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DOCUMENT No.3 attached to the letter of invitation to tender EUROPEAN COMMISSION AGRICULTURE DIRECTORATE GENERAL Directorate F. Horizontal aspects of rural development; SAPARD F.3. Consistency of rural development CONTRACT FOR OUTSOURCING OF TECHNICAL AND ADMINISTRATIVE ASSISTANCE BETWEEN THE EUROPEAN COMMUNITY AND ********************* Contract title: Contract reference No: Contact point of the LEADER+ Observatory of rural areas AGRI- 200x-xxxx/unité The above title and reference number must be quoted in all correspondence and invoices with the Commission. Other administrative information: Department: DG AGRI unit F3 (Consistency of rural development) Prior information: O.J. S247 of 20/12/2002 ref. 2002/S 247-196762 Call for tender: ref. No: Tender information: O.J. ref. No of Contract Notice publication:... Other accounting information: Budget line No: Commitment No: SI2 The commitment number will have to be quoted in correspondence relating to invoices / payments. Page 1 of 48

The European Community ("the Community"), represented by the Commission of the European Communities ("the Commission"), which is represented for the purposes of signing this Contract by Mr SILVA RODRIGUEZ, Director-General of Agriculture, or by his duly authorised representative, of the one part and [full name] [legal form] [statutory registration number] [registered head office/place of operation] [full official address] [VAT registration number] represented by its authorised representative(s) [full name and function] ("the Contractor") of the other part HAVE, for the implementation of the contact point of the European Observatory of rural areas as part of the LEADER+ Initiative, AGREED AS FOLLOWS: Article 1 - Subject The Contractor shall execute the tasks in accordance with the Technical Specifications annexed to this Contract (Annex I). Article 2 - Duration Date of effect The Contract shall enter into force when it is signed by the last of the contracting parties. Period of performance The period of performance will be 12 (twelve) calendar months from the date of effect. Execution of the tasks may in no circumstances begin before the date of effect. Services executed in the framework of the present Contract cannot be carried out by the Contractor beyond this contractual period of performance. They must be effected and completed before the end of this period (at the exception of the possible corrections to the draft final report corrections to be made after the last day of the performance period by the Contractor on request from the Commission, according to the provisions of Annex I, Technical specifications and monitoring). Only expenditures incurred during this period will be taken into account in order to determine the total amounts due to the Contractor under the present Contract (the above-mentioned possible corrections to the draft final report shall not lead to any invoicing from the Contractor). Extensions - The present Contract may be renewed 3 (three) times. Each renewal will be confirmed by a new Contract of the same type as the initial Contract. The period of performance of each possible renewal will not exceed a maximum of 12 (twelve) calendar month(s). For each renewal, the Commission will inform the Contractor in writing (by registered mail) of its proposal for renewal at the latest three calendar months before the end of the period of performance of the running Contract. If the Commission has not sent a proposal within this delay, the Commission s decision shall be assumed to be negative (non renewal). No verbal agreement on possible renewals can be binding on the contracting parties. 2

Article 3 Amounts 1. The total maximum amount of the present Contract is set out as follows : Maximum amount of Part A, Fees and direct costs, of the Breakdown of Prices is Maximum amount of Part B, Reimbursable, of the Breakdown of Prices is Maximum amount of the present Contract (Parts A + B) is EUR ( ) EUR ( ) EUR ( ) The amount of EUR ( ).. (in letters) includes remuneration, reimbursable, and all taxes and duties where applicable. The details set out in Annex III, Breakdown of prices, concern: Part A: the remuneration to be paid to the Contractor, in return for services rendered in accordance with the present Contract, as well as Part B: the provision for reimbursement of expenses incurred in connection with the performance of these services. It is understood that the said remuneration and reimbursable will be due only if services are actually rendered by the Contractor to the Commission and if they comply with the requirements described in Annex I, Technical specifications and monitoring, and with the expected highest professional performance standards for such services. They will cover all the expenses incurred by the Contractor in the execution of the Contract, to the extent that they are explicitly mentioned in the present Contract and its Annexes. The remuneration part of the Contract price (see Annex III, Breakdown of prices) is based on fixed contractual unit prices per working-day of non permanent as well as permanent expert team members and fixed unit prices per calendar month for administrative support team members as well as other direct costs. These unit prices, depending on the level of qualification of the team members, are fixed by the present Contract and shall remain valid throughout the period of performance set out in Article 2 provided that the Contractor maintains the services of the permanent and non permanent team members mentioned in his offer and confirmed in the present Contract (see Annex IV Contractor s offer). 2. Price revisions will be allowed as follows: a) If the value of the relevant index arises, the Contractor shall be entitled to demand an increase of the Contract Unit prices. In this case, the Contractor s written request for price revision must be received by the Commission not later than two calendar months before the entering into force of the revision of prices. Failing to respect this date, the price revision may be refused by the Commission; b) If the value of the relevant index falls, the Commission shall be entitled to demand a reduction of the Contract Unit prices. In this case, the Commission shall inform in writing (by registered mail) the Contractor at the latest two calendar months before the entering into force of the revision of prices; c) In all cases: The first revision, if it occurs, shall enter into force not sooner than one full calendar year after the date of effect. Every subsequent revision of prices, if it occurs, shall enter into force not sooner than one full calendar year after the date of entering into force of the previous revision of prices; All revisions of prices shall apply only to the Fees and direct costs parts of the Contract, and shall not concern the advances if any, nor the reimbursable parts of the Contract; All revisions of prices shall be calculated using price trends linked to the Harmonised Index 3

