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- Model contract -

Cost reimbursement for research
and technological development projects (EC)
(Deliverables version)

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Cost reimbursement for research and technological development projects (EC) (Deliverables version)

Article 1 - Scope
Article 2 - Duration
Article 3 - Estimated costs and maximum financial contribution of the Community
Article 4 - Project deliverables and summary statements of amounts transferred by the coordinator to be submitted to the Commission
Article 5 - Applicable law and jurisdiction
Article 6 - Special conditions
Article 7 - Amendments
Article 8 - Final provisions
Article 9 - Signature and language of the contract

ANNEX I-TABLE - Indicative breakdown of estimated eligible costs (intermediate and final milestones)

ANNEXII - GENERAL CONDITIONS
Part A: Implementation of the project

Article1 - Definitions
Article2 - Management of the project and role of the coordinator

Article3 - The Community's financial contribution
Article4 - Submission of project deliverables and of summary statements of amounts transferred by the coordinator
Article5 - Subcontracts
Article6 - Liability
Article7 - Termination of the contract and of the participation of a contractor

PartB: Rules relating to intellectual and industrial property, publicity and confidentiality

Article8 - Ownership of knowledge
Article9 - Protection of knowledge
Article10 - Use of knowledge
Article11 - General principles relating to access rights
Article12 - Access rights for carrying out of the project
Article13 Access rights for use
Article14 - Conditions governing exclusive access rights for exploitation
Article15 - Refusal to grant access rights for exploitation
Article16 - Technological implementation plan
Article17 - Content of the technological implementation plan
Article18 - Publicity and communications concerning the project and knowledge

Article 19 - Confidentiality
Article20 - Communication of data for evaluation and standardisation purposes
Article21 - Incompatible or restrictive commitments

Part C: Reimbursement of costs
Article22 - Eligible costs - general principles
Article23 - Direct costs
Article24 - Indirect costs
Article25 - Justification of costs

Part D: Auditing
Article26 - Financial audit
Article27 - Technical verification of the project
Article28 - Technological audit

Part E-1:Model cost statement
Cost of coordination for the project

Summary statement of eligible costs for the project

Part E-2: Model request for payment
Part E-3: Model summary statement of amounts transferred by the coordinator

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ANNEXII
GENERAL CONDITIONS

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Part A: Implementation of the project

Article1 - Definitions
1. "Decision" means Council Decision 1999/65/EC of 22 December 1998 concerning the rules for the participation of undertakings, research centres and universities and for the dissemination of research results for the implementation of the FifthFramework Programme of the European Community (1998-2002)2;.

2. "Regulation" means Commission Regulation (EC) No 996/1999 of 11 May 1999 on the implementation of Council Decision 1999/65/EC concerning the rules for the participation of undertakings, research centres and universities and for the dissemination of research results for the implementation of the Fifth Framework Programme of the European Community (1998-2002)3.

3. "Contracting parties" means the Community, principal contractors and assistant contractors.

4. "Principal contractor" means a legal entity, an international organisation, or theJoint Research Centre (JRC), which has concluded this contract with theCommunity.

5. "Assistant contractor" means a legal entity, an international organisation, or the JRC, other than a principal contractor, which has concluded this contract with the Community, acting under the technical supervision of one or more principal contractors and having the same rights and obligations as them, except as regards the extent of its responsibility for carrying out the project and access rights.

6. "Contractor" means a principal contractor or an assistant contractor.

7. "Coordinator" means the principal contractor carrying out the tasks provided for in Article 2(1) of this Annex

8. "Subcontract" means an agreement to provide services, supplies or goods concluded between a contractor and one or more subcontractors for the specific needs of the project.

9. "Subcontractor" means a legal entity, an international organisation or the JRC, which has concluded a subcontract.

10. "Project" means all the work referred to in AnnexI to this contract.

11. "Project commencement date" means the date referred to in Article2(1) of this contract.

12. "Duration of the project" means the period of performance of the project as referred to in Article2(1) of this contract.

13. "Contract completion date" means the date referred to in Article2(2) subparagraph2 of this contract.

