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Table of ContentsINTRODUCTIONThe ECSC Steel RTD Programme (1996-2002)

1. ECSC STEEL RTD PROGRAMME (1996-2002)ObjectivesTechnical AreasImplementationCalls for Proposals

2. WHO CAN PARTICIPATE?From Member StatesFrom Other Countries

3. WHAT ARE THE CRITERIA FOR PROPOSALS?Relations with Other ProgrammesEligibility

4. HOW TO PREPARE AND WRITE A PROPOSALHow to Write a ProposalFurther InformationSubmissionDeadlinesAcknowledgement of Receipt and Data-check

5. EVALUATION AND SELECTION OF PROPOSALSThe Procedure for SelectionThe Steel Research and Development Committee

6. CONTRACTS - PROCEDURES AND PRINCIPLESGeneral ProceduresCommunity AidECSC RTD Model Contract - Main Principles

7. THE PROJECTSMonitoring of ProjectsTechnical ReportsPublications and PatentsFinancial Matters

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8. INFORMATION AND ASSISTANCEDatabases and Services

Annex I Medium-term Guidelines (1996-2002)Modification to the Medium-term Guidelines (1996-2002)

Annex II Application Form and Acknowledgement of Receipt

Annex III Data-check Letter

Annex IV ECSC RTD Model Contract and AnnexesAnnex I - Technical AnnexAnnex II - General ConditionsAnnex III - Scientific and Technical DocumentsAnnex IV - Research ProjectsAnnex IV - Pilot/Demonstration ProjectsAnnex V - Special Conditions

Annex V Proposed Model Subcontract

Annex VI ECSC Steel Executive Committees and Expert Groups

Annex VII Research Annual Reports

Annex VIII Pilot/Demonstration Six-Monthly Reports

Annex IX Research Interim Reports (Research Six-Monthly Reports)

Annex X (Draft) Final Reports

Annex XI Preparing Typescripts of Documents

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IntroductionTHE ECSC STEEL RTD PROGRAMME (1996-2002)

Pursuant to the terms of Article 55 of the ECSC Treaty, the Commission "shall promote technical and economic research relating to the production and increased use of coal and steel and to occupational safety in the coal and steel industries".

In addition, the Treaty establishing the European Community states in article 130f, that "the Community shall have the objective of strengthening the scientific and technological bases of Community industry and encouraging it to become more competitive at international level, ...".

During its 40 years of existence, ECSC steel research has supported the efforts of the steel industry by increasing overall research efficiency, enabling the steel industry to tackle jointly large projects which could not have been carried out by individual companies, and creating throughout the Member States a network of researchers, through which there is an effective exchange of information related to the projects and their results. In this way, ECSC steel research has become an essential complement to the companies' own activities, promoting international co-operation through joint programming and execution of projects.

The task assigned to the Commission by the ECSC Treaty, concerning RTD related to the production and use of steel, has been implemented through a programme divided into two RTD sectors:· steel research projects;· steel pilot and demonstration projects.

The programme promotes collaboration between the steel industry and its research laboratories on the one hand, and complementary centres of expertise in industry, universities and research institutes on the other. The majority of the projects are of multi-partner and multi-national composition.

Guidelines for this programme are established periodically to reflect the industry's changing scientific and technological priorities. The current guidelines cover the period 1996 to 2002. They incorporate the requirements for future steel research and development for the period up to 2002, the date of expiry of the ECSC Treaty. Their implementation is subject to annual budgetary funding decisions.

In anticipation of the termination of the ECSC Treaty, the Commission has created the possibility for some steel research activities carried out until now under the ECSC Treaty to be incorporated progressively into other Community

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programmes, mainly the Framework Programme under article 130i of the Treaty establishing the European Community.

The orientation of the Framework Programme emphasises generic, pre-competitive research of multi-sectoral applications. Therefore, only part of the current activities can be incorporated into the Fourth Framework Programme; ECSC research activities should focus on the remaining parts, i.e. specific steel technologies and pilot and demonstration projects.

Note: in view of the expiry of the ECSC Treaty, research activities linked with steel product and process innovation will gradually be taken over in the context of the framework programme, on condition that the precompetitive and multi-sectoral nature is respected.

The following pages are intended to assist organisations and persons who are interested in submitting an application for financial support by the ECSC in a research project or in a pilot/demonstration project under the ECSC Steel RTD Programme and contain a set of instructions for the execution of these projects in case the proposals are successful and followed up by a contract.

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1. ECSC Steel RTD Programme (1996-2002)OBJECTIVES

The main objective of the ECSC steel RTD Programme, resulting from article 55 of the ECSC Treaty, is to sustain and develop the European steel industry's competitiveness in changing industrial, commercial and political contexts. The major goals are:· to reduce production costs;· to improve quality;· to sustain the outlets for steel in its traditional markets and to develop

new products and markets;· to adapt and develop new production processes and to improve recycling

capability in order to meet increasingly stringent environmental requirements.

Steel oriented RTD activities should be carried out within an integrated approach where topics ranging from raw materials handling to final products are addressed. This process should incorporate a strong feedback of product and environmental requirements into production parameters. It should also take into account and include studies on the most effective options for recycling the product at the end of its life and of recycling, using, or safely disposing of the by-products of the production itself.

Steel oriented RTD actions should consider specific market needs from sectors such as: · automotive industry;· building and construction;· mechanical industries;· consumer products;· energy and industrial reactor vessels and components;· off-shore structures;· packaging;· rail transport.

The guiding principles should be: · market requirements;· life-cycle approach;· rationalisation in processes leading to energy and cost-effective

solutions;· more flexible production allowing smaller production batches and

quicker delivery;· improved quality and reliability;

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· safety of steel products even under extreme conditions;· new high quality steels to create new market opportunities;· effective recyclability;· environmentally friendly concepts.

Environmental awareness should permeate all branches of industry and should form an integral part of new RTD developments in steel production and utilisation. Considering that pollution problems have to be addressed at the design stage for processes and products, RTD activities should support the development of advanced clean technologies for steel production.

RTD actions required to meet the above mentioned needs are given below.

TECHNICAL AREAS

Processes

RTD for the improvement of steel production processes is needed in the following fields:· energy savings and efficient use of materials;· modelling of production processes, process control, automation and

robotization;· maintenance and reliability;· total quality policy, including the development of measuring techniques

to establish product quality and RTD aimed at improving product quality;

· secondary metallurgy techniques;· environmental impact;· recycling including scrap processing and valorisation of by-products.

In integrated steel making plants, economies of scale favour large-scale steelmaking and sequence continuous casting. On the other hand, the market increasingly demands smaller production batches of special types of steels. RTD actions should therefore focus on the development of new technologies which can increase flexibility and cost effectiveness and can produce smaller quantities in a range of qualities and grades. Particular attention should be paid to:· production of virgin iron;· electric arc furnaces;· reducing coke requirements;· near net shape casting;· new rolling, coating and finishing techniques.

These new technologies are expected to streamline steel production considerably.

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Products

Research into the utilisation of steel is essential in meeting the challenge of future steel user requirements and creating new market opportunities. Research in the different application areas mentioned in paragraph 3. should provide a strong feedback for parameters of the steel production processes.

RTD in steel utilisation for a range of applications, is particularly needed in the following fields:· techniques dealing with forming, welding and joining of steels;· coating and surface treatment;· thermal treatment;· improvement of steel properties addressing topics such as: strength, t

toughness, hardness, mechanical properties at high and low temperatures, resistance against fracture, fatigue, wear, corrosion;

· safety, in particular in relation to fire and earthquakes;· steel-containing composites and multi-materials, such as concrete and non-

ferrous materials.

In order for improved and new materials to be rapidly exploited in applications, European actions are needed to make research results rapidly available in the form of clear, simple-to-use guidelines for practising architects and engineers, public authorities dealing with regulations and for education. European RTD is also vital in achieving standardisation for steel applications (e.g. buildings, bridges, offshore installations) on a European level. Eurocodes for steel and steel/concrete structures already play an important role, they consist of simple-to-use design codes which cover aspects such as strength, fatigue, joints, fire and seismic resistance. Eurocodes need to be updated frequently to take into account new developments such as new steel grades and new design criteria.

Environmental protection and recycling

Both in RTD for steel production and in steel utilisation, environmental aspects should form an integral part of the life-cycle approach (e.g. direct reduction of ore as supplied and lower coke requirements will lead to the use of coal instead of coke thus diminishing the need for capital-intensive coking plants with attendant emissions control problems).

In addition, specific environmental RTD is needed:· to assess the impact of production and utilisation of steel on the

environment;· to improve recycling, utilisation or safe disposal of wastes and by- products,

in particular those arising from steel production, with the aims of achieving an economical use of wastes in the form of secondary raw materials.

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In the drive for sustainable development, recycling is becoming increasingly important. Here the potential of steel is large as it offers excellent recycling possibilities. RTD should be focused on the problem of producing steels with the properties required for a range of applications, starting from various types of steel scrap. This problem should be addressed in an integrated way.

In particular RTD is needed in fields such as:· the design and development of steel grades and steel products which

facilitate easy recovery of steel scrap and its conversion into usable steels;

· techniques for the recovery of steel from different types of products and classification of steel scrap (e.g. rapid analysis);

· new processes for pretreating scrap;· modification and adaptation of existing steel making technologies and

the development of new ones, allowing the use of scrap as a base material;

· recovery and recycling of other materials involved with steel such as in alloys and coatings.

IMPLEMENTATION

Under the conditions set out in the communication O.J. 95/C 294, the Commission may grant financial support for research and for pilot and demonstration projects which fall within the scope of the programme and are of interest to the iron and steel sector in general.

Note: the communication O.J. 95/C 294 is given in Annex I.

The projects may be concerned with the production and processing of iron and steel or with the properties, fabrication and utilisation of steel products.

Research Projects

Industrial research is here intended as original theoretical or experimental work whose objective is to achieve new or better understanding of the laws of science and engineering as they might apply to the iron and steel sector.

Pilot and Demonstration Projects

In the pilot and demonstration domain, the pilot stage is characterised by the construction, operation and development of an installation or a significant part of an installation on an adequate scale and using suitably large components with a view to verifying the practicability of theoretical or laboratory results and/or increasing the reliability of the technical and economic data needed to progress to the demonstration stage, and in certain cases to the industrial and/or commercial stage.

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The demonstration stage is characterised by the construction and/or operation of an industrial-scale installation or a significant part of an industrial-scale installation which should make it possible to bring together all the technical and economic data, in order to proceed to industrial and/or commercial exploitation of the technology with the least possible risk.

Preparatory, accompanying and support measures

Preparatory, accompanying and support measures are introduced to make the programme more effective by making it more accessible and enhancing its impact through, for example, the publishing of progress and results of the programme. These measures and actions are implemented by the Commission to complement or co-ordinate research activities. The most important measures may be study contracts, support for conferences, use of external expertise, measures to support the exploitation of research results and measures for the evaluation of the programme.

CALLS FOR PROPOSALS

The programme foresees one call for proposals per year up to 2001 (to be funded by the ECSC budget for 2002). However, it should be remembered that the expiry of the ECSC Treaty, due in 2002, creates uncertainties in the budget allocation for ECSC RTD programmes.

The implementation of the present programme is subject to annual budgetary funding decisions.

Note: for details on application, see Chapter 4.

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2. Who Can Participate?FROM MEMBER STATES

Any undertaking, research institute or natural person, who wishes to carry out research within the meaning of article 55 of the ECSC Treaty and is established in the territory of the Member States, is entitled to submit applications to the Commission for financial aid.

The applicant need not necessarily be directly connected with the iron and steel industry but the project for which support is requested must be within the scope of the programme and of interest to the iron and steel sector in general.

FROM OTHER COUNTRIES

Full participation of undertakings, research institutes or natural persons from non-Member States is not allowed. However, a restricted participation may be allowed, on a project-by-project basis, for international organisations or legal entities from Third Countries having concluded an association agreement with the Community covering research activities. The following two forms of participation are possible.

Scientific/Technical Collaboration without Financial Support from the Community The participation in the form of a scientific/technical collaboration without financial support from the Community should be indicated in the RTD proposal and will be evaluated according to rules (see Chapter 5).

Collaboration as Subcontractor International organisations or legal entities from Third Countries having concluded an association agreement with the Community covering research activities, may participate in an ECSC RTD project as subcontractors. According to rules (see Chapter 1), subcontracts should be approved by the Commission.

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3. What Are the Criteria for Proposals?RELATIONS WITH OTHER PROGRAMMES

Up to a recent past, steel research funded by the European Communities was predominantly carried out within the ECSC programme. The special provisions for steel research in the ECSC Treaty will end when the Treaty expires in 2002. To provide continued support, steel research activities carried out until now under the ECSC Treaty will have to be incorporated progressively into other Community programmes, mainly the Framework Programme.

The Framework Programme results from article 130i of the Treaty establishing the European Community and is aimed at implementing the objectives set out in articles 130f and 130g, such as "strengthening the scientific and technological bases of Community industry ... while promoting all the research activities deemed necessary ...". Within the 4th Framework Programme "Community RTD activities should continue to focus on generic and pre-competitive research of multi-sectoral applications ...". This generic nature thus does not permit full integration of sectoral ECSC steel RTD into the 4th Framework Programme 1994-1998.

Note: see Decision n 1110/94/EC of the European Parliament and of the Council, OJ L 126 of 18 May 1994.

Over the coming years, the ECSC steel RTD Programme and the Framework Programme will run in parallel, providing the iron and steel industry with access to both programmes.

The ECSC steel RTD Programme will give priority to those RTD topics which do not fulfil the conditions required for the Framework Programme and are specific to steel such as:· pilot and demonstration projects;· specific research for steel production processes;· promotion of steel use;· development of new or improved steel grades.

Each year, priorities will take into account the available ECSC funds.On the other hand, RTD proposals of a generic and multi-sectoral nature should be submitted to the Framework Programme.

ELIGIBILITY

Each proposal that is submitted should comply with the aims of the ECSC Steel RTD Programme and is examined on the basis of the conditions set out in the communication O.J. 95/C 294.

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Note: the communication O.J. 95/C 294 is given in Annex I.

The proposals should include a detailed description of the proposed project. Eligible costs are indicated in the application form described in Chapter 4. Please note that costs for PCs are eligible if the computer is used solely for the experimental work within project, e.g. a PC which is connected to a pilot line; PCs for text treatment or model development have to be considered within the overheads.

Note: for details on application, see Chapter 4.

Multi-partner proposals with participation from more than one Member State are encouraged. Those research projects involving only one organisation should not exceed 1 MECU total project cost for a duration of three years. Budgets for larger scale multi-partner projects of major industrial importance may exceed this limit.

For pilot and demonstration projects :· at least one partner must be a steel producer;· the level of participation of each partner must be significant and preferably

should be at least 20% of that part of the total budget funded by the beneficiaries.

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4. How to Prepare and Write a ProposalHOW TO WRITE A PROPOSAL

Each proposal should have a co-ordinator, indicated as the project co-ordinator. The project co-ordinator is responsible for preparing the proposal, which should consist in: · one application form;· all the forms "Information Concerning a Proposer" and "Cost Estimate",

one for each proposer (including the co-ordinator), i.e. each proposer should fill out and sign these forms;

· one short summary of no more than 100 words;· one long summary of no more than 500 words;· one proposal description;· one acknowledgement of receipt.

Note: application and cost estimate forms, and acknow-ledgement of receipt are given in Annex II.

Application form

The application form is for the administrative details of the proposal. This should be filled out by the project co-ordinator.

Cost Estimate

Each proposer should fill out and sign a cost estimate. This has to be signed by the person(s) authorised to enter into commitments on behalf of the proposer and who will later sign the contract, should the proposal be selected for funding. The original version, duly signed, is required.

Proposal Description

The proposal description, prepared under the responsibility of the project co-ordinator, should be clear and concise, and include, in a maximum of 25-30 pages, a detailed description of the proposed project, containing full information on:· the objectives;· the current state-of-the-art in the field of interest;· expected results and prospects for their applications;· breakdown in phases and/or work packages, interim decisions,

milestones, timetable foreseen;· partnership and management structure, with tasks breakdown and

details on the role and function of each partner;· the technical and economic risks inherent in the project;· the actual project activities, if applicable.

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FURTHER INFORMATION

Interested parties can request advice on possible RTD proposals, at any time, from the ECSC Steel RTD Programme Help-Desk. The request should contain the following information:· a short summary (no more than half a page) on the RTD proposal;· partners involved;· total budget and requested Community aid.Any advice given does not engage the European Commission in any way.

SUBMISSION

It is the project co-ordinator who is responsible for the internal management and administration of the proposal and liaison with the Commission. He/she should submit one original of each proposal plus 4 copies. He/she may submit proposals in any working language of the European Union (DA, DE, EN, ES, FI, FR, GR, IT, NL, PO and SV). However, it is advisable to supply a version in English. This will facilitate the evaluation of proposals.

DEADLINES

Proposals should be sent directly to the European Commission in Brussels at the following address:

European CommissionDirectorate-General XII for Science, Research and DevelopmentUnit C-2 : "Materials & Steel" - MO75 1/21 rue de la Loi 200 / Wetstraat 200B - 1049 Bruxelles / Brussel.

Submission to any organisation, office of the Commission or person at any address other than as mentioned above renders the application invalid.

Proposals must be submitted by the co-ordinator to the Commission by 15 September of each year to be effective the following year, usually on 1 July. No faxed submissions will be accepted; post office date stamp, or other official registering acknowledgement, will be considered.

ACKNOWLEDGEMENT OF RECEIPT AND DATA-CHECK

The acknowledge of receipt prepared by the co-ordinator is returned completed with a "provisional number" as soon as the proposal has been registered by the Commission.

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Furthermore, each project co-ordinator receives a data-check letter with attached all the data as they have been recorded, including the proposal costs which have been considered as eligible. Each project co-ordinator should carefully check all the data and contact immediately the Commission services should there be any comments or protest. Modifications will not be possible at any later stage.

Note: the data-check letter is given in Annex III.

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5. Evaluation and Selection of Proposals

THE PROCEDURE FOR SELECTION

The Commission will ensure a confidential, fair and equitable evaluation of proposals. This evaluation will have due regard to the criteria set out in Chapter 3 and will be carried out under the responsibility and co-ordination of the Commission, assisted by external experts chosen by the Commission to serve in a personal capacity.

