Ceci est une version HTML d'une pièce jointe de la demande d'accès à l'information 'FP6 & FP7 legal basis of certain contractual provisions, protection of personal data'.


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Ref. Ares(2012)1389824 - 23/11/2012
 
FP7 Grant Agreement - Annex II    General Conditions 
 
II.1. 
Definitions ................................................................................................................2 
Part A 
IMPLEMENTATION OF THE PROJECT....................................................................3 
SECTION 1 – GENERAL PRINCIPLES..................................................................................3 
II.2. 
Organisation of the consortium and role of coordinator.............................................3 
II.3. 
Specific performance obligations of each beneficiary ................................................4 
SECTION 2 – REPORTING AND PAYMENTS .....................................................................6 
II.4. 
Reports and deliverables............................................................................................6 
II.5. 
Approval of reports and deliverables, time-limit for payments...................................8 
II.6. 
Payment modalities ...................................................................................................9 
SECTION 3 – IMPLEMENTATION......................................................................................10 
II.7. 
Subcontracting ........................................................................................................10 
II.8. 
Suspension of the project ........................................................................................11 
II.9. 
Confidentiality and classified information ...............................................................11 
II.10. 
Communication of data for evaluation, impact assessment and standardisation 
purposes  12 
II.11. 
Information to be provided to Member States or Associated Countries ................13 
II.12. 
Information and communication ..........................................................................13 
II.13. 
Processing of personal data..................................................................................14 
Part B 
FINANCIAL PROVISIONS .......................................................................................14 
SECTION 1 – GENERAL FINANCIAL PROVISIONS.........................................................14 
II.14. 
Eligible costs of the project .................................................................................14 
II.15. 
Identification of direct and indirect costs .............................................................15 
II.16. 
Upper funding limits............................................................................................ 17 
II.17. 
Receipts of the project.........................................................................................18 
II.18. 
Community financial contribution .......................................................................18 
II.19. 
Interest yielded by pre-financing provided by the Commission ............................ 19 
SECTION 2 – GUARANTEE FUND .....................................................................................19 
II.20. 
Financial responsibility........................................................................................19 
II.21. 
Guarantee fund ....................................................................................................19 
SECTION 3 – CONTROLS, RECOVERIES AND SANCTIONS ..........................................21 
II.22. 
Financial audits and controls ...............................................................................21 
II.23. 
Technical reviews................................................................................................ 22 
II.24. 
Liquidated damages and financial penalties .........................................................23 
A.  Liquidated damages ....................................................................................................23 
B.  Financial penalties.......................................................................................................24 
II.25. 
Reimbursement to the Commission and recovery orders ......................................24 
Part C 
INTELLECTUAL PROPERTY RIGHTS, USE AND DISSEMINATION....................25 
SECTION 1 – FOREGROUND .............................................................................................. 25 
II.26. 
Ownership ...........................................................................................................25 
II.27. 
Transfer...............................................................................................................25 
II.28. 
Protection ............................................................................................................26 
II.29. 
Use......................................................................................................................27 
II.30. 
Dissemination......................................................................................................27 
SECTION 2 – ACCESS RIGHTS ............................................................................................ 28 
II.31. 
Background covered ............................................................................................ 28 
II.32. 
Principles ............................................................................................................28 
II.33. 
Access rights for implementation .........................................................................29 
II.34. 
Access rights for use............................................................................................ 29 
FINAL PROVISIONS ................................................................................................................30 
II.35. 
Requests for amendments and termination at the initiative of the consortium.......30 
 


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II.36. 
Approval of amendments and termination requested by the consortium ...............31 
II.37. 
Competitive calls .................................................................................................32 
II.38. 
Termination of the grant agreement or of the participation of one or more 
beneficiaries at the Commission’s initiative.........................................................................32 
II.39. 
Financial contribution after termination and other termination consequences .......34 
II.40. 
Force majeure......................................................................................................35 
II.41. 
Assignment .........................................................................................................35 
II.42. 
Liability...............................................................................................................35 
 
II.1.   Definitions 
 
1.  "access rights" means licences and user rights to foreground or background
 
2.  "affiliated entity" means any legal entity that is under the direct or indirect control of a 
beneficiary, or under the same direct or indirect control as the beneficiary, control taking any 
of the following forms: 
 
(a) the direct or indirect holding of more than 50% of the nominal value of the issued share 
capital in the legal entity concerned, or of a majority of the voting rights of the shareholders or 
associates of that entity; 
 
(b) the direct or indirect holding, in fact or in law, of decision-making powers in the legal 
entity concerned. 
 
3.  "associated country" means a third country which is party to an international agreement with 
the Community, under the terms or on the basis of which it makes a financial contribution to 
all or part of the Seventh Framework Programme; 
 
4.  "background" means information which is held by beneficiaries prior to their accession to this 
agreement, as well as copyrights or other intellectual property rights pertaining to such 
information, the application for which has been filed before their accession to this agreement, 
and which is needed for carrying out the project or for using foreground
 
5.  "dissemination" means the disclosure of foreground by any appropriate means other than that 
resulting from the formalities for protecting it, and including the publication of foreground in 
any medium; 
6.  "fair and reasonable conditions" means appropriate conditions including possible financial 
terms taking into account the specific circumstances of the request for access, for example the 
actual or potential value of the foreground or background to which access is requested and/or 
the scope, duration or other characteristics of the use envisaged; 
 
7.  "foreground" means the results, including information, whether or not they can be protected, 
which are generated under the project. Such results include rights related to copyright; design 
rights; patent rights; plant variety rights; or similar forms of protection; 
 
8.  "use" means the direct or indirect utilisation of foreground in further research activities other 
than those covered by the  project, or for developing, creating and marketing a product or 
process, or for creating and providing a service; 
9.  "third country" means a State that is not a Member State; 
 


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10. "irregularity" means any infringement of a provision of Community law or any breach of 
obligation resulting from an act or omission by a beneficiary which has, or would have, the 
effect of prejudicing the general budget of the European Communities or budgets managed by 
them through unjustified expenditure; 
 
11. "public body" means any legal entity established as such by national law, and international 
organisations; 
 
12. A  "non-profit" legal entity is qualified as such when recognised by national or international 
law; 
 
13. "research organisation "  means  a legal entity established as a non-profit organisation which 
carries out research or technological development as one of its main objectives; 
 
14. "SMEs" mean micro, small and medium-sized enterprises within the meaning of 
Recommendation 2003/361/EC in the version of 6 May 2003; 
 
  
Part A 
IMPLEMENTATION OF THE PROJECT 
SECTION 1 – GENERAL PRINCIPLES 
 
II.2.  Organisation of the consortium and role of coordinator  
 
1. All the beneficiaries together form the consortium, whether or not they enter into a separate 
written  consortium agreement.  Beneficiaries are represented towards the Commission by the 
coordinator, who shall be the intermediary for any communication between the Commission 
and any beneficiary, with the exceptions foreseen in this grant agreement.  
 
2. The  Community financial contribution to the project  shall be paid to the coordinator who 
receives it  on behalf of the  beneficiaries. The payment of the Community financial 
contribution
 to the coordinator discharges the Commission from its obligation on payments. 
 
3.The coordinator shall: 
 
a) 
administer the Community contribution regarding its allocation between beneficiaries 
and activities, in accordance with this grant agreement and the decisions taken by the 
consortium. The coordinator shall ensure that all the appropriate payments are made to 
the other beneficiaries without unjustified delay; 
b) 
keep  the records and financial accounts making it possible to determine at any time 
what portion of the Community financial contribution has been paid to each beneficiary 
for the purposes of the project; 
c) 
inform the Commission of the distribution of the Community financial contribution and 
the date of transfers to the beneficiaries,  when required by this grant agreement or by 
the Commission;  
d) 
review the reports to verify consistency with the project tasks before transmitting them 
to the Commission
e) 
monitor the compliance by beneficiaries with their obligations under this grant 
agreement
 


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The coordinator may not subcontract the above-mentioned tasks. 
         
4. Beneficiaries shall fulfil the following obligations as a consortium:  
 
a) 
provide all detailed data requested by the Commission for the purposes of the proper 
administration of this project; 
b) 
carry out the project jointly and severally vis-à-vis the Community, taking all necessary 
and reasonable measures to ensure that the project is carried out in accordance with the 
terms and conditions of this grant agreement
c) 
make appropriate internal arrangements consistent with the provisions of this grant 
agreement to ensure the efficient implementation of the project.  When provided for  in 
Article 1.4 these internal arrangements shall take the form of a written consortium 
agreement
 (the "consortium agreement").  The consortium agreement  governs inter alia  
the following: 
i.  the internal organisation of the consortium  including the decision making 
procedures; 
ii.  rules on dissemination and use, and access rights; 
iii.  the distribution of the Community financial contribution; 
iv.  the settlement of internal disputes, including cases of abuse of power;  
v.  liability, indemnification and confidentiality arrangements between the 
beneficiaries
d) 
engage, whenever appropriate, with actors beyond the research community and with the 
public in order to foster dialogue and debate on the research agenda, on research results 
and  on  related scientific issues with policy makers and civil society; create synergies 
with education at all levels and conduct activities promoting the  socioeconomic impact 
of the research.   
e) 
allow the Commission to take part in meetings concerning the project
 
II.3.  Specific performance obligations of each beneficiary  
Each beneficiary shall: 
a)  carry out the work to be performed, as identified in Annex I.  However,  where it is 
necessary for the implementation of the project it may call upon third parties to carry out 
certain elements, according to the conditions established in Article II.7 or any special 
clause in Article 7. The beneficiary may use resources that are made available by third 
parties in order to carry out its part of the work; 
b)  ensure that any agreement or contract entered into between the beneficiary and any third 
party  contain provisions  that this  third party, including the auditor providing the 
certification of costs or on the methodology,  shall have no rights in respect of the 
Commission under this grant agreement
c)  ensure that the rights of the Commission and the Court of Auditors to carry out audits are 
extended to the right to carry out any such audit or control on any third party whose costs 
are reimbursed in full or in part by the Community financial contribution, on the same 
terms and conditions as those indicated in this grant agreement
 