14. "Project deliverables" means the reports, requests for payment and cost statements referred to in Article4 of this contract and Article 4 of this Annex as well as any element designated as such in AnnexI to this contract.

15. "Consortium agreement" means an agreement concluded between contractors in order to specify or supplement, between themselves, the provisions of this contract.

16. "Associated State" means a State party to an international agreement concluded with the Community, in particular on the basis of Article170 of the Treaty establishing the European Community, under which that State makes a financial contribution to the Framework Programme.

17. "Third country" means a country other than a Member State or an Associated State.

18. "Change of control" means any change in the control exercised over a contractor, within the meaning of Article 5(1), third subparagraph, of the Regulation. Such control may result in particular from:

- direct or indirect holding of a majority of the share capital of the contractor or a majority of the voting rights of the latter's shareholders or associates,

or

- direct or indirect holding in fact or in law of decision-making powers in the contractor.

19. "Force majeure" means any unforeseeable and insuperable event affecting the carrying out of the project by one or more contractors.

20. The "interests of the Community" are to be assessed in particular with regard to:

- the objective of strengthening the international competitiveness of Community industry,

- the objective of providing appropriate incentives for maintaining and creating jobs in the Community,

- the objective of promoting sustainable development and improving the quality of life in the Community,

- the needs of other Community policies in support of which indirect RTD actions are carried out,

- the existence of scientific and technical cooperation agreements between the Community and third States or international organisations.

21. "Knowledge" means the results, including information, arising from any project covered by Decision No182/1999/EC of the European Parliament and of the Council of 22 December 1998 concerning the Fifth Framework Programme of the European Community for research, technological development and demonstration activities (1998 to 2002)4 (hereinafter referred to as the "Fifth Framework Programme"), as well as copyright or rights attaching to the results following applications for, or the issue or registration of, patents, designs and models, plant varieties, additional certificates or other similar forms of protection.

22. "Pre-existing know-how" means information, other than knowledge, held by the contractors prior to the conclusion of the contract or acquired in parallel with it and necessary for carrying out the project, as well as copyright or rights attaching to such information following applications for, or the issue or registration of, patents, designs and models, plant varieties, additional certificates or other similar forms of protection.

23. "Access rights" means licences and user rights in respect of knowledge or pre-existing know-how.

24. "Complementary contract" means a contract concluded with the Community in respect of work technically related to the project, including for use purposes, and recognised in writing by the contractors to each contract as being complementary.

25. "Complementary contractor" means a legal entity or an international organisation or the JRC, which has concluded a complementary contract.

26. "Principal contractor under the same specific programme" means a legal entity or an international organisation or the JRC, which has concluded, as principal contractor, a research contract with the Community under the specific programme to which this contract relates.

27. "Use" means the direct or indirect use of knowledge in research activities or for exploitation purposes.

28. "Exploitation" means the direct or indirect use of knowledge for creating and marketing a product or process or for creating and providing a service.

29. "Dissemination" means the disclosure of knowledge by any appropriate means other than the publication resulting from the formalities for protecting the knowledge, for the purposes of promoting scientific and technical progress.

30. "Dissemination and use plan" means the intentions of the contractors regarding the use of possible knowledge, as set out in their proposal.

31. "Technological implementation plan" means the report the content of which is defined in Article 17 of this Annex.

32. "Legitimate interest" means any interest, in particular of a commercial nature, of a contractor which may be invoked in the cases provided for in this Annex provided that the contractor demonstrates that the damage to that interest is likely, given the circumstances, to cause a specific prejudice that is disproportionate, considering the objectives of the provision in respect of which it is invoked.

33. "Eligible costs" means the costs referred to in Articles 23 and 24 of this Annex, in compliance with the conditions laid out in Article 22(1) to (4).

