this Article XVIII (Amendment, Termination, Entry into Force,

and Duration) of this MOA shall continue to apply

notwithstanding termination or expiration of this MOA or any of

its PAs.

18.5. This MOA, which consists of a preamble, eighteen (18)

Articles, and one (1) Annex, shall enter into force upon

signature by both Parties and shall remain in force for 25

years, unless terminated earlier. It may be extended by written

agreement of the Parties. Unless otherwise agreed between the

Parties, all. PAs shall terminate upon the termination or

expiration of this MOA.

18.6. This MOA supersedes the April 22, 1997 Technology Research

and Development Projects (TRDP) Agreement, which shall terminate

upon entry into force of this MOA, except for those PAs that

O

entered into force under the TRDP Agreement and that have not

expired prior to the entry into force of this MOA. For those PAs

the terms of the TRDP Agreement shall continue to apply as long

as such PAs are in force.

O

41
IN WITNESS WHEREOF, the undersigned, being duly authorized by CD their governments, have signed this MOA.

DONE, in duplicate, in the English language.

FOR THE DEPARTMENT OF DEFENSE

OF THE UNITED STATES OF

AMERICA

2111■4+all. eL44—

Signature

Ger41.4 R. k& 4-' 

Name

oir ca{.t•P' P. I et SA P /1" A

Title

IS Ar t.41 zo 

Date

AF b. C.

Location J

(Th

42
IN WITNESS WHEREOF, the undersigned, being duly authorized by

their governments, have signed this MOA.

DONE, in duplicate, in the English language.

FOR THE GOVERNMENT OF THE

omn,

SAL a

Sign ure

frac/ C.4 /0 re

Name

SIC/ Se-Crea ✓

Title

g

2o/i

Date

SIOCarat

Location

KINGD

43
ANNEX A

0

SAMPLE PROJECT AGREEMENT

PROJECT AGREEMENT NO.

TO THE

MEMORANDUM OF AGREEMENT

BETWEEN

THE DEPARTMENT OF DEFENSE OF THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF THE KINGDOM OF SWEDEN

FOR

RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

PROJECTS

DATED.(TBD)

CONCERNING

(FULL DESIGNATION OF THE PROJECT)

* The Project Agreement Numbers shall be structured as follows:

XX-NN-nnnn where XX is a U.S. Military Service or Defense Agency

designator such as N for Navy, A for Army, AF for Air Force, AR

for DARPA, etc.; NN is the calendar year, and nnnn is a

sequential number.

(Th

44
TABLE OF CONTENTS

PREAMBLE A-3

ARTICLE I

DEFINITION OF TERMS AND ABBREVIATIONS A-3

ARTICLE II

OBJECTIVES A-3

ARTICLE III

SCOPE OF WORK A-3

ARTICLE IV

SHARING OF TASKS A-4

ARTICLE V

BREAKDOWN AND SCHEDULE OF TASKS A-4

ARTICLE VI

MANAGEMENT A-5

ARTICLE VII

FINANCIAL ARRANGEMENTS A-7

ARTICLE VIII

CONTRACTING PROVISIONS A-7

ARTICLE IX

CLASSIFICATION A-8

ARTICLE X

PRINCIPAL ORGANIZATIONS INVOLVED A-8

ARTICLE XI

PROJECT EQUIPMENT

ARTICLE XII

SPECIAL PROVISIONS A-9

ARTICLE XIII

ENTRY INTO FORCE, DURATION, AND TERMINATION A-10

APPENDIX 1

0 ASSIGNMENT OF (INSERT NAME OF PROJECT) COOPERATIVE PROJECT

PERSONNEL A-11

45
PREAMBLE

This Project Agreement is entered into pursuant to the MOA

Between the Department of Defense of the United States of

America (U.S. DoD) and the Government of the Kingdom of Sweden

(Sweden) Concerning Research, Development, Test, and Evaluation

Projects (hereinafter "RDT&E MOA"), which entered into force on

, the terms of which are incorporated herein by

reference.

ARTICLE I

DEFINITION OF TERMS AND ABBREVIATIONS

(Define only those terms used in this PA that have not been

defined in the MOA.)