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d)  ensure that the conditions applicable to it under Articles II.10, II.11, II.12, II.13 and II.22 
are also applicable to any third party whose costs are claimed under the project according 
to the provisions of this grant agreement
e)  ensure that the tasks assigned to it are correctly and timely performed; 
f)  inform the other  beneficiaries  and the Commission through the coordinator  in due time 
of: 
•  the names of the person(s) who shall manage and monitor its work, and its 
contact details as well as any changes to that information; 
•  any event which might affect the implementation of the project and the rights of 
the Community;  
•  any change in its legal name, address and of its legal representatives,  and any 
change with regard to its legal, financial,  organisational or technical situation 
including  change of control  and,  in particular, any change of status  as regards 
non-profit  public bodies, secondary and higher education establishments, 
research organisations and SMEs;  
•  any circumstance affecting the conditions of participation referred to in the Rules 
for Participation, the Financial Regulation and its implementing rules or of any 
requirements of the grant agreement,  especially if and when any eligibility 
criteria cease(s) to be met during the duration of the project.   
g)  provide the Commission and Court of Auditors directly with all information requested in 
the framework of controls and audits; 
h)  take part in meetings concerning the supervision, monitoring and evaluation of the 
project which are relevant to it; 
i)  take all necessary steps to avoid commitments that are incompatible with the obligations 
provided for in this grant agreement and inform the other beneficiaries and the 
Commission  
of any unavoidable obligations which may arise during the duration of the 
grant agreement which may have implications for any of its obligations under the grant 
agreement;
 
j)  ensure that they comply with the provisions of the State aid framework; 
k)  carry out the project in accordance with fundamental ethical principles; 
l)  endeavour to promote equal opportunities between men and women in the 
implementation of the project; 
m) have regard to the general principles of the Commission Recommendation of 11 March 
2005 on the European Charter for Researchers and the Code of Conduct for the 
Recruitment of Researchers, in particular concerning the working conditions, 
transparency of recruitment processes, and career development of the researchers 
recruited for the project
n)  take every necessary precaution to avoid any risk of conflict of interest relating to 
economic interests, political or national affinities, family or emotional ties or any other 
interests liable to influence the impartial and objective performance of the project.  
 


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SECTION 2 – REPORTING AND PAYMENTS 
 
II.4.  Reports and deliverables 
1. 
The consortium shall submit a periodic report to the Commission for each reporting period 
within 60 days after the end of each respective period. The reporting shall comprise: 
a)  an overview,  including a publishable summary,  of the progress of work towards the 
objectives of the project, including achievements and attainment of any milestones and 
deliverables identified in Annex I. This report should include the differences between 
work expected to be carried out in accordance with Annex I and that actually carried out,  
b)  an explanation of the use of the resources, and   
c)  a financial statement (Form C - Annex VI), from each beneficiary together with a 
summary financial report consolidating the claimed Community contribution of all the 
beneficiaries in an aggregate form, based on the information provided in Form C by each 
beneficiary.  
2. The consortium shall submit a final report to the Commission within 60 days after the end of 
the project. The report shall comprise: 
a)  a final publishable summary report covering results, conclusions  and socio-
economic impact of the project
b)  a report covering the wider societal implications of the project, including gender 
equality actions, ethical issues, efforts to involve other actors and spread awareness as well 
as the plan for the use and dissemination of foreground
3. 
The  coordinator shall submit a report on the distribution of the Community financial 
contribution
 between beneficiaries. This report must be submitted 30 days after receipt of 
the final payment of the Community financial contribution.  
 
4. 
A  certificate on the financial statements shall be submitted for claims of interim 
payments and final payments when the amount of the Community financial contribution claimed 
by a beneficiary under the form of reimbursement of costs is equal  to or superior to €  375.000, 
when cumulated with all previous payments for which a certificate on the financial statements has 
not been submitted.  This certificate must be forwarded in the form of a detailed description 
verified as factual by its external auditor (Form  D  -  Annex VII). However, for projects of a 
duration of 2 years or less, the certificate on the financial statements shall be submitted only for 
claims on final payments when the amount of the Community financial contribution claimed by a 
beneficiary is equal to or superior to € 375.000 when cumulated with all previous payments. 
 
The Commission may, at its sole discretion, accept at the request of a beneficiary, that it submits a 
certificate on the methodology, which it used to prepare its claims with regard to both personnel 
and overhead costs,  and the related control systems.  This certificate must be forwarded in the 
form of a detailed description verified as factual by its external auditor (Form E - Annex VII). 
When this certificate is accepted by the Commission, the requirement to provide an intermediate 
certificate on the financial statements for claims of interim payments shall be waived.  
 
Certificates on financial statements shall certify that the costs claimed and the receipts declared 
during the period for which it is provided, as well as the declaration of the interests yielded by the 
pre-financing  meet  the conditions required by this grant agreement.   Where third parties’ costs 
 


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are claimed under the grant agreement, such costs shall be certified in accordance with the 
provisions of this Article. The auditor shall include in its certification that no conflict of interest 
exists between it and the beneficiary in establishing this certificate. 
Certificates on the financial statements and on the methodology shall be prepared and certified by 
an external auditor and shall be established in accordance with the terms of reference attached as 
Annex VII to this grant agreement. Each beneficiary is free to choose any qualified external 
auditor, including its usual external auditor, provided that the cumulative following requirements 
are met: 
i)  the auditor must be independent from the beneficiary
ii)  the auditor must be qualified to carry out statutory audits of accounting documents in 
accordance with national legislation implementing the  8th Council Directive on 
statutory audits of annual account and consolidated accounts1 or any Community 
legislation replacing this Directive. Beneficiaries established in third countries shall 
comply with national regulations in the same field and the certificate on the financial 
statement provided shall consist of an independent report of factual findings based 
on procedures specified by the Community
Public bodies, secondary and higher education establishments and research organisations may 
opt for a competent public officer to provide their certificate on financial statements and on the 
methodology, provided that the relevant national authorities have established the legal capacity of 
that competent public officer to audit that entity and that  the independence of that officer,  in 
particular regarding the preparation of the financial statements, can be ensured. 
Certification by external auditors according to this Article does not affect  the liability of 
beneficiaries nor the rights of the Community arising from this grant agreement.  
5.  The consortium shall transmit the reports and other deliverables through the coordinator to the 
Commission by electronic means. In addition, Form C, must be signed by the authorised person(s) 
within the beneficiary’s organisation, and the  certificates on the financial statements  and on the 
methodology must be signed by an authorised person of the auditing entity, and the original shall 
be sent to the Commission
5.  The layout and content of the reports shall conform to the instructions and guidance notes 
established by the Commission
6.  The  reports submitted to the Commission  for publication should be of a suitable quality to 
enable direct publication and their submission to the  Commission in publishable form indicates 
that no confidential material is included therein. 
7.  Deliverables identified in Annex I shall be submitted as foreseen therein. 
8.  The  Commission may be assisted by external experts in the analysis and evaluation of the     
reports and deliverables.  
                                                 
1 Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual 
accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing 
Council Directive 84/253/EEC 
 
 


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II.5.  Approval of reports and deliverables, time-limit for 
payments  

1. 
The Commission shall  evaluate project reports and deliverables required by the provisions 
of Annex I and disburse the corresponding payments within 105 days of their receipt unless 
the time-limit, the payment or the project has been suspended.  
2. 
Payments shall be made after the Commission's approval of reports and/or deliverables. The 
absence of a response from the Commission within this time-limit shall not imply its 
approval. The Commission may reject reports and deliverables even after the time-limit for 
payment.  Approval of the reports shall not imply recognition of their regularity or of the 
authenticity of the declarations and information they contain and do not imply exemption 
from any audit or review. 
3. 
After reception of the reports the Commission may:  
a)  approve the reports and deliverables, in whole or in part or make the approval subject to 
certain conditions. 
 
b)  reject the reports and deliverables by  giving an appropriate justification and start the 
procedure for termination of the grant agreement in whole or in part. 
c)  suspend the time limit if the reports or appropriate deliverables have not been supplied, or 
are not complete or  if some clarification or additional information is needed or there are 
doubts concerning the eligibility of costs claimed in the financial statement and/or 
additional checks are being conducted.  The suspension will be lifted from the date when 
the last  report, deliverable  or  the  additional information requested is received by the 
Commission
The  Commission shall inform the consortium  in writing via the coordinator of any such 
suspension and the conditions to be met for the lifting of the suspension. 
Suspension shall take effect on the date when notice is sent by the Commission.  
d) 
suspend the payment at any time: 
•  if the work carried out does not comply with the provisions of the grant 
agreement
•  if a beneficiary has to reimburse to its national state an amount unduly received as 
state aid; 
•  if the provisions of the grant agreement have been infringed or if there is a 
suspicion thereof, in particular in the wake of any audits and checks carried out;  
•  if there is a suspicion of irregularity committed by one or more beneficiary(ies) in 
the performance of the  grant agreement. Only the portion destined for the 
beneficiary(ies) suspected of irregularity will be suspended. 
•  if there is a suspected or established irregularity committed by one or more 
beneficiary(ies) in the performance of another grant agreement funded by the 
general budget of the European Communities or by budgets managed by them. In 
such cases, suspension of the payments will occur where the irregularity (or 
suspected  irregularity) is of a serious and systematic nature which is likely to 
affect the performance of the current grant agreement
 


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If the Commission suspends the payment the consortium shall be duly informed of the reasons 
why payment in whole or in part will not be made. 
4.  
The  Commission may  proceed with an interim payment in part if some reports or 
deliverables  are not submitted as required, or only  partially  or  conditionally approved. The 
reports and deliverables due  for one reporting period which are submitted late will be evaluated 
together with the reports and deliverables of the next reporting period. 
5.  On expiry of the time-limit for approval of the reports and payments, and without prejudice to 
suspension by the Commission of this time-limit, the Commission shall pay interest on the late 
payment at the rate applied by the European Central Bank for its main refinancing operations 
in euros, plus three and a half points. The reference rate to which the increase applies shall be 
the rate in force on the first day of the month of the final date for payment, as published in the 
C series of the Official Journal of the European Union.  
This provision shall not apply to beneficiaries that are public bodies of the Member States of 
the European Union.  
Interest on late payment shall cover the period from the final date of the period for payment, 
exclusive, up to the date when the payment is debited to the Commission's account, inclusive. 
The interest shall not be treated as a receipt for the project for the purposes of determining the 
final grant. Any such interest payment is not considered as part of the Community financial 
contribution
.  
6.  The suspension of payment by the Commission may not be considered as late payment.  
7.  At the end of the project, the Commission may decide not to make the payment of the 
corresponding  Community financial contribution subject to one month's written notice of 
non-receipt of a report, a certificate on the financial statement or other project deliverable. 
8.  The  Commission shall inform the  coordinator of the amount of the final  payment  of the 
Community financial contribution justifying this amount. The coordinator  shall have two 
months from the date of receipt  to give reasons for any disagreement.  After the end of this 
period such requests will no longer be considered and the consortium is deemed to have 
accepted the Commission's decision. The  Commission undertakes to reply in writing within 
two months following the date of receipt, giving reasons for its reply.  This procedure is 
without prejudice to the beneficiary’s right to appeal against the Commission’s decision.  
II.6.  Payment modalities 
1.  The Commission shall make the following payments:  
a.  a pre-financing in accordance with Article 6,  
b.  for projects with more than one reporting period, the Commission shall make interim 
payments  of  the  Community  financial  contribution corresponding to the amount 
accepted for each reporting period.  
c.  the Commission shall make a final payment of the Community financial contribution 
corresponding to the amount accepted for the last reporting period plus any adjustment 
needed.  
 