Applicants should be aware that each submitted proposal shall be assessed as it stands. After the deadline there will be no opportunity for the proposers to introduce modifications. Incomplete and non-eligible proposals will not be taken into consideration.

The assessment and selection of the successful applications, followed by the negotiation and conclusion of the contracts is a time-consuming operation, involving:· verification by the Commission of overall eligibility of proposals and of

the claimed costs (project co-ordinators may react after reception of the data-check letter with the attached data);

· evaluation of all proposals with the advise of external experts, grouped in the technical advisory Steel Research and Development Committee (SERDEC);

· selection of priority proposals within budgetary limits, and definition of a reserve list of proposals which will be accepted provided that additional funding becomes available;

· preparation of summaries of the successful proposals in three languages (French, German and English);

· preparation of the text of the Commission's decision in the eleven working languages of the European Union;

· consultation with other Directorates-General within the Commission, which are involved in the decision procedure;

· preliminary decision of the European Commission;· consultation of the ECSC Consultative Committee;· assent of the Council of the European Union;· final decision of the Commission;· contract negotiation;· signature of the contracts.

Normally, it is intended that this process be completed every year by the end of June to permit projects to start on 1 July.

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THE STEEL RESEARCH AND DEVELOPMENT COMMITTEE

An industrial technical advisory committee entitled "Steel Research and Development Committee (SERDEC)" has been established to assist the Commission in the overall technical management of the programme.

As a function of annual budgetary funding decisions, during the evaluation stage the SERDEC advisory committee shall advise and provide recommendations to the Commission on the priority to be given to the RTD proposals. In order to guarantee the evaluation to be based on the most objective criteria, guidelines for evaluation have been enforced and evaluation sheets have been introduced; SERDEC members are required to quote with marks and evaluate the proposals against the following criteria:

technical value: · conformity with programme guidelines;· clear and reasonable objectives;· scientific and technical merit; innovative content;

socio-economical value · industrial, economic and social interest;· environmental benefits;

structure and coherence · proposal's consistency (knowledge of the state of the art, expertise of

proposers, ways and means versus costs, timetable and distribution of tasks);

European dimensions · Community and interdisciplinary collaboration;· appropriate transferability of the results.

In particular, the proposed total cost and its breakdown should be realistic and appropriate, and favourable cost/benefit ratios from the RTD project should be expected.

The Committee is composed of a maximum of two members from each Member State appointed by the Commission to serve in a personal capacity. Members are drawn from senior research and technical management, and must have substantial knowledge of the research and development needs of the steel sector. These members shall be asked to assist the Commission in the evaluation procedure by quoting the proposals, as described above; should two members from the same Member State give different quotes, then the average of the two quotes given will be considered.

Note: For the composition of the committee, see O.J. 95/C294 Section 7 and O.J. 96/C373 in Annex I.

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The Commission may also appoint other members of the Committee according to the Programme Guidelines; these members shall not be asked to assist the Commission in the evaluation procedure by quoting the proposals, as described above.

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6. Contracts - Procedures and Principles

GENERAL PROCEDURES

Negotiation of the Contracts

The Commission may require changes to the proposed project on the basis of the evaluation. Normally, negotiation is carried out per telephone and facsimile. Should the need be, project co-ordinators and/or proposers will be requested to meet in Brussels to complete the procedure.

The Commission may require changes to the proposed project on the basis of the evaluation.

The ECSC RTD Model Contract

An ECSC RTD Model Contract has been established. To accomodate the different nature of ECSC RTD projects (research or pilot/demonstration) two different “Annex IV” have been set out.

Note: the ECSC RTD Model Contract is given in Annex IV.

A technical annex is attached as a part of the contract, including a workplan indicating the timetable and tasks repartition foreseen.

Contractors and Subcontractors

As a guiding principle contracts with parties directly involved in the project execution are preferred.

Note: for the definition of "contractor", "associated contractor" and "subcontrac-tor", see the ECSC RTD Model Contract, Annex IV.

This does not preclude some parts of the work being subcontracted to other parties. The subcontract, its size and the subcontractor itself should be mentioned in the application and requires the Commission's approval should a contract be granted. Applicants are reminded that a subcontractor has no privileged access to the results of the project and should perform its activities solely as a service to the project for which is paid.

Note: a proposed Model Subcontract is given in Annex V for information

COMMUNITY AID19

The Community aid intensity shall conform with the applicable rules on State aid as defined in the relevant steel aid code. Traditionally, the Community aid, as a percentage of the eligible costs, is:· for research up to 60%,· for pilot/demonstration up to 40% for mono-national projects

up to 50% for multi-national projects.

Eligible costs are indicated in the ECSC RTD Model Contract, as well as in the application form described in Chapter 4.

ECSC RTD MODEL CONTRACT - MAIN PRINCIPLES

As stated above, an ECSC RTD Model Contract has been established. To accomodate the different nature of ECSC RTD projects (research or pilot/demonstration) two different “Annex IV” have been set out.

Note: the ECSC RTD Model Contract is given in Annex IV.

Procedures

The contract will be sent to the contractors for signature; the Commission will only sign after the return of these documents by all the partners in a project.

The operative commencement date of the project will normally be the 1 July following the submission of the proposal.

Extension requests

If it appears during the course of the research project that for unforeseen reasons the planned work cannot be completed within the time frame defined in the contract, a prolongation can be requested from the Commission. In this event the co-ordinator must send a written request to the Commission explaining in detail why the extension is necessary. An extension can be only requested when the delay incurred clearly results from factors that are outside the contractors’ responsibility; furthermore, the extension request must be made at least six months before the contractual end date of the project.

Termination of contract

The contractors, acting jointly, or the Commission may terminate the contract or the participation of any contractor, for major technical or economic reasons substantially affecting the project by giving two months’ written notice. Article 5 in Annex II of the ECSC RTD Model Contract specifies in details the conditions under which a contract may be terminated.20

Should all the contractual RTD activities be carried out more rapidly than initially foreseen, a project may be terminated before the stated end. This may be useful to speed up industrial implementation.

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7. The Projects

Once a contract has been concluded and the project initiated, each contractor is requested to refer to the contract only by its contract number (e.g.: 7210-XX/999) and/or reference number (e.g.: 96/D2.01) and no longer to use the number of the original proposal (e.g.: P9999).

For the Commission, the management of the project is carried out by two different services, one being in charge of technical matters (DG XII.C.2) and the other of financial aspects (DG XIX.04). Technical and financial reports have to be prepared by all the contractors and sent on a regular basis to the Commission.

MONITORING OF PROJECTS

Monitoring the progress of projects concluded in the research sector and in the pilot and demonstration sector is undertaken, respectively, by a series of Executive Committees and a series of Expert Groups under the responsibility of the Commission.

The number and composition of the Executive Committee and Expert Groups may be varied according to the ongoing RTD projects and priorities.

Note: the list of current Executive Committees and Expert Groups is given in Annex VI.

Normally once a year, technical reports have to be presented to and discussed with the experts of the Executive Committee or the Expert Group who are asked to assist the Commission in monitoring the project.

This involves regular meetings to examine progress and final technical reports, to comment where appropriate on financial aspects and to provide technical guidance on the future development of the projects.

Conformity between work done and expenditures claimed is also checked before payments are released.

TECHNICAL REPORTS

As part of the project, the co-ordinator shall produce and forward to the Commission and its appointed experts the following documents, which shall satisfy any conditions communicated to the co-ordinator, e.g. during the Executive Committee or Expert Group meetings.

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For research projects the submission of the following technical reports is requested:

report to be sent

annual report by the following 31 Marchinterim reports (on work carried out during the first semester of the year)

by the following 30 September

draft final report by the following 31 Marchcamera-ready final report

after approval of the draft final report by the Executive Committee (and eventual modifications)

For pilot/demonstration projects the submission of the following technical reports is requested:

report to be sent

interim report (on work carried out during the second semester of the year)

by the following 31 March

interim report (on work carried out during the first semester of the year)

by the following 30 September

draft final report by 30 September or by 31 March before the Experts Group meeting

camera-ready final report

after approval of the draft final report by the Experts Group (and eventual modifications)

Technical reports in two copies should be sent by the co-ordinator to:

European CommissionDirectorate-General XII for Science, Research and Development Unit C-2: "Materials & Steel" - MO75 1-10

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Rue de la Loi 200 / Wetstraat 200 B - 1049 Bruxelles / Brussel.

Please do not send additional reports to any other address of the Commission.

One copy of all types of technical reports has to be sent to each member of the Executive Committee or Expert Group concerned, with the exception of the camera-ready final report which has to be sent only to the Commission for publication.

The ECSC Treaty states in Art. 55 that "the results of research ... shall be made available to all concerned in the Community". Clear and precise reporting of results of research, development, pilot or demonstration work is one of the most important aspects of the projects, since correct dissemination of the scientific and technical achievements is a prerequisite for their Community-wide practical application.

No six-monthly report is required for any semester in which the project terminates; no annual report is required for any year in which the project terminates. Different regulations apply to projects carried out under the previous ECSC Model Contract.

Oral Presentation during Meetings

During the Executive Committee or Expert Groups meetings, particular care should be paid to the quality of the oral presentation, which could be given with clear and succinct visual aids and should be structured to include:· the objectives of the work both overall and in the year being reported,· progress against objectives,· conclusions reached,· work plan with indication of tasks and timetable, or exploitation policy

(where appropriate),· for multi-partner projects, details on the work of each individual partner in

order to make it clear "who did what".

Research Annual Reports andPilot/Demonstration Six-Monthly Reports

The Research Annual Reports shall cover each calendar year or part thereof. They should be forwarded to the Commission and the Executive Committee members by the following 31 March.

Note: the structure of Research Annual Reports is given in Annex VII.

The pilot/demonstration six-monthly reports shall cover each calendar half-year or part thereof as per 30 June or 31 December. They should be

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forwarded to the Commission and the Expert Group members respectively by the following 30 September or 31 March.

Note: the structure of pilot/demonstration six-monthly reports is given in Annex VIII.

The reports should present and discuss the results of the RTD work during the period under consideration in view of the objectives stated. They may be written in one of the eleven working languages of the European Union; however, the use of the English language is strongly recommended, as it eases monitoring work by the experts and diffusion of information, since translations are time and money consuming. The reports have to be presented and discussed in the relevant Executive Committee or Expert Group. These reports will not be published and are for restricted use only.

Research Interim Reports

The research interim reports shall contain a concise presentation of the results obtained in the first half of each calendar year or part thereof as per 30 June. They should be forwarded to the Commission and the Executive Committee members by next 30 September. They may be written in one of the eleven working languages of the European Union; however, the use of the English language is strongly recommended, as it eases monitoring work.

Note: the structure of research interim reports is given in Annex IX.

These interim reports are intended for intermediate written information only. They will not be discussed in the relevant Executive Committee, but the members of the Executive

Committee may submit any comments to the Commission in writing before next 30 November. The information in the interim report shall be integrated with the annual report of the relevant year. These reports will not be published and are for restricted use only. On the basis of the interim report the Commission may organise, if deemed necessary, an ad-hoc meeting with the relevant project leaders to assure optimal management and progress of the project.

Draft Final Report

The draft final report shall present a description of the whole research project and shall present the results and the main conclusions. The report must be a self-contained document, including clear bibliographic references to earlier work. It should include an exhaustive description and discussion of the research and of the conclusions drawn.

Note: the structure of the draft final report is given in Annex X.

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The size of the report shall be such that all useful information is correctly reported. Should the report not be drafted in English, it is required that titles, captions to figures, table and graphs, and an extended summary in English are included.

Camera-Ready Final Report

After approval of the draft final report and taking into consideration the observations of the Commission and of the relevant Executive Committee or Experts Group, the camera-ready manuscript of the final report (unbound) together with two copies shall be sent solely to the Commission.

Note: for research projects, the structure of the camera-ready final report coincides with that of the draft final report given in Annex X.

One unbound original is required together with one copy.The final report is intended for publication and will be printed by photo-offset from the original prepared by the (co-ordinating) contractor on blank DIN A 4 white paper. It must be prepared in accordance with the instructions in Annex XI.

For pilot/demonstration projects, the camera-ready report for publication may be a shortened version of the draft final report; it could describe objectives, work done and results achieved without disclosing details which might jeopardise industrial propriety rights.

PUBLICATIONS AND PATENTS

Please refer to “Annex III“ and ”Annex IV“ of the ECSC RTD Model Contract for full details concerning this matter.

Should a contractor wish to publish results (books, scientific papers, conferences, meetings etc.) during the RTD period, this may be done under the condition that:· the Commission is notified in advance and receives a copy of the text;· the work to be presented has been approved by all other contractors

who are partners in the RTD project (if applicable);· the publication does not prejudice patent application or exploitation by

any partner;· it is clearly mentioned that the work is funded in part by the

Commission of the European Communities on behalf of the European Coal and Steel Community; the text for publication should, therefore, include the phrase "work carried out with a financial grant from the European Coal and Steel Community";

· no costs are charged to the project unless otherwise authorised in writing.

26

Within the framework of the accompanying measures implemented within the programme, some additional financial contribution may be made available to support patenting.

FINANCIAL MATTERS

Please refer to the contracts and annexes for full details concerning cost statements and reimbursement.

Cost Statements

Original cost statements (financial reports) shall be submitted by each contractor (unless otherwise agreed) by the following 31 March or 30 September, respectively for the second semester or the first semester of a calendar year to:

European CommissionDirectorate General XIXDG XIX.4 JECL 7-29Rue de la Loi 200 / Wetstraat 200 B- 1049 Bruxelles / Brussel

according to the provisions in the ECSC RTD Model Contract, for each calendar year or part thereof. Please do not send cost statements to any other address of the Commission, e.g. to DG XII.C.2.

Note: the structure of the recommended cost statement is given in Annex IV: ECSC RTD Model Contract, Annex II, Part C.

In view of the reporting schedule this implies that each cost statement relates to a period covered by a technical report. It is herewith emphasised that cost statements are payable only on condition that the technical report covering the relevant accounting period has been received and accepted.

Payments

Payments are made by the Commission in ECU either to each contractor or, when this is agreed, to the co-ordinator who then distributes the appropriate amounts to the contractors.

An advance payment is made after signature of the contract by the Commission. Further payments are made on a regular basis, being cost statements to be submitted six-monthly by 31 March and 30 September. A retention of normally 10% of the ECSC contribution is withheld until the camera-ready final report has been received by the Commission in the appropriate form.

27

8. Information and AssistanceDATABASES AND SERVICES

Help-Line

A help-line is open for information and publications concerning the programme.

European CommissionDirectorate-General XII for Science, Research and Development Unit C-2: "Materials & Steel" - (MO75 1-21)Rue de la Loi 200 / Wetstraat 200 B - 1049 Bruxelles / Brussel.

Help-line Telephone: +32-2-295.56.48 or 295.85.87

Help-line Facsimile: +32-2-296.59.87

Help-line e-mail: [email protected]

Home-page: http://www.cordis.lu/ecsc-steel/home.html

Electronic Information on EC Research Policy: CORDIS

A central source of information is crucial for any organisation that wishes to participate in Community funded research programmes. It is important that all research policy makers and researchers in industrial and academic establishments alike are made aware of research possibilities, trends and projects being undertaken in the European Union. The Community Research and Development Information Service "CORDIS" addresses these issues and consists of an on-line service providing information on all Community research programmes, RTD activities and RTD partners.

CORDISEuropean Commission Host OrganisationCORDIS Customer ServiceB.P. 2373L - 1020 Luxembourg

CORDIS telephone: +352/4011/62240CORDIS facsimile: +352/4011/62248E-mail:[email protected]

29

Technical Steel Research Reports:

Technical Steel Research Reports can be requested from:Office des Publications des Communautés Européennes2, rue MercierL-2985 LuxembourgTel. +352 29 29 1Fax +352/48 85 73, +352/48 68 17

30

ANNEX I

Medium-term Guidelines

for the ECSC Steel RTD Programme of

Research and Pilot/Demonstration Projects

(1996-2002)

O.J. 95/C 294O.J. 96/C 373 (modification)

N° C 294/4 EN Official Journal of the European Communities 9.11.95____________________________________________________________________________________________

Medium-term guidelines for the ECSC steel RTD programme of research and pilot/demonstration projects (1996 to 2002)

(95/C 294/04)

1. INTRODUCTION

Pursuant to the terms of Article 55 of the Treaty establishing the European Coal and Steel Community (ECSC Treaty), the Commission "shall promote technical and economic research relating to the production and increased use of coal and steel and to occupational safety in the coal and steel industries".

In addition, the Treaty establishing the European Community (EC Treaty) states in Article 130f, that "the Community shall have the objective of strengthening the scientific and technological bases of Community industry and encouraging it to become more competitive at international level, ...".

During its 40 years of existence, ECSC steel research has supported the efforts of the steel industry by increasing overall research efficiency, enabling the steel industry to tackle jointly large projects which could not have been carried out by individual companies, and creating throughout the Member States a network of researchers, through which there is an effective exchange of information related to the projects and their results. In this way, ECSC steel research has become an essential complement to the companies' own activities, promoting international co-operation through joint programming and execution of projects.

The task assigned to the Commission by the ECSC Treaty, concerning RTD related to the production and use of steel, has been implemented through a programme divided into two RTD sectors:

- steel research projects,

- steel pilot and demonstration projects.

The programme promotes collaboration between the steel industry and its research laboratories on the one hand, and complementary centres of expertise in industry, universities and research institutes on the other. The majority of the projects are now of multi-partner and multi-national composition.

Guidelines for this programme are established periodically to reflect the industry's changing scientific and technological priorities. These guidelines follow those for the period 1991 to 1995 1. They incorporate the requirements for future steel

RTD for the period up to 2002, the date of expiry of the ECSC Treaty. Their implementation is subject to annual budgetary funding decisions.

In anticipation of this termination of the ECSC Treaty, the Commission has created the possibility for some steel research activities carried out until now under the ECSC Treaty to be incorporated progressively into other Community programmes, mainly the framework programme pursuant to Article 130i of the EC Treaty.

The orientation of the framework programme emphasizes generic, pre-competitive research of multi-sectoral applications. Therefore, only part of the current activities can be incorporated into the fourth framework programme; ECSC research activities should focus on the remaining parts, i.e. specific steel technologies and pilot and demonstration projects.