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Article 2 - Management of the project and role of the coordinator

1.Without prejudice to paragraph2 of this Article, the coordinator shall be in charge of the scientific, financial and administrative coordination of the project.

a. In this respect, he shall be the intermediary between the contractors and the Commission. In particular, he shall be responsible for transmitting to the Commission all documents and correspondence relating to the project;

b. he shall inform the Commission of the actual date of commencement of the work and of the person designated by each contractor in accordance with paragraph 2(a) of this Article;

c. he shall submit to the Commission:

- the requests for payment and cost statements provided for in Article4 of this contract and Article 4 of this Annex, and

- the periodic, final and supplementary reports provided for in Article4 of this contract and Article 4 of this Annex after incorporating the content of data provided by the contractors and verifying their consistency with the requests for payment and any corresponding cost statements,

- the summary of the technological implementation plan referred to in Article17(2) of this Annex, as well as any other project deliverable except where Annex I to this contract provides otherwise;

d. in his capacity as representative of the contractors he shall receive, subject to the special conditions set out in Article6 of this contract, all the payments made by the Commission to the account referred to in Article3(3), first subparagraph, of this contract;

e. not being the beneficiary of payments intended for other contractors pursuant to this contract, he shall transfer to them within 30days of receipt of the funds paid by the Commission the amount owing to them up to the maximum provided under Article 3(3), fourth subparagraph, of this contract.

He shall inform the Commission of the distribution of the funds and of the date of transfer by means of the form in part E-3;

f. he shall inform the other contracting parties of any event of which he is aware which is liable to substantially affect the project, including any change in the person mentioned in paragraph 2(a) of this Article, any change of control with regard to a contractor and any circumstance affecting the conditions of participation referred to in Articles 3 to 12 of the Decision;

g. he shall request the Commission's approval for, or shall inform the Commission of, as appropriate, transfers in the budget set out in the table of the indicative breakdown of the estimated eligible costs carried out in compliance with Article 22(5) of this Annex .

Without prejudice to Article 7(3)(b) of this Annex, if the coordinator fails to perform his obligations, the Commission may, in agreement with the other contractors, designate another coordinator from among the principal contractors.

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2. The contractors:

a. shall agree upon appropriate arrangements for the proper performance of the work incumbent upon them pursuant to AnnexI to this contract. To this end, they shall designate one or more persons among those referred to in Article23(1) of this Annex who shall direct their work and ensure that the tasks assigned are correctly performed;

b. shall conclude amongst themselves, if necessary, a consortium agreement in accordance with the provisions of this contract and the competition rules. Such agreement may, inter alia, specify the organisation of the work and supplement the provisions concerning the access rights referred to in Article12 to 15 of this Annex;

c. shall inform the coordinator of any event liable to substantially affect the project, including any change in the person mentioned at point (a) of this paragraph, any change of control with regard to them and any circumstance affecting the conditions of participation referred to in Articles 3 to 12 of the Decision;

d. shall keep duly signed original copies of subcontracts, if any have been concluded;

e. shall forward to the coordinator the data needed to draw up the reports provided for in Article4 of this contract and Article 4 of this Annex, and the requests for payment and the cost statements. With the exception of the individual part of the technological implementation plan referred to under (g), they shall do likewise in respect of any other project deliverable, except where Annex I provides otherwise;

f. shall inform the coordinator of transfers in the budget set out in the table of the indicative breakdown of the estimated eligible costs between categories as soon as they have carried out such transfers in compliance with the conditions set out in Article22(5) of this Annex;

g. shall each submit to the Commission the individual part of the technological implementation plan referred to in Article 17(3) of this Annex;

h. shall each notify the Commission of the measures taken to implement the technological implementation plan and of any significant changes thereto, in accordance with Article 16(3) of this Annex;

i. shall take part in meetings concerning the supervision, monitoring and evaluation of the project which are relevant to them;

j. shall provide all detailed data requested by the Commission for the purposes of the proper administration of this contract. They shall communicate such data for the purposes of approval of the technological implementation plan, in accordance with Article 16(2) of this Annex, in so far as they consider them relevant.

3. The table of indicative breakdown of estimated eligible costs following the signatures on this contract determines the relations of technical supervision between principal contractors and assistant contractors.

4. The Commission may be assisted by independent experts in the framework of the meetings referred to under paragraph 2(i) of this Article.

It shall take appropriate steps to ensure that such experts treat confidentially the data that are communicated to them. Prior to such meetings, it shall disclose the identity of the experts scheduled to attend. It shall draw the appropriate conclusions from any objection on the part of contractors based on legitimate interests.