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Where the amount of the corresponding Community financial contribution is less than 
any amount already paid to the consortium, the Commission shall recover the 
difference. 
Where the amount of the corresponding Community financial contribution is more 
than any amount already paid to the consortium, the Commission shall pay the 
difference as the final payment within the limit of Article 5.1. 
2.  The total amount of the pre-financing and interim payments shall not exceed 90% of the 
maximum Community financial contribution
3.  Payments by the Commission shall be made in euros. 
4.  Costs incurred in currencies other than the Euro shall be reported in Euro, using for all costs, 
either the conversion rate published by the European Central Bank that would have applied on 
the date that the actual costs were incurred, or the rate applicable on the first day of the month 
following the end of the reporting period.  
5.   The bank account mentioned in Article 5.4 shall allow that the Community financial 
contribution  and related interest are identified. Otherwise, the accounting methods of the 
beneficiaries or intermediaries must make it possible to identify the Community financial 
contribution
 and the interest or other benefits yielded. 
6.  Any payment may be subject to an audit or review and may be adjusted or recovered based on 
the results of such audit or review. 
7.  Payments by the Commission shall be deemed to be effected on the date when they are debited 
to the Commission's account.  
SECTION 3 – IMPLEMENTATION 
II.7.  Subcontracting  
1. 
subcontractor is a third party which has entered into an agreement on business conditions 
with one or more beneficiaries, in order to carry out part of the work of the project without 
the direct supervision of the beneficiary and without a relationship of subordination. 
Where the beneficiary enters into a subcontract to carry out some parts of the tasks related 
to the project,  it remains bound by its obligations to the Commission and the other 
beneficiaries under the grant agreement and retains sole responsibility for carrying out the 
project and for compliance with the provisions of the grant agreement.  
Provisions of this grant agreement applying to subcontractors shall also apply to external 
auditors who certify financial statements or a methodology. 
2. 
Where it is necessary for the beneficiaries to subcontract certain elements of the work to be 
carried out, the following conditions must be fulfilled:  

subcontracts may only cover the execution of a limited part of the project

recourse to the award of subcontracts must be duly justified in Annex I having regard to 
the nature of the project and what is necessary for its implementation; 
 
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-  recourse to the award of subcontracts  by a beneficiary may not affect the rights and 
obligations of the beneficiaries regarding background and foreground; 
 

Annex I must indicate the task to be subcontracted and an estimation of the costs;  
Any subcontract, the costs of which are to be claimed as an eligible cost, must be awarded 
according to the principles of best value for money (best price-quality ratio), transparency 
and equal treatment. Framework contracts between a beneficiary and a  subcontractor
entered into prior to the beginning of the project that are according to the beneficiary's usual 
management principles may also be accepted. 
3. 
Beneficiaries  may  use external support services for assistance with minor tasks that do not 
represent per se project tasks as identified in Annex I. 
II.8.  Suspension of the project  
1. 
The  coordinator  shall immediately inform the Commission  of any event affecting or 
delaying the implementation of the project.   
2. 
The coordinator can propose to suspend the whole or part of the project if force majeure or 
exceptional circumstances render its execution excessively difficult or uneconomic. The 
coordinator must inform the Commission without delay of such circumstances, including 
full justification and information related to the event, as well as an estimation of the date 
when the work on the project will begin again. 
3. 
The  Commission may suspend the whole or part of the  project where it considers that the 
consortium is not fulfilling its obligations according to this grant agreement.  The 
coordinator shall be informed without delay of the justification for such an event and the 
conditions necessary to reinstate the work again. The  coordinator  shall inform the other 
beneficiaries. This suspension takes effect 10 days after the notification to the coordinator.   
4.  During the period of suspension, no costs may be charged to the project.  
5.  The suspension of the whole or part of the project may be lifted once the parties to the grant 
agreement  have agreed on the continuation and, as appropriate, any necessary modification, 
including extension of the duration of the project,  has been identified by means of a written 
amendment. 
II.9.  Confidentiality and classified information 
1. 
During the project and for  a period of five years after its completion or any other period 
thereafter  as established in the consortium  agreement, the beneficiaries undertake to 
preserve the confidentiality of any data, documents or other material that is identified as 
confidential   in relation to the execution of the project (“confidential information”). The 
Commission undertakes to preserve the confidentiality of "confidential information" until 
five years after the completion of the  project. Upon a duly substantiated request by a 
beneficiary, the Commission may agree to extend this period regarding specific confidential 
information. 
Where confidential information was communicated orally, its confidential character must be 
confirmed by the disclosing party in writing within 15 days after disclosure. 
2. 
Paragraph 1 no longer applies where: 
 
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-  the confidential information becomes publicly available by means other than a breach of  
confidentiality obligations; 
-  the disclosing party subsequently informs the recipient that the confidential information 
is no longer confidential; 
-  the  confidential information is subsequently communicated to the recipient without any 
obligation of confidence by a third party who is in lawful possession thereof and under 
no obligation of confidentiality; 
-  the disclosure or communication of the confidential information is foreseen by other 
provisions of this grant agreement or the consortium agreement
-  the disclosure or communication of  confidential information is required by the national 
law of one of the beneficiaries and this exception to the confidentiality requirement is 
foreseen in the consortium agreement2
3. 
The  beneficiaries undertake to use such confidential information only in relation to the 
execution of the project unless otherwise agreed with the disclosing party. 
4. 
Notwithstanding the preceding paragraphs, the treatment of classified data, documents or 
other material (“classified information”) must follow the applicable rules established by the 
relevant Community legislation, including the Commission's internal rules for handling such 
classified information3.  
II.10. 
Communication of data for evaluation, impact 
assessment and standardisation purposes  
 
1. 
Beneficiaries shall provide, at the request of the Commission, the data necessary for: 
-  the continuous and systematic review of the specific programme and the Seventh 
Framework Programme; 
-  the evaluation and impact assessment of Community activities, including the use and 
dissemination of foreground
Such data may be requested throughout the duration of the project and up to five years after 
the end of the project
The data collected may be used by the Commission in its own evaluations but will not be 
published other than on an anonymous basis. 
2. 
Without prejudice to the provisions regarding protection of foreground and confidentiality, 
the beneficiaries shall, where appropriate, during the project and for two years following its 
end, inform the Commission and the European standardisation bodies about foreground 
which may contribute to the preparation of European or international standards.  
                                                 
2 As certain national laws (for example regarding freedom of information) may provide that proprietary information 
made available under a confidentiality requirement must nevertheless be made public in case access is requested, 
the  beneficiaries should inform each other of the existence of such national laws and make appropriate 
arrangements in the consortium agreement
3  Commission Decision 2001/844/EC, ECSC, Euratom of 29 November 2001 OJ L 317, 3.12.2001, p. 1 (as last 
amended by Decision 2006/548/EC, Euratom, OJ L 215, 5.8.2006, p. 38. 
 
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II.11. 
Information to be provided to Member States or 
Associated Countries 
1. 
The  Commission shall, upon request, make available to any Member State  or  Associated 
country
 any useful information in its possession on foreground, provided that the following 
conditions are met: 
-  the information concerned is relevant to public policy; 
-  the  beneficiaries have not provided sound and sufficient reasons for withholding the 
information concerned; 
-  the applicable Community rules on classified information do not prohibit such action. 
2. 
As stipulated in the Rules for Participation, the provision of information pursuant to 
paragraph 1 shall not transfer to the recipient any rights or obligations and the recipient shall 
be required to treat any such information as confidential unless it becomes duly public, or it 
was communicated to the Commission without restrictions on its confidentiality. 
II.12. 
Information and communication 
1. 
The beneficiaries shall, throughout the duration of the project, take appropriate measures to 
engage with the public and the media about the project and to highlight the Community 
financial support. Unless the Commission requests otherwise, any publicity, including at a 
conference or seminar or any type of information or promotional material (brochure, leaflet, 
poster, presentation etc), must specify that the project has received Community  research 
funding and display the European emblem. When displayed in association with a logo, the 
European emblem should be given appropriate prominence. This obligation to use the 
European emblem in respect of projects to which the [European Community] [European 
Atomic Energy Community] contributes  implies no right of exclusive use. It is subject to 
general third-party use restrictions which do not permit the appropriation of the emblem, or 
of any similar trademark or logo, whether by registration or by any other means. Under 
these conditions, beneficiaries are exempted from the obligation to obtain prior permission 
from the Commission to use the emblem. Further detailed information on the EU emblem 
can be found on the Europa web page.  
Any publicity made by the beneficiaries in respect of the project, in whatever form and on 
or by whatever medium, must specify that it reflects only the author’s views and that the 
Community is not liable for any use that may be made of the information contained therein. 
 