2. OBJECTIVES

The main objective of the ECSC steel RTD programme, resulting from Article 55 of the ECSC Treaty, is to sustain and develop the Community steel industry's competitiveness in changing industrial, commercial and political contexts. The major goals are:

- to reduce production costs,

- to improve quality,

- to sustain the outlets for steel in its traditional markets and to develop new products and markets,

- to adapt and develop new production processes and to improve recycling

1 OJ N° C 252, 6. 10. 1990, p. 3.


capability in order to meet increasingly stringent environmental requirements.

3. RTD REQUIREMENTS

Steel-orientated RTD activities should be carried out within an integrated approach where topics ranging from raw materials handling to final products are addressed. This process should incorporate a strong feedback of product and environmental requirements into production parameters. It should also take into account and include studies on the most effective options for recycling the product at the end of its life and of recycling, using, or safely disposing of the by-products of the production itself.

Steel orientated RTD actions should consider specific market needs from sectors such as:

- automotive industry,

- building and construction,

- mechanical industries,

- consumer products,

- energy and industrial reactor vessels and components,

- off-shore structures,

- packaging,

- rail transport.

The guiding principles should be:

- market requirements,

- life-cycle approach,

- rationalization in processes leading to energy and cost-effective solutions,

- more flexible production allowing smaller production batches and quicker delivery,

- improved quality and reliability,

- safety of steel products even under extreme conditions,

- new high-quality steels to create new market opportunities,

- effective recyclability,

- environmentally friendly concepts.

Environmental awareness should permeate all branches of industry and should form an integral part of new RTD developments in steel production and utilization. Considering that pollution problems have to be addressed at the design stage for processes and products, RTD activities should support the development of advanced clean technologies for steel production.

RTD required to meet the above mentioned needs are given below.

3.1. Processes

RTD for the improvement of steel production processes is needed in the following fields:

- energy savings and efficient use of materials,

- modelling of production processes, process control, automation and robotization,

- maintenance and reliability,

- total quality policy, including the development of measuring techniques to establish product quality and RTD aimed at improving product quality,

- secondary metallurgy techniques,

- environmental impact,

- recycling including scrap processing and valorisation of by-products.

In integrated steel making plants, economies of scale favour large-scale steel-making and sequence continuous casting. On the other hand, the market increasingly demands smaller production batches of special types of steels. RTD actions should therefore focus on the development of new technologies which can increase flexibility and cost effectiveness and can produce smaller quantities in a range of qualities and grades. Particular attention should be paid to:

- production of virgin iron,


- electric arc furnaces,

- reducing coke requirements,

- near net shape casting,

- new rolling, coating and finishing techniques.

These new technologies are expected to streamline steel production considerably.

3.2. Products

Research into the utilization of steel is essential in meeting the challenge of future steel user requirements and creating new market opportunities. Research in the different application areas mentioned in point 3 should provide a strong feedback for parameters of the steel production processes.

RTD in steel utilisation for a range of applications, is particularly needed in the following fields:

- techniques dealing with forming, welding and joining of steels,

- coating and surface treatment,

- thermal treatment,

- improvement of steel properties addressing topics such as: strength, toughness, hardness, mechanical properties at high and low temperatures, resistance against fracture, fatigue, wear, corrosion,

- safety, in particular in relation to fire and earthquakes,

- steel-containing composites and multi-materials, such as concrete and non-ferrous materials.

In order for improved and new materials to be rapidly exploited in applications, Community actions are needed to make research results rapidly available in the form of clear, simple-to-use guidelines for practising architects and engineers, public authorities dealing with regulations and for education. Community RTD is also vital in achieving standardization for steel

applications (e.g. buildings, bridges, offshore installations) on a Community level. Euro-codes for steel and steel/concrete structures already play an important role. They consist of simple-to-use design codes which cover aspects such as strength, fatigue, joints, fire and seismic resistance. Euro-codes need to be updated frequently to take into account new developments such as new steel grades and new design criteria.

3.3. Environmental protection and recycling

Both in RTD for steel production and in steel utilization, environmental aspects should form an integral part of the life-cycle approach.

In addition, specific environmental RTD is needed:

- to assess the impact of production and utilisation of steel on the environment,

- to improve recycling, utilisation or safe disposal of wastes and by-products, in particular those arising from steel production, with the aims of achieving an economical use of wastes in the form of secondary raw materials.

In the drive for sustainable development, recycling is becoming increasingly important. Here, the potential

of steel is large as it offers excellent recycling possibilities. RTD should be focused on the problem of producing steels with the properties required for a range of applications, starting from various types of steel scrap. This problem should be addressed in an integrated way.

In particular, RTD is needed in fields such as:

- the design and development of steel grades and steel products which facilitate easy recovery of steel scrap and its conversion into usable steels,

- techniques for the recovery of steel from different types of products and classification of steel scrap (e.g. rapid analysis),

- new processes for pre-treating scrap,

N° C 294/4 EN Official Journal of the European Communities 9.11.95____________________________________________________________________________________________- modification and adaptation of existing

steel-making technologies and the development of new ones, allowing the use of scrap as a base material,

- recovery and recycling of other materials involved with steel such as in alloys and coatings.

4. THE ECSC STEEL RTD PROGRAMME AND ITS RELATIONS WITH OTHER COMMUNITY RTD ACTIVITIES

Up until now, steel research funded in the framework of EC programmes was and is predominantly carried out in the ECSC programme. The special provisions for steel research in the ECSC Treaty will end when the Treaty expires in 2002. To provide continued support, steel research activities carried out until now under the ECSC Treaty will have to be incorporated progressively into other Community programmes, mainly the framework programme.

The framework programme results from Article 130i of the EC Treaty and is aimed at implementing the objectives set out in Articles 130f and 130g, such as "strengthening the scientific and technological bases of Community industry ... while promoting all the research activities deemed necessary ...". Within the fourth framework programme "Community RTD activities should continue to focus on generic and pre-competitive research of multi-sectoral applications ..."1. This generic nature thus does not permit full integration of sectoral ECSC steel RTD into this fourth framework programme 1994 to 1998.

Over the coming years, the ECSC steel RTD programme and the framework programme will run in parallel, providing the iron and steel industry with access to both programmes.

The ECSC steel RTD programme will give priority to those RTD topics which do not fulfil the conditions required for the framework programme and are specific to steel such as:

- pilot and demonstration projects,

1 Decision No 1110/94/EC of the European Parliament and of the Council, (OJ N° L 126 of 18. 5. 1994, p. 1).

- specific research for steel production processes,

- promotion of steel use,

- development of new or improved steel grades.

On the other hand, RTD proposals of a generic and multi-sectoral nature should be submitted to the framework programme.

5. PARTICIPATION

Any undertaking, research institute or natural person, who wishes to carry out research within the meaning of Article 55 of the ECSC and is established in the territory of the Member States, is entitled to submit applications to the Commission for financial aid. The applicant need not necessarily be directly connected with the iron and steel industry but the project for which support is requested must be within the scope of the programme and of interest to the iron and steel sector in general.

Application forms have been set out; the application forms, as well as exhaustive information concerning the programme, its status, submission of proposals, eligible costs, maximum financial support allowable, type contracts, execution of projects and modalities of payment, can be obtained from the following address:

Commission of the European Communities,Directorate-General XII for Science, Research and Development,Unit C-2: "Materials & Steel" - MO75 1/24,Rue de la Loi 200 / Wetstraat 200,B - 1049 Bruxelles / Brussel.

Application forms should be returned directly to the Commission in Brussels at the same address. Submission to any organization, office of the Commission or person at any address other than as mentioned above renders the application invalid.

Applications must be submitted to the Commission before 15 September of each year to be effective the following year 2.

Under the conditions set out in this communication, the Commission may grant financial support for research and for pilot 2 This deadline, for 1995 only, will be 30 days from the date of publication of these guidelines.

N° C 294/4 EN Official Journal of the European Communities 9.11.95____________________________________________________________________________________________and demonstration projects which comply with these guidelines and which are of interest to a large number of organisations throughout the Community. Aid intensities will be in conformity with the applicable rules on State aid as defined in the relevant steel aid code.

The projects may relate to the production and processing of iron and steel or to the properties, fabrication and utilisation of steel products.

In the pilot and demonstration sector, the pilot stage is characterised by the construction, operation and development of an installation or a significant part of an installation on an adequate scale and using suitably large components with a view to verifying the practicability of theoretical or laboratory results and/or increasing the reliability of the technical and economic data needed to progress to the demonstration stage, and in certain cases to the industrial and/or commercial stage.

The demonstration stage is characterised by the construction and/or operation of an industrial-scale installation or a significant part of an industrial-scale installation which should make it possible to bring together all the technical and economic data, in order to proceed to industrial and/or commercial exploitation of the technology with the least possible risk.

6. IMPLEMENTATION OF THE PRO-GRAMME

Each proposal that is submitted is examined on the basis of the application form which must include a detailed description of the proposed project, containing full information on:

- the objectives,

- the current state-of-the-art in the field of interest,

- expected results and prospects for their applications,

- management structure, breakdown in phases and/or work packages, interim decisions, milestones, time schedule,

- partnership, with details of the role and function of each partner,

- the technical and economic risks inherent in the project,

- the actual project activities.

The proposals are evaluated against the following criteria:

- conformity with programme guidelines,

- clear and reasonable objectives,

- scientific and technical merit; innovative content,

- industrial, economic and social interest,

- proposal's consistency (e.g. knowledge of the state-of-the-art, expertise of proposers, ways and means versus costs, timetable and distribution of tasks),

- Community and interdisciplinary collaboration;

appropriate transferability of the results,

- environmental benefits.

In particular, the proposed total cost and its breakdown should be realistic and appropriate, and favourable cost/benefit ratios from the RTD project should be reasonably expected.

As stated in point 7, during the evaluation stage the Serdec advisory committee shall advise and provide recommendations to the Commission on the priority to be given to the RTD proposals.

Multi-partner proposals with participation from more than one Member State are encouraged. Those research projects involving only one organization should not exceed ECU 1 million total project cost for a duration of three years. Budgets for larger scale multi-partner projects of major industrial importance may exceed this limit.

For pilot and demonstration projects:

- at least one partner must be a steel producer,

- the level of participation of each partner must be significant and preferably should be at least 20 % of that part of the total budget funded by the beneficiaries.


Monitoring the progress of projects concluded in the research sector and in the pilot and demonstration sector is undertaken, respectively, by a series of executive committees and a series of expert groups under the responsibility of the Commission. This involves regular meetings to examine progress and final technical reports, to comment where appropriate on financial aspects and to provide technical guidance on the future development of the projects.

Support, preparation and accompanying measures are also implemented.

7. ADVISORY COMMITTEE

An Advisory Committee entitled "Steel Research and Development Committee (Serdec)" has been established to assist the Commission in the preparation of the medium-term guidelines and the overall management of the programme. The organisation and tasks of the Committee are outlined below.

Organization:

- the Committee is composed of a maximum of two members from each Member State appointed by the Commission to serve in a personal capacity. Members are drawn from senior research and technical management and must have substantial knowledge of the research and development needs of the steel sector. At meetings, each delegation may be accompanied by one technical expert of its choice according to the nature of the subjects under consideration,

- the Commission may also appoint members of the Committee from organizations representing steel producers at Community level, with a maximum of one per organisation,

- the chairmanship and secretariat of the Committee is provided by the Commission,

- if needed, the Committee may establish ad hoc working groups for a specific period of time to carry out clearly defined tasks. These working groups report to the Committee,

- the Commission reimburses the expenses of the two members from each Member State and, where appropriate, the additional expert, as well as of the other appointed members.

Tasks:

- to advise the Commission each year on the priorities and scope of the ECSC programme on steel research and steel pilot and demonstration projects, taking into account the available ECSC funds,

- to advise and provide recommendations to the Commission on the priority to be given to the RTD proposals,

- to monitor the activities of executive committees and expert groups connected with the research and the pilot and demonstration projects,

- to advise on the overall development of the programme and on the work being undertaken on specific projects,

- to assist in ensuring consistency and avoiding duplication with other Community research and development programmes and related activities implemented at the national level,

- to advise the Commission on the most appropriate way of transferring the ECSC steel research activities to the framework programme.

Done at Brussels, 3 November 1995.


Modification to the medium-term guidelines for the ECSC steel R&TD programme of research and pilot/demonstration projects (1996 to 2002)

(96/C 373/04)

The "Medium-term guidelines for the ECSC steel R&TD programme of research and pilot/demonstration projects (1996 to 2002)" adopted by the Commission on 3 November 1995 1 are amended in the following manner: in Section 7 "ADVISORY COMMITTEE", first paragraph "Organisation", a new indent is added after the second indent, which reads as follows:

"- the Commission may also appoint a maximum of two members of the Committee from organisations representing the workers in the iron and steel industry, to serve in a personal capacity;".

________________________

1 O.J. N° C 294, 9.11.1995, p. 4.

ANNEX II

Application Form and Acknowledgement of Receipt

45

Date: ......................................Commission of the European CommunitiesDirectorate-General XIIfor Science, Research and DevelopmentUnit C-2: "Materials & Steel" - MO75 1/21 rue de la Loi 200, Wetstraat 200

B - 1049 Bruxelles, Brussel

APPLICATION FOR FINANCIAL SUPPORT FORAN ECSC STEEL RTD PROJECT1

under Article 55 of the Treaty establishing the European Coal and Steel Community (ECSC)

TITLE2: (maximum 180 characters including spaces)TYPE OF PROJECT2: researchpilot/demonstrationPROPOSED AREA2: B, C1, C2, C3, D1, D2, D3, E, F3, F4, F5, F6, F7T1, T2, T3, T4STARTING DATE2: (normally, July 1st of the following year)DURATION2: (maximum 4 years)

PROPOSERS

N° Status3 Connection4

Organization

Country Man/Months

Currency2 Total costs

ECSC Aid

1 Coord.2345

..5

Grand Total

Attached parts: - information on proposers and cost estimates6;- short summary (no more than 100 words)7;- long summary (no more than 500 words)7;- proposal description7;

For Commission use

Project n:

46

- acknowledgement of receipt8.

47

ENDNOTES

1 This form and its attached parts must be completed in one of the Community working languages (DA, DE, EN, ES, FI, FR, GR, IT, NL, PO and SV) and sent to the European Commission in five copies, i.e. one original and four photocopies. To facilitate project evaluation, proposers are recommended to supply a complete version of the proposal in English.

2 Please complete or indicate, where appropriate. The "Proposed Areas" are specified in Annex IV of the ECSC Steel RTD Information Package.

3 Co-ordinator, Proposer, Associated Contractor, Subcontractor (normally, only when the value of work exceeds 25,000 ECU or 20% of the total budget).

4 Only for Associated Contractors and Subcontractors; they should indicate the number (e.g. 1,2,3 etc.) of the proposer to which they are connected.

5 Please add one or more sheet(s), as required.

6 Each proposer should complete :- "information concerning a proposer";- "cost estimate".

The cost estimate must be signed by the person or the persons authorised to enter into commitments on behalf of the proposer. Five copies of the application form are required, i.e. one original and four photocopies.

7 The text should be written in one of the Community working languages (DA, DE, EN, ES, FI, FR, GR, IT, NL, PO and SV). To facilitate project evaluation, proposers are recommended to supply a version in English. The short summary, the long summary and the proposal description should be forwarded to the Commission in five copies.

8 One acknowledgement of receipt for the proposed project; this has to be completed with the title of the proposal, the co-ordinator’s name and address on the top-right side (see dotted lines).

9 This information is optional. Should a proposal be selected, then proposers would be asked during negotiation to provide information on banking.

10 See also the ECSC RTD Model Contract in the Information Package.

11Normally, a yearly amortisation of 20% is accepted for equipment and 33.3% for electronic data processing equipment. Any request for different amortisation rates must be clearly motivated. See also the ECSC RTD Model Contract in the Information Package.

48

INFORMATION CONCERNING A PROPOSER 6

Exact name, legal status (e.g. Ltd, plc, S.A., AG, S.p.A., AB etc.) and address or registered office of the physical or legal person with whom a contract, if any, will be concluded:

............................................................................................................................

............................................................................................................................

............................................................................................................................

Name, position (e.g. Director, General Manager etc.; please note that "Professor" is not considered as a "position" under this item), address, telephone and facsimile numbers of the person or persons authorised to enter into commitments on behalf of the proposer:

............................................................................................................................

............................................................................................................................

............................................................................................................................

Name, address, telephone and facsimile numbers of the project technical responsible for the proposer (coordinator or project leader):

............................................................................................................................

............................................................................................................................

............................................................................................................................

Bank details 9

Bank: ....................................

Bank address: ....................................

Bank code(s): ....................................

Account number: ....................................

in the name of: ....................................

49

COST ESTIMATE 6 (in ECU or National currency 2 )

I. EQUIPMENT10

Amounts specifically required for the purchase, leasing or construction of equipment, apparatus and installations needed for the project.

Amortization11

N Description Purchase price

Annual amortisation in

%11

Total amortisation for the duration of the project11

Subtotal:

II. PERSONNEL10

Gross salaries and statutory and contractual social charges in respect of staff directly employed, part-time or full-time, on the project.

Categories Time employed on the project

Gross salary; hourly or monthly

rate2

Percentage of social charges included

Total for the

project

1. Staff with university or equivalent training

2. Technical staff

3. Manual staffSubtotal:

50

III. OPERATING COSTS10

Operating costs directly chargeable to the project and occasioned specifically by the project activities, such as:

Description Amount1. Raw materials

2. Minor items of regular consumption

3. Use of consumable items

4. Energy (directly used for the project)

5. Maintenance or repair of equipment specifically used for the project

6. Transport of equipment or products for and in the course of the project

7. Alteration and transformation of existing equipment to the extend necessary for the proper performance of the project

8. Subcontracted work and various allowances paid to third parties

9. Computing services

10. Rent of equipment specifically used for the project

11. Amortisation of material specifically used for the project, excluding basic equipment. This applies only to the equipment, apparatus and material that is the property of the proposer and is not fully amortised when the project starts

12. Miscellaneous, analyses, tests and special

13. Travel and subsistence

14. Other operating costs: (please specify)............................................................... ...............................................................

Subtotal:51

IV. INDIRECT COSTS (OVERHEADS)10

A fixed allowance of 30 % of personnel costs as defined under heading II to cover any other costs which may be incurred as a result of the project and which are not specified under headings I to III above, such as costs of using joint services, workshops, laboratories, administrative costs, accounting, secretariat, documentation etc.

