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- Model contract -

Accompanying Measures "Grant Agreement"

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Accompanying Measures "Grant Agreement"

Article 1 - Subject matter
Article 2 - Duration
Article 3 - Financing the operation
Article 4 - Payment arrangements

Article 5 - Reports, financial statements and other documents

Article 6 - General administrative provisions

Article 7 - Final provisions

Article 8 - Specific terms and conditions applying to the operation

ANNEX II: General terms and conditions applicable to Grant Agreements of the European communities

Part A: Legal and administrative provisions
Article 1 - Performance

Article 2 - Liability

Article 3 - Conflicts of interest

Article 4 - Termination of the agreement

Article 5 - Confidentiality

Article 6 - Publicity

Article 7 - Ownership/user of results

Article 8 - Evaluation of the operation
Article 9 - Amendment of the agreement

Article 10 - Jurisdiction

PART B - FINANCIAL PROVISIONS
Article 11 - Eligible costs

Article 12- Statement of costs and repayment arrangements

Article 13 - Interest on late payment

Article 14 - Technical and financial control

Article 15 - Repayment of the grant

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- Model Contract -

Accompanying Measures "Grant Agreement"

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GRANT AGREEMENT

between

The European Community ("the Community"), represented by the Commission of the European Communities ("the Commission"), itself represented by .............................,

of the one part,

and

(full legal name of beneficiary) (acronym)

with its registered office at ( address [of the registered office, for companies and associations; of the main office of the body, for public bodies and universities], VAT No and official registration No where appropriate ),

("the beneficiary"), represented by ( name and position of the signatory [for legal persons, the person duly authorised to act legally on behalf of the beneficiary body in relations with third parties: Chairman, Director-General, Rector, Head of administrative or financial department]) ,

of the other part,

which have agreed as follows :

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Article 1 - Subject matter

1.1. The Commission has decided to award a grant on the terms set out in this agreement and its annexes, which the beneficiary hereby declares it has taken note of and accepts, for the operation entitled: [........]("the operation").

1.2. The beneficiary accepts the grant and undertakes to carry out the operation under its own responsibility.

A detailed description of the operation is given in AnnexI, which is an integral part of this agreement.

1.3. The operation shall be carried out [principally] at [give location(s)].

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Article 2 - Duration

2.1 The operation shall last for [insert number] months from [the first day [of the month] following the most recent signature by the two parties or insert date] ("starting date").

2.2 The agreement shall cease to apply [on the date of final payment by the Commission][on [insert date]] ("date of completion").

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Article 3 - Financing the operation

3.1 The total cost of the operation is estimated at EUR [...]. The detailed budget of the operation is set out in AnnexIII, which is an integral part of this agreement.

The total cost of the operation comprises only costs eligible for Community funding, as defined in Annex II. [A fixed percentage of 7 % [maximum] of the total amount of eligible direct costs shall be eligible as indirect costs, in accordance with the conditions set out in Article 11.3 of Annex II.] 1

[The total cost of the operation shall not include any contributions in kind by the beneficiary, which are dealt with separately in Annex III.

However, as such contributions are taken into account by the Commission in determining the level of its support for the operation, the beneficiary undertakes to supply these contributions on the terms laid down in this agreement. Failure to honour this undertaking may entail termination of the agreement as specified in Article4 of AnnexII.] 2

3.2 The Commission shall provide a maximum amount of EUR[...], equivalent to [...]% of the estimated total cost specified in paragraph1.

3.3 The beneficiary accepts that the grant does not constitute a claim on the Commission and may not therefore be assigned to another body, transferred to a third party or seized or sequestered in any way without the Commission’s prior written consent.

_________________________________________________
1. Standard clause for overheads.
2. Paragraph to be inserted if contributions in kind are made by the beneficiary.

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Article 4 - Payment arrangements

4.1

[Option 1]

[The grant shall be paid as a lump sum to the beneficiary by the Commission within 60 days of the starting date and on production of a request for payment and a financial guarantee of an equivalent amount].

[Option 2]

[The grant shall be paid to the beneficiary by the Commission as follows:

EUR [......] [...% of the amount specified in Article3 paragraph 2] by way of advance within 60days of the starting date and on production of a request for payment [and a financial guarantee of an equivalent amount] 3 ;

[- EUR [.....] [...% of the amount specified in Article3 paragraph 2] within 60days of receipt and acceptance of an interim report, [an interim financial statement on the operation] and a request for payment;]

- the balance within 60days of receipt and approval of a final report and financial statement on the operation and a request for final payment.]

_________________________________________
3. This option may, for example, be used if the authorising officer has doubts about the financial viability of the beneficiary.