ARTICLE II

OBJECTIVES

2.1. The objectives of this 

2.1.1. The development of 

PA are:

2.1.2. The improvement of

0

ARTICLE III

SCOPE OF WORK

3.1. The following work shall be undertaken under this PA:

3.1.1. Develop 

3.1.2. Evaluate 

3.1.3. Design, fabricate, and test 

46
0 ARTICLE IV

SHARING OF TASKS

4.1. The sharing of tasks shall be as follows:

4.1.1. The U.S. DoD shall

4.1.2. Sweden shall

4.1.3. The U.S. DoD and Sweden shall jointly

(x) Prepare and submit a final report to the Annex

0

Authorities six months before the termination date for this PA.

ARTICLE V

BREAKDOWN AND SCHEDULE OF TASKS

(OPTIONAL)

(Use this format when the tasks covered under this Project may

be performed using multiple phases, requiring milestones or

decision points.)

5.1. The Project shall proceed according to the following

phases and schedule:

0

Phase 1

Description of Phase 1

Duration from Duration from 

Signature: Start Signature: End

Months Months

(Milestone 1) (e.g., Transmittal of Feasibility Report)

Phase 2 

Description of Phase 2

Duration from Duration from 

Signature: Start Signature: End

Months Months

(Milestone 2) (e.g., Decision to proceed to Phase 3)

Duration from Duration from 

Phase 3 Signature: Start Signature: End

47
0

O

Description of Phase 3 Months Months

(Milestone 3) (e.g., Evaluation, analysis of results)

(Add as many phases as necessary.)

ARTICLE VI

MANAGEMENT

(If a PA does not require a Steering Committee, use the

following format to set forth how the PA shall be managed.)

Alternative 1

6.1. This PA shall be directed and administered on behalf of

the Parties by one Project Officer (PO) from each Party. The

POs are:

U.S. DoD PO Title/Position

Organization

Address

Sweden PO Title/Position

Organization

Address

6.2. Particular Management Procedures:

(Mention only those additional management responsibilities not

covered under Article IV (Management (Organization and

Responsibility)) of the MOA.)

(If a Project requires the establishment of a Steering Committee

(SC), use the following format to set forth how the Project

shall be managed.)

Alternative 2

6.1. This PA shall be directed and administered on behalf of

the Parties by an organization consisting of a Steering

48
Committee (SC) and one Project Officer (PO) from each Party.

The SC members are:

U.S. DoD Co-Chairman

Title/Position

Organization

Address

Sweden Co-Chairman

Title/Position

Organization

Address

0

The POs are:

U.S. DoD PO

Title/Position

Organization

Address

Sweden PO Title/Position

Organization

Address

6.2. Particular Management Procedures:

(Mention only those additional management respbnsibilities not

covered under Article IV (Management (Organization and

Responsibility)) of the MOA. For instance, if a PA shall

include assignment of CPP, add the following paragraph:

6.3. The [U.S. DoD/Sweden] may assign CPP to the facilities of

[Sweden/U.S. DoD] to assist in administering this Project.

Provisions for the CPP are described in Appendix 1 to this PA,

which is an integral part hereof.)

0 49
0

ARTICLE VII

FINANCIAL ARRANGEMENTS

7.1. The Parties estimate that the cost of performance of the

tasks under this PA shall not exceed U.S. dollars ($) or

Swedish kronor (SEK).

7.1.1. The U.S. DoD tasks shall not cost more than:

U.S. dollars ($).

7.1.2. The Sweden tasks shall not cost more than:

 Swedish kronor (SEK).

7.2. Cooperative efforts of the Parties over and above the

jointly agreed tasks set forth in the Article III (Scope of

Work), Article IV (Sharing of Tasks), and Article VII (Financial

Arrangements) of this PA shall be subject to amendment to this

PA or signature of a new PA.

ARTICLE VIII

CONTRACTING PROVISIONS

(OPTIONAL)

(Address any additional contracting provisions, as required.)

O

ARTICLE IX

CLASSIFICATION

(Select one of the three following possibilities number

paragraph accordingly):

No Classified Information shall be exchanged under this PA;

The highest level of Classified Information exchanged under this

PA is Confidential; or

The highest level of Classified Information exchanged under this 0 50
PA is Secret. 0

ARTICLE X

PRINCIPAL ORGANIZATIONS INVOLVED

(List government laboratories, research centers, and other

organizations for both the U.S. DoD and Sweden.)

ARTICLE XI

PROJECT EQUIPMENT

(OPTIONAL)

Alternative 1

(If Project Equipment to be provided is known at the time of PA

signature, use the following alternative:)

11.1 The Parties have determined that the provision of Project

Equipment is necessary for purposes of the Project.