Subtotal (30% of personnel costs):

Grand Total:

Currency:

FUNDING

The Community support applied for is ......... %, i.e. .................................................

The balance will be met by: ..................................................................................

Place: ...................................

Date: ...................................

Signature6: ...........................................

53

EUROPEAN COMMISSIONDIRECTORATE-GENERAL XIISCIENCE, RESEARCH AND DEVELOPMENTDirectorate C - RTD Actions: Industrial and Materials TechnologiesMaterials and steel

Brussels,XII-C2

© ª

À ÙName & address to be completed by the

coordinator

ACKNOWLEDGEMENT OF RECEIPT ( 8)

Dear Madam, Dear Sir,

I am pleased to acknowledge receipt of your ECSC Steel RTD proposal entitled:

..............................................................................................................................(Title to be completed by the coordinator)

Your proposal has been given the provisional number:

P or PP

You are kindly requested to always mention this number in all future correspondence until a formal contract number is allocated, if appropriate.

Yours faithfully,

P. ZegersHead of Unit

Comments by the Commission:· your proposal will be examined by the services of the Commission, with the

assistance of SERDEC (Steel Research and Development Committee). You will be informed of the outcome in due course.

· ....................................................................................................................................................................................................................................................

III

Data-check Letter

59

EUROPEAN COMMISSIONDIRECTORATE-GENERAL XIISCIENCE, RESEARCH AND DEVELOPMENTDirectorate C - RTD Actions: Industrial and Materials TechnologiesMaterials and steel

Brussels,XII-C2

© ªCompanyName of the Project CoordinatorAddressTownCountry

À Ù

Subject: ECSC Steel RTD Programme

Dear Sir/Madam,

We are pleased to confirm that your steel proposal having the following title:

Title:.............................................................................................................

has been classified in the field .....and given the reference number......................

Please use the reference number in any further correspondence.

A summary of relevant information is attached to this letter. Should you find any discrepancy, please let us know by sending back as soon as possible the corrected information. Please note that modifications will not be possible at any later stage.

We thank you for the interest you have shown in our ECSC Steel RTD Programme in submitting your proposal.

Yours faithfully,

P. ZegersHead of unit

Annex

62

ANNEX IV

ECSC RTD Model Contract

and Annexes

63

COMMISSION OF THE EUROPEAN COMMUNITIES

MODEL CONTRACT

for

Community activities in the field of ECSCResearch and Technological Development

CONTRACT No .....

The European Coal and Steel Community ("the Community"), represented by the Commission of the European Communities ("the Commission"), represented by ........................

and

[Name of Contractor] ("the Coordinator") ["acronym"], established in [name of State],

[Name of Contractor] ["acronym"], established in [name of State],



(collectively "the Contractors"), represented by their authorized representatives.

HAVE AGREED to a Project called "................." being carried out in the [ECSC Steel RTD Programme of Research and Pilot/Demonstration Projects] or [Technical Coal Research Programme] ("the Specific ECSC RTD Programme") in accordance with the following provisions.

Article 1 - Scope

1.1 The Contractors1 shall carry out this Contract jointly and severally towards the Commission for the work set out in Annex I [up to the milestone specified in Annex I] or [specify the milestone] ("the Project").

1.2 Subject to force majeure (including strikes, lockouts and other events beyond the reasonable control of the Contractors), the Contractors shall use reasonable endeavours to achieve the results intended for the Project and to fulfil the obligations of a defaulting Contractor. A Contractor shall not be liable to take action beyond its reasonable control or to reimburse money due from a defaulting Contractor unless it has contributed to the default. Measures to be taken in the event of force majeure shall be agreed between the Contracting Parties.

Article 2 - Duration

2.1 The Project shall run for [insert number] months from [the first day of the month after the last signature of the Contracting Parties] or [insert date] ("the commencement date").

2.2 The contract shall be completed on the date of the final payment due by the Commission ("the completion date"). However, Articles 6 and 16 of Annex II and the rules of Annex IV shall continue to apply after the Completion date to the extent of any limitations specified in those Articles.

Article 3 - Allowable costs and financial contribution (see Articles 9 to 11 of Annex II)

3.1 The estimated allowable costs of the Project are ECU [insert amount] ([insert amount in words] European Currency Units).

3.2 The Commission shall contribute [insert percentage - up to and including 60%] of the allowable costs up to ECU [insert amount] ([insert amount in words] European Currency Units) of the Project.

All money paid by the Commission under this Contract shall be taken into account in calculating the Commission contribution paid to the Project and in determining whether the Commission has fulfilled the requirements of this Article.

The estimated apportionment between the participants in the Project is set out in the table following the Contract signatures.

3.3 Except to any extent specified in Article 9, no entity established outside the Community may receive Community finance under this contract. Such financing, however, is allowed

1 Words that appear in italics are defined in Article 1 of Annex II.

for the supply of materials or equipment, or under the conditions of any approval for Subcontracts in accordance with Article 3 of Annex II.

Article 4 - Payments by the Commission (see Article 14 of Annex II)

The Commission shall pay its contribution for the Project in ECU as follows:

- an advance of ECU [insert amount] ([insert amount in words] European Currency Units) within two months after the last signature of the Contracting Parties;

- by instalments, each paid within two months after approval of the respective periodic progress reports specified in Annex III and/or the respective Project deliverables specified in Annex I and corresponding cost statements. The advance and instalments shall not cumulatively exceed [90%] of the maximum Commission contribution for the Project;

- following the closure of accounts, and after receipt of the approved copy of the final report ready for publication, the balance of its total contribution due.

Article 5 - Cost statements (see Article 12 and Part C of Annex II)

Two signed cost statements shall be submitted through the Coordinator every [6] [12] months, not later than three months after the corresponding [semester] [calendar year (or part thereof )] has elapsed. No cost shall be allowed which has not been claimed after the closure of accounts as referred to in Article 14.7 of Annex II.

Article 6 - Reports

Reports shall be submitted through the Coordinator in [two] copies in [English] as specified in Annex III.

Article 7 - Ownership, exploitation and technology transfer

Ownership, exploitation and the granting of licences or rights in respect of foreground referred to in Article 1(15) of Annex II shall accord with Annex IV.

Article 8 - Amendments

This Contract may be amended only by a written agreement signed by duly authorized representatives of the Contracting Parties.

Article 9 - Special conditions2

9.1 The Project

( ) There are no special conditions relating to the Project.

( ) The conditions specified in Annex V shall apply to the Project.

9.2 Payments

The amount of any sum of money recoverable from a Contractor under this Contract may be deducted from any sum due at any time to the said Contractor under any other Contract with the ECSC, EC or EURATOM.

No transfers of the research work or of the estimated budget between Contractors shall be permitted without the written approval of the Commission. Approval is deemed granted unless written observations are notified by the Commission within two months of the receipt of the written request.

2 Specific conditions are Project variable.

( ) Direct payments to each Contractor

Article 2.1 (b) of Annex II shall not apply and the Commission shall pay sums due under the Contract directly to the Contractors up to the amounts per Contractor specified in the table. The Contractors shall notify the Commission in writing of their bank account numbers.

9.3 The special conditions in Article 9.1 and 9.2 prevail over all other provisions of this Contract. If Annex I conflicts with any other provision of this Contract, the latter shall prevail.

Article 10 - Applicable law and entry into force

The law of [normally State of Coordinator] shall govern this Contract, which shall enter into force only after the last signature of the Contracting Parties.

Article 11 - Annexes

The Annexes forming an integral part of this Contract are:

Table I - Estimated breakdown of the allowable costs and first advance paymentAnnex I - Technical AnnexAnnex II - General conditions Annex III - Scientific and technical documentsAnnex IV - ( ) Obligations of the Contractors regarding protection and dissemination of

research results (research projects)( ) Rules governing the dissemination of information and the declaration, protection

and exploitation of inventions (pilot/demonstration projects) including Annex A (Confidential Declaration)

Annex V - Special conditions for the Project

Done at Brussels,in duplicate in the ............. language,

For the Commission,

Signatures: Status: Date:

For [insert acronym of the Coordinator/Contractor],

Name(s): Status: Date:

Signature(s):

TABLE I

Estimated breakdown of the allowable costs and the first advance payment

Contract No

NAME COST

(ECU)

MAXIMUM ECSCCONTRIBUTION

(ECU)

FIRST ADVANCEPAYMENT

(ECU)

COORDINATOR (name)

Associated Contractors3

(name) (name)

CONTRACTOR (name)


(name) (name)

CONTRACTOR (name)


(name) (name)

TOTAL

3 A third party contributing technically and financially to the work but not a signatory of the Contract with the Commission.

ANNEX I

Technical Annex

ANNEX II

General conditions

Part A - Implementation of the work

Article 1 - DefinitionsArticle 2 - Management of ProjectArticle 3 - Participation of third partiesArticle 4 - Technical verification of ProjectArticle 5 - Termination of ContractArticle 6 - LiabilityArticle 7 - Competent CourtArticle 8 - Experts providing services to the Commission

Part B - Financial management

Article 9 - Allowable costsArticle 10- Direct costsArticle 11- Indirect costs: "Overheads"Article 12- Cost statementsArticle 13- Justification of costsArticle 14- Payment of Commission contributionArticle 15- InventoryArticle 16- AuditingArticle 17- Liquidation of equipment (only for pilot and demonstration projects)

Part C - Cost statements and estimated expenditure for the following period

ANNEX II

General conditions1

Part A - Implementation of the work

Article 1 - Definitions

(1) "Access rights" means non-exclusive licences and user rights to Foreground or Background under this Annex.

In granting Access rights the conditions may vary between the recipients unless otherwise specified and

"Royalty-free" means at no cost and on no conditions other than those specified in this Contract.

(2) "Affiliate" means:

(a) any legal entity2 directly or indirectly owning, owned by, or under the same ownership as, a Contractor, where the Affiliate or the ultimate owning entity is established in the Community, for so long as such ownership or control lasts and provided that the said Affiliate or the ultimate owning or controlling company is incorporated and resident in, and subject to the law of, a Member State of the Community.

Ownership shall exist through the direct or indirect:

- ownership or control of more than 50% of the nominal value of the issued equity share capital or of more than 50% of the shares entitling the holders to vote for the election of directors or persons performing similar functions, or

- right by any other means to elect or appoint directors, or persons performing similar functions, who have a majority vote,

(b) any other organisation specified in this contract to be an Affiliate,

provided that a company shall not be regarded as an Affiliate where there has been a change in the ownership or control of the Contractor unless the Commission has been provided with the details of the change in accordance with Article 2.3(d) of this Annex and has indicated in writing that it does not intend to terminate the contract in accordance with Article 5.3(b) of this Annex.

Common ownership through government for commercial or industrial activities does not, in itself, create affiliated status unless otherwise specified in accordance with paragraph (b) above.

(3) "Allowable costs" are the costs eligible under this Project as defined in Articles 9 to 11 of this Annex.

(4) "Associate Contract" means a contractual arrangement between a Contractor and an Associated Contractor for the performance of part of the work on the Project.

(5) "Associated Contractor" means a third party contributing technically and financially to part of the work on the Project under a contractual arrangement with a Contractor.

(6) "Background" means background information and background rights.

(7) "Background information" means all information (excluding foreground information and information still treated as such under a separate contract with the Community), owned or controlled by a Contractor in the same fields as, or fields related to, the Project.

(8) "Background rights" means patent applications, patents, registered designs, copyrights (including the copyright on software in any code) and other similar statutory rights, as well as

1 Words defined in Article 1 of this Annex appear in italics throughout.2 This word has the meaning specified in Article 1 of Council Decision 94/763/EC and 94/761 Euratom (OJ L 306,

30.11.1994).

applications for any such rights, (excluding foreground rights and rights still treated as such under a separate contract with the Community), owned or controlled by a Contractor in the same fields as, or fields related to, the Project.

(9) "Business interests" means any business interests of the Contractor opposing the grant of access rights that are sought, including opposition due to the fact that services, software or products or the manufacturing thereof are, or are about to become, commercially available (opposition on this latter basis shall not, under normal circumstances, be deemed to be improper).

(10) "Commencement date" is defined in Article 2.1 of the Contract.

(11) "Committee of Experts" means the Committee established by the Commission with the task of encouraging discussions, furthering the research work by means of appropriate suggestions, and giving opinions on:

- the carrying out of the work programme;

- the general guidelines of, and any possible amendments to, the Project;

- the work carried out by Associated Contractors and Subcontractors;

- the reports referred to in Annex III.

(12) "Completion date" is defined in Article 2.2 of the Contract.

(13) "Contractor" means a signatory to this Contract, other than the Community, and also, for Annex IV only, any Affiliate, provided it undertakes to comply with the confidentiality and access rights obligations of this Annex.

(14) "Exploitation" includes commercialisation.

(15) "Foreground" means foreground information and foreground rights.

(16) "Foreground information" means all information generated by any Contractor, or third party working for it, in the performance of the Project.

(17) "Foreground rights" means patents, registered designs, copyrights (including the copyright on software in any code) and other similar statutory rights, as well as applications for any such rights, resulting from the performance of the Project.

(18) "Project" is defined in Article 1.1 of the Contract.

(19) "Project deliverables" are defined in Article 4 of the Contract.

(20) "RTD" means research and technological development and includes pilot and demonstration projects.

(21) "Specific ECSC RTD Programme" means the research and development programme under which this contract was concluded as specified in the recitals (preceding Article 1 to the Contract).

(22) "Subcontract" means a contractual arrangement between a Contractor and a third party (other than an Associated Contractor) for the third party to carry out work, at no cost to itself, on the Project.

(23) "Subcontractor" means a third party (other than an Associated Contractor) having concluded a Subcontract with a Contractor.

(24) "Third country project undertaking" means any legal entity established in a State, other than a Member State of the Community, and participating as a Contractor or Associated Contractor in a Project within the Specific ECSC RTD Programme.

Article 2 - Management of Project

2.1 The Coordinator shall:

(a) be the channel for submitting all documents and for general liaison between the Contractors and the Commission. All general communications with the Commission shall be through the Coordinator.

(b) subject to any special conditions in Article 9 of the Contract, receive and distribute all payments which shall be made to the Coordinator in trust for the Contractors. The Coordinator shall notify the Commission in writing of its bank account number. The Coordinator shall immediately transfer the appropriate amount of each payment to each Contractor. The Coordinator shall not be the beneficial owner of any payment, except by agreement between the Contractors who shall agree appropriate arrangements concerning any transfer to the Coordinator's own account.

2.2 The Contractors shall agree appropriate arrangements for the efficient management of the Project and shall, in particular, designate a person or persons being employee(s) or, with the written approval of the Commission, third parties, who shall, under the responsibility of the Contractors:

(a) manage and direct the Project;

(b) confirm that the overall resources used are consistent with, and reasonable for, the work performed;

(c) ensure that agreements for Associate Contracts and Subcontracts conform with the obligations of this contract and maintain copies of the agreements for inspection by the Commission as specified in Articles 4 and 16 of this Annex.

The Contractors shall notify the name(s) of the designated person(s) in writing to the Commission through the Coordinator and shall ensure that the designated tasks are effected.

Within two months of the receipt of a request to designate a third party to undertake any of the above tasks, the Commission shall submit its observations, failing which the approval shall be deemed to be granted.

2.3 The Contractors shall promptly notify the Commission, through the Coordinator, in writing, of:

(a) the actual commencement of work on the Project;

(b) the person in direct charge of the work for each Contractor;

(c) any circumstance which may materially affect the Project, and

(d) changes in ownership (as defined in Article 1(2) of this Annex) of a Contractor, Associated Contractor or an Affiliate either (i) actively participating in the Project or (ii) granted foreground by virtue of Article 1(2) and (13) of this Annex where the new ultimate controlling entity is established outside the Community.

2.4 Any written notice, request or approval required under the Contract shall be sent by recorded delivery or registered post.

Article 3 - Participation of third parties

3.1 This Article applies to Associate Contracts and Subcontracts. It does not apply to arrangements for the provision of materials, equipment and services concluded by a Contractor in the course of its normal business.

3.2 Without prior express permission from the Commission, the Contractors may not transfer the rights and obligations under the Contract, or any part thereof, subcontract the carrying out of the research work, or substitute third parties for such purposes. The final draft of Associate Contracts and Subcontracts must be submitted to the Commission for approval before signature. Approval shall be deemed granted unless written observations are notified by the Commission within two months of the receipt of the written request. Not later than four weeks after the last signature, a copy of the agreed Associate Contracts/ Subcontracts shall be sent to the Commission. If these conditions are not fulfilled, the costs incurred will not be taken into account.

3.3 The authorisation of the Contractors by the Commission to subcontract part of the Project shall not relieve them of their obligations towards the Community under this Contract.

3.4 The Contractors shall include in any Associate Contract or Subcontract provisions enabling the Community to enjoy the same rights and guarantees vis-a-vis the Associated Contractors/Subcontractors as it does vis-a-vis the Contractors.

3.5 The third parties are required to provide cost statements according to Article 12 of this Annex.

3.6 The provisions of Articles 9 to 11 of this Annex shall be inserted in all Associate Contracts and Subcontracts.

Article 4 - Technical verification of Project

4.1 The Commission, or its authorized representatives, shall be given reasonable access to sites or premises of work on the Project and to documents concerning the Project's management, progress and review.

4.2 Each Contractor shall provide reasonable assistance, including attending meetings for monitoring, reviewing and evaluating the Project.

4.3 The Committee of Experts may visit any site where the Project is being carried out. It shall submit its findings to the Commission.

Article 5 - Termination of Contract

5.1 The Contractors, acting jointly and unanimously, or the Commission, may terminate the Contract, or the participation of any Contractor, for major technical or economic reasons substantially affecting the Project, or if the exploitation potential of the results of the Contract significantly diminishes, by giving two months' written notice.

5.2 The Commission shall not object to the withdrawal by a Contractor from the Project where all the other Contractors have agreed in writing, unless the withdrawal affects the conditions under which the Contract was concluded. Prior notification shall be given to the Commission and shall be deemed to be accepted unless written observations are transmitted within two months of receipt of the notification.

5.3 The Commission may immediately terminate the contract, or the participation of any Contractor, by written notice:

(a) (i) where remedial action to rectify non-performance within a reasonable period of time (being not less than one month) specified in writing has been requested by the Commission and has not been satisfactorily taken; or

(ii) for any financial irregularity of a serious nature;

(b) if there is a change in the ownership (as defined in Article 1(2) of this Annex) of a Contractor, an Associated Contractor or an Affiliate which is likely to affect the Project or the interests of the Community.