[Option 3]

[The grant shall be paid as a lump sum to the beneficiary by the Commission within 60 days of receipt and approval of a final report and financial statement on the operation with a request for final payment.]

4.2 Payments due from the Commission shall be made to the beneficiary's bank account below:

[ insert beneficiary's bank details ]

4.3 The Commission shall make payments in euros. Exchange losses are not covered by this agreement and shall be borne by the beneficiary.

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Article 5 - Reports, financial statements and other documents

5.1 The following reports and other documents shall be sent by the beneficiary in [....] copies in [insert language] to the address indicated in Article6.1 of the Agreement:

[- [......] interim report[s] by the following deadline[s]: ]

[ - [ ….] financial statement[s] by the following deadline[s]:]

[- autres documents]

- a final report and a final financial statement together with a complete statement of revenue and expenditure for the operation within two months of the end of the operation as referred to in Article2.1.

[- other documents]

5.2. The Commission shall have a period of […] months for the purposes of verifying the above reports. In the absence of observations by the Commission within that period, the report shall be deemed to be approved.

5.3. The financial statements shall be expressed in euros and in the currency used in the beneficiary's accounts. The euro conversion and exchange rates for drawing up the financial statements and related payments shall be the rate published by the Commission for the implementation of the budget and in force on the first working day of the month following the end of the period covered by the financial statement in question.

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Article 6 - General administrative provisions

6.1 Any information supplied in connection with this agreement shall be in writing and shall be sent to the following addresses:

For the Commission

European Commission
Directorate-General [...]
For the attention of ...............
[Address]

For the beneficiary

[…]

6.2 The statements of costs provided for in Article12.1 of AnnexII shall be submitted by the beneficiary to the following address:

European Commission
Directorate-General [...]
For the attention of ...............
[Address]

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Article 7 - Final provisions

7.1. The following documents are annexed to this agreement and are an integral part of it:

Annex I: Description of the operation

Annex II: General terms and conditions applicable to grant agreements of the European Communities

Annex III: Budget for the operation

7.2. Should the provisions of the annexes and those of the agreement differ, the provisions of the agreement shall apply. Annex II shall prevail over the other annexes.

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[ Article 8 - Specific terms and conditions applying to the operation]

Done at [Brussels] in duplicate in the [...] language.

For the beneficiary For the Commission

………………….. …………………….

[name of person specified on the first page] [name of the authorising officer by delegation or subdelegation]

[signature] [signature]

[date]

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ANNEX II

GENERAL TERMS AND CONDITIONS APPLICABLE TO GRANT AGREEMENTS OF THE EUROPEAN COMMUNITIES

PART A - LEGAL AND ADMINISTRATIVE PROVISIONS

Article 1 - Performance

Subject to cases of force majeure , the beneficiary shall do everything to ensure that the operation is carried out in accordance with the conditions and arrangements specified in AnnexI to the agreement.

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Article 2 - Liability

2.1 The Commission may not, under any circumstances or for any reason whatsoever, be held liable in the event of complaints deriving from the agreement concerning damage or injury sustained by the staff or property of the beneficiary while the operation is being carried out. Consequently, no claim for compensation or repayment accompanying such a complaint shall be accepted by the Communities.

2.2 Except in case of force majeure , the beneficiary shall be required to indemnify the Commission for any damage resulting from the operation or from failure to carry it out properly.

2.3. The beneficiary shall assume sole liability towards third parties, including for damage of any kind caused to them while the operation is carried out.

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Article 3 – Conflicts of interest

The beneficiary undertakes to take all precautions necessary to avoid a conflict of interest and shall inform the Commission immediately of any conflict of interest or situation likely to give rise to any such conflict.

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Article 4 - Termination of the agreement

4.1 The beneficiary may refuse the grant at any time by serving two months’ formal written notice, without being required to pay compensation. In this event, the beneficiary shall be entitled to payment of the grant only for the part of the operation carried out.

4.2 The Commission may terminate the agreement should the beneficiary, for no valid technical or economic reason, fail to honour one of the obligations under the agreement and, after being given notice by registered letter to comply with these obligations, have still failed to do so one month after receiving that letter.

In that event the Commission shall pay only the eligible costs actually borne by the beneficiary at the time of termination, but not costs related to contracts already concluded but for performance after the date of termination.

4.3 The Commission may terminate the agreement, without giving notice and without paying compensation of any kind, where the beneficiary:

- is declared bankrupt, is wound up or is the subject of any similar proceeding;
- fails to comply with Article 3 of this annex;
- makes false or incomplete statements to obtain the grant provided for in the agreement.

In that event the Commission may demand full or partial repayment of amounts already paid under the agreement.