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Article3 - The Community's financial contribution

1. The Community's financial contribution shall be paid in accordance with the following principles:

a. An initial advance shall be paid to the coordinator within a maximum period of 60 days running from the date of the last signature of the contracting parties. The coordinator shall allocate the advance in accordance with the table of the indicative breakdown of estimated eligible costs relating to [the] milestone [1].

If the project has not effectively commenced within three months of the payment of the initial advance, the Commission may:

(i) either terminate the contract pursuant to Article7(3)(a) of this Annex, or

(ii) decide to add interest to the initial advance from the date of payment until the effective date of commencement of the work at the rate applied by the European Central Bank for its main refinancing operations applicable on the first day of the month during which the three months time-limit has expired. Such interest shall be deducted from the subsequent payment made by the Commission.

b. Periodic payments shall be made within a maximum period of 60 days from the date on which the Commission approves or is deemed, in accordance with Article 4(3), fifth subparagraph, of this Annex, to have approved the project deliverables for each milestone, including the periodic reports and the corresponding requests for payment.

c.The final payment of the Community's financial contribution shall be made within a maximum period of 60days from the date on which the Commission approves or is deemed, in accordance with Article 4(3), fifth and sixth subparagraphs, of this Annex, to have approved the cost statements and the last project deliverable.

The final payment shall correspond to the difference between the amount owed by the Commission on the basis of the eligible costs which it has approved and the amount of the initial advance and the periodic payments. However, the Community's total financial contribution may not exceed the maximum amount provided for in Article3(2) of this contract.

The payments referred to at points (a) to (c) of the first subparagraph of this paragraph shall be regarded as having been effected on the date on which the Commission's account is debited.

The Commission may suspend the period of 60days referred to under (b) and(c) of the first subparagraph of this paragraph at any time by notifying the contractors concerned that it considers that additional checks should be carried out. The period shall continue to run once the Commission has completed the additional checks.

On expiry of the period provided for and without prejudice to the third subparagraph of this paragraph, the contractors concerned or the coordinator, acting on behalf of all the contractors, may claim, at the latest within twomonths of receiving the late payment, interest at the rate applied by the European Central Bank for its main refinancing operations, applicable on the first day of the month during which the time-limit has expired, plus one and a half percentage points. The interest shall cover the period running from the day after the time-limit for payment until the date of actual payment.

2. The Commission may, in case of suspected fraud or serious financial irregularity on the part of a contractor, suspend payments and/or instruct the coordinator not to make any payment to such contractor. The latter shall remain bound by his contractual obligations.

3. Subject to Article26 of this Annex, all payments shall be treated as advances until the last project deliverable is approved.

4. Where the total financial contribution due from the Community, taking into account any adjustments, including as a result of a financial audit as referred to in Article 26 of this Annex, is less than the total amount of the payments referred to in paragraph1, first subparagraph, of this Article, the contractors concerned shall reimburse the difference, in euro, within the time-limit set by the Commission in its request sent by registered letter with acknowledgement of receipt.

In the event of non-reimbursement by the contractor within the time-limit set by the Commission, the latter shall add interest to the sums due at the rate applied by the European Central Bank for its main refinancing operations on the first day of the month during which the time-limit set by the Commission has expired, plus one and a half percentage points, unless interest is due pursuant to another provision of this contract. The interests shall cover the period running from the day after the expiry of the time-limit until the date of receipt of the funds to be reimbursed.

Bank charges resulting from any reimbursement of sums due to the Community shall be borne exclusively by the contractor concerned.

The recovery order regarding payments made by the Commission drawn up by the latter and transmitted to a contractor who owes an amount to be reimbursed shall be enforceable within the meaning of Article256 of the Treaty establishing the European Community.

The Commission may decide to proceed with the reimbursement of sums owed to the Community by way of set-off against sums of any kind due to the contractor concerned.

5. After the contract completion date, or the termination of the contract or of the participation of a contractor the Commission may or shall, as relevant, where fraud or serious financial irregularities have been discovered during a financial audit, claim from the contractor the repayment of all the Community's financial contribution paid to him. Interest at the rate applied by the European Central Bank for its main refinancing operations on the first day of the month during which the contractor concerned has received the funds plus two percentage points shall be added to the amount to be repaid. The interest shall cover the period between the receipt of the funds and their repayment.

