IMPLEMENTING AGREEMENT FOR A PROGRAMME OF RESEARCH AND DEVELOPMENT ON ENERGY CONSERVATION THROUGH ENERGY CASCADING

　The Contracting Parties

　Considering that the Contracting Parties, being either governments or international organizations or parties designated by their respective governments pursuant to Article III of the Guiding Principles for Co-operation in the Field of Energy Research and Development adopted by the Governing Board of the International Energy Agency (the "Agency") on 28th July, 1975, wish to take part in the establishment and operation of a Programme of Research and Development on Energy Conservation through Energy Cascading (the "Programme") as provided in this Agreement;

　CONSIDERING that the Contracting Parties which are governments and the governments of the other Contracting Parties (referred to collectively as the "Governments") participate in the Agency and have agreed in Article 41 of the Agreement on an International energy Program (the "I.E.P. Agreement") to undertake national programmes in the areas set out in Article 41 of the I.E.P. Agreement, including research and development on energy conservation in which field the Programme will be carried out;

　CONSIDERING that in the Governing Board of the Agency on 16th March, 1977 the Governments approved the Programme as a special activity under Article 65 of the I.E.P. Agreement;

　CONSIDERING that in the Agency has recognized the establishment of the Programme as an important component of international co-operation in the field of energy conservation research and development;

　HAVE AGREED as follows:

Article 1 OBJECTIVES

(a) Scope of Activity. The Programme to be carried out the Contracting Parties within the framework of this Agreement shall consist of co-operative research, development, demonstrations and exchanges of information regarding energy conservation through energy cascading.

(b) Method of Implementation. The Contracting Parties shall implement the Programme by undertaking one or more tasks (the "Tasks") each of which will be open to participation by two or more Contracting Parties as provided in Article 2 hereof.  The Contracting Parties which participate in a particular Task are, for the purposes of that Task, referred to in this Agreement as "Participants".

(c) Task Co-ordination and Co-operation. The Contracting Parties shall cooperate in co-ordinating the work of the various Tasks and shall endeavour, on the basis of an appropriate sharing of burdens and benefits, to encourage co-operation among development activities of all Contracting Parties in the field of energy conservation through energy cascading.

Article 2 IDENTIFICATION AND INITIATION OF TASKS

(a) Identification.  The Tasks undertake by participants are identified in the Annexes to this Agreement.  At the time of signing this Agreement, Cash Contracting Parties shall confirm its intention to participate in one or more Tasks by giving the Executive Director of the Agency a Notice of Participation in the relevant Annex or Annexes and the Operating of the Task Annex.  Thereafter, each Task shall be carried out in accordance with the procedures set forth in Article 2 to 11 hereof, unless otherwise specifically provided in the applicable Annex.

(b) Initiation of Additional Tasks.  Additional Tasks may be initiated by any Contracting Parties according to the following procedure:

(1) A Contracting Party wishing to initiate a new Task shall present to one or more Contracting Parties for approval a draft Annex, similar in form to the Annexes attached hereto, containing a description of the scope of work and conditions of the Task proposed to be performed:

(2) Whenever two or more Contracting Parties agree to undertake a new Task, they shall submit the draft Annex for approval by the Executive Committee pursuant to Article 3 (e) (2) hereof; the approved draft Annex shall become part of this Agreement:  Notice of Participation in the Task by Contracting Parties and acceptance by the Operating Agent shall be communicated to the Executive Director in the manner provided in paragraph (a) above;

(3) In carrying out the various Tasks. Participants shall co-ordinate their activities in order to avoid duplication of activities.

(c) Application of Task Annexes.  Each annex shall be binding only upon the Participants therein and upon the Operating Agent for that Task, and shall not affect the rights or obligations of other Contracting Parties

Article 3 THE EXECUTIVE COMMITTEE

(a) Supervisory Control. Control of the Programme shall be vested in the Executive Committee constituted under this Article.

(b) Membership.  The Executive Committee shall consist of one member designated by each Contracting Party; each Contracting Party shall also designate an alternate member to serve on the Executive Committee in the event that its designated member is unable to do so.