2. 
The  Commission shall be authorised to publish, in whatever form and on or by whatever 
medium, the following information: 
  
–  the name of the beneficiaries
–  contact addresses of beneficiaries; 
–  the general purpose of the project  in the form of the summary provided by the 
consortium
–  the amount and rate of the Community financial contribution granted to the project;  
–  the geographic location of the activities carried out; 
–  the list of dissemination activities and/or of patent (applications) relating to foreground
 
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–  the details/references and the abstracts of scientific publications relating to foreground 
and, where provided pursuant to Article II.30, the published version or the final manuscript 
accepted for publication; 
–  the publishable reports submitted to it; 
–  any picture or any audiovisual or web material provided to the Commission in the 
framework of the project
The consortium shall ensure that all necessary authorisations for such publication have been 
obtained and that the publication of the information by the Commission does not infringe 
any rights of third parties. 
Upon a duly substantiated request by a beneficiary, the Commission may agree to forego 
such publicity if disclosure of the information indicated above would risk compromising the 
beneficiary’s security, academic or commercial interests. 
II.13. 
Processing of personal data 
 
1.  All personal data contained in the grant agreement shall be processed in accordance with 
Regulation (EC) No 45/2001 of the European Parliament and of the Council on the protection 
of individuals with regard to the processing of personal data by the Community institutions 
and bodies and on the free movement of such data. Such data shall be processed  by the 
controller solely in connection with the implementation and follow-up of the grant agreement 
and the evaluation and impact assessment of Community activities, including the use and 
dissemination of foreground, without prejudice to the possibility of passing the data to the 
bodies responsible for inspection and audit in accordance with Community legislation and this 
grant agreement.  
 
2.  Beneficiaries may, on written request, gain access to their personal data and correct any 
information that is inaccurate or incomplete. They should address any questions regarding the 
processing of their personal data to the Controller. Beneficiaries may lodge a complaint 
against the processing of their personal data with the European Data Protection Supervisor at 
any time.  
 
3.  For the purpose of this grant agreement, the “Controller” shall be the contact for the 
Commission identified in Article 8.1.  
Part B 
          FINANCIAL PROVISIONS 
SECTION 1 – GENERAL FINANCIAL PROVISIONS 
II.14. 
Eligible costs of the project 
 
1. 
Costs incurred for the implementation of the project shall meet the following conditions  in 
order to be considered eligible: 
a)  they must be actual; 
b)  they must be incurred by the beneficiary; 
c)  they must be incurred during the duration of the project, with the exception of costs 
incurred in relation to final reports and reports corresponding to the last period as well as 
 
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certificates on the financial statements  when requested for the last period and final 
reviews if applicable, which may be incurred during the period of up to 60 days after the 
end of the project or the date of termination whichever is earlier; 
d)  they must be determined in accordance with the usual accounting and management 
principles and practices of the beneficiary.  The accounting procedures used in the 
recording of costs and receipts shall respect the accounting rules of the State in which 
the  beneficiary is established. They shall permit the direct reconciliation between the 
costs and receipts for the implementation of the project; 
e)  they must be used for the sole purpose of achieving the objectives of the project and its 
expected results, in a manner consistent with the principles of economy, efficiency and 
effectiveness;  
f)   they must be recorded in the accounts of the beneficiary; 
g)  they must be indicated in the estimated overall budget in Annex I. 
Notwithstanding point a), beneficiaries may opt to declare average personnel costs if certified in 
accordance with a methodology approved by the Commission  and  consistent with the 
management principles and usual accounting practices of the beneficiary. Average personnel costs 
charged to this grant agreement by a beneficiary having provided a certification on the 
methodology are deemed not to significantly differ from actual personnel costs. 
 Such a certification shall be issued  in accordance with the provisions laid down in Article II.4 
and Annex VII,  unless it has already been submitted for a previous grant agreement under the 
Seventh Framework Programme and the methodology certified has not changed. 
 
2. 
Costs incurred by third parties in relation to resources they make available free of charge to 
a  beneficiary, can be charged by the beneficiary provided they meet the conditions 
established in paragraphs 1 and 3, mutatis mutandis and claimed in accordance with Article 
II.17.   
3. 
The following costs shall be considered as non-eligible and may not be charged to the 
project
a)  identifiable indirect taxes including value added tax,  
b)  duties,  
c)  interest owed,  
d)  provisions for possible future losses or charges,  
e)  exchange losses, cost related to return on capital,  
f)  costs declared or incurred, or reimbursed in respect of another Community project,  
g)  debt and debt service charges, excessive or reckless expenditure. 
II.15. 
Identification of direct and indirect costs 
 
 
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1. 
Direct costs are all those eligible costs which can be attributed directly to the project and are 
identified  by the beneficiary  as such, in accordance with its accounting principles and its 
usual internal rules. 
With regard to personnel costs, only the costs of the actual hours worked by the persons 
directly carrying out work under the project may be charged. Such persons must: 
– be directly hired by the beneficiary in accordance with its national legislation, 
– work under the sole technical supervision and responsibility of the latter, and 
– be remunerated in accordance with the normal practices of the beneficiary
Costs related to parental leave for persons who are directly carrying out the project are 
eligible costs provided that they are mandatory under national law. 
2. 
Indirect costs are all those eligible  costs which cannot be identified by the beneficiary as 
being directly attributed to the project but which can be identified and justified by its 
accounting system as being incurred in direct relationship with the eligible direct costs 
attributed to the project. They may not include any eligible direct costs. 
Indirect costs shall represent a fair apportionment of the overall overheads of the 
organisation. They may be identified according to one of the following methods: 
a)  Based on the real indirect costs of the beneficiary
For this purpose, a beneficiary is allowed to use a simplified method of calculation of its full 
indirect eligible cost at the level of its legal entity if it is in accordance with its usual 
accounting and management principles and practices. Use of such a method is only 
acceptable where the lack of analytical accounting or the legal requirement to use a form of 
cash-based accounting  prevents detailed cost allocation. The simplified approach must be 
based on actual costs derived from the financial accounts of the period in question.   
b)  A beneficiary may opt for a flat rate of 20% of its total direct eligible costs, excluding its 
direct eligible costs for subcontracting and the costs of reimbursement of resources made 
available by third parties which are not used on the premises of the beneficiary
  
c)  Non-profit  public bodies, secondary and higher education establishments, and research 
organisations and SMEs, which are unable to identify with certainty their real indirect 
costs for the project,  when participating in funding schemes which include research and 
technological development and demonstration activities, as referred to in the table of 
Article II.16, may opt for a flat-rate  of 60% of the total direct eligible costs4  excluding 
costs for subcontracting and the costs of reimbursement of resources made available by 
third parties which are not used on the premises of the beneficiary. If these beneficiaries 
change their status during the life of the project, this flat rate shall be applicable up to the 
moment they lose their status.    
 In the case of coordination and support actions, the reimbursement of indirect eligible costs 
for every beneficiary  may reach a maximum 7% of the direct eligible costs, excluding the 
                                                 
4 NOTE: The rate established in this indent will apply for grants awarded under calls for proposals closing before 1 
January 2010. The Commission shall establish, for grants awarded under calls closing after 31 December 2009, 
an appropriate level of flat rate which should be an approximation of the real indirect costs concerned but not 
lower than 40%, at that moment a special clause will be adopted and inserted in subsequent grant-agreements. 
 
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direct eligible costs for subcontracting and the costs of reimbursement of resources made 
available by third parties which are not used on the premises of the beneficiary
3. 
The  beneficiary shall apply the option chosen in all grant agreements under the Seventh 
Framework Programme.   
However, any beneficiary that has opted for the possibilities  described in  b) and  c)  for 
reimbursement of its indirect costs in a previous grant agreement funded under the Seventh 
Framework Programme may opt in this grant agreement for one of the methods described in 
a). However, it must then use that method in subsequent grant agreements established under 
the Seventh Framework Programme.  
II.16. 
Upper funding limits  
1. 
For  research and technological development activities, the Community financial 
contribution
 may reach a maximum of 50% of the total eligible costs.  
However, for beneficiaries that are non-profit public bodies, secondary and higher education 
establishments, research organisations and SMEs, the rate may reach a maximum of 75% of 
the total eligible costs. If these beneficiaries change their status during the life of the project
this reimbursement rate shall be applicable up to the moment they lose their status.    
2. 
For demonstration activities, the Community financial contribution may reach a maximum 
of 50% of the total eligible costs.  
3. 
For coordination and support actions, the Community financial contribution may reach a 
maximum of 100% of the total eligible costs.  
4. 
For other activities not covered by paragraphs 1, 2 and 3, inter alia, management activities 
including certificates on the financial statements and certifications of the methodology, 
training, coordination, networking and dissemination  (including publications),  the 
contribution may reach a maximum of 100% of the total eligible costs. 
Paragraphs 1 to 4 shall apply also  in the case of projects where flat rate financing or lump sum 
financing is used for the whole or for part of the project.  
 
5. 
Management of the consortium activities includes: 
− 
maintenance of the consortium agreement, if it is obligatory, 
− 
the overall legal, ethical, financial and administrative management including, for 
each of the beneficiaries, obtaining the certificates on the financial statements or 
on the methodology and costs relating to financial audits and technical reviews 
− 
implementation of competitive calls by the consortium for the participation of new 
beneficiaries, where required by Annex I of this grant agreement, 
− 
any other management activities foreseen by the annexes, except coordination of 
research and technological development activities.  
6. 
For  training activities, the salary costs of those being trained are not eligible costs under 
this activity.  
The table illustrates the maximum rates of Community financial contribution for the activities 
relating to the funding schemes below: 
 
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Maximum 
Research and 
Demonstration 
Other 
reimbursement 
technological 
activities 
activities 
rates of 
development(*)  
(**) 
eligible costs 
 
 
 
 
 
Network of 
50% 
100% 
excellence 
75% (***) 
 
 
 
 
 
Collaborative 
50% 
50% 
100% 
project 
75% (***) 
 
 
 
 
 
 
Coordination 
100% (****) 
and support 
 
action 
 
 
(*) Research and technological development includes scientific coordination. 
 (**) Other activities means any "specific activity" covered by Annex I. 
(***) For beneficiaries that are non-profit public bodies, secondary and higher education establishments, research organisations and 
SMEs 
(****) The reimbursement of indirect eligible costs, in the case of coordination and support actions, may reach a maximum 7% of the 
direct eligible costs, excluding the direct eligible costs for subcontracting and the costs of reimbursement of resources made available 
by third parties which are not used on the premises of the beneficiary
II.17. 
Receipts of the project 
Receipts of the project may arise from:  
a)  Resources made available by third parties to the beneficiary  -financial transfers or 
contributions in kind which are free of charge: 
i.  shall be considered a receipt of the project if they have been contributed by the 
third party specifically to be used on the project
ii.  shall not be considered a receipt of the project if their use is at the discretion of 
of the beneficiary's management. 
b)  Income generated by the project
i.  shall be considered receipts for the beneficiary when generated by actions undertaken 
in carrying out the project and from the sale of assets purchased under the grant 
agreement
 up to the value of the cost initially charged to the  project  by the 
beneficiary

ii.  shall  not be considered a receipt  for the beneficiary  when generated from the use of 
foreground resulting from the project. 
II.18. 
Community financial contribution 
The "Community financial contribution" to the project shall be defined as the amount determined 
as follows: 
1. 
By applying the upper funding limits  indicated in Article II.16,  per activity and per 
beneficiary to the costs accepted by the Commission  and/or  to the flat rates and/or lump 
sums. 
 