5.4 The Community contribution to costs, on termination, shall be paid if they relate to Project deliverables accepted by the Commission and such other costs which are fair and reasonable, including expenditure commitments.

Contractors shall take appropriate action to cancel or mitigate commitments entered into before the termination notice, and shall take account of any reasonable written directions from the Commission to this effect on the termination.

In the case of termination under Article 5.3(a) of this Annex, interest at the rate defined in Article 14.1 of this Annex shall be added, for the period between the receipt of the funds and their reimbursement, to any amount to be reimbursed upon written request. Receipt of the funds will be presumed to be one month after the date of payment by the Commission.

5.5 Access rights relating to work performed on the Project before termination shall be granted by any defaulting or withdrawing Contractor on the conditions specified in Annex IV to any replacing entity performing the Project.

Access rights granted by any of the other Contractors to a defaulting or a withdrawing Contractor shall relate only to work performed on the Project before the termination or withdrawal.

5.6 The following provisions shall continue to apply despite any termination:

- the submission of reports and cost statements, relating to work up to termination;- Article 6, Part B of this Annex and Annexes III and IV.

Article 6 - Liability

6.1 The Commission shall incur no liability in respect of any claim consequent upon its financial contribution to the Project.

6.2 The Contractors shall, subject to any suitable disclaimer in the report, indemnify the Commission against any liability resulting from the publication or transmission of any report in accordance with this contract or from the application of the contents of any report (other than liability resulting from improper acts or omissions attributable to the Commission).

6.3 Notification shall be given to the Contractor of any claim against the Community for which the Contractor is, or may be, liable and the Contractor shall be given the opportunity to take over its defence.

Article 7 - Competent Court

The Court of First Instance of the European Communities, and in the event of an appeal, the Court of Justice of the European Communities shall have exclusive jurisdiction in any dispute between the Commission and the Contractors concerning the validity, application and interpretation of this Contract.

Article 8 - Experts providing services to the Commission

The Commission shall take reasonable steps to ensure that experts providing assistance to it in the management of this Contract do not disclose or use confidential information provided to them. Details of any such experts intended to exercise functions under Articles 4 or 16 of this Annex, or under Annex IV, shall be given in advance and the Commission shall take reasonable account of any objections by the Contractors for legitimate business reasons.

Part B - Financial management

Article 9 - Allowable costs

9.1 Allowable costs are those actual costs defined in Articles 10 and 11 of this Annex which are necessary for the Project, can be substantiated, and are incurred during the period specified in Article 2.1 of the Contract.

9.2 The estimated costs for the work by categories as mentioned in the proposal shall be indicative only. Subject to any special condition in Article 9 of the Contract, Contractors may transfer the estimated budget between categories provided the scope of the Project is not fundamentally affected.

9.3 Contractors must not claim any cost not necessary to complete the Project. No costs may be charged in respect of marketing, sales, distribution costs for products and services, interest, return on capital employed, provisions for future losses or liabilities, and any costs related to other projects.

9.4 Allowable cost on the basis of expenditure shall be equal to the sum of the expenses incurred less any recoveries (discounts, refunds, recovery of materials, finished products or scrap, the sale or recovery of plant or equipment, donations).

Article 10 - Direct costs

10.1 Equipment

Equipment purchased or leased may be charged as a direct cost. The allowable costs for leased equipment shall not exceed any allowable costs for its purchase.

By way of an exception to Article 9.1 of this Annex, allowable costs include equipment purchased or leased within the six months preceding the commencement date or equipment which is the property of the institute and which has not been fully depreciated when the research begins.

10.1.1 Equipment for research projects

The allowable costs shall be calculated according to the following formula:

A x C x DB

A = the period in months for which the equipment has been used for the Project after its delivery;

B = depreciation period of 60 months (36 months for data-processing equipment costing less than ECU 25 000);

C = cost of equipment;D = percentage usage of equipment on the Project.

10.1.2 Equipment for pilot and demonstration projects

The allowable costs shall be calculated according to the following formula:

E - F

E = purchase price or construction costs of the pilot or demonstration plant and equipment necessary, including the cost of dismantling referred to in Article 17.3 of this Annex;

F = realisable value of equipment not used for commercial application and financial benefits resulting from the Project within the duration of the Contract in the event of commercial application (see Article 17.1 of this Annex)

OR

F = residual value, if the installation is not maintained in service (see Article 17.2 of this Annex)

10.2 Personnel

10.2.1 The costs of actual hours worked on the Project only by scientific, post-graduate or technical staff and manual labour directly employed by the Contractor may be charged.

Personnel costs shall be:

- the actual employment costs (salary, wages, social charges and pension costs), or

- the average employment costs (rates) conforming to the relevant Contractor's normal practices if there is no significant deviation between the average and actual employment costs.

10.2.2 All personnel time charged must be recorded and certified. This requirement will be satisfied by, at the minimum, the maintenance of time records, certified at least monthly by the designated Project manager, or an authorized senior employee of the Contractor.

10.2.3 Any indirect charges (e.g. provision for absenteeism, non-productive time, general duties) are regarded as overheads (see Article 11 of this Annex).

10.3 Operating costs

Operating costs comprise third party assistance, travel and subsistence and other operating costs.

10.3.1 Third party assistance

Costs of Subcontracts and external services shall be allowable costs in accordance with Article 3 of this Annex, provided that they are covered by the categories of expenditure set out above.

10.3.2 Travel and subsistence

Travel and subsistence costs directly related to the Project (i.e. coordination meetings organised by the Coordinator) may be charged. No other travel and subsistence costs shall be permitted without the written approval of the Commission.

10.3.3 Other operating costs

Operating expenditure comprises exclusively the cost of:

- the raw materials employed;

- minor items of regular consumption; - the use of consumable items; - energy (directly used for the Project);- the maintenance or repair of equipment specifically used for the Project;- the transport of equipment or products for and in the course of

the Project;- the alteration and transformation of existing equipment to the extent necessary for

the proper performance of the Project;- computing services;- the rent of equipment specifically used for the research;- miscellaneous analyses;- special examinations and tests.

Article 11 - Indirect costs: "Overheads"

11.1 A lump sum of 30% calculated on the basis of the staff expenditure referred to in Article 10.2 of this Annex to cover all other expenses ("overhead costs") which may arise in connection with the Project and which are not specifically identified in the preceding paragraphs.

11.2 This lump sum includes costs incurred to attend meetings with the Committee of Experts (see Article 1(11) of this Annex), required and organised by the Commission.

Article 12 - Cost statements

12.1 Cost statement summaries shall be expressed in national currency or in European Currency Units (ECU), unless otherwise specified in the Contract. The conversion rate to ECU for cost statements and payments shall be the rate published by the Commission for budget execution3 and valid for the first working day of the month following the end of the period for the relevant cost statement. No account shall be taken of exchange gains or losses between the issue of the cost statement and the receipt of any payment.

3 Available from Information Offices of the Commission or Directorate General XIX (Budgets), or automatic answering machine (telephone Brussels 295.17.60, French only), or on the Internet http://europa.eu.int/en/comm/dg19/inforecu/fr/index.htm, French and English.

12.2 The Coordinator, Contractors and Associated Contractors shall submit cost statements in the format specified in Part C or in any similar format notified or approved in writing by the Commission. Unless otherwise specified in the Contract, such statements shall cover the same period and be appended to each corresponding periodic progress report.

Cost statements are not required from third country project undertakings, but the Commission may require statements of effort and resources devoted to performing the Project, namely any significant input in accordance with Annex I, to be submitted.

12.3 If any cost statement is not submitted as required, the Commission may withhold its payment for the Project until the next financial reporting period.

12.4 The Commission may decide not to take account of any further costs or not to make any further reimbursement after giving one month's notice in writing of the non-receipt of the final cost statement.

12.5 The Contractors shall provide any details reasonably required by the Commission for its management of the Contract.

Article 13 - Justification of costs

Each Contractor shall maintain, on a regular basis and in accordance with the normal accounting conventions of the State in which it is established, proper books of account and appropriate documentation to support and justify the costs and the hours reported. These shall be made available for audits. Any cost which cannot be documented shall not be charged as Project expenditure.

Article 14 - Payment of Commission contribution

14.1 Where the Project has not effectively commenced within three months of the payment of the advance, the Commission may require reimbursement of the advance together with interest.

To calculate the interest due to the Community, the Commission will refer to the corresponding yearly average rate for three-month deposits on the ECU market in London as published by EUROSTAT.

14.2 Subject to Article 16 of this Annex, all payments shall be treated as advances until acceptance of the appropriate Project deliverables and until the closure of accounts, or, if no Project deliverables are specified, until the closure of accounts.

14.3 Where the total financial contribution due for the Project, including the result of any audit, is less than the payments made for the Project, the Contractors shall immediately reimburse the difference, in ECU, to the Commission.

14.4 Upon receipt and approval of the documents referred to in Article 12 of this Annex and in Annex III, the Commission shall pay its share of the expenditure for the period elapsed and also of the estimated expenditure for the following [six][twelve] months, after deducting any advances already paid, provided that the Project has been carried out in accordance with the provisions of this Contract.

14.5 The Advance payments may not be used by the Contractors except to reimburse the amount corresponding to the ECSC's share in the allowable costs actually incurred. If the amount of available advance payments exceeds the amount of the ECSC's share in the allowable costs forecast for the following [six] [twelve] months, the Contractor shall, at the request of the Commission, reimburse the excess to the Commission. In agreement with the Commission the excess may also be offset against a balance to be paid under another research agreement concluded between the Community and the same Contractor.

14.6 If a Contractor uses the advance payments for purposes other than those defined in Annex I, or does not reimburse the excess mentioned in Article 14.5 of this Annex immediately at the request of the Commission, the Contractor shall pay the ECSC extra interest on

these amounts. The rate of this extra interest shall be twice the interest rate as defined in Article 14.1 of this Annex.

14.7 The Commission undertakes to close the accounts and determine the exact amount of its contribution after the acceptance of the final financial report and the acceptance of the camera-ready technical final report.

In the event that the total of the advances received by the Contractor exceeds the amount of the Community contribution, the excess shall immediately be reimbursed to the Community.

The amount of any sum of money recoverable from a Contractor under this Contract may be deducted from any sum due at any time to the said Contractor under any other Contract with the ECSC, EC or EURATOM.

Article 15 - Inventory

All plant or equipment partly or fully depreciated with the aid of the Commission finance and entered by the Contractor in the direct costs of the Project under the heading "equipment" shall be included in an inventory regularly brought up to date and forwarded with cost statements.

The inventory shall also include the residual values of installations, equipment or materials whose disposal has been postponed in accordance with Article 17.4 of this Annex.

Article 16 - Auditing

16.1 The Commission, or persons authorized by it, shall be entitled to carry out audits up to two years after the completion date or the termination of the contract. They shall have complete on-site access at all reasonable times to personnel engaged on the Project and all documents, computer records, and equipment relating to the Project, or, when necessary, be entitled to require the submission of any such documentary evidence.

16.2 The European Court of Auditors shall be entitled to the same rights, and under the same terms and conditions, as the Commission in respect of auditing.

Article 17 - Liquidation of equipment (only for pilot and demonstration project)

17.1 If, after the programme defined in Annex I is completed, the results find a commercial application, the actual cost of the Project shall be determined after deducting from the total cost as defined in Article 9 of this Annex the realisable value of the equipment not used for commercial exploitation and the financial benefits resulting from the Project within the duration of the Contract.

17.2 If the installation is not maintained in service, the equipment and materials purchased in order to set it up shall be liquidated and the proceeds deducted from the actual cost. At the option of the Commission, liquidation of the apparatus and equipment may take the form either of their retention or of their sale by the Beneficiary. In the event of retention, the residual value shall be determined by common agreement between the Commission and the Beneficiary or, in the absence of agreement, by an expert appointed jointly by the Commission and the Beneficiary. If the parties cannot reach agreement on the appointment of an expert within two months after closure of the accounts referred to in Article 14.7 of this Annex, he shall be appointed at the request of the earliest petitioner by the President of the Court of Justice of the European Communities. The costs incurred by the expert's report shall be borne in equal proportions by the two parties.

17.3 In the event of the installations being dismantled on completion of the programme, the cost of dismantling shall be regarded as an expenditure when calculating the actual cost.

17.4 If any of the plant and equipment mentioned in Article 17.1 above is required for the performance of a new contract, the disposal thereof may be postponed by mutual agreement. The residual value shall then be determined in accordance with Article 17.2 above and deducted from the Project expenditure incurred under the present Contract. The said residual value shall be entered in the accounts as Project expenditure under the new contract.

Part C

Summary cost statement for Project

for the period from ______________________________to_____________________________

Project Title:

Contract No.:

Name of Participant1 Status2 Total costs(national currency)

Total costs

(ECU)

Community contribution

(ECU)

Remarks 3

Total

Confirmed by Nominated Person(s) on behalf of the Contractors4 as reasonable for the work under the Contract.

Name: Name:

Status: Status:

Signature: Signature:

Date: Date:

1 Coordinator, Contractors, Associated Contractors and, if required by the contract, major Subcontractors.2 Insert as appropriate: COO (Coordinator); CR (Contractor); AC (Associated Contractor); SC (Subcontractor).3 If a participant does not submit a cost statement, insert "no statement" in the column "Remarks". If the cost

statements for any participant cover more than one reporting period, indicate the number of periods in the column "Remarks"; separate cost statements should be submitted for each period.

4 At least one person designated for the purposes of Article 2.2(b) of Annex II.

Participant cost statement summary(National currency/ECU) for the period from ____________ to ____________ (reporting period no. ____)Project Title:Contract No.:Name of Coordinator/Contractor/Associated Contractor1 : to2 National currency in which accounts kept: Exchange rate used for conversion from national currency to ECU1:

Amount for the period

Categories of cost2National currency

ECU

Direct costs

1. Equipment3

2. Personnel3. Operating costs:

Third party assistanceTravel and subsistenceOther operating costs4

Subtotal of direct costs

Indirect costs4. Overheads = 30% of (2) above.

Adjustments5. Adjustments to costs previously reported5

Total:

....% contribution of Commission:Contractor's Certificate

We certify that

- the above costs are derived from the resources employed which were necessary for the work under the Contract;

- such costs have been incurred and fall within the definition of allowable costs specified in the Contract;

- any necessary permissions of the Commission have been obtained;- full supporting documentation to justify the costs is available for audit.

We certify that any necessary adjustments, for any reason, to costs reported in previous cost statements have been incorporated in the above statement.

Date: Date:

Name of Technical Manager: Name of Financial Officer:

Signature of Technical Manager: Signature of Financial Officer:

1 Delete as necessary - for Associated Contractor, see Article 3 of Annex II. Each Associated Contractor must submit a separate cost statement for its costs through the Contractor to which it is associated - its costs should not be included in the cost statement of the relevant Contractor.

2 The Associated Contractor must specify the name of the Contractor to which it is associated.1 The exchange rate must be that specified in Article 12.1 of Annex II.2 Separate details are only required for each category specified in the Annexes which follow.3 Equipment must be depreciated - see Article 10.1 of Annex II.4 See Article 10.3 of Annex II.5 Not applicable for the first cost statement. Any necessary adjustments, for example to reflect actual rates instead

of budgeted rates, must be made in subsequent statements. Details and reasons for any adjustments must be provided.

Participant cost statement: Details by category (national currency)

for the period from________________________________to_____________________________

Contract No.: Name of Contractor/Associated Contractor:

Currency:

Equipment1

Description Date of purchase

Utilisation period (months)2

A

Depreciation period36/60 months

B

Cost % Allocationto Project3

Amount

Total

Personnel

Category4

A

No. of man hours

B

Hourlyrate5

C

PersonnelamountB x C

Total

Third party assistance 6

Description Date of acceptance of subcontract by the Commission7 Amount

Total

1 For allowable cost calculation see Article 10.1 of Annex II. Please attach inventory as referred to in Article 15 of Annex II. (Not applicable to pilot and demonstration projects).

2 Periods in months (during the reporting period) for which the equipment has been used for the Project.3 Percentage use of item of equipment on the Project. 4 Clearly identifiable (e.g. engineer, technician, department, cost centre, cost centre groups, etc.) to contractor's

personnel records. Please attach list with the names of individuals mentioning the number of man hours.5 The personnel rate comprises the elements specified in Article 10.2 of Annex II. 6 See Article 10.3.1 of Annex II.7 Where applicable - see Article 3 of Annex II.

Travel and subsistence8

Description Amount

Total

Other operating costs9

Description Amount

Total

8 See Article 10.3.2 of Annex II.9 See Article 10.3.3 of Annex II.

Summary estimated expenditure for Project

for the period from ______________________________to_____________________________

Project Title:

Contract No.:

Name of Participant1 Status2 Total costs

(national currency)

Total costs

(ECU)

Community contribution

(ECU)

Remarks 3

Total

Confirmed by Nominated Person(s) on behalf of the Contractors4 as reasonable for the work under the Contract.

Name: Name:

Status: Status:

Signature: Signature:

Date: Date:

1 Coordinator, Contractors, Associated Contractors and, if required by the contract, major Subcontractors.2 Insert as appropriate: COO (Coordinator); CR (Contractor); AC (Associated Contractor); SC (Subcontractor).3 If a participant does not submit a cost statement, insert "no statement" in the column "Remarks". If the cost

statements for any participant cover more than one reporting period, indicate the number of periods in the column "Remarks"; separate cost statements should be submitted for each period.

4 At least one person designated for the purposes of Article 2.2(b) of Annex II.

Participant estimated expenditure

(National Currency/ECU) for the period1 from ______________ to ______________ (reporting period no. _____)

Project Title:

Contract No.:

Name of Coordinator/Contractor/Associated Contractor2 : to3

National currency in which accounts kept: Exchange rate used for conversion from national currency to ECU4 :

Amount for the period

Categories of cost5 National currency

ECU

Direct costs

1. Equipment6

2. Personnel3. Operating costs:Third party assistance

Travel and subsistenceOther operating costs7

Subtotal of direct costs

Indirect costs4. Overheads = 30% of (2) above.