(c) Responsibilities.  The Executive Committee shall:

(1) Adopt for each year, acting unanimity, the Programme of Work, and Budget if foreseen, for each Task, together with an indicative programme of work and budget for the following tow years; the Executive Committee may, as required, make adjustments within the framework of the Programme of Work and Budget;

(2) Make such rules and regulations as may be required for the sound management of the Task, including financial rules as provided in Article 6 hereof;

(3) Carry out the other functions conferred upon it by this Agreement and the Annexes hereto; and

(4) Consider any matters submitted to it by any of the Operating Agents or by any Contracting Party.

(d) Procedure.  The Executive Committee shall carry out its responsibilities in accordance with the following procedures:

(1) The Executive Committee shall each year select a Chairman and one or more Vice-Chairman;

(2) The Executive Committee may establish such subsidiary bodies and rules of procedure as are required for its proper functioning. A representative of the Agency and a representative of each Operating Agent (in its capacity as such) may attend meeting s of the Executive Committee and its subsidiary bodies in 
an advisory capacity;

(3) The Executive Committee shall meet in regular session twice each year; a special meeting shall be convened upon the request of any contracting parting which can demonstrate the need therefore;

(4) Meetings of the Executive Committee shall be held at such time and in such office or offices as may be designated by the Committee;

(5) At least twenty-eight days before each meeting of the Executive Committee, notice of the time, place and purpose of the meeting shall be given to cash Contracting Party and to other persons or entities entitled to attend the meeting: notice need not be given to any person or entity otherwise entitled thereto if notice is waived before or after the meeting;

(6) The quorum for the transaction of business in meetings of the Executive Committee shall be one-half of the members plus one (less any resulting fraction) provided that any action relating to a particular Task shall require a quorum as aforesaid of members or alternate members designated by the Participants in that Task.

(e) Voting.

(1) When the Executive Committee adopts a decision or recommendation for or concerning a particular Task, the Executive Committee shall act:

(i) When unanimity is required under this Agreement; by agreement of those members or alternate members which were designated by the Participants in that Task and which are present and voting;

(ii) When no express voting provision is made in this Agreement; by majority vote of those members of alternate members which are present and voting;

(2) In all other cases in which this Agreement expressly requires the Executive Committee to act by unanimity, this shall require the agreement of each member or alternate member present and voting, and in respect of all other decisions and recommendations for which no express voting provision is made in this Agreement, the Executive Committee shall act by a majority vote of the members of alternate members present and voting. If a government has designated more than one Contracting Parties may cast only one vote under this paragraph;

(3) The decisions and recommendations referred to in paragraphs (1) and (2) above may, with the agreement of each member or alternate member entitled to act thereon , be made by mail, telex, or cable without the necessity for calling a meeting.  Such action shall be taken by unanimity or majority of such members as in a meeting.  The Chairman of the Executive Committee shall ensure that all members are informed of each decision or recommendation made pursuant to this paragraph.

(f) Reports.  The Executive Committee shall, at least annually, provide the Agency with periodic reports on the progress of the Programme.

Article 4 THE OPERATING AGENTS

(a) Designation.  Participants shall designate in the relevant Annex and operating Agent for each Task.  References in this Agreement to the Operating Agent shall apply to each Operating Agent in respect of the Task for which it is responsible.

(b) Scope of Authority to Act on Behalf of Participants.  Subject to the provisions of the applicable Annex:

(1) All legal acts required to carry out each Task shall be performed on behalf of the Participants by the Operating Agent for the Task;

(2) The Operating Agent shall hold, for the benefit of the Participants, the legal title to all property rights which any accrue to or be acquired for 
the Task.

　The Operating Agent shall operate the Task under its supervision and responsibility, subject to this Agreement, in accordance with the law of the country of the Operating Agent.

(c) Reimbursements of Costs.  The Executive Committee may provide that expenses and costs incurred by an Operating Agent in acting as such pursuant to this Agreement shall be reimbursed to the Operating Agent from funds made available by the Participants pursuant to Article 6 hereof.

(d) Replacement.  Should the Executive Committee wish to replace an Operating Agent with another government or entity, the Executive Committee may, acting by unanimity and with the consent of such government or entity, replace the initial Operating Agent. References in this Agreement to the "Operating Agent" shall include any government or entity appointed to replace the original Operating Agent under this paragraph.

