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1 1 All classified information communicated directly or indirectly between the parties to this agreement, i.e., the CoordinationCouncil for North American Affairs (CCNAA) and the American I-nstitute in Taiwan (AIT) will be protected in accordance withthe following principles: a The recipient will not release the information to a third p-arty without the prior written consent of the releasing par-ty. b The recipient will afford to the information a degree of pr-otection equivalent to that afforded it by the releasing pa-rty. c The recipient will not use the information for other than t-he purpose for which it was given. d The recipient will respect private rights, such as patents,copyrights, or proprietary aspects which are involved in th-e information. 2 Classified information and material will be transferred onlybetween the following: CCNAA, AIT or third parties approved byboth parties under paragraph 1.a. above. 3 For the purpose of this agreement classified information is t- hat information which, in the interest of the releasing entityand in accordance with applicable laws and regulations, requi-res protection against unauthorized disclosure, and which hasbeen designated as classified by the appropriate authority ofthe releasing entity. This embraces any classified informatio-n, be it oral, visual, or in the form of material. Material m-ay be any document, product, or substance on, or in which, in-formation may be recorded or embodied. Material shall encompa-ss everything regardless of its physical character or makeupincluding, but not limited to documents, writing, hardware, e-quipment machinery, apparatus, devices, models, photographs,recordings, reproductions, notes, sketches, plans, prototypes,designs, configurations, maps, and letters, as well as all ot-her products, substances, or materials from which informationcan be derived. 4 Information classified by either party and furnished from one party to the other through approved channels will be assigneda classification by appropriate authorities of the receivingparty which will assure a degree of protection equivalent tothat required by the party furnishing the information. 5 This Agreement will apply to all classified information passed to either party from the other party or a third party approvedunder paragraph 1.a. above. Details regarding channels of com-munication and the application of the foregoing principles wi-ll be the subject of arrangements as may be necessary betweenCCNAA and AIT. 6 The recipient party will investigate any possible loss or dis- closure to unauthorized persons of classified information obt-ained under this Agreement, and without delay, will advise theother party of the occurence, the final finding and correctiveaction to preclude recurrence. 7 a In the event that either party awards a contract involvingclassified information, then the party under whose jurisdic-tion contract performance is taking place will assumerespon-sibility for administering measures for the protection of s-uch classified information in accordance with its own stand-ards and requirements. b Prior to the release of any classified information to a con-tractor or prospective contractor, the recipient party will,in accordance with this agreement: (1) Insure that such contractor or prospective contractor andhis facility have the capability to protect the classifi- ed information adequately. (2) Insure an appropriate clearance has been granted to the facility to this effect. (3) Insure appropriate clearances have been granted for all personnel whose duties require access to the classified information. (4) Insure that all persons having access to classified info-rmation are informed of their responsibilities to protect the information in accordance with this agreement. (5) Carry out periodic inspections of cleared facilities. (6) Assure that access to classified information is limited to those persons who have a need to know for agreed-on purposes. (Signed) Tsai Wei-ping, Representative Coordination Council for North American Affairs September 15,1981 (Signed) David Dean Chairman of the Board and Managing Director American Institute in Taiwan September 15,1981