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Article4 - Submission of project deliverables and of summary statements of amounts transferred by the coordinator

1. As regards reports:

a. The following reports shall be submitted to the Commission for approval:

b. periodic reports containing information, for each milestone, about the progress of work, resources employed, departures from the work schedule, and results,

c. supplementary reports containing information required by AnnexI to this contract,

d. a final report covering, for all the milestones, the achievement of the objectives, the results and the conclusions, including a summary of all the latter,

e. where the reports referred to in points (i), (ii) and (iii) cannot be published in full, they shall, in addition, be presented in a suitable form for publication by the contracting parties. The final report suitable for publication shall include sufficient information on new developments to enable third parties established in the MemberStates or in Associated States to be informed of opportunities to request licences in respect of knowledge.

f. a technological implementation plan.

g. The layout of the reports shall conform to the rules communicated by the Commission. The reports for publication should be of a suitable quality to enable direct reproduction. The layout of the technological implementation plan shall comply with the conditions set out in Article 17 of this Annex.

2. As regards requests for payment and cost statements:

a. Cost statements shall be expressed in euro and in the currency used in the accounting of the contractor. The euro conversion and exchange rates for cost statements and related payments shall be the rates published by the Commission for the implementation of the budget and in force on the first working day of the month following the period covered by the cost statement concerned. No account shall be taken of exchange rate gains or losses between the time of establishment of the cost statement and the receipt of the corresponding payment. Contractors shall submit requests for payment in euro.

b. Contractors shall submit to the Commission through the coordinator their cost statements in the format specified in partE-1, and their requests for payment in the format specified in part E-2.

Contractors that do not benefit from a financial contribution from the Community are required to submit only a description of the efforts deployed and the resources used in order to carry out the project.

3. Each periodic report and the corresponding requests for payment, as well as each supplementary report, shall be submitted to the Commission within two months of the end of the milestone or of the period covered by the report.

The final report(s) and the cost statements shall be submitted to the Commission within two months of the end of the duration of the project.

The other project deliverables, except the technological implementation plan, shall be submitted within the time-limits set out in Annex I to this contract.

The Commission shall approve the project deliverables required for each milestone if it considers that the objectives of that milestone have been achieved.

In the absence of observations by the Commission, the project deliverables, except the technological implementation plan, shall be deemed to be approved within two months of their receipt.

The technological implementation plan shall be submitted and approved within the time-limit set out in Article16 of this Annex.

4. The Commission reserves the right to withhold part or, exceptionally, all of the payment of the Community's financial contribution until the next or final milestone in case of failure to submit, within the limits laid down in paragraph 3 of this Article or in Annex I, as relevant, a request for payment or a periodic report or another project deliverable.

The Commission may decide not to make the payment corresponding to the costs incurred in respect of the final milestone in case of failure to submit, within the time-limits laid down in paragraph 3 of this Article:

- the cost statements,

- the final report(s) or other project deliverable,

- the technological implementation plan,

subject to one month's written notice of non-receipt of that document.

5. The coordinator shall attach to the requests for payment and to the cost statements the summary statements referred to in Article2(1), first subparagraph, point (e), second sentence, of this Annex. However, where they concern the transfer of the final payment of the Community's financial contribution, the coordinator shall submit them to the Commission immediately following such transfer.

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Article5 - Subcontracts

1. Contractors may conclude subcontracts where this proves necessary for the performance of their work. Where a subcontract is concluded for the performance of coordination tasks, the related expenses may not be charged as direct costs.

Unless Annex I to this contract contains sufficiently detailed data, the Commission's prior written approval is required:

  1. where the cumulative amount of the subcontracts for the contractor exceeds:

- 20% of his estimated eligible costs,

- EUR 100000,

whichever amount is the lowest.

  1. where the subcontractor is established in a third country, unless the contractor concerned is established there.

The Commission's approval shall be deemed to be granted in the absence of observations within one month of receipt of the request made by the coordinator.