(e) Resignation.  An Operating Agent shall have the right to resign at any time, by giving six months written notice to that effect to the Executive Committee, provided that:

(1) A Participant, or entity designated y a participant, is at such time willing to assume the duties and obligations of the Operating Agent and so notifies the Executive Committee and the other Participants to that effect, in writing, not less than three months in advance of the effective date of such registration; and

(2) Such Participant or entity approved by the Executive Committee, acting by unanimity.

(f) Accounting.  An Operating Agent which is replaced or which resigns as Operating Agent shall provide the Executive Committee with an accounting of any monies and other assets which it may have collected or acquired for the Task in the course of carrying out its responsibilities as Operating Agent.

(g) Transfer of Rights.  In the event that another Operating Agent is appointed under paragraph (d) or (e) above, the Operating Agent shall transfer to such replacement Operating Agent any property rights which it may hold on behalf of the Task.

Article 5 ADMINISTRATION AND STAFF

(a) Administration of Tasks.  Each Operating Agent shall be responsible to the Executive Committee for implementing its designated Task in accordance with this Agreement, the applicable Task Annex, and the decisions of the Executive Committee.

(b) Information and Reports.  Each Operating Agent shall furnish to the Executive Committee such information concerning the Task as the Committee may request and shall each year submit, not later than two months after the end of the financial year, a report on the status of the Task.

(c) Staff.  It shall be the responsibility of the Operating Agent to retain such staff as many be required to carry out its designated Task in accordance with rules determined by the Executive Committee. 　The Operating Agent may also, as required, utilize the services of personnel employed by other Participants (or organizations or other entities designated by Contracting Parties) and made available to the Operating Agent by secondment or otherwise.  Such personnel shall be remunerated by their respective employers and shall, except as provided in this Article, be subject to their respective employers' conditions of service.  The Contracting Parties shall be entitled to claim the appropriate cost of such remuneration or to receive an appropriate credit for such cost as part of the Budget of the Task, in accordance with Article 6 (f) (6) hereof.

Article 6 FINANCE

(a) Individual Obligation.  Each Contracting Parties shall bear the costs it incurs in carrying out this Agreement, including the costs of formulating or transmitting reports and of reimbursing its employees for travel and other per diem expenses incurred in connection with work carried out on the respective Tasks, unless provision is made for such costs to be reimbursed from common funds as provided in paragraph (g) below.

(b) Common Financial Obligations.  Participants wishing to share the costs of a particular Task shall agree in the appropriate Task Annex to do so.  The apportionment of contributions to such costs (whether in the form of cash , services rendered, intellectual property or the supply of materials) and the use of such contributions shall be governed by the regulations and decision made pursuant to this Article by the Executive Committee.

(c) Rules of Procurement, Expenditure.  The Executive Committee, acting by unanimity, may make such regulations as are required for the sound financial management of each Task including, where necessary:

(1) Establishment of budgetary and procurement procedures to be used by the Operating Agent in making payments from any common fund which maybe maintained by participants for the account of the Task or in making contracts on behalf of the participants;

(2) Establishment of minimum levels of expenditure for which Executive Committee approval shall be required, including expenditure involving payment of monies to the Operating Agent for other than routine salary and administrative expenses previously approved by the Executive Committee in the budget process.

　In the expenditure of common funds, the Operating Agent shall take into account the necessity of ensuring a fair distribution of such expenditure in the Participant' countries, where this is fully compatible with the most efficient technical and financial management of the Task.

(d) Crediting of Income to Budget.  Any income which accrues from a Task shall be credited to the Budge of that Task.

(e) Accounting. The system of accounts employed by the Operating Agent shall be in accordance with accounting principles generally accepted in the country of the Operating Agent and consistently applied.

