IMPLEMENTING ARRANGEMENT NUMBER 2 CONSULTANCY SERVICES FOR THE OPERATIONAL IMPLEMENTATION OF THE WRF-VAR SYSTEM AND TYPHOON DATA ASSIMILATION TO THE AGREEMENT BETWEEN THE AMERICAN INSTITUTE IN TAIWAN AND THE TAIPEI ECONOMIC AND CULTURAL REPRESENTATIVE OFFICE IN THE UNITED STATES FOR TECHNICAL COOPERATION ASSOCIATED WITH ESTABLISHMENT OF ADVANCED DATA ASSIMILATION AND MODELING SYSTEMS-1

ARTICLE I – SCOPEThis Implementing Arrangement describes the cooperativescientific, technical, engineering and administrative activitiesto be undertaken by the American Institute in Taiwan (AIT) andits designated representative, the University Corporation forAtmospheric Research (UCAR), to provide consultancy services forthe Operational Implementation of the WRF-Var System and TyphoonData Assimilation. This is a cooperative effort between AIT,through its designated representative, UCAR, and the TaipeiEconomic and Cultural Representative Office in the United States(TECRO), through its designated representative, the CentralWeather Bureau (CWB), of the Ministry of Transportation andCommunications (MOTC). This Implementing Arrangement pertainsto the Agreement (dated January 12, 2005, hereinafter referredto as the Agreement) between AIT and TECRO for TechnicalCooperation associated with the establishment of advanced dataassimilation and modeling systems and is a part of the Agreement.ARTICLE II – AUTHORIZATIONThe activities described in this Implementing Arrangement willbe carried out under the general terms and conditionsestablished by the Agreement. The Agreement was entered into bythe parties pursuant to the Taiwan Relations Act of April 10,1979, Public Law 96-8 (22 USC §3301 et seq.).ARTICLE III – SERVICESTaiwan is extremely vulnerable to the passage of tropicalcyclones (TCs). In a typical year, three to four typhoons havean impact on the island, with one or two making landfall.However, a typhoon does not need to make direct landfall forTaiwan to experience damaging winds and heavy rains. Theforecasting of typhoons around Taiwan is a very challengingtask, because Taiwan is surrounded by ocean, where there are fewtraditional meteorological observations. AIT’s designatedrepresentative, UCAR, will provide software and consultingservices for the implementation of an advanced data assimilationsystem (e.g., WRF-Var) into CWB’s operational environment. AIT’s designated representative, UCAR, will perform dataassimilation in support of typhoon prediction, in closecollaboration with TECRO’s designated representative, CWB. Thetechnical cooperation between the designated representatives ofAIT and TECRO will be performed in accordance with the terms andconditions of the Agreement and this Implementing ArrangementNo. 2.This Implementing Arrangement is specifically focused on: a)providing technical consultation and software for theoperational implementation of the WRF-Var data assimilationsystem, and b) performing data assimilation experiments andassessing its impact on typhoon prediction.The technical cooperation to be undertaken under the auspices ofthis Implementing Arrangement is defined by the followingtasks. Task details, including specific work to be performed,performance period, and estimated cost for each task arecontained in the attached Statement of Work.A summary description of the tasks to be performed during thisperiod is provided below.Task #1 – Establishing a WRF-Var/NFS Operational System on CWB’s Newly Procured ComputerThe WRF-Var data assimilation system, developed by AIT’sdesignated representative, UCAR, will be implemented on CWB’snewly procured IBM computer by TECRO’s designatedrepresentative, CWB. AIT’s designated representative, UCAR,will provide support as necessary to TECRO’s designatedrepresentative, CWB, to ensure successful operation of WRF-Varat CWB. UCAR will provide technical assistance on the followingsub-tasks: (a) successfully compile all the system codes andimprove the computing efficiency to meet the operationalrequirement, (b) increase the WRF-Var/NFS model resolution to15-km for improving the skill of typhoon forecasting, (c) derivethe new background error statistics (cv_options=5) based on theCWB NFS forecast data, and (d) develop the WRF-Var-basedobservation verification package.Task #2 – Enhancement of the WRF-Var SystemEven though the WRF-Var system can be operated in the CWBoperational environment, the system needs to be enhanced toimprove its performance. AIT’s designated representative, UCAR,will assist TECRO’s designated representative, CWB, to conductthe following three sub-tasks: a) assimilation of more types ofobservations, b) testing the WRF-Var FGAT technique withasynoptic observations, and c) assimilation of ground-based GPSPW data.Task #3 – Continued Interaction on WRF-Var SystemAIT’s designated representative, UCAR, will continue to developthe WRF-based data assimilation system. Continued CWB/UCARinteraction is important to keep CWB staff up-to-date on currentdevelopments. This task will allow continuing interaction at anappropriate level, including new software releases of the WRFdata assimilation systems, exchange of visits, copying papersand reports, exchanging data files and programs via the internetand web pages, and e-mail interaction.ARTICLE IV – FINANCIAL PROVISIONSIn accordance with the Agreement, UCAR is undertaking this workas the designated representative of AIT. TECRO is required toreimburse AIT for all costs incurred by AIT’s designatedrepresentative, UCAR, in association with the project covered bythis Implementing Arrangement. AIT will transfer to UCAR allpayments made by TECRO to AIT for costs incurred by UCAR inassociation with this Implementing Arrangement.The total cost for activities described in this ImplementingArrangement is mutually agreed to be U.S. $150,000. TECRO agreesto transfer fifty percent of the funds to AIT within one monthafter the signing of this agreement, with the remaining fiftypercent to be transferred upon completion of the tasks set forthin this Implementing Arrangement No. 2. It is agreed andunderstood that the payment will be provided in U.S. dollars.ARTICLE V – INTELLECTUAL PROPERTY CONSIDERATIONSIntellectual Property – The parties agree that no IntellectualProperty or other Proprietary Information will be provided underthis Implementing Arrangement. Intellectual Property andProprietary Information are defined as software, designs,processes, drawings, data, and modeling systems which includes,but is not limited to, all versions, derivative works, updates,improvements, modifications, enhancements and releases thereof,patents, patent applications, continuations-in-part, inventorrights in the United States and any foreign countries andapplications therefore. In the event that any activities underthis Implementing Arrangement require the use of the other party’s Intellectual Property or Proprietary Information, theparties shall in good faith enter into negotiations to reduce toa mutually agreeable writing the obligations and termsassociated with such understandings.Public Domain Technology – The Weather Research and Forecasting(WRF) model, as well as its associated data assimilation systems(e.g., WRF-Var), were developed by the National Center forAtmospheric Research (NCAR) with significant participation ofthe broad scientific community. The WRF model and WRF-Var are inthe public domain. Both parties agree that the WRF model andWRF-Var system and any modifications, revisions, enhancements,updates, or improvements shall remain in the public domain andare not considered Proprietary Information.ARTICLE VI – EFFECTIVE DATE, AMENDMENT, AND TERMINATIONThis Implementing Arrangement takes effect 1 January 2006 andthe completion date of tasks described in this ImplementingArrangement is 31 December 2006. This Implementing Arrangementmay be amended and/or terminated in accordance with the termsand conditions of the Agreement. FOR THE TAIPEI ECONOMIC AND FOR THE AMERICAN INSTITUTE CULTURAL REPRESENTATIVE OFFICE IN TAIWAN IN THE UNITED STATES (Stanley Kao) (Barbara Schrage) Name of person signing Name of person signing Deputy Representative Managing Director Position Position 06/12/2006 4/13/2006 Date Date