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2. 
The  Community financial contribution shall be calculated by reference to the cost of the 
project as a whole and its reimbursement shall be based on the reported costs of each 
beneficiary
3. 
The Community financial contribution cannot give rise to any profit for any beneficiary. For 
this purpose, at the time of the submission of the last financial statement, the final amount of 
the  Community financial contribution will take into account any receipts of the project 
received by each beneficiary. For each beneficiary, the Community financial contribution 
cannot exceed the eligible costs minus the receipts for the project
 
4. 
The total amount of payments by the Community shall not exceed in any circumstances the 
maximum amount of the Community financial contribution referred to in Article 5.  
II.19. 
Interest yielded by pre-financing provided by the 
Commission 
1. 
Pre-financing remains the property of the Community
2. 
The Commission shall recover from the coordinator, for each reporting period following the 
implementation of the agreement, the amount of interest generated by  pre-financing which 
exceeds EUR [50,000]5 
SECTION 2 – GUARANTEE FUND 
II.20. 
Financial responsibility  
 
The financial responsibility of each beneficiary shall be limited to its own debt, subject to Article 
II.21. 
II.21. 
Guarantee fund  
 
1.  Beneficiaries  shall contribute to the Guarantee Fund (hereinafter the Fund) established in 
order to manage the risk associated with non-recovery of sums due to the Community by 
beneficiaries of grant agreements under the 7th Framework Programme. The contribution of 
beneficiaries of this grant agreement shall be offset from the initial pre-financing, under the 
terms and conditions established in Article 6. 
 
2.  The  Fund shall be deposited in a bank (hereinafter the Bank) chosen by the Community 
represented by the Commission, acting as executive agent on behalf of the beneficiaries of 
grant agreements under the 7th Framework Programme. 
 
3.  Interest generated by the Fund shall be added to it and shall be used in priority by the 
Commission for transfer from or recovery from the Fund referred to in paragraph 4 
(hereinafter the Operations). 
 
                                                 
5 This amount shall be the one established in the final version of the Implementing Rules of the Financial Regulation 
which is currently under revision. 
 
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Operations may be undertaken from  1st January 2007 until the day of the final payment of 
the last grant agreement under the  7th Framework Programme (hereinafter the Period). At 
the end of the Period, any remaining interests shall become the property of the Community
 
Where interest is  insufficient to cover Operations, contributions to the Fund may be used 
within a limit never exceeding 20% of their value, and within a limit not exceeding 1% of 
the  Community financial contributions due to beneficiaries other than those referred to in 
paragraph 6, last indent at the end of the Period. Beyond these limits or after the Period, the 
Commission shall directly recover from beneficiaries any amount owed to the Community.. 
 
 
4.  Subject to paragraph 3, the Commission shall implement the following Operations on the 
Fund: 
 
a.  where a beneficiary in an on-going  grant agreement under the 7th Framework 
Programme owes money to the Community and does not transfer it to the 
coordinator at the latest 45 days after receipt of a written request from the 
Commission, and where the remaining beneficiaries agree to implement the said 
grant agreement identically regarding its objectives, the Commission shall order 
the Bank to directly transfer an equivalent amount to the coordinator. Amounts 
transferred from the Fund shall be regarded as Community financial contribution.  
 
b.  where a beneficiary in any terminated or completed grant agreement under the 7th 
Framework Programme owes money to the Community,  the Commission shall 
recover effectively from the Fund the amounts due.  
 
Following an Operation, the Commission shall issue against the defaulting beneficiary a 
recovery order to the benefit of the Fund. The Commission may offset that recovery order 
against any pending payment due by the Community to the said beneficiary or adopt a 
recovery decision in accordance with Article II.25 
 
5.  At the moment of final payment, the amount contributed to the Fund under this project shall 
be returned to the beneficiaries via the coordinator, subject any offsetting of amounts due to 
the Community
 
6.  If contributions of beneficiaries of grant agreements under 7th Framework Programme have 
been used, the Commission  shall  deduct from the amount to be returned to each of the 
beneficiaries of this project an amount equal to: 
 
“contribution of this project” X “Fund index” 
 
The “Fund index” shall equal the ratio “contribution used”/”total contributions to the fund”, 
as established at the end of each month by the Bank to be applied during the following 
month. The applicable “Fund index” shall be that of the month [in which the project 
ends][in which the final payment is effected]. 
 
That deduction shall not exceed one per cent of the Community financial contribution due to 
a  beneficiary and shall not apply to amounts due to public bodies or legal entities whose 
participation in the grant agreement is guaranteed by a Member State or an Associated 
country
, and higher and secondary education establishments. 
 
 
 
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SECTION 3 – CONTROLS, RECOVERIES AND SANCTIONS 
 
II.22. 
Financial audits and controls 
1. 
The Commission may, at any time during the grant agreement and up to five years after the 
end of the project, arrange for financial audits to be carried out, by external auditors, or by 
the  Commission departments themselves including OLAF.  The audit procedure shall be 
deemed to be initiated on the date of receipt of the relevant letter sent by the Commission.  
Such audits may cover financial,  systemic  and other aspects (such as accounting and 
management principles) relating to the proper execution of the grant agreement. They shall 
be carried out on a confidential basis. 
2. 
The  beneficiaries  shall make available directly to the Commission all detailed information 
and  data that may be requested by the Commission  or any representative authorised by it, 
with a view to verifying that the grant agreement  is properly managed and performed in 
accordance with its provisions and that costs have been charged in compliance with it. This 
information and data must be precise, complete and effective. 
3. 
The beneficiaries shall keep the originals or, in exceptional cases, duly authenticated copies 
–including electronic copies-, of all documents relating to the grant agreement for up to five 
years from the end of the project. These shall be made available to the Commission where 
requested during any audit under the grant agreement
4. 
In order to carry out these audits, the beneficiaries shall ensure that the Commission's 
departments and any external body(ies) authorised by it have on the spot access  at all 
reasonable times, notably to the beneficiary's offices, to its computer data, to its accounting 
data  and to all the information needed to carry out those audits, including information on 
individual salaries of persons involved in the project. They shall ensure that the information 
is readily available on the spot at the moment of the audit and, if so requested, that data be 
handed over in an appropriate form. 
5. 
On the basis of the findings made during the financial audit, a provisional report shall be 
drawn up. It shall be sent by the Commission  or its authorised representative  to the 
beneficiary concerned, who may make observations thereon within one month of receiving 
it. The Commission may decide not to take into account observations conveyed or 
documents sent after that deadline. The final report shall be sent  to the beneficiary 
concerned within two months of expiry of the aforesaid deadline.  
6. 
On the basis of the conclusions of the audit, the Commission shall take all appropriate 
measures which it considers necessary, including the issuing of a recovery order regarding 
all or part of the payments made by it and the application of any applicable sanction. 
7. 
The European Court of Auditors shall have the same rights as the Commission, notably right 
of access, for the purpose of checks and audits, without prejudice to its own rules. 
8. 
In addition, the Commission may carry out on-the-spot checks and inspections in accordance 
with Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-
the-spot checks and inspections carried out by the Commission in order to protect the 
European Communities’ financial interests against fraud and other irregularities16 and 
Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 
                                                 
16   OJ L 292, 15.11.1996, p.2. 
 
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1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF)17 
Council Regulation (Euratom) No 1074/1999 of 25 May 1999 concerning investigations 
conducted by the European Anti-Fraud Office (OLAF)18.  
II.23. 
Technical reviews 
1.  The Commission may initiate a technical review at any time during the implementation of 
the project and up to the date of the final payment. The aim of a technical review shall be 
to assess the work carried out under the project over a certain period, inter alia  by 
evaluating the project reports and deliverables relevant to the period in question.  Such 
reviews may cover scientific, technological and other aspects relating to the proper 
execution of the project and the grant agreement.  
2.  With respect to the Description of work (Annex I), the review shall objectively establish: 
-  the degree of fulfilment of the project work plan for the relevant period and of the 
related deliverables  
-  the continued relevance of the objectives and breakthrough potential with respect to the 
scientific and industrial state of the art, 
-  the resources planned and utilised in relation to the achieved progress, in a manner 
consistent with the principles of economy, efficiency and effectiveness, 
-  the management procedures and methods of the project , 
-  the beneficiaries’ contributions and integration within the project, 
-  the expected potential impact in economic, competition and social terms, and the 
beneficiaries' plans for the use and dissemination of foreground
 
3.  The review shall be deemed to be initiated on the date of receipt by the beneficiary(ies) of 
the relevant letter sent by the Commission.  
4.  Any such review shall be carried out on a confidential basis. 
5.  The  Commission  may be assisted in the technical review by external scientific or 
technological experts.  Prior to the carrying out of the evaluation task, the Commission 
shall communicate to the beneficiaries the identity of the appointed experts. The 
beneficiary(ies) shall have the right to refuse the participation of a particular external 
scientific or technological expert on grounds of commercial confidentiality. 
6.  The review may be carried out remotely at the expert's home or place of work or involve 
sessions with project representatives either at the Commission premises or at the premises 
of  beneficiaries.  The  Commission or the external scientific or technological expert may 
have access to the locations and premises where the work is being carried out, and to any 
document concerning the work.  
7.  The beneficiaries shall make available directly to the Commission all detailed information 
and data that may be requested by it or the external scientific or technological expert with 
a view to verifying that the project is being properly implemented and performed in 
accordance with the provisions of this grant agreement
                                                 