4.4. Termination of the agreement for financial irregularities shall be without prejudice to the application of other administrative measures or penalties which may be imposed in accordance with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities’ financial interests

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Article 5 - Confidentiality

The Commission and the beneficiary undertake to preserve the confidentiality of any document, information or other material communicated to them in confidence whose disclosure could harm the other party.

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Article 6 - Publicity

6.1 Unless the Commission requests otherwise, any notice or publication by the beneficiary about the operation, including at a conference or seminar, must specify that the operation has received funding from the Commission.

Any notice or publication by the beneficiary, in whatever form and by whatever medium, including the Internet, must specify that it reflects the author’s views and that the Commission is not liable for any use that may be made of the information contained in that notice or publication.

6.2 The Commission shall be authorised to publish, in whatever form and by whatever medium, including the Internet, the following information:

- the name of the beneficiary, except where this may jeopardise the beneficiary's security,
- the purpose of the grant,
- the amount granted and the proportion of the total cost of the operation accounted for by the funding,
- the geographical location of the operation,
- whether the operation has previously been publicised.

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Article 7 - Ownership/use of results

7.1 Unless provided otherwise in the agreement or its annexes, ownership, title and industrial and intellectual property rights in the results of the operation and the reports and other documents relating to it shall vest in the beneficiary.

7.2. Notwithstanding the provisions of the first paragraph, the beneficiary grants the Commission the right to use freely and as it sees fit the results deriving from the operation, subject to any confidentiality arrangements agreed between them and the industrial and intellectual property rights already existing.

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Article 8 - Evaluation of the operation

Where the Commission undertakes an interim or ex post evaluation, the beneficiary undertakes to provide it and/or the persons designated by it any document or information which will assist with this evaluation.

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Article 9 - Amendment of the agreement

9.1 Any amendment of the agreement, including its annexes, must be set out in a written agreement to be concluded in the same way as the original agreement.

The parties shall not be bound by any oral agreement on such matters.

9.2 Where the change does not affect the basic purpose of the operation and the financial impact is limited to a transfer between headings of the budget involving an increase of less than l0% of a heading for eligible costs, the beneficiary may apply the change and shall inform the Commission without delay.

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Article 10 - Jurisdiction

The beneficiary may bring a complaint against decisions by the Commission concerning the application or interpretation of the provisions of the agreement, including its annexes, before the Court of First Instance of the European Communities and, in the event of appeal, the Court of Justice of the European Communities.

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PART B - FINANCIAL PROVISIONS

Article 11 - Eligible costs

11.1 To be considered eligible for the operation, costs must:

- be directly linked to the subject matter of the agreement and be provided for in the agreement;
- be necessary for carrying out the operation covered by the agreement;
- be reasonable and comply with the principles of sound financial management, and in particular of value for money and cost-effectiveness;
- have been incurred during the lifetime of the operation as defined in Article 2.1 of the agreement;
- have actually been incurred, be recorded in the beneficiary’s accounts or tax documents and be identifiable and controllable.
- exclude any profit margin.

11.2 The following direct costs shall be eligible:

- the cost of staff assigned to the operation, corresponding to real salaries plus social security charges and other costs making up remuneration;

- travel and subsistence costs for staff taking part in the operation;

- purchase costs for equipment (new or used), provided that these correspond to normal market costs and that the value of the items concerned is written down in accordance with the tax and accounting rules applicable to the beneficiary. Only the proportion of depreciation of the item corresponding to the duration of the operation may be taken into account by the Commission, except where the nature and/or use of the item justifies different treatment by the Commission;

- the costs of consumables;

- expenditure on subcontracting, provided that the Commission has given advance written agreement for subcontracting. In this case the beneficiary shall ensure that the terms applicable to it under the agreement are also applicable to the subcontractors .

- costs deriving directly from the requirements of the agreement (dissemination of information, specific evaluation of the operation, translation, reproduction, etc.), including, where appropriate, financial service costs (in particular the cost of financial guarantees), but not including exchange risks unless the agreement expressly provides for their inclusion;

11.3 As a general rule, overheads shall be eligible as indirect costs on the basis of a fixed percentage not exceeding 7% of the total amount of eligible direct costs.

Indirect costs shall be eligible provided they do not include costs assigned to another item of the budget in the agreement, they cannot be directly charged and they are not financed from other sources.

The total of the partial amounts charged by the beneficiary by way of eligible overheads may not exceed, where he is a contracting party to various grant agreements, the total overheads incurred for the financial year in question or for the duration of the operation.

Indirect costs shall not be eligible where the grant agreement concerns the financing of an operation conducted by a body which is already receiving an operating subsidy from the Commission.