(f) Programme of Work and Budget, Keeping of Accounts.  Should Participants agree to maintain common funds for the payment of obligations under a Programme of Work and Budget of the Task, accounts shall be maintained as follows unless otherwise decided by the Executive Committee, acting by unanimity:

(1) The financial year of the Task shall correspond to the financial year of the Operating Agent;

(2) The Operating Agent shall each year prepare an submit to the Executive 
Committee for approval a draft Programme of Work and Budget, together with an indicative programme of work and budget for the following two years, not later than three months before the beginning of each financial year;

(3) The Operating Agent shall maintain complete, separate financial records which shall clearly account for all funds and property coming into the custody or possession of the Operating Agent in connection with the Task;

(4) Not later than three months after the close of each financial year the Operating Agent shall submit to auditors selected by the Executive Committee for audit the annual accounts maintained for the Task; upon completion of the annual audit, the Operating Agent shall present the accounts together with the auditors' report to the Executive Committee for approval;

(5) All books of account and records maintained by the Operating Agent shall be preserved for at least three years from the date of termination of the Task;

(6) Where provided in the relevant Annex, a Participant supplying services, materials or intellectual property to the Task shall be entitled to a credit, determined by the Executive Committee, acting by unanimity, against its contribution (or to compensation, if the value of such services, materials or intellectual property exceeds the amount of the Participant's contribution); such credits for services of staff shall be calculated on an agreed scale approved by the Executive Committee and include all payroll-related costs.

(g) Contribution to Common Funds.  Should Participants agree to establish common funds under the annual programme of Work and Budget for a Task, any financial contributions due from Participants in a Task shall be paid to the Operating Agent in the currency of the country of the Operating Agent at such times and upon such other conditions as the Executive Committee, acting by unanimity, shall determine, provided however that:

(1) Contributions received by the Operating Agent shall be used solely in accordance with the Programme of Work and Budget for the Task;

(2) The Operating Agent shall be under no obligation to carry out any work on the 
Task until contributions amounting to at least fifty per cent (in cash terms) of 
the total due at any one time have been received.

(h) Ancillary services.  Ancillary services may, as agreed between the Executive Committee and the Operating Agent, be provided by that Operating Agent, be provided by that Operating Agent for the operation of a Task and the costs of such services, including overheads connected therewith, may be met from budgeted funds of that Task.

(i) Taxes.  The Operating Agent shall pay all taxes and similar impositions (other than taxes on income) imposed by national or local governments and incurred by it in connection with a Task, as expenditure incurred in the operation of the Task under the Budget; the Operating Agent shall, however, endeavour to obtain all possible exemptions from such taxes.

(j) Audit. Each Participant shall have the right, at its sole cost, to audit the accounts of any work in a Task for which common funds are maintained on the following terms:

(1) The Operating Agent shall provide the other Participants with an opportunity to participate in such audits on a cost-shared basis;

(2) Accounts and records relating to activities of the Operating Agent other than those conducted for the Task shall be excluded form such audit, but if the Participant concerned required verification of charges to the Budget representing services rendered to the Task by the Operating Agent, it may at its own cost request and obtain an audit certificate in this respect from the auditors of the Operating Agent.

(3) Not more than one such audit shall be required in any financial year;

(4) Any such audit shall be carried out by not more than three representatives of the Participants.

Article 7 INFORMATION AND INTELLECTUAL PROPERTY

　It is expected that for each Task agreed to pursuant to this Agreement, the applicable Annex will contain information and intellectual property provisions. The General Guidelines Concerning Information and Intellectual Property, approved by the Governing Board of the Agency on 21st November, 1975, shall be taken into account in developing such provisions 

Article 8 LEGAL RESPONSIBILITY AND INSURANCE

(a) Liability of Operating Agent.  The Operating Agent shall use all reasonable skill and care in carrying out its duties under this Agreement in accordance with all applicable laws and regulations. Except as otherwise provided in this Article, the cost of all damage to property, and all expenses associated with claims, actions and other cost arising form work undertaken with common funds for a Task shall be charged to the Budget of that Task; such costs and expenses arising from other work undertaken for a Task shall be charged to The Budget of that Task if the Task Annex so provides or the Executive Committee may direct, acting by unanimity, so decides.

(b) Insurance.  The Operating Agent shall propose to the Executive Committee all necessary liability, fire and other insurance, and shall carry such insurance as the Executive Committee may direct.  The cost of obtaining and maintaining insurance shall be charged to the Budget of the Task.

(c) Indemnification of Contracting Parties.  The Operating Agent shall be liable, in its capacity as such, to indemnify participants against the cost of any damage to property and all legal liabilities, actions, claims, costs and expenses connected therewith to the extent that they:

(1) Result from the failure of the Operating Agent to maintain such insurance as it may be required to maintain under paragraph (b) above; or

(2) Result from the gross negligence or willful misconduct of any officers or employees of the Operating Agent in carrying out their duties under this Agreement.