Providing

Party

Receiving

Party

QTY Description Part/

Stock

#

Consumables/

Non-Consumables

Approx

Value

Period

Alternative 2

(If provision of Project Equipment is not known at time of PA

signature, but it is believed to be necessary, include the

following:)

11.1 After having secured appropriate approvals, the POs shall

establish and maintain a list of all Project Equipment to be

provided for the purposes of the Project in the following

format.

Providing

Party

Receiving. Party

QTY Description Part/

Stock

#

Consumables/

Non-Consumables

Approx

Value

Period

Alternative 1 0

51
(If each Party shall pay its own costs for delivery or return of

Project Equipment, use the following alternative:)

11.2. Each Party shall pay its own costs for delivery or return

of Project Equipment.

Alternative 2

(If the Parties agree not to use the above alternative, the

responsibility for meeting any costs arising from delivery

and/or return of Project Equipment shall be detailed below.)

ARTICLE XII

SPECIAL PROVISIONS

(OPTIONAL)

(Identify any procedures, specifications, or other necessary

attributes of the Project not delineated in other Articles.)

52
ARTICLE XIII

ENTRY INTO FORCE, DURATION, AND TERMINATION

This PA, a Project under the

RDT&E MOA between the Department of Defense of the United States

of America and the Government of the Kingdom of Sweden shall

enter into force upon signature by the Parties, and shall remain

in force for years unless terminated by either Party. It

may be extended by written agreement of the Parties.

DONE, in duplicate, in the English language.

FOR THE DEPARTMENT OF DEFENSE

OF THE UNITED STATES OF

AMERICA

FOR THE GOVERNMENT OF THE

KINGDOM OF SWEDEN

Signature Signature

Name Name

Title Title

Date Date

Location Location

53
0

APPENDIX (1)

TO ANNEX A

ASSIGNMENT OF (INSERT NAME OF PROJECT) COOPERATIVE PROJECT

PERSONNEL

1.0. Purpose and Scope

1.1. This Appendix establishes the conditions that shall govern

the conduct of Cooperative Project Personnel (CPP) assigned for

work in accordance with Article III (Scope of Work) and Article

VI (Management) of this Project Agreement (PA). CPP must be able

to perform all responsibilities assigned to them under this PA

and this Appendix. Commencement of assignments shall be subject

to any requirements that may be imposed by the Host Party or its

Government regarding acceptance of CPP, such as, but not limited

to, visas and visit request documentation. The Host Party and

Parent Party shall determine the length of tour for the

positions at the time of initial assignment.

1.2. CPP shall be assigned to work on a specific Project and

shall report to a supervisor to be identified by the Host Party.

CPP shall have a position description determined by the Parent

Party and Host Party. CPP shall not act as liaison officers for

their Parent Party. CPP may act from time to time on behalf of

their respective Steering Committee (or Project Officers as

applicable) members if the latter so authorizes in writing.

1.3. CPP shall not be assigned to command or other positions

that would require them to exercise responsibilities that are

reserved by law or regulation to an officer or employee of the

O Host Party's Government.

2.0. Security

2.1. The Host Party shall establish the level of security

clearance required, if any, to permit CPP to have access to

facilities in which Classified Information is used in accordance

with the Project Security Instruction (PSI). Access to

Classified Information and facilities in which Classified

Information is used shall be limited by the scope of the

relevant Project Agreement and shall be kept to the minimum

required to accomplish the work assignments.

2.2. The Parent Party shall file visit requests through

prescribed channels in compliance with the Host Party's

54 •
0

procedures. As part of the visit request procedures, each Party

shall provide security assurances, through the Embassy of Sweden

in Washington, D.C., United States, in the case of Swedish

personnel, and through the U.S. Embassy in Stockholm, Sweden, in

the case of U.S. personnel, and specify the security clearances

for the CPP being assigned.

2.3. The Host Party and Parent Party shall use their best

efforts to ensure that CPP assigned to a Host Party's facility

to conduct a Project are aware of the requirements of the PA.

Prior to commencing assigned duties, CPP shall, if required by

the Host Party Government's laws, regulations, policies, or

procedures, sign a certification concerning the conditions and

responsibilities of CPP.

2.4. CPP shall at all times be required to comply with the

security and export control laws, regulations, and procedures of

the Host Party's Government. Any violation of security

procedures by CPP during their assignment shall be reported to

the Parent Party for appropriate action. CPP committing

significant violations of security laws, regulations, or

procedures during their assignments shall be withdrawn from the

Project with a view toward appropriate administrative or

disciplinary action by their Parent Party.