17   OJ L 136, 31.5.1999 
18   OJ L 136, 31.5.1999 
 
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8.  A report on the outcome of the review shall be drawn up. It shall be sent by the 
Commission to the beneficiary concerned, who may make observations thereon within one 
month of receiving it. The Commission may decide not to take into account the 
observations conveyed after that deadline.  
9.  An ethics audit may be undertaken at the discretion of the Commission Services.   
10. On the basis of the experts' formal recommendations the Commission will inform the 
coordinator of its decision: 
-  to allow the project to continue without modification or with minor modifications after 
approval of the deliverables or; 
-  to consider that the project can only continue with major modifications or;  
-  to initiate the termination of the grant agreement or of the participation of any 
beneficiary according to Article II. 38. 
II.24. 
Liquidated damages and financial penalties 
A. 
Liquidated damages 
1. 
beneficiary that is found to have overstated any amount and which  has therefore received 
an unjustified financial contribution from the Community  shall,  without prejudice to any 
other measures provided for in this grant agreement,  be liable to pay damages,  hereinafter 
"liquidated damages". Liquidated damages are due in addition to the recovery of the 
unjustified financial contribution from the beneficiary. 
2. 
Any amount of liquidated damages shall be proportionate to the overstated amount and the 
unjustified  part  of the Community contribution. The following formula shall be used to 
calculate liquidated damages: 
Liquidated damages = unjustified financial contribution  x (overstated amount/ total 
amount claimed) 

The calculation of any liquidated damages shall only take into consideration the period 
relating to the beneficiary’s claim for the Community financial contribution for that period. 
It shall not be calculated in relation to the entire Community financial contribution.  
3. 
The  Commission shall inform the beneficiary  which it considers liable to pay liquidated 
damages in writing of its claim by way of a registered letter with acknowledgement of 
receipt. The beneficiary shall have a period of 30 days to answer the Community's claim. 
4. 
The procedure for repayment of unjustified financial contribution and for payment of 
liquidated damages will be determined in accordance with the provisions of Article II.25. 
Liquidated damages will be deducted from any further payment or will be subject to 
recovery by the Commission
5. 
The Commission shall be entitled to liquidated damages in respect of any overstated amount 
which comes to light after the grant agreement has been completed, in accordance with the 
provisions of paragraphs 1 to 4. 
 
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B. 
Financial penalties 
1.  A  beneficiary  that has been guilty of making false declarations or has been found to have 
seriously failed to meet its obligations under this grant agreement shall be liable to financial 
penalties of between 2% and 10% of the value of the Community financial contribution 
received by that beneficiary.  The rate may be increased to between 4% and 20% in the event 
of a repeated offence within five years following the first infringement.  
2.  In the cases of paragraph 1, beneficiaries shall be excluded from all grants for a maximum of 
two years from the date the infringement has been established.  
3.  The provisions in this Article shall be without prejudice to any administrative or financial 
sanction that may be imposed on any defaulting beneficiary in accordance with the Financial 
Regulation
 or to any other civil remedy to which the Community or any other beneficiary may 
be entitled. Furthermore, these provisions shall not preclude any criminal proceedings which 
may be initiated by the Member States' authorities.  
 
II.25. 
Reimbursement to the Commission and recovery orders  
1. 
Where an amount, paid by the Commission to the coordinator in his capacity of recipient of 
all payments, is to be recovered under the terms of this grant agreement, the coordinator 
undertakes to repay the Commission the sum in question, on whatever terms and by 
whatever date it may specify, even if the coordinator has not been the final recipient of the 
amount due. In the latter case, if payment has not been made by the due date, the 
Commission reserves the right to recover directly the amount due from the final recipient. 
2. 
If the obligation to pay the amount due is not honoured by the date set by the Commission
the sum due shall bear interest at the rate indicated in Article II.5. Interest on late payment 
shall cover the period between the date set for payment, exclusive and the date on which the 
Commission receives full payment of the amount owed, inclusive. 
Any partial payment shall first be entered against charges and interest on late payment and 
then against the principal. 
3. 
If payment has not been made by the due date, sums owed to the Commission may be 
recovered by offsetting them against any sums owed to the beneficiary concerned, after 
informing the latter accordingly, or by calling in the guarantee mechanism  provided for in 
Article II.21. In exceptional circumstances, justified by the necessity to safeguard the 
financial interests of the Communities, the Commission may recover by offsetting before the 
due date of the payment. The beneficiary’s prior consent shall not be required. 
4. 
The beneficiary understands that under Article 256 of the Treaty establishing the European 
Community,  Articles 164 and 192 of the Treaty establishing the European Atomic Energy 
Community  and as provided by the Financial Regulation, the Commission may adopt an 
enforceable decision formally establishing an amount as receivable from persons other than 
States. 
 
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Part C 
          INTELLECTUAL PROPERTY RIGHTS,  USE AND 
DISSEMINATION 
SECTION 1 – FOREGROUND 
II.26. 
Ownership 
1. 
Foreground shall be the property of the beneficiary carrying out the work generating that 
foreground
2. 
Where several beneficiaries have jointly carried out work generating foreground and where 
their respective share of the work cannot be ascertained, they shall have joint ownership of 
such  foreground. They shall establish an agreement6 regarding the allocation and terms of 
exercising that joint ownership. 
However, where no joint ownership agreement has yet  been concluded, each of the joint 
owners shall be entitled to grant non-exclusive licences to third parties, without any right to 
sub-licence, subject to the following conditions: 
a)  at least 45 days prior notice must be given to the other joint owner(s); and 
b) fair and reasonable compensation must be provided to the other joint owner(s). 
3. 
If employees or other personnel working for a beneficiary are entitled to claim rights to 
foreground, the beneficiary shall ensure that it is possible to exercise those rights in a 
manner compatible with its obligations under this grant agreement
II.27. 
Transfer 
1. 
Where a beneficiary transfers ownership of foreground, it shall pass on its obligations 
regarding that foreground to the assignee including the obligation to pass those obligations 
on to any subsequent assignee. 
2. 
Subject to its obligations concerning confidentiality such as in the framework of a merger or 
an acquisition of an important part of its assets, where a beneficiary is required to pass on its 
obligations to provide access rights, it shall give at least 45 days prior notice to the other 
beneficiaries  of the envisaged transfer, together with sufficient information concerning the 
envisaged new owner of the foreground to permit them to exercise their access rights.  
However, the beneficiaries may, by written agreement, agree on a different time-limit or 
waive their right to prior notice in the case of transfers of ownership from one beneficiary to 
a specifically identified third party.  
3. 
Following notification in accordance with paragraph 2, any other beneficiary may object 
within 30 days of the notification or within a different time-limit agreed in writing, to any 
envisaged transfer of ownership on the grounds that it would adversely affect its access 
rights

                                                 

The joint owners may of course agree not to continue with joint ownership but decide on an alternative regime 
(for example, a single owner with access rights for the other beneficiaries that transferred their ownership share). 
 
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Where any of the other beneficiaries demonstrate that their access rights would be adversely 
affected, the intended transfer shall not take place until agreement has been reached between 
the beneficiaries concerned. 
4.  
Where a beneficiary intends to transfer ownership of foreground to a third party established 
in a third country not associated to the Seventh Framework Programme, the Commission 
may object to such a transfer of ownership of foreground, if it considers that this is not in 
accordance with the interests of developing the competitiveness of the European economy or 
is inconsistent with ethical principles or security considerations. 
In such cases, the transfer of ownership shall not take place unless the Commission is 
satisfied that appropriate safeguards will be put in place. 
In  projects funded by the European Atomic Energy Community, security considerations 
must be understood as being the defence interests of the Member States within the meaning 
of Article 24 of the Treaty establishing the European Atomic Energy Community. 
II.28. 
Protection 
1. 
Where foreground is capable of industrial or commercial application, its owner shall provide 
for its adequate and effective protection, having due regard to its legitimate interests and the 
legitimate interests, particularly the commercial interests, of the other beneficiaries
Where a beneficiary which is not the owner of the foreground invokes its legitimate interest, 
it must, in any given instance, show that it would suffer disproportionately great harm. 
2. 
Patent applications relating to foreground, filed by or on behalf of a beneficiary must 
include the following statement to indicate that said foreground was generated with the 
assistance of financial support from the Community
The work leading to this invention has received funding from the [European 
Community's] [European Atomic Energy Community's] Seventh Framework 
Programme ([FP7/2007-2013
] [FP7/2007-2011]) under grant agreement n° [xxxxxx].
Furthermore, all patent applications relating to foreground filed before the end of a reporting 
period shall be reported in the plan for the use and dissemination of foreground, including 
sufficient details/references to enable the Commission to trace the patent (application). Any 
such  filing  arising after the final report must be notified to the Commission including the 
same details/references. 
3. 
Where the foreground is capable of industrial or commercial application and its owner does 
not protect it and does not transfer it to another beneficiary, to an affiliated entity established 
in a Member State or Associated country or to any other third party established in a Member 
State or Associated country along with the associated obligations in accordance with Article 
II.27,  no  dissemination activities relating to said foreground  may take place before the 
Commission has been informed. The Commission must be informed at the latest 45 days 
prior to the intended dissemination activity. 
In such cases, the Community may, with the consent of the beneficiary concerned, assume 
ownership of that foreground and adopt measures for its adequate and effective protection. 
                                                 
7  This statement will have to be translated into the language of the patent filing. Translations in all Community 
languages will be provided. 
 