Total:

....% contribution of Commission:

Contractor's Certificate

Date: Date:

Name of Technical Manager: Name of Financial Officer:

Signature of Technical Manager: Signature of Financial Officer:

1 Please refer to Article 14.4 of Annex II.2 Delete as necessary - for Associated Contractor, see Article 3 of Annex II. Each Associated Contractor must submit

a separate cost statement for its costs through the Contractor to which it is associated - its costs should not be included in the cost statement of the relevant Contractor.

3 The Associated Contractor must specify the name of the Contractor to which it is associated.4 The exchange rate must be that specified in Article 12.1 of Annex II.5 Separate details are only required for each category specified in the Annexes which follow.6 Equipment must be depreciated - see Article 10.1 of Annex II.7 See Article 10.3 of Annex II.

ANNEX III

Scientific and technical documents

Article 1 - Interim report Article 2 - Annual reportArticle 3 - Final reportArticle 4 - Other publicationsArticle 5 - Scientific or technical exhibitionsArticle 6 - Documents produced during the research workArticle 7 - Patents

ANNEX III

Scientific and technical documents

The Contractors will submit to the Coordinator, according to a reasonable timetable laid down by him, all necessary reports or technical information concerning their work, that he needs in order to provide the Commission with the reports that it requires. As part of the Project carried out by the Contractors under this Contract, the Coordinator shall produce and forward to the Commission and its appointed experts, the following documents, in the manner hereinafter set out. The Contractors agree to participate in a reasonable number of meetings to present and discuss the reports with the Commission and its appointed experts.

Each document shall satisfy all the conditions communicated to the Coordinator.

Article 1 - Interim report

A six-monthly report shall be produced giving a full description of the work carried out and the results obtained during the first semester of each calendar year in which the Project is carried out. It shall include all necessary managerial information and the planning of future research activities.

Interim reports shall be submitted not later than 30 September of the corresponding year.

No interim report shall be required for any semester in which the Project terminates.

Article 2 - Annual report

During the Contract, for each calendar year or part thereof, the Coordinator shall forward to the Commission, not later than 31 March of the following year, an annual report presenting full details of the work carried out, the results obtained, a discussion of the results and conclusions.

It shall contain all necessary managerial information and the planning of the activities for the next year, and shall also include those results already presented in any interim report for the corresponding year.

No annual report shall be required for the calendar year in which the Project terminates. However, the results obtained during this last period shall be incorporated in the final report as referred to in Article 3 of this Annex.

Article 3 - Final report

The final report shall give a detailed description of the work carried out and of the results obtained in performing the Contract. It shall draw particular attention to any new knowledge gained through the Project and any conclusions which can be drawn from it.

The draft final report, together with an abstract and a summary, shall be submitted by the Coordinator not later than six months after the completion of the Project.

After acceptance by the Commission, the Coordinator shall forward to the Commission, for research Projects, one original in unbound form and two copies of the camera-ready final report or, for pilot and demonstration Projects, the camera-ready summary report intended for publication.

The Commission is responsible for making available to all concerned in the Community the results of the Project, as provided for in Article 55.2 of the Treaty establishing the European Coal and Steel Community.

Article 4 - Other publications

The results of work, or any part thereof which constitutes a coherent whole, may be presented or published.. The author of the publication shall obtain the prior written approval of all Contractors regarding the text to be published. The Coordinator shall forward the text to the Commission prior to its presentation or publication. The text shall include the phrase "work carried out with a financial grant from the European Coal and Steel Community".

Article 5 - Scientific or technical exhibitions

The Commission reserves the right, either upon completion of or during the Project, to present or publish the results via any suitable media in order to ensure that they are available to interested parties in the Community.

Contractors are required to provide all reasonable assistance in the scientific and technical aspects of any such presentation or publication and, in particular, shall make available the specialists and research officers concerned to act as presenters and/or rapporteurs. The direct costs incurred in connection with such assistance shall be reimbursed in accordance with the rules obtainable from the Commission.

Article 6 - Documents produced during the research work

The Contractors shall keep all documents produced during the research work at the entire disposal of interested parties in the Community, having due regard where necessary to any rights regarding patents and know-how.

Article 7 - Patents

The Coordinator shall inform the Commission of all patent applications submitted pursuant to the provisions of Annex IV to this Contract. The reference data of such patent applications and, where appropriate, the corresponding patents shall be mentioned in the interim, annual and final reports. The Coordinator shall also forward to the Commission, in respect of each invention, a copy of the description and claims, and where appropriate, a descriptive summary or abstract, not later than the time of publication or disclosure to the public of one of the patent applications or of one of the patents relating to this invention.

ANNEX IV

Obligations of the Contractors regarding protection and dissemination of research results

(Research projects)

Article 1 - Position towards staff and other collaboratorsArticle 2 - Filing of claim to industrial property rights; publication destructive of noveltyArticle 3 - Filing of claim in all Community Member StatesArticle 4 - Filing of claim in some Community Member StatesArticle 5 - Dissemination of research resultsArticle 6 - Transfer of rightsArticle 7 - Direct exploitation of Project results; Granting of licences and dissemination of

information to persons concernedArticle 8 - RoyaltiesArticle 9 - Indirect exploitation of Project results; manufacture and sale of machines or appliances

by the ContractorsArticle 10 - Indirect exploitation of Project results; manufacture and sale of machines or appliances

by other undertakingsArticle 11 - Licences in favour of the CommunityArticle 12 - The Community share of royaltiesArticle 13 - Filing in non-Community countries of claim to industrial property rightsArticle 14 - Area of territorial application

ANNEX IV

Obligations of the Contractors regarding protectionand dissemination of research results

Article 1 - Position towards staff and other collaborators

1.1 Contractors shall so arrange their legal position towards their collaborators (both members of their staff and others) as to be able to publish forthwith in the Community countries inventions made, and experience and knowledge acquired, by them (hereinafter called "Project results") in connection with the Project financed by the Community, and to dispose thereof freely.

1.2 The Community may release the Contractors from the obligations arising under paragraph 1.1 where it is not possible in law or in fact for the Contractors to make arrangements as aforesaid.

Article 2 - Filing of claim to industrial property rights; publication destructive of novelty

2.1 If the Project results are capable of being protected as industrial property, the Contractors shall forthwith, unless there are special reasons that justify delay:

- apply for a patent in accordance with Article 3 hereunder, or

- publish them in such manner that they become an integral part of the state-of-the-art in all the Community countries (publication destructive of novelty).

2.2 Where application or publication is delayed without just cause, the ECSC itself shall be entitled to effect publication destructive of novelty of the Project results. Before doing so it shall hear the Contractors and independent experts.

Article 3 - Filing of claim in all Community Member States

If the Contractors wish to obtain industrial property rights to protect the Project results, they must, as far as legally possible, acquire such rights in all Community Member States. The Contractors must file a claim, or a fresh claim, with the European Patent Office during the priority period.

Article 4 - Filing of Claim in some Community Member States

If, in derogation from the principles of Article 3 of this Annex, the Contractors do not wish or are unable to claim rights of industrial property in all Community Member States, they must, immediately after filing their claim, effect publication destructive of novelty of the Project results as provided in Article 2 of this Annex.

Article 5 - Dissemination of research results

5.1 Within a suitable time of filing the first claim for industrial property rights or effecting the publication destructive of novelty, the main aspects of the Project results, even if incomplete or negative, and the procedure that should be followed to arrive at them, shall be made known by extensive publication in the Community, either by the Contractors or by the ECSC.

5.2 If carried out by the Contractors, the following minimum requirements must be observed:

(a) publication must be effected in specialised journals of recognised repute and wide circulation;

(b) the publisher must undertake to provide the ECSC on request, against payment, with as many copies of the publication as the ECSC shall consider necessary; the publisher and the author shall authorize the ECSC to circulate such reprints, together, where appropriate, with summaries and translations into other languages.

5.3 Project results that are not capable of giving rise to industrial property rights shall likewise be published in the Community by the Contractors or by the ECSC as soon as they have reached a stage suitable for announcement.

Article 6 - Transfer of rights

The Contractors may transfer rights in the Project results, or grant exclusive licences in respect of industrial property rights within the Community, only with the consent of the ECSC. The ECSC shall give its consent where it has full assurance that the Contractors' obligations regarding dissemination of Project results will be met.

Article 7 - Direct exploitation of Project results: granting of licences and dissemination of information to persons concerned

7.1 Where the Contractors have obtained final or provisional industrial property rights in respect of Project results, they shall grant to any person concerned who so requests non-exclusive licences for such person's own use and shall place at such person's disposal for his own use the experience obtained and improvements to be obtained thereafter in the field to which the licence pertains, including experience and improvements obtained as provided in paragraph 7.4 hereunder.

7.2 Where the Contractors have not applied for or obtained rights of industrial property in respect of the Project results, they shall place the Project results at the disposal of any person concerned who so requests for such person's own use, and shall likewise place the experience obtained and the improvements to be obtained thereafter in the field in question.

7.3 Where exploitation of Project results as provided in Article 7.1 and 7.2 above can be effected only simultaneously with the exploitation of other background rights previously acquired by the Contractors (prior patents), the Contractors shall also grant licences in respect of such rights to the persons concerned.

7.4 The Contractors shall arrange, with the persons concerned when granting licences and information as provided in Article 7.1 to 7.3 above, for information relating to experience obtained and improvements to be obtained thereafter in the field in question to be exchanged between the parties.

Article 8 - Royalties

8.1 In performing their obligations under Article 7 of this Annex the Contractors shall be at liberty to grant licences and information to persons concerned in the Community royalty-free or for valuable consideration. If the Contractors elect to grant royalty-free licences and information, they may stipulate for payment of their expenses.

(a) If the Contractors elect to charge no royalty, they shall be entitled to receive all royalties accruing outside the Community.

(b) If the Contractors elect to charge royalties, they shall share with the Community as provided in Article 12 of this Annex the aggregate proceeds accruing inside and outside the Community.

(c) The payment of royalties to the Community shall be limited to a period of ten years from the date on which the patent is awarded.

8.2 In fixing the amount of the royalty, there shall be no discrimination between the persons concerned. In this connection, the licences and information referred to in Articles 7.1 and 7.2 above, in so far as they relate to the same techniques, shall be treated as considerations of equal value.

8.3 Except where special circumstances justify an exception being made, the royalty shall not exceed the amount that persons not concerned are required to pay for like licences and information.

Article 9 - Indirect exploitation of Project results; manufacture and sale of machines or appliances by the Contractors

9.1 If the Contractors themselves manufacture for sale machines or appliances on the basis of the Project results, whether protected or unprotected, they shall be obliged to supply them without discrimination, by way of sale, lease or hire, to any person concerned for his own

use. The price charged shall not be disproportionate and shall not, except where special circumstances justify the making of an exception, exceed the amount that persons not concerned are required to pay for the same machine or appliance.

9.2 If the Contractors are unable or unwilling to execute orders within a reasonable delay, they shall grant licences to one or more other competent manufacturers selected by them within the territory of the Community and shall communicate to them the experience needed to execute the said orders.

Article 10 -Indirect exploitation of Project results; manufacture and sale of machines and appliances by other undertakings

If the Project results consist of inventions or experience for the making of machines or appliances which the Contractors themselves are unable or unwilling to manufacture for sale, they shall grant licences to one or more competent manufacturers selected by them within the territory of the Community to ensure manufacture thereof, and shall communicate to them the experience needed. Such manufacturer or manufacturers shall then undertake to supply the machines or appliances without discrimination, by way of sale, lease or hire to persons concerned, for their own use. The price charged shall not be disproportionate and shall not, except where special circumstances justify the making of an exception, exceed the amount that persons not concerned are required to pay for the same machines or appliances.

Article 11 - Licences in favour of the Community

11.1 To ensure due performance of their obligations under Articles 7, 9 and 10 of this Annex, the Contractors shall grant to the Community royalty-free, non-exclusive licences in respect of all industrial property rights for which the Contractors have obtained protection in the Community Member States, and such licences shall confer the right to grant the sub-licences referred to in paragraph 11.2 below.

11.2 On the basis of the aforesaid licences the Community may grant sub-licences to persons concerned where the Contractors agree with it that the applicant for a licence qualifies as a "person concerned" but nevertheless refuse to grant a licence in accordance with Article 7 of this Annex. The Community shall notify the Contractors not less than four weeks before granting the sub-licence.

11.3 In granting sub-licences, the ECSC shall adhere to the terms normally adopted by the Contractors when granting licences in respect of the industrial property rights in question. For this purpose, the ECSC shall request the Contractors to inform it of these terms within four weeks. If the Contractors do not comply within that period, the ECSC shall settle the most suitable terms it thinks fit. Any royalty agreed upon in connection with the sub-licence shall be paid directly to the Contractors after deduction of the ECSC's expenses.

11.4 If the ECSC and the Contractors do not agree as to whether the applicant for a licence qualifies as a "person concerned", this matter must first be decided by the Court of First Instance of the European Communities and in the event of an appeal the Court of Justice of the European Communities. If the Court of Justice finds that the applicant qualifies as a "person concerned", the ECSC may then grant sub-licences as provided in paragraphs 11.2 and 11.3.

11.5 If the Contractors do not fulfil their undertaking to grant licences to other manufacturers as provided in Article 9.2 or Article 10 of this Annex, the ECSC may then grant sub-licences to those concerned and communicate to them the experience necessary to enable them to make, or to cause to be made by others, machines or appliances for their own use. Paragraphs 11.2, 11.3 and 11.4 above shall apply by analogy.

Article 12 - The Community share of royalties

12.1 Where royalties accrue to the Contractors from the grant of licences in respect of industrial property rights or the communication of experience (Articles 7 and 11.3 of this Annex), the ECSC shall be entitled to the following share of the amount payable:

- there shall first be repaid to the parties to this Contract the costs of applying for, preserving and defending industrial property rights and, where appropriate, a suitable amount by way of inventor's remuneration;

- from the balance, which shall be calculated for each calendar year, the Community shall receive a share proportionate to the amount of its contribution to the invention in question as against the contribution of the Contractors (personnel and equipment costs, technical experience made available for the Project). The Community share shall not surpass its contribution for the Project.

12.2 Paragraph 12.1 above shall apply by analogy where the Contractors grant to other manufacturers, as provided in Article 9.2 or Article 10 of this Annex, licences for the manufacture and sale of machines or appliances.

12.3 Where the Contractors themselves manufacture machines or appliances and supply them to those concerned in the Community (Article 9 of this Annex), the Community shall be entitled to a share in the profits. In determining that share, due account shall be taken of the amount of its contribution to the development of the machines or appliances in question. The Community share shall not surpass its contribution for the Project.

12.4 The share of the Community in royalties or profits (paragraphs 12.1 to 12.3 of this Annex) shall be fixed by agreement between the parties to this Contract within six months after completion of the Project. Failing agreement within that period, the Court of First Instance and, in the event of an appeal, the Court of Justice of the European Communities shall determine the matter.

Article 13 - Filing in non-Community countries of claim to industrial property rights

13.1 The Contractors shall be at liberty to file, or not to file, claims to rights of industrial property in countries outside the Community, and to determine to what extent and for how long they shall be maintained.

13.2 Where such industrial property rights constitute an impediment to the export of products from the Community's coal and steel industries, the Contractors shall obviate such impediment by granting the requisite licences. If the Contractors grant an exclusive industrial property right acquired outside the Community, or grant an exclusive licence in respect of any such right, they must impose like obligations upon the transferee or licence. Articles 8.1 and 8.3 of this Annex shall apply.

13.3 The costs of applying for, preserving and defending industrial property rights in countries outside the Community shall be borne solely by the Contractors. Nevertheless, where proceeds accruing from the grant of licences or information in such countries are shared between the Contractors and the Community as provided in Article 8.1 paragraph (b) of this Annex, the provisions of Article 12.1 of this Annex (in particular with respect to repayment of such costs) shall apply.

Article 14 - Area of territorial application

For the purpose of determining which countries are Community Member States and, accordingly, which persons are "persons concerned in the Community", account shall be taken of any changes that take place in this respect after conclusion of the Contract.

ANNEX IV

Rules governing the dissemination of information and the declaration, protection and exploitation of inventions

(Pilot and demonstration projects)

Article 1 - DefinitionsArticle 2 - Dissemination of informationArticle 3 - Declaration and protection Article 4 - Exploitation of the inventionsArticle 5 - Exchange of information and licences between Beneficiaries in cases of cooperationArticle 6 - DurationArticle 7 - Reimbursements

ANNEX IV

Rules governing the dissemination of information andthe declaration, protection and exploitation of inventions

(Applicable for pilot and demonstration projects)

Article 1 - Definitions

For the purposes of this Annex:

(1) "Reports" means the reports specified in Article 6 of the Contract.

(2) "Inventions" means proposals for original solutions to problems in technology, the natural sciences or data processing put forward or conceived in the course of implementing the programme defined in Annex I to the Contract, whether they are protected by law (e.g. patents, utility certificates, industrial models, rights of authorship) or by confidentiality.

(3) "Foreground information" means all the information including inventions generated by any Contractor, or third party working for it, in the performance of the Project.

(4) "Foreground patents" means applications for patents or utility models, actual patents or utility models, rights of authorship and any similar rights protecting inventions as defined in paragraph 2 of this Article.

(5) "Background patents" means applications for patents or utility models, actual patents or utility models, rights of authorship and any similar rights owned or controlled by Contractors in the same field as that of the programme defined in Annex I to the Contract or in related fields, and necessary for the implementation of the Contract and/or the exploitation or marketing of foreground information, but which do not protect inventions made or conceived in the course of implementing a Specific ECSC RTD Programme.

(6) "Proprietary information" means manufacturing secrets or technical, commercial or financial information known only to the owner or which the latter has transferred or is willing to transfer to third parties on condition that they observe the confidentiality of the information.

Article 2 - Dissemination of information

2.1. The Contractors may use the foreground information and report themselves or communicate them to third parties. They shall also have the right to publish them or to authorize their publication by a third party provided the Commission is notified in advance; the publication must mention the fact that the work was undertaken in the framework of a Specific ECSC RTD Programme unless the Commission requests that the Community shall not be mentioned. The Contractors shall postpone or forego publication, however, if the Commission requests him to do so in the interests of the Community.

2.2. The Commission may use the foreground information and reports for its own purposes and those of other Community institutions provided that their confidentiality can be maintained wherever necessary.

2.3. The Member States and interested parties established in the Community shall be informed of the purpose of the Project works, its progress and its results by the dissemination of periodic summary reports and of a final report, or by any other means agreed upon by the Commission and the Contractors. If need be, dissemination may be made subject to the condition that the reports shall be treated as confidential and shall not be communicated to third parties.