11.4 The following costs shall not be considered eligible:

- capital investment costs;
- provisions for possible future losses or debts;
- interest owed;
- doubtful debts;
- exchange losses, except where the agreement makes explicit provision for them;
- contributions in kind. However, contributions in kind may be taken into account when the maximum amount of the grant is set;
- inordinate or ill-considered costs
- indirect taxes and duties, including VAT.

lors de la fixation du montant maximal de la subvention;

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Article 12 - Statement of costs and repayment arrangements

12.1 The beneficiary shall, within three months following completion of the operation, present a final statement of all eligible costs for the operation, together with a full summary statement of revenue and expenditure for the operation.

The beneficiary shall be required to present interim statements of eligible costs only if the agreement expressly provides for this.

12.2 On the basis of an examination of the final statement, and without prejudice to the provisions of Article14 of this annex, the Commission shall pay the balance of the grant as provided in the agreement. Under no circumstances may the total amount paid by the Commission to the beneficiary exceed the maximum amount of the grant set in the agreement, even if the total eligible costs exceed the estimated total budget as set in AnnexIII to the agreement.

12.3 The beneficiary accepts that the subsidy is limited to the amount needed to balance the revenue and expenditure for the operation.

Where the eligible costs at the end of the operation are lower than the estimated total cost referred to in Article3.1 of the Agreement, the Commission's contribution will be limited to the amount resulting from the application of the above percentage to the real costs. The beneficiary undertakes to repay to the Commission sums already paid in excess of that amount.

12.4 The amount of the grant to be paid by the Commission shall be reduced by means of:

- a reduction in the balance of the grant payable on completion of the operation;
- a request for repayment of overpayments made to the beneficiary, if the total amount already paid by the Commission exceeds the final amount actually due.

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Article 13 - Interest on late payment

13.1. The Commission undertakes to pay the amounts due under this agreement within sixty days of the date of the event giving rise to payment up to the date on which the sum is debited from the Commission’s account.

13.2. At any time during the sixty days following the date of the event giving rise to payment, the Commission may suspend this payment period by informing the beneficiary that the request for payment is not admissible, either because the debt is not due or because the necessary supporting documents have not been produced or because the Commission considers it necessary to carry out further checks. The sixty-day period shall begin to run again from the date on which a correctly presented request for payment is registered.

13.3. On expiry of the time limit specified in the first paragraph and without prejudice to the second paragraph, the beneficiary may, within two months of receiving the late payment, claim interest at the rate applied by the European Central Bank to its operations in euros plus one and a half percentage points.

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Article 14 - Technical and financial control

14.1 Commission staff and persons authorised by the Commission shall have access at all times to the sites or premises where the operation is being carried out and to all documents concerning the technical and financial management of the operation.

Access by persons authorised by the Commission may be subject to confidentiality arrangements to be agreed between the Commission and the beneficiary.

14.2 The beneficiary agrees to the Commission and the Court of Auditors of the European Communities verifying the use to which the grant is put in accordance with the Financial Regulation of 21December1977 applicable to the general budget of the European Communities, as amended, throughout the duration of the agreement and for five years after the date of completion of the operation. The Court of Auditors of the European Communities may verify the use made of the Community contribution in the context of this agreement on the basis of its own procedures.

14.3 The beneficiary undertakes to ensure that any subcontractors accept the same obligation.

14.4 Controls by the Commission or the Court of Auditors of the European Communities may be carried out on the basis of documents or on the spot.

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Article 15 - Repayment of the grant

15.1 In the cases referred to in Articles4.1 and 12 of this annex, the beneficiary undertakes to repay to the Commission, in the manner and within the time limits set by the Commission, any amounts which have been paid in excess of the real eligible costs of the operation.

15.2 In the event of termination of the agreement in the cases specified in Article4.3 of this annex, the Commission may request full or partial repayment of sums paid to the beneficiary. The Commission shall determine the manner and the time limits for such full or partial repayment.

15.3 Should the beneficiary fail to repay such amounts within the time limit set by the Commission, the Commission may increase the sums due by adding penalty interest at the rate applied by the European Central Bank to its operations in euros plus one and a half percentage points.

15.4 Bank charges involved in the repayment of sums due to the Commission shall be borne entirely by the beneficiary.

15.5 A recovery decision drawn up by the Commission and transmitted to the beneficiary owing a repayment to the Commission shall be enforceable within the meaning of Article256 of the ECTreaty, Article92 of the ECSC Treaty and Article164 of the Euratom Treaty.

15.6. Amounts to be repaid to the Commission may be set off against amounts of any kind due to the beneficiary.