Article 9 LEGISLATIVE PROVISIONS

(a) Accomplishment of Formalities.  Each Participant shall, within the framework of applicable legislation, use its best endevours to facilitate the accomplishment of formalities involved in the movement of persons, the importation of materials an equipment and the transfer of currency which shall be required to conduct the Task in which it is engaged.

(b) Applicable Laws.  In carrying out this Agreement and its Annexes, the Contracting Parties shall be subject to the appropriation of funds by the appropriate governmental authority, where necessary, and to the constitution, laws and regulations applicable to the respective Contracting Parties, including, but not limited to laws establishing prohibitions upon the payment of commissions, percentages, brokerage or contingent fees to persons retained to solicit  governmental contracts and upon any share of such contracts accruing to governmental officials.

(c) Decisions Agency Governing Board.  Participants in the various Tasks shall take accounts, as appropriated, of the Guiding Principals fir co-operation in the field or Energy Research and Development, and any modification thereof as well as other decisions of the Governing Board of the Agency in the field.  The termination of the Guiding Principles shall not affect this Agreement, which shall remain in force in accordance with the terms hereof.

(d) Settlement of Disputes.  Any dispute among the Contracting Parties concerning the interpretation of the application of this agreement which is not settled by negotiation or other agreed mode of settlement, shall be referred to a tribunal of three arbitrators to be chosen by the Contracting Parties concerned fail to agree upon the composition of the tribunal or the selection of its Chairman, the President of the International court of Justice shall at the request of any of the Contracting Parities concerned , exercise those responsibilities.  The tribunal shall decide any such dispute by reference to the terms of this Agreement and any applicable laws and regulations, and its decision on a question of fact shall be final and binding on the Contracting Parties, Operating Agents which are not Contracting Parties shall be regarded as Contracting Parties for the purpose of this paragraph.   

Article 10 ADMISSION AND WITHDRAWAL OF CONTRACTING PARTIES

(a) Admission of New Contracting Parties:  Agency Countries.  Upon the invitation of the Executive Committee, acting by unanimity, admission to this Agreement shall be open to the government of any Agency Participating Country (or a national agency, public organization, private corporation, company or other entity designated by such government), which signs or  accedes to this agreement, accepts the rights and obligations of a Contracting Party, and is accepted for participation in at least one Task by the Participants in that Task, acting by unanimity.  Such admission of a Contracting Party shall become effective upon the signature of this Agreement by the new Contracting Party or its accession thereto and its giving Notice of Participation in one or more Annexes and the Adoption of nay consequential amendments thereto.

(b) Admission of New Contracting Parties: Other OECD Countries.  The government of any Member of the Organization for Economic Co-operation and Development which does not participate in the Agency may, on the proposal of the Executive Committee, acting by unanimity, be invited by the Government Board of the Agency to become a Contracting Party to this Agreement (or to designate a national agency, public organization, private corporation, company or other entity to do so), under conditions states in paragraph (a) above.

(c) Participation by the European Communities.  The European Communities may participate in this Agreement in accordance with arrangements to be made by the Executive Committee, acting by unanimity. 

(d) Admission of New Participants in Tasks. Any Contracting Party may, with the agreement of the Participants in a Task, acting by unanimity, become a Participant in that Task. Such participation shall become effective upon the Contracting Party's giving the Executive Director of the Agency a Notice of Participation in the appropriate Task Annex and the adoption of consequential amendments thereto. 

(e) Contributions.  The Executive Committee many require, as a condition to admission to participation, that the new Contracting Party or new Participant shall contribute (in the form of cash, services or materials) an appropriate proportion　of the prior budget expenditure of any Task in which it participates.

(f) Replacement of Contracting Parties.  With the agreement of the Executive Committee , acting by unanimity, and upon the request of a government, a 
Contracting Party designated by that government may be replaced by another party.  In the event of such replacement, the replacement party shall assume the rights and obligations of a Contracting Party as provided in paragraph (a) above and in accordance with the procedure provided therein.