2.4. The summary reports referred to in Article 2.3 of this Annex or any other reports submitted by the Contractors may be published by the Commission without restriction only if the Contractors have not made publication subject to their approval by stating this when forwarding them to the Commission. If the Contractors withhold their approval, they shall not publish the documents themselves and the Commission shall postpone publication.

2.5. Where the Commission disseminates or publishes a report as provided in Articles 2.3 and 2.4, it shall mention the fact that it relates to works undertaken by the Contractors within the framework of a Specific ECSC RTD Programme unless the Contractors ask not to be mentioned.

2.6. The Commission shall not communicate foreground information and reports to a non-member country or an international organisation pursuant to an agreement or convention on information exchange concluded by the Community unless the Contractors were informed of the agreement or convention when the contract was concluded and agreed to be bound by it. If the Contractors wish, they shall be associated with the exchange.

2.7. Notwithstanding the provisions of this Article, the Commission and the Contractors shall refrain from any dissemination or publication that might prejudice the protection, exploitation or secrecy of the inventions referred to in Articles 3 to 5 of this Annex.

Brief information on the existence of the foreground information may, however, be disseminated within the Community by the Commission or the Contractors.

Article 3 - Declaration and protection

3.1. Foreground shall belong to the Contractors or Associated Contractors generating it. Where foreground information appears to be patentable, they may apply for and obtain the patents necessary for its protection in their own name. Where Contractors agree that there shall be joint ownership of foreground, they shall agree amongst themselves on the action to be taken for such protection. The Contractors undertake to return the attached Confidential Declaration (Appendix hereto), duly completed and signed, to the Commission as soon as foreground information is generated and in any case not later than with the last progress report, the final report or the summary report.

3.2. If the Contractors do not wish to apply for the patents referred to in Article 3.1. in one or more countries, the Commission may, at the Contractors' request, apply for and obtain such patents in the name of the Community. The Contractors shall inform the Commission of their intentions in time to enable the Commission to file a valid application for the patents.

3.3. Whichever of the Contracting Parties has applied for or obtained a patent shall not assign it to a third party or surrender it except by agreement with the other party. The latter shall oppose neither the assignment of the patent, if the assignee is established in the Community and agrees to discharge the assignor's obligations pursuant to this Annex, nor its surrender if he is not willing for the patent to be transferred to his own name.

Article 4 - Exploitation of the inventions

4.1. The Contractors undertake to exploit and/or market the inventions in a way that serves the interests of the Community within three years after the expiry of this contract unless there are good reasons for not doing so which are acknowledged by the Commission.

4.2. The Contractors may also have the inventions exploited by a third party of their own choice (licensee or assignee), subject to the provisions of Article 4.1.

4.3. The Contractors may also have the inventions exploited by third parties whom the Commission undertakes to find for them.

4.4. The Commission may propose to the Contractors, or the Contractors request the Commission, that an agreement be concluded on the exploitation of the inventions. The agreement shall specify in particular the extent of the obligation to exploit them, the time scale for exploitation, the rules on the granting of licences, any aid to be granted by the Commission, and the Community's requirements for new products and processes applying the inventions.

The Commission may propose to the Contractors who have carried out related works within the framework of a Specific ECSC RTD Programme that an agreement be concluded on the joint exploitation of inventions resulting from the research.

4.5. The Contractors may be discharged from their obligation to exploit the inventions or to have them exploited by reimbursing the finance provided by the Commission together with interest as referred to in Article 14.7 of Annex II. That possibility shall not prejudice the provisions of Articles 4.6 and 5.3. hereof, which will continue to apply.

4.6. The Community shall be granted free of charge a non-exclusive, irrevocable licence in respect of the foreground information referred to in Article 3.1 for use by its Joint Research Centre and similar joint enterprises, without the right to grant sub-licences.

4.7. The Contractors shall inform the Commission of their plans for exploiting and/or marketing the inventions. They shall make available to the Commission information and documents enabling the Commission to verify whether the undertaking to exploit and/or market the inventions pursuant to Article 4.1 has been complied with.

4.8. The Commission may request the Contractors to receive visitors or trainees from Community countries with a view to promoting the use within the Community of products or equipment in which the inventions find application. Visitors or trainees shall be selected by agreement between the Commission and the Contractors, having regard both to the general interests of the Community and to the Contractors' industrial and commercial interests, in particular the need to protect or exploit the inventions or to maintain their secrecy. The Contractors shall not withhold their agreement without reasonable grounds.

4.9. The Commission may request the Contractors to take part in a technical or commercial demonstration aimed at promoting the use within the Community of products or equipment in which the inventions find application.

As far as they are able, the Contractors are required to give all the assistance necessary for the organisation of the demonstration.

Article 5 - Exchange of information and licences between Contractors in cases of cooperation

5.1. Contractors cooperating in the programme defined in Annex I of this Contract shall arrange between themselves an exchange of information and licences. The exchange shall be subject to the basic rules set out in this Article. They are applicable:

- between Contractors who are signatories of this contract;

- between the signatory or signatories of this contract, their Associated Contractors and their Subcontractors.

5.2. Access to information and inventions for the implementation of the Programme

5.2.1. Foreground information including inventions shall be made available free of charge to other signatories of the Contract, to signatories of Associate Contracts and to Subcontractors to the extent that such information is necessary or useful for the execution of the work covered by this Contract and its Associate Contracts or Subcontracts.

5.2.2. The other Contractors participating in the Specific ECSC RTD Programme that gives rise to this Contract shall have preferential access to the said foreground information on reasonable terms to the extent that such information is necessary for the execution of the work specified in their Contract.

5.2.3. Background which the Contractor is entitled to disclose and the use of which he can authorize shall be made available upon request, on suitable non-discriminatory terms, to the other signatories of the Contract, to the signatories of Associate Contracts and to Subcontractors in so far as the information is necessary for the work covered by their contract.

5.2.4. The communication of proprietary information may be made subject to an agreement safeguarding its confidentiality. Documents containing such information shall be suitably marked to draw the recipient's attention to its confidential nature.

5.2.5. Where the use of the information communicated is protected by patents or other intellectual property rights and cannot be used, even for research purposes, without a licence, the licence shall be granted on the conditions laid down for the communication of information if the recipient applies for it. The licence shall be non-exclusive and shall cover only the execution of the work forming the subject of the contract concluded by the recipient of the information.

5.2.6. Contractors taking part in the Specific ECSC RTD Programme that gives rise to this Contract, but who do not have access to the background information referred to in Article 5.2.3, may nevertheless obtain licences for patents or other intellectual property rights protecting the use of the information provided that the licences are necessary for the performance of their contract, that the Contractor concerned has the right to grant the licence and that the granting of a licence does not conflict with any important business interests of the Contractor in question. The licence shall be non-exclusive and granted on suitable non-discriminatory terms.

5.3. Exploitation of the results

5.3.1. The signatories of this Contract, signatories of associate contracts and Subcontractors shall reciprocally grant each other the right to exploit and/or market the results obtained in the performance of their Contracts or subcontracts, and non-exclusive licences and user rights, either royalty-free or against payment of an appropriate royalty.

5.3.2. The signatories of this Contract, signatories of Associate Contracts and Subcontractors may obtain non-exclusive licences and user rights on suitable non-discriminatory terms in respect of any information and background patents in so far as these are necessary for industrial exploitation pursuant to Article 5.3.1 provided that:

(a) the Contractors concerned have the right to disclose the information and to grant licences for the exploitation of the information and patents;

(b) it does not conflict with any important business interest of the said Contractors;

(c) the licences or user rights do not relate to products or the manufacture of products that are commercially available or about to become available.

5.3.3. Apart from the cases referred to in Article 5.3.1 and 5.3.2 above, all the Contractors taking part in the Specific ECSC RTD Programme that gives rise to this Contract may request the granting of non-exclusive licences and user rights in respect of foreground information and patents obtained in the implementation of the Specific ECSC RTD Programme if the granting of such licences and rights is essential to their own work conducted outside the Specific ECSC RTD Programme but within the same technical field, or to the exploitation and/or commercialisation of the results of that work. The licences shall be granted on suitable non-discriminatory terms and shall not be withheld without good reason subject to the restrictions set out at points a), b) and c) of Article 5.3.2 above.

5.4. Cooperation agreements between Contractors

5.4.1. Contractors who contemplate concluding between themselves a cooperation agreement embodying the basic rules laid down in this Article and specifying, supplementing or extending those rules shall submit their draft agreement to the Commission not later than one month before its conclusion except where it has been submitted before the conclusion of this Contract.

5.4.2. Any draft amendment to such an agreement shall be made known to the Commission with the same term of notice.

5.4.3. If the Commission considers that a draft agreement or a draft amendment to an agreement restricts the rights and obligations specified in this Article, it shall notify the Contractors thereof. If the latter refuse to amend their drafts, the contracts shall be considered null and void.

Article 6 - Duration

6.1. The rights and obligations of the Contracting Parties resulting from this Annex shall hold good after the expiration of the contract.

Article 7 - Reimbursements

7.1 Commercial exploitation under this Article is understood to mean the granting of licences pursuant to foreground rights that held a financial gain and have been acquired as an outcome of the work carried out in performance of the Contract.

7.2 The Contractors shall refund the Commission up to 50 % of the financial aid referred to in Article 3 of the Contract with added interest calculated from the date of the first payment relating to commercial exploitation. The percentage of the total financial gain to be refunded to the Commission will be the same as the percentage of the financial aid granted by the Commission as referred to in Article 3 of the Contract. The period for which reimbursement can be requested may not exceed five years from the end of the Contract. The rate of interest shall be the yearly average rate as published by EUROSTAT referred to in Article 14.1 of Annex II.

APPENDIX to ANNEX IV

(Pilot and demonstration projects)

Confidential declaration1

relating to foreground information, protected or suitable for protection resulting from a shared-expense Contract concluded with the Commission of the European Communities

(Implementation of Annex IV of the Contract relating to the rules governing the dissemination of information and the declaration, protection and exploitation of inventions)

1. Contractors' names and addresses:

...........................................................................................................................................................

...........................................................................................................................................................

...........................................................................................................................................................

...........................................................................................................................................................

2. Name of the Programme, number and title of the Contract:

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

3. The Contractors declare that in implementing the programme of work specified in Annex I to the Contract:

- no foreground information has been generated2

- the following foreground information has been generated2:

Title or subject of the foreground information:

(a) ...................................................................................................................................................................................................................................................................................................

(b) ..............................................................................................................................................

...................................................................................................................................................

(c) ..............................................................................................................................................

...................................................................................................................................................

(d) ..............................................................................................................................................

...................................................................................................................................................

Foreground rights applications in respect of the above inventions:

1 This Confidential Declaration is to be sent, duly completed, to the Commission department with which this Contract was concluded as soon as foreground information is generated and in any case not later than with the last six-monthly report or the final report

2 Delete whichever is not applicable.

(a) already filed / being considered / not being considered2

(b) already filed / being considered / not being considered2

(c) already filed / being considered / not being considered2

(d) already filed / being considered / not being considered2

4. In connection with the above-mentioned foreground information in respect of which no foreground rights application has so far been filed, the Contractors propose/do not propose2 that the Commission should consider applying for foreground rights.

5. The Contractors have undertaken/intend to undertake/do not intend to undertake2 the exploitation of their foreground.

Where appropriate, the stage reached in the work

...........................................................................................................................................................

...........................................................................................................................................................

..........................................................................................................................................................

6. The Contractors propose/do not propose2 that the Commission should back them in exploiting their foreground, e.g. by market studies, exhibitions, seeking licensees, etc. Where appropriate, an agreement on exploitation is to be concluded with the Commission.

7. Signature

NAME and POSITION of the person authorized to sign on behalf of the Contractors

......................................................................................................................................................

......................................................................................................................................................

Done at ............... .................. ...........................................

(date) (signature)

ANNEX V

Special conditions

ANNEX V

Special Conditions

The following conditions shall apply to the project:

Single Contractor

( ) Where the Contract is to be carried out by one single Contractor, the latter shall assume all the responsibility of the Contractors and of the Coordinator as defined in this Contract and its Annexes.

Depreciation of equipment for research projects

( ) Notwithstanding the provisions of Article 10 of Annex II, the rate of depreciation B shall be calculated in months as regards the following equipment:

(Please specify equipment).

Cost of equipment for pilot and demonstration projects

( ) The allowable costs for equipment are estimated at ECU....................

Where JRC acts as Contractor

( ) The Community shall carry out part of the Project through its Joint Research Centre (JRC) and the following special conditions shall apply to take account of such participation:

(a) For the purposes of the Contract, the Community, through the JRC, shall be considered as a Contractor. The participation of the JRC will be regulated by an administrative arrangement within the Commission between, on the one hand, DG XIX and either DG XII or DG XVII and, on the other hand, the JRC.

(b) In carrying out this Contract, the JRC will be assimilated to a Contractor and will enjoy all the same rights and have all the same obligations as the other Contractors.

(c) The Project includes the part of the work to be carried out by the JRC as specified in Annex

(d) The total estimated allowable costs of the Project indicated in Article 3.1 include those to be sustained by the JRC estimated at ECU............. . The contribution of the Commission, specified in Article 3.2 of the Contract to be financed from the ECSC budget for the Specific ECSC RTD Programme, includes its contribution, estimated at ECU............., to the costs of the JRC for its part of the Project.

(e) The budgetary credits from the Specific ECSC RTD Programme to cover this contribution to the costs of the work to be performed by the JRC shall be transferred directly from DG XIX to the JRC in accordance with the Commission's internal regulations and the arrangement referred to in (a) above.

(f) If the JRC acts as the Coordinator, Article 2.1(b) of Annex II shall not apply, and the Commission shall pay the sums due under the Contract [directly to each Contractor]

[through........, who shall exercise the functions and obligations of the Coordinator set out in Article 2.1(b) of Annex II], in accordance with other special conditions of this Article.

ANNEX V

Proposed Model Subcontract

SUBCONTRACT TO ECSC AGREEMENT N °

BETWEEN NAME:ADDRESS:POSITION:

[BENEFICIARY]AND

NAME:ADDRESS:POSITION:

[SUBCONTRACTOR]

WHEREAS

A. The European Coal and Steel Community (the ECSC) has made a grant in financial aid in accordance with Article 55 of the Treaty of 18 April 1951 for the purpose of conducting research concerning [TITLE], hereinafter called the "Research Project", and have named [BENEFICIARY] as the Beneficiary of ECSC Research Agreement n°.......

B. It is the intention that part of the Research Project should be carried out on behalf of [BENEFICIARY] by [SUBCONTRACTOR] under the terms and conditions required by the ECSC in respect of subcontracted research and set out in these documents. If this subcontract conflicts with the abovementioned ECSC agreement, the latter shall prevail.

C. [SUBCONTRACTOR] accepts that, in undertaking research under subcontract to [BENEFICIARY] in respect of ECSC Agreement n° ........, it is bound by the terms and conditions of the ECSC Research Agreement and the Annexes thereto, in so far as they relate to the requirements set out in this subcontract. [SUBCONTRACTOR] recognises that [BENEFICIARY] has certain obligations to the ECSC in respect of the administration and reporting of technical progress on the Research Project and will maintain and provide such necessary documentation as is required by the ECSC Research Agreement (Annex I hereto [Copy of ECSC Agreement n° ......]).

D. [SUBCONTRACTOR] will take any actions necessary to ensure that the confidentiality of the work is maintained.

IT IS THEREFORE AGREED THAT:

1.0 THE CONTRACT WORK

1.1 [SUBCONTRACTOR] will carry out the work set out in the Technical Annex to this subcontract and in accordance with the timetable specified thereto, subject to such alterations as may be mutually agreed in writing. Reports on the progress of the research will be made to [BENEFICIARY] in accordance with point 4.0 reporting.

2.0 FINANCIAL ARRANGEMENTS

2.1 The maximum value of the subcontracted work will be [AMOUNT] ECU, or the actual total expenditure, whichever is the less. Of this amount, [PERCENTAGE] will be funded by [BENEFICIARY], up to [AMOUNT] ECU. Over and above this latter limit, [SUBCONTRACTOR] will be responsible for the full amount of any expenditure necessary to complete the research work set out in the Technical Annex.

2.2 [SUBCONTRACTOR] will make claims for payment for each phase of the subcontract work by submitting an invoice or invoices to [BENEFICIARY] at, or no later than, the end of each ECSC semestral period. The relevant provisions relating to finance and financial reporting are given in points 2.2.1 and 2.2.2.

2.2.1 All claims and financial reports will be made to [BENEFICIARY]. Invoices will be submitted at six-monthly intervals to allow [BENEFICIARY] to comply with the Community twice-yearly reporting periods of 1 January to 30 June and 1 July to 31 December. Financial reports must be prepared in accordance with the requirements laid down in Annex II of the ECSC agreement.

2.2.2 Invoices and financial reports should reach [BENEFICIARY] such that all those referring to the previous six-monthly period are available by 14 February and 14 August, respectively, to ensure incorporation in the relevant Semestral Report.

2.2.3 The [BENEFICIARY] shall [immediately within ......days] transfer the appropriate amount of each payment to [SUBCONTRACTOR].

3.0 CONDUCT OF THE PROJECT WORK

3.1 [SUBCONTRACTOR] is responsible for ensuring that the conduct of the research work is to the required standards, is undertaken by the appropriate personnel and is carried out within the financial provisions and the timetable, if appropriate, or as may otherwise be mutually agreed in writing.

3.2 [SUBCONTRACTOR] must not subcontract any part of the work without the prior approval of [BENEFICIARY]. [BENEFICIARY] shall obtain the written agreement of the ECSC to such an arrangement.

3.3 All documents of whatever kind compiled during the course of the work on the Research Project will be held at the disposal of [BENEFICIARY] and the ECSC throughout the period of this Agreement and for five years thereafter.

4.0 REPORTING

4.1 [SUBCONTRACTOR] will provide [BENEFICIARY] with progress reports as set out in point 4.2.

4.2 REGULAR REPORTS

4.2.1 [BENEFICIARY] is required by the terms of ECSC Research Agreement n° ............ to submit to the Commission half-yearly Technical and Financial Reports. To enable this requirement to be complied with, [SUBCONTRACTOR] will provide to [BENEFICIARY] a Technical Report covering the results achieved during the preceding ECSC Semester period.