2. The contractor shall ensure that subcontracts include an obligation for the subcontractors:

- to submit invoices making reference to the project and providing a detailed description of the tasks or supply concerned,

- to submit to the controls provided for in Articles 26 and 27 of this Annex.

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Article 6 - Liability

1. The liability of the contracting parties amongst themselves with regard to any losses, damages or injuries suffered in the context of the performance of this contract shall be governed by the law indicated in Article5(1) of the contract.

2. The principal contractors shall take all necessary measures to carry out the work incumbent on a defaulting contractor. However, they shall not be required to reimburse amounts owed by a contractor unless they have contributed to the latter's default.

The measures to be taken in the event of force majeure shall be agreed between the contracting parties. The contracting parties expressly agree that any default of a product or service used for the purpose of performing this contract and affecting such performance, including, for instance, anomalies in the functioning or performance of such product or service resulting from, or linked to the millennium date change (year2000 problem), does not constitute force majeure.

3. The Community cannot be held liable for acts or omissions committed by the contractors performing this contract. It shall not be liable for any defaults of any products or services created on the basis of knowledge resulting from the project, including, for instance, anomalies in the functioning or performance thereof resulting from, or linked to the millennium date change (year 2000 problem).

Contractors fully guarantee the Community, and agree to indemnify it, in case of any action, complaint or proceeding brought by a third party against it as a result of damage caused, either by any act or omission committed by the contractors in performing this contract, or because of any products or services created on the basis of knowledge resulting from the project, only to the extent that the contractors have contributed to or are responsible for the loss or damage concerned.

In the event of any action brought by a third party against the Community in connection with the performance of this contract, contractors which may bear responsibility shall be required to assist the latter.

4. In the event of any action brought by a third party against a contractor in connection with the performance of this contract, the Commission may, without prejudice to paragraph 1 of this Article, assist the latter upon written request. The costs incurred by the Commission in this connection shall be borne by the contractor concerned.

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Article 7 - Termination of the contract or of the participation of a contractor

1. The Commission may terminate the contract or the participation of a contractor:

(a) for major technical or economic reasons substantially affecting the project (including where the resumption of the performance of the contract following its suspension on account of force majeure proves impossible),

(b) if the use potential of the results of the project diminishes to a considerable extent.

The Commission shall determine, in the registered letter with acknowledgment of receipt, the notice period, which shall not exceed one month from the date of receipt of such letter.

2. The Commission shall not object:

(a) to the termination of the contract, at the written request of the coordinator inagreement with all the other contractors, on the grounds mentioned in paragraph 1 of this Article,

(b) to the withdrawal of a contractor from the project where all the other contractors have given their prior agreement in writing, unless this withdrawal substantially affects the carrying out of the project.

The termination of the contract or the withdrawal of the contractor shall be effective:

- on the date of the letter of acceptance by the Commission notified by registered letter with acknowledgment of receipt,

- at the latest one month following receipt of notification by the interested parties in the absence of written observations by the Commission within that time-limit.

3. The Commission may immediately terminate this contract or the participation of a contractor from the date of receipt of the registered letter with acknowledgment of receipt:

(a) where the project has not effectively commenced within three months of the payment of the initial advance, and the new date proposed is considered unacceptable by the Commission,

(b) where the contractor has not fully performed his contractual obligations, and after a written request of the Commission, or of the coordinator in agreement with:

(i) the other principal contractors and the assistant contractors directly concerned, if he is a principal contractor,

(ii) the principal contractors and the other assistant contractors directly concerned, if he is an assistant contractor,

to rectify the situation within a period not exceeding one month,

(c) where a change of control over a contractor is likely substantially to affect the project or the interests of the Community,

(d) in the event of bankruptcy, of winding up, of cessation of trading, of winding up by court order or composition, suspension of activities of a contractor or any similar proceeding provided for by national laws or regulations and leading to a similar results,

(e) in the event of a serious financial irregularity,

(f) where it considers, on the basis of an analysis of the project deliverables required, that the objectives of a milestone have not been acchieved.

