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TECH NICAL ARRAN GEM ENT BETWEEN

TH E RESEARC H AND DEVELOPMENT CENTER FOR MINERAL AND COAL TECHNOLOGY

AND

THE KOREA INSTITUTE OF ENERGY RESEARC H CONCERNING

SCIENTIFIC AND TE CHNICAL COOPERATION IN DEVELOPMENT OF CLEAN COAL TE CHNOLOGY

The Research and Development Center for Minerals and Coal Technology (RDCMCT) and the Korea Institute of Energy Research (KIER) (hereinafter referred to as "the Parties"); CONSIDERIN G the need to strengthen the ties of friendship existing between the Parties;

CONSIDERING the opportunities offered by the cooperation on upgrading and utilization of Indonesia's coal;

REFERRING to the Agreement between the Government of the Republic of Korea and the Government of the Republic of Indonesia on Cooperation in the Field of Energy and Mineral Resources signed in Seoul on March 30th, 2002;

PURS UANT to the prevailing laws and regulations of their respective countries;

HAVE AGRE ED as follows:

ARTIC LE 1 OBJECTIVES

The objectives of this Technical Arrangement (hereinafter referred to as "Arrangem ent") are to provide a framework for the exchange of scientific and technical knowledge and the augmentation of scientific and technical capabilities between the Parties with respect to the development of clean coal technology.

ARTICLE 2

AREAS OF COOPERATION

The areas of cooperation shall include but not limited to: 1. Coal preparation and upgrading;

2. Coal utilization and conversion;

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ARTI CLE 3

FORMS OF COOPERATION

The forms of cooperation under this Arrangem ent may consist of:

1. The exchanges of technical information, visits, participation in training courses, conferences and symposia.

2. The exchanges of researchers in areas of mutual interest. 3. Any other cooperation research agreed by the Parties.

ARTICLE 4

AVAILABILITY OF RESOURCES

Cooperative activities under this Arrangement shall be subject to the availability of personnel, resources, and funds.

ARTICLE 5

INTELLECTUAL PROPERTY RIGHTS

In accordance with the legislation of their states the Parties shall provide efficient protection and distribution of intellectual property rights, including its ownership and legal use, which are being transferred or created in accordance with this Arrangement. The issues of protection and distribution of intellectual property rights including protection of a third party's legitimate righ ts, taking into full consideration the equitable portion of ownersh ip based on the contribution of the respective participants, shall be regulated by the agreements concluded by organizations of the Parties on specific areas of cooperation.

ARTICLE 6

LI MITATION OF PE RSONNEL ACTIVITIES

1. Without any prejudice to any applicable privileges and immunities, all persons engaged in activities related to this Arrangement shall respect political independence, sovereignty, and territorial integrity of the host country, shall have a duty not to interfere in internal affairs of the host country, and will avoid any activities inconsistent with the purpose and objectives of this Arrangement.

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ARTICLE 7 CONFIDENTIALITY

1. Each Party shall undertake to observe the confidentiality and secrecy of documents, information and other data received or supplied to the other Party during the period of the implementation of this Arrangement or any other agreements made pursuant to the Arrangement.

2. The Parties agree that the provision of this Article shall continue to be binding between the Parties notwithstanding the termination of this Arrangement.

3. The provisions of this Article shall not prejudice to the prevailing laws and regulations of the Parties.

ARTICLE 8

MATERIAL TRANSFER AGREEMENT

All research materials used in the collaboration, when required by the respective laws, regulations and policies of the Parties, shall be transferred using Material Transfer Agreement (MT A). Such agreement shall be laid down in a specific arrangement.

ARTICLE 9

PLANNING AND REVIEW OF ACTIVITI ES

Each Party shall designate a principal representative who, at such times as are mutually agreed upon by the Parties, these principal representatives shall meet to review the activities under this Arran gement and develop proposals for future activities, as appropriate.

ARTICLE 10 PROJECT ANNEXES

The Parties in writing shall agree upon any activity carried out under this ARRANGEMENT in advance. Whenever more than the exchanges of technical information or visits of individuals is contemplated, such activity shall be described in an agreed Project Annex to this ARRANGEMENT, which shall set forth, in terms, it is appropriate to the activity, a work plan, staffing requirements, cost estimates, funding sources, and other undertakings, obligations, or conditions not included in this Arran gement. In case of any inconsistency between the terms of this Arrangement and the terms of a Project Annex, the terms of this Arran gement shall prevail.

ARTIC LE 11 AMEND MENT

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