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The beneficiary concerned may refuse consent only if it can demonstrate that its legitimate 
interests would suffer disproportionately great harm.  
In the event the Community assumes ownership, it shall take on the obligations regarding the 
granting of access rights
II.29. 
Use 
1.  
The beneficiaries shall use the foreground which they own or ensure that it is used.  
2.  
The beneficiaries shall report on the expected use to be made of foreground in the plan for 
the  use and dissemination of foreground. The information must be sufficiently detailed to 
permit the Commission to carry out any related audit. 
II.30. 
Dissemination 
1. 
Each beneficiary shall ensure that the foreground of which it has ownership is disseminated 
as swiftly as possible. If it fails to do so, the Commission may disseminate that foreground.  
2. 
Dissemination activities shall be compatible with the protection of intellectual property 
rights, confidentiality obligations and the legitimate interests of the owner(s) of the 
foreground
 
In  projects funded by the European Atomic Energy Community,  dissemination activities 
shall also be compatible with the defence interests of the Member States within the meaning 
of Article 24 of the Treaty establishing the European Atomic Energy Community. 
3.  
At least 45 days prior notice of any dissemination activity shall be given to the other 
beneficiaries concerned, including sufficient information concerning the planned 
dissemination activity and the data envisaged to be disseminated. 
Following notification, any of those beneficiaries may object within 30 days of the 
notification to the envisaged dissemination activity if it considers that its legitimate interests 
in relation to its foreground or background could suffer disproportionately great harm. In 
such cases, the dissemination activity may not take place unless appropriate steps are taken 
to safeguard these legitimate interests. 
The  beneficiaries may agree in writing on different time-limits  to  those set out in this 
paragraph, which may include a deadline for determining the appropriate steps to be taken. 
4.  
All publications or any other dissemination relating to foreground shall include the 
following statement to indicate that said foreground was generated with the assistance of 
financial support from the Community
The  research leading to these results has received funding from  the [European 
Community's] [European Atomic Energy Community's] Seventh Framework 
Programme ([FP7/2007-2013
]  [FP7/2007-2011]) under grant agreement n° [xxxxxx]. 8 
Any  dissemination activity shall be reported in the plan for the use and dissemination of 
foreground, including sufficient details/references to enable the Commission to trace the 
                                                 
8  This statement will have to be translated into the language of the dissemination activity. Translations in all 
Community languages will be provided. 
 
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activity.  With regard to scientific publications relating to foreground published before or 
after the final report, such details/references and an abstract of the publication must be 
provided to the Commission at the latest two months following publication. Furthermore, an 
electronic copy of the published version or the final manuscript accepted for publication 
shall also be provided to the Commission at the same time for the purpose set out in Article 
II.12(2) if this does not infringe any rights of third parties. 
SECTION 2 – ACCESS RIGHTS 
II.31. 
Background covered 
Beneficiaries may define the background needed for the purposes of the project in a written 
agreement and, where appropriate, may agree to exclude specific background9.  
II.32. 
Principles 
1. 
All requests for access rights shall be made in writing. 
2. 
The granting of access rights may be made conditional on the acceptance of specific 
conditions aimed at ensuring that these rights will be used only for the intended purpose and 
that appropriate confidentiality obligations are in place. 
3. 
Without prejudice to their obligations regarding the granting of access rightsbeneficiaries 
shall inform each other as soon as possible of any limitation to the granting of access rights 
to  background, or of any other restriction which might substantially affect the granting of 
access rights
4. 
The termination of the participation of a beneficiary shall in no way affect the obligation of 
that beneficiary to grant access rights to the remaining beneficiaries. 
5. 
Unless otherwise agreed by the owner of the foreground or backgroundaccess rights shall 
confer no entitlement to grant sub-licences. 
6. 
Without prejudice to paragraph 7, any agreement providing access rights to foreground or 
background to beneficiaries or third parties must ensure that potential access rights for other 
beneficiaries are maintained. 
7. 
Exclusive licences for specific foreground or background may be granted subject to written 
confirmation by all the other beneficiaries that they waive their access rights thereto. 
8. 
However, where a beneficiary intends to grant an exclusive licence to foreground to a third 
party established in a third country not associated to the Seventh Framework Programme, 
the Commission may object to the granting of such an exclusive licence, if it considers that 
this is not in accordance with the interests of developing the competitiveness of the 
European economy or is inconsistent with ethical principles or security considerations.  
                                                 

Such an exclusion may be temporary (e.g. to permit the adequate protection of the background prior to providing 
access) or limited (e.g. to exclude only one or more specific beneficiaries).  As  background is by  definition 
considered to be needed for implementation or use, the impact of such an exclusion on the project, particularly 
regarding an exclusion which does not have a temporary character, should be examined by the beneficiaries.   
 
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In such cases, the exclusive licence shall not take place unless the Commission is satisfied 
that appropriate safeguards will be put in place. 
In projects funded by the European Atomic Energy Community, the Commission may also 
object to the intended grant of any non-exclusive licence to a third party established in a 
third country not associated to the Seventh Framework Programme on the same conditions 
as set out in this sub-paragraph. Security considerations shall in case of such projects be 
understood as being the defence interests of the Member States within the meaning of 
Article 24 of the Treaty establishing the European Atomic Energy Community. 
II.33. 
Access rights for implementation 
1.  
Access rights to foreground shall be granted to the other beneficiaries, if it is needed to 
enable those beneficiaries to carry out their own work under the project
Such access rights shall be granted on a royalty-free basis. 
2. 
Access rights to background shall be granted to the other beneficiaries, if it is needed to 
enable those beneficiaries to carry out their own work under the project provided that the 
beneficiary concerned is entitled to grant them. 
Such  access rights shall be granted on a royalty-free  basis, unless otherwise agreed by all 
beneficiaries before their accession to this agreement. 
II.34. 
Access rights for use 
1. 
Beneficiaries shall enjoy access rights to foreground, if it is needed to use their own 
foreground
Subject to agreement, such access rights shall be granted either under fair and reasonable 
conditions
 or be royalty-free. 
2. 
Beneficiaries shall enjoy access rights to background, if it is needed to use their own 
foreground provided that the beneficiary concerned is entitled to grant them. 
Subject to agreement, such access rights shall be granted either under fair and reasonable 
conditions
 or be royalty-free. 
3. 
An  affiliated entity established in a Member State or Associated country shall also enjoy 
access rights, referred to in paragraphs 1 and 2, to foreground or background under the 
same conditions as the beneficiary to which it is affiliated, unless otherwise provided for in 
the consortium agreement. As the access rights referred to in paragraphs 1 and 2 require that 
access is needed to use own foreground, this paragraph only applies if  ownership of 
foreground was (partially) transferred to an affiliate entity established in a Member State or 
Associated country.  The  beneficiaries may provide for  additional arrangements regarding 
such  access rights in their consortium agreement, including regarding  any  notification 
requirements. 
4. 
A request for access rights under paragraphs 1, 2 or 3 may be made up to one year after 
either of the following events: 
a)  the end of the project; or 
 
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b)  termination of participation by the owner of the background or foreground 
concerned. 
However, the beneficiaries concerned may agree on a different time-limit10. 
 
FINAL PROVISIONS 
 
 
II.35. 
Requests for amendments and termination at the initiative 
of the consortium 
 
1. 
Requests for amendments and termination shall be signed by the legal representative of the 
parties and submitted in accordance with Article 8. Any request or acceptance by the 
consortium or a beneficiary(ies) shall be submitted by the coordinator. The coordinator is 
deemed to act on behalf of all beneficiaries when signing a request, an acceptance or 
rejection letter concerning an amendment as well as when requesting a termination.  The 
coordinator shall ensure that adequate proof of the consortium’s agreement to such an 
amendment or termination exists and is made available in the event of an audit or upon 
request of the Commission.  
2. 
In the case of change of coordinator without its agreement, the request shall be submitted by 
all other beneficiaries or by one of them representing the others. 
3. 
A request for amendment including more than one modification to the agreement shall be 
considered a package that cannot be separated into several requests and shall be approved or 
rejected by the other party as a whole, except where the request explicitly states that it 
contains separate requests that can be approved independently. 
4. 
Requests for the addition of a new beneficiary shall include a completed Form B (Annex 
V), duly signed by such new entity. Any addition is subject to the conditions required by the 
Rules for Participation, the related call for proposals and the Financial Regulation.  Such 
additional entity shall assume the rights and obligations of beneficiaries as established by 
the grant agreement with effect from the date of their accession specified in the signed Form 
B
5. 
The  amendments  may not have the purpose or the effect of making changes to the 
agreement which might call into question the decision awarding the grant or result in 
unequal treatment of the beneficiaries. 
6. 
Requests for termination of the participation of one or more beneficiaries shall include:  
-  the  consortium’s proposal for reallocation of the tasks and budget of that 
beneficiary,  
-  the reasons for requesting the termination,  
-  the proposed date on which the termination shall take effect,  
                                                 
10 This can be a longer or shorter time-limit.  
 
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-  a letter containing the opinion of the beneficiary whose participation is 
requested to be terminated and  
-  the reports and deliverables referred to in Article II.4, relating to the work 
carried out by this beneficiary up to the date  on which the termination takes 
effect, together with a comment of the coordinator on behalf of the consortium 
on these reports and deliverables and a declaration on distribution of payments 
to this beneficiary by the coordinator.  
In the absence of receipt of such documents, the request shall not be considered as a valid 
request.  
The letter containing the opinion of the beneficiary concerned can be substituted by proof 
that this beneficiary has been requested in writing to express its opinion on the proposed 
termination of its participation and to send the reports and deliverables but failed to do so 
within the time-limit established by that notification. This time-limit shall not be inferior to 
one month. In this case, if no reports have been submitted with the request for termination, 
the  Commission shall not take into account any further cost claims of that beneficiary and 
shall not make any further reimbursement for it.  
Unless otherwise agreed with the Commission, all the tasks of the beneficiary whose 
participation is terminated must be reallocated within the consortium
Consortium requests for termination of the grant agreements shall  provide the justification 
for termination and the reports and deliverables referred to in Article II.4  relating to the 
work carried out up to the date on which the termination takes effect. 
II.36. 
Approval of amendments and termination requested by 
the consortium  
1.  The  parties  to this grant agreement undertake to approve or reject any valid request for an 
amendment or termination within 45 days of its receipt.  The absence of a response within 45 
days of receipt of such a request shall be considered as a rejection. 
2.  By derogation to paragraph 1, when the consortium requests the addition or the termination of 
the participation of a beneficiary, the absence of a response from the Commission within 45 
days of receipt of such a request constitutes approval, except in cases of absence of the 
agreement of the beneficiary concerned and in cases of appointment of a new coordinator, 
which shall require the written approval of the Commission 
Where the Commission does not object within this period, it is deemed to have approved the 
request on the last day of the time-limit.  The  Commission undertakes to send a letter for 
information purposes in case of tacit approval.  
Where the request for the addition or removal of a beneficiary is associated with requests for 
other modifications to the grant agreement which are not directly related to this addition or 
removal, the whole request shall be subject to written approval by the Commission
3.  The Commission approval of the requested amendment or termination shall be notified to the 
coordinator, which receives it on behalf of the consortium  In  case of termination of the 
participation of one or more beneficiaries, the Commission shall send a copy to the beneficiary 
concerned. 
 