(g) Withdrawal.  Any Contracting Party may withdraw from this Agreement or from any Task either with the agreement of the Executive Committee, acting by unanimity, or by giving twelve months written Notice of withdrawal to the Executive Director of the Agency, such Notice to be given not less than two years after the date hereof. The withdrawal of a Contracting Party under this paragraph shall not affect the rights and obligations of the other Contracting Parties: except that, where the other Contracting Parties have contributed to common funds for a Task, their proportionate shares in the Task Budget shall be adjusted to take account of such withdrawal.

(h) Changes of Status of Contracting Party.  A Contracting Party other than a government or an international organization shall forthwith notify the Executive Committee of any significant change in its status or ownership or of its becoming bankrupt or entering into liquidation.  The Executive Committee shall determine whether any such change in status of a Contracting Party significantly affects the interests of the other Contracting Parties; if the Executive Committee so determines, then, unless the Executive Committee, acting upon the unanimous decision of the other Contracting Parties, otherwise agrees:

(1) That Contracting Party shall be deemed to have withdrawn form the Agreement under paragraph 8g) above on a date to be fixed by the Executive Committee; and

(2) The Executive Committee shall invite the government which designated that Contracting Party to designate, with a period of three months of the withdrawal of that Contracting Party, a different entity to become a Contracting Party; if approved by the Executive Committee, acting by unanimity, such entity shall become a Contracting Party with effect from the date on which it signs or accedes to this Agreement and gives the Executive Director of the Agency a Notice of Participation in one of more Annexes.

(i) Failure to Fulfil Contractual Obligations.  Any Contracting Party which fails to fulfil its obligations under this Agreement within sixty days after its receipt of notice specifying the nature of such failure and invoking this paragraph, may be deemed by the Executive Committee, acting by unanimity, to have withdrawn from this Agreement.

Article 11 FINAL PROVISIONS

(a) Term of Agreement.  This Agreement shall remain in force for an initial period of three years form the date hereof, and shall continue in force thereafter unless and until the Executive Committee, acting by unanimity, decides on its termination.

(b) Legal Relationship of Contracting Parties and Participants.  Nothings in this Agreement shall be regarded as constituting a partnership between any of the Contracting Parties or Participants.

(c) Termination.  Upon termination of this Agreement, or any Annex to this Agreement, the Executive Committee, acting by unanimity, shall liquidation, the Executive Committee shall, so far as practicable, distribute the assets of the Task, or the proceeds therefrom, in proportion to the contributions which the Participants have made from the beginning of the operation of the Task, and for that purpose shall take into account the contributions and any outstanding obligations of former Contracting Parties.  Disputes with a former Contracting Party about the proportion allocated to it under this paragraph shall be settled under Article 9 (d) hereof, for which purpose a former Contracting Party shall be regarded a Contracting Party.

(d) Amendment.  This Agreement may be amended at any time by the Executive Committee, acting by unanimity, and any Annex to this Agreement may be amended at any time by the Executive Committee, acting by unanimity of the Participants in the Task to which the Annex refers.  Such amendments shall come into force in a manner determined by the Executive Committee, under the voting rule applicable to the decision to adopt the amendment.

(e) Deposit.  The original of this Agreement shall be deposited with the Executive Director of the Agency and a certified copy thereof shall be furnished to each Contracting Party.  A copy of this Agreement shall be furnished to each Agency Participating Country, to each Member country of the Organization for Economic Co-operation and Development and to the European Communities.

　Done in Paris, this 16th day of March, 1977

Annex I COMMON STUDY ON ENERGY CASCADING: ESTABLISHING PRIORITIES FOR CO OPERATIVE RESEARCH AND DEVELOPMENT

1. Definition and Objective

(a) Definition.  Energy cascading is the use of presently wasted energy, usually hear, to serve end uses such as electricity generation, process heating or space he ting that would otherwise be served by primary energy sources.

(b) Objective. The objective.  The objective of this Task is to provide an overall programme plan for enhancing the chances for technical and commercial success of research and development projects related to the four energy cascading topic areas:

(1) All electric Systems;

(2) Combined Systems;

(3) All Heat Systems;

(4) Total Systems.