2.5. All Classified Information made available to CPP shall be

considered as Classified Information furnished to the Parent

Party, and shall be subject to all conditions and safeguards

provided for in Article XII (Security) of the MOA, and the PSI.

2.6. CPP shall not have personal custody of Classified

Information or Controlled Unclassified Information unless

approved by the Host Party and as authorized by their Parent

Party. They shall be granted access to such Information in

accordance with Article X (Controlled Unclassified Information)

and Article XII (Security) of the MOA during normal duty hours

and when access is necessary to perform work for the Project.

2.7. CPP assigned to a Host Party's facility to conduct a

Project shall not serve as a conduit between the Host Party and

Parent Party for requests and/or transmission of Classified

Information and material or Controlled Unclassified Information

outside the scope of their assignment, unless specifically

authorized by the Parties.

3.0. Technical and Administrative Matters

55
3.1. The tax treatment of income received by CPP from the

Parent Party shall be determined by reference to the tax

legislation of the Government of the Host Party and the

Government of the Parent Party, subject to the terms of any

double taxation agreement in force between the Government of the

Host Party and the Government of the Parent Party, or by the

terms of any relevant agreements.

3.2. Upon or shortly after arrival, CPP shall be provided

briefings arranged by the Host Party's representative regarding

entitlements, privileges, and obligations, granted pursuant to

any relevant agreement, such as:

3.2.1. Any medical and dental care that may be provided

to CPP and their dependents at local medical

facilities, subject to the requirements of

applicable laws and regulations, including

reimbursement when required.

3.2.2. Purchasing and patronage privileges at military

commissaries, exchanges, theaters, and-clubs for

CPP and their dependents, subject to the

requirements of applicable laws and regulations.

3.2.3. The Host Party shall provide, if available,

housing and messing facilities for CPP and their

dependents on the same basis and priority as for

its own personnel. CPP shall pay messing and

housing charges to the same extent as Host Party

personnel. At locations where facilities are not

provided by the Host Party for its own personnel,

the Parent Party shall make suitable arrangements

for its CPP.

3.2.4. Responsibility of CPP and their accompanying

dependents to obtain motor vehicle liability .

insurance coverage in accordance with the laws

and regulations applicable in the area where they

are residing. In case of claims involving the

use of private motor vehicles by CPP, the

recourse shall be against such insurance.

3.3. The Host Party shall, in consultation with the CPP,

establish standard operating procedures for CPP in the following

areas: 0 56
3.3.1. Working hours, including holiday schedules.

3.3.2. Leave authorization, consistent to the extent

possible with the military and civilian personnel

regulations and practices of the Host Party and

Parent Party.

3.3.3. Dress regulations, consistent to the extent

possible with the military and civilian personnel

regulations and practices of the Host Party and

Parent Party.

3.3.4. Performance evaluations, recognizing that such

evaluations shall be rendered in accordance with

the Parent Party's military and civilian

personnel regulations and practices.

3.4. CPP committing an offense under the laws and regulations

of the Government of the Host Party or Parent Party may be

withdrawn from the Project with a view toward further legal,

administrative, or disciplinary action by the Parent Party.

Disciplinary action, however, shall not be taken by the Host

Party against CPP, nor shall CPP exercise disciplinary powers

over the Host Party's personnel. In accordance with the laws

and regulations of the Host Party's Government, the Host Party

shall assist the Parent Party in carrying out investigations of

offenses involving CPP.

3.5. During t

following duty

the Host Party

heir assignment, CPP shall not be placed in the

status or environments unless mutually agreed by

and Parent Party:

3.5.1. Areas of political sensitivity where their

presence may jeopardize the interests of either

the Host Party or Parent Party, or where, in the

normal course of their duty, they may become

involved in activities that may embarrass either

Party.

3.5.2. Deployments in non-direct hostility situations,

such as UN peacekeeping or multi-national

operations, or third countries.

3.5.3 Duty assignments in which direct hostilities are

likely. Should the Host Party's facility become

57
0

involved in hostilities unexpectedly, CPP

assigned to that facility shall not be involved

in the hostilities. Any such CPP approved by the

Host Party and Parent Party for involvement in

hostilities shall be given specific guidance as

to the conditions under which the assignment

shall be carried out by the appropriate

authorities of the Host Party and Parent Party.

58