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4.   Amendments and terminations shall take effect on the date agreed by the parties; where there 
is no date specified they shall take effect on the date of the Commission’s approval. 
II.37. 
Competitive calls 
1.  When required by the terms of Annex I, the consortium shall identify and propose to the 
Commission  the participation of new beneficiaries following a competitive call in accordance 
with the provisions of this Article. 
 
2.  The consortium shall publish the competitive call at least in one international journal and in 
three different national newspapers in three different Member States or Associated countries. It 
shall also be responsible for advertising the call widely using specific information support, 
particularly Internet sites on the Seventh Framework Programme, the specialist press and 
brochures and through the national contact points set up by Member States and Associated 
countries
. In addition, the publication and advertising of the call shall conform to any instructions 
and guidance notes established by the Commission. The consortium shall inform the Commission 
of the call and its content at least 30 days prior to its expected date of publication. 
 

The competitive call shall remain open for the submission of proposals by interested parties 
for a period of at least five weeks. 
 
4.  The  consortium shall evaluate offers received in the light of the criteria that governed the 
Commission’s evaluation and selection of the project, defined in the relevant call for proposals, 
and with the assistance of at least two independent experts appointed by the consortium on the 
basis of the criteria described in of the Rules for Participation
 
5.  The  consortium shall notify the Commission of the proposed accession of a new 
beneficiary(ies) in accordance with Article II.35. At the same time, it will inform the Commission 
of the means by which the competitive call was published and of the names and affiliation of the 
experts involved in the evaluation. The Commission may object to the accession of any new 
beneficiary within six weeks of the receipt of the notification. 
 
II.38. 
Termination of the grant agreement or of the participation 
of one or more beneficiaries at the Commission’s initiative  
1. 
The Commission may terminate the grant agreement or the participation of a beneficiary in 
the following cases: 
a)  where one or more of the legal entities identified in Article 1 does not accede to this 
grant agreement
b)  in case of non-performance or poor performance of the work or breach of any substantial 
obligation imposed by this grant agreement that is not remedied following  a written 
request to the consortium to rectify the situation within a period of 30 days;  
c)  where the beneficiary has deliberately or through negligence committed an irregularity 
in the performance of any grant agreement with the Commission;  
d)  where the beneficiary has contravened fundamental ethical principles; 
e)  where the required reports or deliverables are not submitted or the Commission does not 
approve the reports or deliverables submitted; 
 
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f)  for major technical or economic reasons substantially adversely affecting the completion 
of  the project
g)  if the use potential of the project results diminishes to a considerable extent; 
h)  where a legal, financial, organisational or technical change or change of control of a 
beneficiary calls into question the decision of the Commission to accept its participation; 
i)  where any such change identified in h) above or termination of the participation of the 
beneficiary(ies) concerned substantially affects the implementation of the project, or the 
interests of the Community, or calls into question the decision to grant the Community 
contribution; 
j)  in case of force majeure notified in conformity with Article II.40, where any reactivation 
of the project after suspension is impossible; 
k)  where the conditions for participation in the project established by the Rules for 
Participation or as amended by the call for proposals to which the project was submitted 
are no longer satisfied, unless the Commission considers that the continuation of the 
project is essential to the implementation of the specific programme; 
l)  where a beneficiary is found guilty of an offence involving its professional conduct by a 
judgment having the force of res judicata  or if it is guilty of grave professional 
misconduct proven by any justified means; 
m)  where further to the termination of the participation of one or more beneficiaries, the 
consortium does not propose to the Commission an amendment to the grant agreement 
with the necessary modifications for the continuation of the project including the 
reallocation of task of the beneficiary whose participation is terminated within the time-
limit determined by the Commission, or where the Commission  does not accept the 
proposed modifications. 
2. 
Termination of the participation of one or more beneficiaries at the Commission’s initiative 
shall be notified to the beneficiary(ies) concerned, with a copy to the coordinator and shall 
become effective 30 days after its receipt by the beneficiary
The Commission shall inform the consortium of the effective date of termination. 
In the case of termination of the grant agreement, the coordinator shall be notified, who 
shall in turn notify all the other beneficiaries and the termination shall become effective 45 
days after receipt by the coordinator. 
3. 
Within 45 days after the effective date of termination, the beneficiary(ies)  whose 
participation is terminated shall submit (through the coordinator)  all required reports and 
deliverables referred to in Article II.4 relating to the work carried out up to that date. In the 
absence of receipt of such documents within the above  time-limits, the Commission may, 
after providing 30 days notice in writing of the non-receipt of such documents, determine 
not to take into account any further cost claims and not to make any further reimbursement 
and, where appropriate, require the reimbursement of any pre-financing  due by the 
beneficiary(ies)
4. 
The consortium has up to 30 days after the effective date of termination of the beneficiary’s 
participation to provide the Commission with information on the share of the Community 
contribution that has been effectively transferred to such beneficiary since the beginning of 
the project
 
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5. 
In the absence of receipt of such information within the time-limits, the Commission shall 
consider that the beneficiary whose participation is terminated owes no money to the 
Commission and that the Community contribution already paid is still at the disposal of the 
consortium and under its responsibility. 
6. 
Based on documents and information referred to in the  paragraphs above, the Commission 
shall establish the debt owed by the beneficiary whose participation is terminated.  
7. 
Where the participation of one or more beneficiaries  is terminated,  the  beneficiary(ies) 
whose participation is terminated shall reimburse the amount due to the Commission or 
transfer it to the consortium  as requested by the Commission, within 30 days. The 
Commission shall send a copy of such a request to the coordinator. In the latter case, the 
consortium shall inform the Commission at the latest 10 days after the end of this time-limit 
if the amount was transferred to it.  
8. 
Where the grant agreement is terminated, the Commission shall establish the debt owed by 
the consortium and notify it to the coordinator
II.39. 
Financial contribution after termination and other 
termination consequences  
1. 
In the event of termination any financial contribution from the Community is limited to those 
eligible costs incurred and accepted up to the effective date of such termination and of any 
legitimate commitments taken prior to that date, which cannot be cancelled.  
2. 
By derogation to the above paragraph: 

in the case of Article  II.38.1.a), no costs incurred by the consortium under the project 
can be approved or accepted as eligible for reimbursement by the Community.  Any pre-
financing
 provided to the consortium and any interest generated by the pre-financing 
must be returned in full to the Commission. 

in the case of Article  II.38.1.b), any financial contribution from the Community is 
limited to those eligible costs incurred up to the date of receipt of the written request to 
rectify the breach. 
3. 
In addition, in the cases of Article II.38.1.b), c), d) l)  and m) the Commission may require 
reimbursement of all or part of the Community's financial contribution. In the case of Article 
II.38.1.b) and m) the Commission shall take 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 
4. 
Reports and deliverables submitted in the framework of a termination are deemed to be 
submitted at the end of the corresponding reporting period. 
5. 
Where the Community makes a payment after the termination of the participation of a 
beneficiary or after termination of the grant agreement, this payment shall be considered as 
a final payment in relation to such beneficiary(ies) or the project, respectively and in any 
case shall be done through the coordinator
Notwithstanding the termination of the grant agreement or the participation of one or more 
beneficiaries, the provisions identified in Articles II.9, II.10, II.11, II.12, II.22, II.23, II.24, II.25, 
II.35, II.36, II.38, II.41, II.42  and Part C of Annex II continue to apply after the termination of the 
grant agreement  or the termination of the participation of such beneficiary(ies). 
 
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II.40. 
Force majeure 
1. 
Force majeure shall mean any unforeseeable and exceptional event affecting the fulfilment 
of any obligation under this grant agreement by the parties, which is beyond their control 
and cannot be overcome despite their reasonable endeavours. Any default of a product or 
service or delays in making them available for the purpose of performing this grant 
agreement
 and affecting such performance, including, for instance, anomalies in the 
functioning or performance of such product or service, labour disputes, strikes or financial 
difficulties do not constitute force majeure. 
2. 
If any of the beneficiaries is subject to force majeure liable to affect the fulfilment of its 
obligations under this grant agreement, the consortium shall notify without delay the 
Commission, stating the nature, likely duration and foreseeable effects.  
3. 
If the Community is subject to force majeure liable to affect the fulfilment of its obligations 
under this grant agreement, it shall notify without delay the consortium, stating the nature, 
likely duration and foreseeable effects.  
4. 
No party shall be considered to be in breach of its obligation to execute the project if it has 
been prevented from complying by force majeure. Where beneficiaries cannot fulfil their 
obligations to execute the project due to force majeure, remuneration for accepted eligible 
costs incurred may be made only for tasks which have actually been executed up to the date 
of the event identified as force majeure. All necessary measures shall be taken to limit 
damage to the minimum. 
II.41. 
Assignment  
 
The  beneficiaries shall not assign any of the rights and obligations arising from the grant 
agreement 
except those cases provided for in Article 27 (transfer of foreground), without the prior 
and written authorisation of the Commission and the other beneficiaries.  
II.42. 
Liability  
1. 
The  Community cannot be held liable for any acts or omissions of the beneficiaries in 
relation to this grant agreement. It shall not be liable for any defaults of any products, 
processes or services created on the basis of foreground, including, for instance, anomalies 
in the functioning or performance thereof.  
2. 
Each beneficiary fully guarantees the Community, and agrees to indemnify it, in case of any 
action, complaint or proceeding brought by a third party against the Community as a result 
of damage caused, either by any of its acts or omissions in relation to this grant agreement
or by any products, processes or services created by it on the basis of foreground resulting 
from the project. 
In the event of any action brought by a third party against a beneficiary in connection with 
the performance of this grant agreement, the Commission may assist the latter upon written 
request. The costs incurred by the Commission in this connection shall be borne by the 
beneficiary concerned.  
 
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3. 
Each  beneficiary  shall bear sole responsibility for ensuring that their acts within the 
framework of this project do not infringe third parties rights.  
4. 
The Community cannot be held liable for any consequences arising from the proper exercise 
of the rights of the Community under the Rules for Participation or this grant agreement.  
 
 
 
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