　Examples which may be of specific interest for consideration are:

　-The Treble Rankine Cycle Process;

　-The Total Integrated Energy System;

　-Recovery of Industrial Flue Gas Hear with Brayton Cycle;

　-Rankine Engine to Recover Heat from a Diesel Truck Engine.

　Detailed background information on the Common Study is contained in Document IEA/CRD(76)40, dated 14th January 1977.

2. Means

　A jointly-funded Common study will e undertaken whose scope of work will include the following elements:

(a) Preliminary market research will be conducted to determine where the greatest needs existing in the industrial, commercial and residential markets:

(b) A survey of state-of-the-art technology will be made to ensure that all relevant developments will be considered.

(c) For each technology-process that appears to fit market needs, a preliminary economic analysis will be made.  These analyses will be consistently applied so as to allow eventual cost-benefit techniques to be employed for comparing alternative approaches;

(d) To evaluate the success potential of individual projects, each technology/process that appears to fit market needs will be investigated for potential barriers to commercialisation.  The barrier areas for consideration shall include but not be limited to the following: technical, institutional, societal, environmental, economic;

(e) Programme priorities for co-operative research and development for each topic area will be specified on the basis of the outcomes of the first four steps and will include a plan for eventual technology transfer;

(f) The responsibility of each Participant in the aforementioned elements of the Common Study will be defined in the detailed work plan the Operating Agent will submit to the Executive Committee pursuant to paragraph 3 below.

3. Responsibilities of the Operating Agent

(a) The Operating Agent, with the assistance of the other Participants will develop an overall detailed work plan, including methodology and schedule.  This plan will be submitted to the Executive Committee for approval within three months of the starting day of the Task.  The starting day of this Task will be considered to have occurred thirty days after Notice of Participation in this Annex has been given by Participants whose cumulative proportions of the annual contribution exceed 50 per cent.

(b) The Operating Agent will be responsible for integrating all results into final reports and documentation.  When appropriate, the reports will include proposed new Task Annexes to accomplish additional activities. 

(c) The Operating Agent will arrange periodic meetings of experts in energy cascading to bring about collaboration in this field.

4. Funding

(a) The expenditure incurred in the operation of this Task shall be jointly borne by the Participants, as provided in Article 6 (g) of the Agreement, in the proportions determined as provided below. Such expenditure is not expected to exceed $250,000 per year at October 1976 price levels and exchange rates, and may not exceed such level except upon the unanimous agreement of the Executive Committee. The Executive Committee, acting by unanimity, shall adjust the figure referred to in this paragraph at least annually to take account of changes in exchange rates and changing price levels in the country of the Operating Agent to ensure that the necessary real resources will continue to be available to operate the study.  If significant changes in such exchange rates or price levels occur, the Executive Committee, acting by unanimity, shall consider whether to adjust the programme of work to the available funds. 

(b) The Agency Scale of Contributions shall be used to determine financial contributions to the Common Study. For this purpose the Agency percentages of the Participants are to be graded up proportionally so that the sum will be 100 per cent.

　If the Agency Scale of Contributions is not applicable to a Participant (e.g. the European Communities), the Executive Committee, acting by unanimity, shall fix a percentage for this Participant.

(c) After the initial two-year period, the Executive Committee shall, acting by unanimity, agree the proportions in which expenditures incurred in the operation of the Task shall be borne by the Participants for each succeeding period.

5. Time Period

　This Annex shall remain in force for an initial period of two years form the date hereof, and shall continue in force thereafter unless the Executive Committee, acting by unanimity, decides on its termination.

6. Operating Agent

　United States Energy Research and Development Administration.

7. Information and Intellectual Property

(a) Executive Committee's Powers.  The publication, distribution, handling protection, and ownership of information and intellectual property arising from this Annex I to IEA Implementing Agreement for a Programme of R and D on Energy Conservation through Energy Cascading (hereinafter called Annex I) shall be determined by the Executive Committee, acting by unanimity, in conformity with this Agreement.

(b) Right to Publish. Subject only to copyright restrictions, the Annex I Participants shall have the right to publish all information provided to or arising from Annex I except proprietary information.