4. The Commission shall immediately terminate this contract or the participation of a contractor from the date of receipt of the registered letter with acknowledgment of receipt:

(a) where the conditions for participation in the project mentioned in Articles 3 to12 of the Decision are no longer satisfied, unless it considers that the project is essential to the implementation of the specific programme,

(b) where the contractor has made false declarations for which he may be held responsible or has deliberately withheld information in order to obtain the Community's financial contribution or any other advantage provided for in the contract,

(c) where the contractor concerned has not submitted the individual part of the technological implementation plan referred to in Article 17(3) of this Annex within the time-limit specified in Article 16(1) of this Annex and has not remedied the default within a period not exceeding one month from the receipt of the Commission's request.

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5. Any letter of the Commission serving to terminate the participation of a contractor (including in the event of his withdrawal) or to terminate the contract shall be adressed in the first case to the party concerned and in the second case to the coordinator in accordance with the procedures set out in paragraphs 1 to 4 of this Article. A copy of the letter shall be sent in the first case to the coordinator and in the second case to the other contractors.

6. Contractors shall take appropriate action to cancel or reduce their commitments, upon receipt of the letter from the Commission notifying them of the termination of the contract or of their participation or upon the dispatch of their request for termination or withdrawal, as the case may be.

In the event of termination of the contract or of the participation of a contractor pursuant to paragraph1, paragraph 2, first subparagraph, point (a) or paragraph 3, point (f) of this Article, the Community's financial contribution shall cover eligible costs relating to project deliverables approved by the Commission and also eligible costs subsequently incurred in good faith before the date mentioned in the first subparagraph of this paragraph.

In the event of termination of the contract or of the participation of a contractor:

(a) pursuant to paragraph2, first subparagraph, point (b), paragraph 3(b) or (d) or paragraph 4(c) of this Article, the Commission may require reimbursement of all or part of the Community's financial contribution, taking into account the nature and results of the work carried out and its usefulness to the Community in the context of the specific programme concerned,

(b) pursuant to paragraph 3(c) or paragraph 4(a) of this Article, the Commission shall only reimburse the eligible costs relating to approved project deliverables and incurred before the event giving rise to the termination of the contract or of the participation of a contractor, and also eligible costs subsequently incurred in good faith before the date mentioned in the first subparagraph of this paragraph,

(c) pursuant to paragraph3(a) or (e) or paragraph 4(b) of this Article, the Commission may require repayment of all or part of the Community's financial contribution. Interest at the rate applied by the European Central Bank to its main refinancing operations on the first day of the month during which the contractor concerned has received the funds plus two percentage points shall be added to the amount to be repaid. The interest shall cover the period between the receipt of the funds and their repayment.

7. The termination of the participation of a contractor shall not prejudice the access rights for the carrying out of the project which the contractor granted before that date pursuant to Articles 11 and 12 of this Annex. He shall grant such access rights to any contractor taking over all or part of the work incumbent on him:

- on a royalty-free basis, if his participation is terminated pursuant to paragraph3(b) or (e), or paragraph 4(b) of this Article,

- in accordance with the conditions laid down in Articles 11 and 12 of this Annex, in other cases.

Access rights for use shall be granted by contractors, in accordance with Articles 11, 13, 14 and 15 of this Annex, in so far as necessary for the use of new knowledge generated before the participation of the contractor terminated. Where use is contemplated, the contractors, including the one whose participation terminates, shall submit a technological implementation plan which complies with Articles 16 and 17 of this Annex. However, a contractor whose participation terminates pursuant to paragraph 3(b), (c) or (e), or paragraph 4(b) or (c) of this Article shall not have access rights for use.

8. Notwithstanding the termination of the contract or of the participation of a contractor, the following provisions shall continue to apply after that date subject to the limits specified therein, as the case may be:

- Articles 5, 6 and 8 of this contract,

- Article 2(1), first subparagraph, points (a), (d), (e) and (f), Article2(2) (c), (d), (h) and (j), Article3(4) and (5), Article4(5), Article6, Articles 9 to 21 and Articles 25, 26 and 28 of this Annex.

The contractors shall submit the project deliverables relating to the work performed until the date of termination of the contract or when their participation ends.

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