4.2.2 The Technical Report should accompany the Financial Report for each Semester, and should reach [BENEFICIARY] by the dates indicated in section 2.

4.3 FINAL REPORT

4.3.1 The final report will review the whole of the research work and the conclusions drawn therefrom. The Final Report must reach [BENEFICIARY] not more than three months after completion or termination of the project work.

4.4 TIMETABLE [OPTIONAL]

5.0 CONFIDENTIALITY

5.1 [SUBCONTRACTOR] will take all necessary steps to ensure that the Community requirements in respect of the confidentiality and security of information, the protection of intellectual property and copyright arising from the research are observed by its staff, employees or any other person acting on its behalf who may have the opportunity of acquiring information relating to the Research Project.

6.0 AMENDMENT OF THE SUBCONTRACT AGREEMENT

6.1 Any amendment, alteration or addition to the subcontract in respect of objectives, timetable or costs will be determined by mutual agreement and will be subject to confirmation in writing by [BENEFICIARY]. [BENEFICIARY] shall obtain the written approval of the ECSC to such an agreement.

7.0 LIFE OF THE AGREEMENT

7.1 This agreement is deemed to take effect from [DATE] and the project work will be deemed to have started on that date.

7.2 This agreement will remain in force throughout the life of ECSC Research Agreement n°........., terminating on [DATE] or at such other date as may be agreed and approved by the Commission.

8.0 TERMINATION

8.1 This Agreement can be terminated by either party subject to a period of notice being given that is not less than three months from the date of written notice of such termination. The liabilities of each party in respect of research results and incurred and committed expenditure will be determined by agreement and will accord with the conditions laid down in the ECSC Research Agreement (attached hereto).

9.0 LAW

9.1 This Agreement will be subject to the Law of .............................................

10.0LIABILITY

[Optional - terms to be agreed between the contracting parties].

11.0ANNEXES

The Annexes forming an integral part of this contract are:Annex 1 : ECSC Research Agreement n°.........Technical annex : Objectives and conduct of the Research Project

12.0SPECIAL CONDITIONS

[ Optional - Special conditions to be agreed between Contracting parties].

Signed on behalf of[SUBCONTRACTOR] ..............................................................

Signed on behalf of[BENEFICIARY] ..............................................................

Technical AnnexObjectives and conduct of the Research Project

1.0 OBJECTIVES AND PROGRAMME

1.1 The full objectives and programme of the Research Project, for which [BENEFICIARY] is the named Beneficiary, are as set out in the ECSC contract n°...................(Annex I hereto), and the work to be undertaken by [SUBCONTRACTOR] under this Subcontract Agreement, and which forms part of the research programme as defined in Annex I, is set out in this Technical Annex.

2.0 THE WORK OF THE SUBCONTRACT

2.1 The subcontract work will be carried out in stages, the objective and programme of the research being as set out below:

(I) OBJECTIVE[SUBCONTRACTOR] will assist in achieving the overall objectives as stated in the Technical Annex for the project.(II) PROGRAMMEThe programme of work to be undertaken by [SUBCONTRACTOR] will comprise:

3.0 CONDUCT AND REGULATION OF THE WORK

3.1 The general conduct of the project work will be co-ordinated by [CONTACT PERSON] of [BENEFICIARY] who will maintain contact with [CONTACT PERSON OF SUBCONTRACTOR] such that [BENEFICIARY] is kept fully informed of the results obtained.

4.0 ALTERATION TO THE PROGRAMME OF RESEARCH

4.1 Any alteration to the content and timetable of the Research Project, within the life of the ECSC Research Agreement, can only be made by mutual agreement and is subject to formal written approval by [BENEFICIARY]. Should it be decided that completion of the work would require that the timescale be extended beyond the original termination date of ECSC Research Agreement n°............ approval can only be given by [BENEFICIARY] if such extension is sanctioned by the ECSC.

5.0 MANNING

5.1 [SUBCONTRACTOR] undertakes to provide the necessary staff of the appropriate qualified status and experience to ensure the proper conduct of the research and its completion within the timespan allotted, in accordance with paragraph 4.4 where appropriate of this subcontract and with the ECSC Research Agreement, attached hereto.

ANNEX VI

ECSC Steel Executive Committees and Expert Groups

(at the date of publication of the present document)

Within the Commission a scientific official is responsible for the technical assistance and monitoring of RTD projects; he/she can be contacted via the programme help-line.

European CommissionDirectorate-General XII for Science, Research and Development Unit C-2: "Materials & Steel" - MO75 1/21 Rue de la Loi 200 / Wetstraat 200 B - 1049 Bruxelles / Brussel.Help-line Telephone: +32-2-295.56.48 or 295.85.87Help-line Facsimile: +32-2-296.59.87Help-line e-mail: DG12 Helplinge ECSC-

[email protected]

Committee / Groupfor research

B reduction of iron oresC1 primary steelmakingC2 secondary steelmakingC3 casting and solidificationD1 rolling - long products and reheating furnacesD2 rolling flat productsD3 physical metallurgy of rolling and finishingE analytical techniques for processes, products and the

environmentF3 special and alloy steelsF4 thin sheetsF5 mechanical characteristicsF6 steel structuresF7 surface characteristics

for pilot/demonstration

T1 iron and steel makingT2 continuous castingT3 rolling and product treatmentT4 on-line control

ANNEX VII

Research Annual Reports

(personalised composition is welcome, provided thatall information listed below is included)

The Structure of a Research Annual Report

The Research Annual Report shall contain, in the following order:

general information see the "Recommended Cover Page" below;

distribution see the "Recommended Back of the Cover Page" below;

summary written by the co-ordinator to give the main results achieved with the project, and the conclusions. To facilitate experts' technical monitoring, it is strongly recommended that this part is in English;

results and discussion to report activity, describe RTD work, devices and main performance, analyse and comment results obtained. All relevant data should be provided;

tables, figures and graphsto substantiate the results reported. To facilitate experts' technical monitoring, it is strongly recommended that they are prepared in English, even if they are part of a report written in a different language;

symbolslist of normally unknown symbols used in the text; S.I. units should be employed throughout;

publications/patentsrelevant to the reporting period;

conformity with the contract workprogramme

recalling the objectives or a copy of the technical annex. To facilitate experts' technical monitoring, it is strongly recommended that this part is in English;

programme schedulethis is to provide information on the conformity of the project to the original work plan, as stated in the contract;

planning see the "Planning" reported belowto position the project within the timetable and budget foreseen. To facilitate experts' technical monitoring, it is strongly recommended that this part is in English;

detailed results should the need be, may be added as annexes for single contracts or groups

of contracts in order to make it clear "who did what".

recommended cover page

ECSC STEEL RTD PROGRAMME

research project carried out with a financial grant of theEuropean Coal and Steel Community

Technical Report N: 1 / 2 / 3 / 4 / 5 / 6 / ...

Period of Reference: please specify the year of reporting

Executive Committee: please specify

title §§§ title §§§ title §§§ title §§§ title

Contract Numbers: e.g.: 7210-PA/999 (97-D2.02a)7210-PB/999 (97-D2.02b)7210-PC/999 (97-D2.02c)7210-PD/999 (97-D2.02d)

Contractors: ....................................................................................................................................................................................................

Location: ....................................................................................................................................................................................................

Co-ordinator: .................................................

Authors: ....................................................................................................................................................................................................

Commencement Date: please specify

Original Completion Date: please specify

New Completion Date: please specify, where applicable

recommended back of the cover page

DISTRIBUTION

(please report the mailing list:

the members of the Executive Committee;

and, at your convenience,

the project leaders in the Executive Committee;

please update regularly the mailing list)

planning

PROBLEMS ENCOUNTERED: please specify

CONFORMITY WITH THE TIMETABLE: yes / no (if no, please explain)

the use of a bar-chart is most appreciatedplease add, where applicable

BUDGET INFORMATION(please complete such a table or add as an annex a copy of the cost

statements)

contractor costs for the period

costs to date total budget

grand total

ANNEX VIII

Pilot/Demonstration Six-Monthly Reports


The Structure of a Pilot/DemonstrationSix-Monthly Report

The pilot/demonstration project six-monthly report shall contain, in the following order:



programme schedule see the "Planning" reported below;this is to provide information on the conformity of the project to original work plan, as stated in the contract and to position the RTD activity within the timetable and budget foreseen. To facilitate experts' technical monitoring, it is strongly recommended that this part is in English;


results and discussion to report activity, describe RTD work, devices and main performance, analyse and comment results obtained. All relevant data should be provided;

tables, figures and graphs to substantiate the results reported. To facilitate experts' technical monitoring, it is strongly recommended that they are prepared in English, even if they are part of a report written in a different language;

symbolslist of normally unknown symbols used

in the text; S.I. units should be employed throughout;

publications/patents

relevant to the reporting period;

workprogramme recalling the objectives or a copy of the technical annex. To facilitate experts' technical monitoring, it is strongly recommended that this part is in English;

detailed results should the need be, may be added as annexes for single contracts or groups of contracts in order to make it clear "who did what".



pilot/demonstration project carried out with a financial grant of theEuropean Coal and Steel Community





Contract Numbers: e.g.: 7215-PA/999 (97-T2.02a)7215-PB/999 (97-T2.02b)7215-PC/999 (97-T2.02c)7215-PD/999 (97-T2.02d)

Contractors: ....................................................................................................................................................................................................

Location: ....................................................................................................................................................................................................

Co-ordinator: .................................................

Authors: ....................................................................................................................................................................................................





DISTRIBUTION


the members of the Expert Group and SERDEC;


the project leaders in the Expert Group;


planning

WORK UNDERTAKEN: e.g. construction of the complete pilot plant, commissioning and preliminary trials

MAIN RESULTS: e.g. validation of plant performance and definition of the main operating procedures

PROBLEMS ENCOUNTERED: e.g. none

FUTURE WORK PROGRAMME: e.g. trials to define the process parameters



statements)



grand total

ANNEX IX

Research Interim Reports (Research Six-Monthly Reports)


The Structure of a Research Interim Report(Research Six-Monthly Report)

The research interim report (research six-monthly report) shall contain, in the following order:




tables, figures and graphs to substantiate the results reported. To facilitate experts' technical monitoring, it is strongly recommended that they are prepared in English, even if they are part of a report written in a different language;

programme schedule see the "Planning" reported below;this is to provide information on the conformity of the project to original work plan, as stated in the contract and to position the RTD activity within the timetable and budget foreseen. To facilitate experts' technical monitoring, it is strongly recommended that this part is in English.



research project carried out with a financial grant of theEuropean Coal and Steel Community





Contract Numbers: e.g.: 7210-PA/999 (97-D2.02a)7210-PB/999 (97-D2.02b)7210-PC/999 (97-D2.02c)7210-PD/999 (97-D2.02d)

Contractors: ....................................................................................................................................................................................................

Location: ....................................................................................................................................................................................................

Co-ordinator: .................................................

Authors: ....................................................................................................................................................................................................





DISTRIBUTION


the members of the Executive Committee;


the project leaders in the Executive Committee;


planning

PROBLEMS ENCOUNTERED: please specify


the use of a bar-chart is most appreciated

(please add, where the case)


statements)



grand total

ANNEX X

(Draft) Final Reports


The Structure of a Research or Pilot/Demonstration Project(Draft) Final Report

The (draft) final report shall contain, in the following order:

a) cover page all contract numbers covered by the report, details of authors, contractors, title of project, administrative details, starting and finishing dates of research work, etc.;

b) summary of the whole project < 250 words;

c) abstract in any EU working language, normally 1 to 6 pages;

d) abstract in English (to be included when the previous abstract is not written in English);

e) index of contents in any EU working language and in English (to be included when the previous index is not written in English)

f) list of tables and figures in any EU workiing language and in English (to be included when the previous list is not written in English);

g) introduction with background information and the state of knowledge at the onset of the project;

h) objectives of the RTD project and of its nature (research, pilot or demonstration), as well as a clear statement of the aims of the work, the expected results and benefits;

i) description of RTD activities covering the entire project with a full

description, in retrospect, of the experimental work, equipment, measurements, operating conditions, calculations, computer programmes, materials data, equipment or devices realised and their performance, etc. (data presentation preferably in tables and graphs); tables, figures, graphs and photographs; table of symbols (S.I. units shall be employed throughout);

j) discussion and evaluation of the RTD work analysing and commenting

results obtained, and including an assessment of possible economic, industrial, environmental or social benefits;

k) conclusions suggesting results implementation and describing contractors' exploitation policy or future RTD work needed;

l) list of references

m) figures

n) tables

o) photographs

p) technical annexes

q) publications and patents indicating any publications and patent applications deposited;

r) key words.



project carried out with a financial grant of theEuropean Coal and Steel Community


(DRAFT) FINAL REPORTExecutive Committee or Expert Group: please specify

Contract Numbers: e.g.: 721?-PA/999 (97-!2.02a)721?-PB/999 (97-!2.02b)721?-PC/999 (97-!2.02c)721?-PD/999 (97-!2.02d)

Contractors: ....................................................................................................................................................................................................

Location: ....................................................................................................................................................................................................

Co-ordinator: .................................................

Authors: ....................................................................................................................................................................................................


Completion Date: please specify

ANNEX XI

Preparing Typescripts of Documents

INSTRUCTIONS FOR THE PREPARATION OF TYPESCRIPTS OF

DOCUMENTS FOR PHOTOGRAPHIC REPRODUCTION

1.INTRODUCTION

The production of documents by means of the photographic reduction of typescripts prepared by the authors has advantages of speed and cost, but care in the preparation of texts is paramount. These instructions give practical hints concerning text preparation, covering aspects such as format, typing, illustrations, tables, references and corrections.

2.CAMERA-READY COPY

In order to achieve rapid publication without also invoking excessive costs, many specialised scientific and technical reports and books are printed by offset from the typescripts supplied by the authors. In this procedure, the printing plate is made photographically direct from the typescripts so that, apart from a possible reduction in size, there is a one-to-one correspondence between the typed sheets generated by the authors and the pages in the printed publication. Typescripts prepared with this photographic reproduction procedure in mind are known as “camera-ready copy”.As well as the saving in production costs as compared with a book that is typeset in the traditional way, this method has the advantage that it does away with the need for proof-reading. This is one of the reasons why the offset method is capable of leading to rapid publication. On the negative side, however, is the inescapable fact that the quality of presentation and appearance of the final printed page will be only as good as the quality of the typescripts supplied by the authors.When this method of printing is applied, it is therefore in the interests of everyone concerned - the printers, the publishers, and, most important of all, the authors of the document - that the typescripts are carefully prepared and well presented.Careful presentation is however neither arduous nor time-consuming. It merely requires adherence to a few simple instructions. The time and effort involved in preparing a typescript corresponding to these instructions are no greater than would be spent in generating a typescript which is not up to standard.

3.HOW TO PRESENT YOUR DOCUMENT

Format

The process of photographing material to be published is simplified if the texts are supplied to the printer on sheets which are all of the same size, and if on each sheet the text occupies the same place. For this reason you are requested to use special sheets (matrices) which can be supplied by the Commission. A blue frame printed on the sheets marks the position of the text. As an alternative, the sheet with the blue frame may be used as a model in order to set up the margins if the text is to be generated on a laser or other high-quality printer (top: 28 mm border; bottom: 29 mm border; left: 25 mm border; right: 25 mm border).

Typing

Choose the method available to you which gives the clearest result. A laser printer is best, but if this is not feasible an electric typewriter (equipped with a fresh, black, plastic ribbon) could be used. Avoid dot-matrix printers as the definition of the type which they produce is often rather poor.Please use a normal type for the body of the text (i.e. not italic or bold, or other special type) and bear in mind that the text will be reduced to about 80% of its original size, so the type should not be too small - the character size should be approximately equal to that produced by a normal typewriter. The text should be typed in single spacing.

Numbering of pages

The definitive page numbering will be added by the printer. You should however number the pages of your document in pencil in the top right-hand corner of each sheet, in order to avoid any mix-ups. It is best to start each major new section of the document on a right-hand page.

Corrections

Any badly-executed corrections will show up as imperfections in the final printed report or book. Corrections should therefore be avoided as much as possible, by careful checking before the final text is typed. If necessary white correcting fluid can be used to cover errors.Typescripts bearing hand-written corrections, crossings out, smudges or other similar faults cannot be accepted.

Illustrations

Original, reproducible drawings (black line drawings on white paper or tracing paper) or glossy prints are required. Photographs should be clear positives with good contrast. Photocopies of illustrations or photographs cannot be used - they reduce the quality of the final printed document to an unacceptably poor level.Remember to allow for the reduction to 80% of the original size when selecting lettering, symbols and line thickness in the illustrations. This means that lettering should be at least 2 mm high.

Colour illustrations

Colour photographs and illustrations should only be used where the use of colour is imperative to demonstrate a point or feature of the research work. Colour printing adds significantly to the cost of publishing. Line drawings and graphs should differentiate lines using symbols rather than colour.

Placing of illustrations

Illustrations should be pasted on the sheets at the appropriate place, taking care that they are well-positioned and that there is adequate space between each illustration and the text preceding and following it.

Tables

Do not forget that all tables should carry a title. Table 1 could be used as a model.

Heat Treatment Y (0.2%) UTS Uniform Elongati

on

Total Elongati

onT (°C) t (min) (MPa) (MPa) (%) (%)500 1 470 607 18.1 25.1450 2 467 617 21.7 27.9400 3 470 635 19.1 27.7

Table 1: Mechanical Property Data for steel, austenitized at 770°C for 5 h and held isothermally at the temperature and times indicated

Bibliography - References

References should be placed at the end of the document. When referring to them, type the corresponding reference number in parentheses as indicated at the end of this sentence (1). You may however use superscripts, as shown here³, if your printer is capable of generating them satisfactorily.

Title page

The title page will be prepared by the Commission from the information which you provide. This information comprises the title itself, which should be reasonably concise, a sub-title if necessary, the name(s) and affiliation(s) of the author(s), and any other information which you consider necessary, such as the name of the program under which the work reported in the publication was executed. Note however that title pages should not contain so much information that they become cluttered.

Summary

The document should be sent to the Commission with a summary of not more than 250 words, highlighting the main subjects covered and the conclusions which have been drawn. This summary will be printed on the page cataloguing data at the end of the volume, and will also be used as the basis of the entry in the RTD-Publications (EABS) Database of the CORDIS system, and in Euroabstracts.