(c) Proprietary Information. The Annex I Participants shall take all necessary measures in accordance with this paragraph, the laws of their respective countries and international law to protect proprietary information. For the purpose of this Annex, proprietary information shall mean information of a confidential nature such as trade secrets and know-how (for example, computer programmes, design procedures and techniques, chemical position of materials, or manufacturing methods, processes, or treatments) which is appropriately marked, provided such information:

(1) Is not generally known or publicly available from other sources;

(2)  Has not previously been made available by the owner to others without obligation concerning its confidentiality; or

(3) Is not already in the possession of the recipient Annex I Participant without obligation concerning its confidentiality

　It shall be the responsibility of each Participant supplying proprietary information to identify the information as such and to ensure that it is appropriately marked.

(d) Production of Relevant Information by Governments.  The Operating Agent should encourage the governments of all Agency Participating Countries to make available or to identify to the Operating Agent all published or otherwise freely available information known to them that is relevant to the Task.

(e) Production of Available Information by Participants.  Each Participant agrees to provide to the Operating Agent all previously existing information, and information developed independently of the Task, which is needed by the Operating Agent to carry out its functions in this Task and which is freely at the disposal of the Participant and the transmission of which is not subject to any contractual and /or legal limitation:

(1) If no substantial cost is incurred by the Participant in making such information available, at no charge to the Task therefor;

(2) If substantial costs must be incurred by the Participant to make such information available, at such charges to the Task as shall be agreed between the Operating Agent and the Participant with the approval of the Executive Committee.

(f) Use of Confidential Information.  If a Participant has access to confidential information which would be useful to the Operating Agent in conducting studies, assessments, analyses, or evaluations, such information may be communicated to the Operating Agent but shall not become part of reports or other documentation, nor be communicated to the other Participant which supplies such information.

(g) Acquisition of Information for the Task.  Each Participant shall inform the Operating Agent of the existence of information that can be of value to the Task, but which is not freely available, and the Participant shall endeavour to make the information available to the Task under reasonable conditions, in which event the Executive Committee may, acting by unanimity, decide to acquire such information.

(h) Reports on Work Performed under the Task.  The Operating Agent shall provide reports of all work performed under the Task and the results thereof, including studies, assessments, analysis, evaluations and other documentation, but excluding proprietary information, to the Executive Committee.

(i) Copyright. The Executive Committee or any member appointed by it, may take appropriate measures necessary to protect copyrightable material generate under this Task.  Copyrights obtained shall be the property of the Operating Agent, provided, however, that Annex I Participants may reproduce and distribute such material, but shall not publish it with a view to profit, except as otherwise directed by the Executive Committee.

(j) Authors.  Each Annex I Participant will, without prejudice to any rights of authors under its national laws, take necessary steps to provide the co-operation from its authors required to carry out the provisions of this paragraph.  Each Annex I Participant will assume the responsibility to pay awards or compensation required to be paid to its employees according to the laws of its country.

8. Additional Provisions

　Each Participant shall be encouraged to nominate an individual to assist the Operating Agency in the management of this Task.  Financial arrangements for the travel, per diem and salary costs of such individuals will be decided by the Executive Committee, acting by unanimity.

9. Results

　The results of these co-operative activities will be:

(a) A report for each technology analyzed containing the following

(1) Description of technology;

(2) Technical potential;

(3) Implementing industries;

(4) Economic potential;

(5) Implementation study;

(6) Description of R and D requirements;

(7) Proposed R and D plan;

(8) Proposed follow-on co-operative projects;

(b) A summary report at the completion of the Common Study providing an integrated over-view of the technologies analyzed, and describing all specific co-operative R and D follow-on projects identified during the Common Study.  The report will contain a catalogue of the cost, performance and market data developed on cascading during Common Study.

　Each Participant will be entitled to receive a copy of each of the reports on the results of the co-operative activities in this Task.

10. Participants in this Task

　The Contracting Parties which are Participants in this Task are the following:

　The Republic of Austria,

　The Government of Belgium,

　The Kernforschungsanlage Julich G.m.b.H. (Germany),

　The Government of Japan

　The Stichting Energieonderzoek Centrum Nederland (Netherlands),

　The National Swedish Board for Energy Source Development (Sweden),

　The Office Federal de al Science et de la Recherche du Departement Federal de l'Interieur (Switzerland),

　The United States Energy Research and Development Administration (United States of America).