of Consumer Prices (HICP), in accordance with the following formula: Pr = Po x (0,20 + 0,80 x I / Io), where: Pr is the revised price; Po is the original price set in the present Framework Contract at its date of effect; Io is the value of the index at the date of the bid; I is the value of the index for the 3 rd calendar month preceding the entering into force of the revision of prices. The HICP indexes mentioned above are published by the Statistical Office of the European Communities (Eurostat Monthly Bulletin, see Thème 2, HICP) for the Individual Country of Intervention, for Annex III.1 of the Contract. If the value of the relevant index falls, the Commission shall be entitled to demand a reduction of the Contract prices accordingly; All revisions of prices shall be the subject of an addendum to the present Contract, modifying inter alia its Annexes III, Remuneration and reimbursable, breakdown of prices Article 4 Payments 1. Payments under the present Contract shall be made as follows : Pre-financing: A pre-financing payment will be allowed only for the Fees and direct costs (Annex III, Breakdown of prices), at the rate of maximum 30 % of such part. It will be payable upon written request (in the form of a normal invoice) by the Contractor. Requests for pre-financing payments above EUR ( ) 10 000 shall be supported by a full guarantee (bank guarantee or other document having equivalent effect) made out to the Commission. The guarantee will be released by the Commission after full and effective recovery of the advance. The format of this bank guarantee is given in Annex VII. Payments for Fees and direct costs (Annex III, Breakdown of prices Part A Fees and direct costs): Advance payment: see previous paragraph; Interim payments will be allowed, on a quarterly basis, for services actually rendered in the previous 3 calendar months. Out of each interim payment shall be deducted: 10 % retention sum, and part or total of any pre-financing, in order for this pre-financing to be fully recovered before the end of the period of performance specified in Article 2 of the present Contract (if one quarterly interim payment only, the pre-financing shall be recovered in full from this interim payment. If more than one, the pre-financing shall be recovered by equal fractions at each interim payment). The quarterly interim payments will be payable upon written request (in the form of normal invoices) by the Contractor, submitted along with the corresponding interim reports (including the required timesheets see Annex I, Technical Specifications and Monitoring). However, they will not be payable before the end of each quarter following the date of effect specified in Article 2 of the present Contract; A final payment, corresponding to the cumulative value of the above 10 % retained sums, will be payable upon written request (in the form of a normal invoice) by the Contractor, submitted along with his final report. However, it will not be payable before the end of the period of performance specified in Article 2 of the present Contract, nor before approval by 4

the Commission of the said final report. Approval by the Commission of the final report, meaning acceptance by the Commission of the services rendered under the present Contract, in quantity and quality, is a precondition for release of the final payment due to the Contractor under part A of the present Contract. Payments for the Reimbursables (Annex III, Breakdown of prices): Reimbursable expenses will be reimbursed in full upon written request (in the form of a normal invoice) by the Contractor, submitted on a quarterly basis along with a corresponding financial report. This financial report will contain a summary of reimbursable expenses, along with all original tickets, receipts, invoices, vouchers and other appropriate supporting documents, such as the Commission s agreements upon missions, in accordance with Annex III, Breakdown of prices. On receiving such financial report, the Commission shall have 60 days in which to approve it, with or without comments, or to request for additional information. If the Commission does not react within this 60-day period, the financial report shall be deemed to have been approved. However, reimbursable expenses will not be payable before the approval by the Commission of the technical report concerning the same quarter. Reimbursable expenses shall be reimbursed in EUR, using if necessary the EUR ( ) accounting rates in force during the month of establishment of the payment order by the Commission. All payments shall be made by the Commission within a 45-calendar day period running from the date determined by Article 23.1. All invoices (including payments for the reimbursable) shall be presented at the latest 60 days from the end of the period of performance specified in Article 2. 2. Performance guarantee: A performance guarantee corresponding to 10% of the total value of the Contract shall be constituted by deduction(s) from (the) interim payment(s). Release of the guarantee implies final acceptance of the technical and administrative assistance services. 3. Payments shall be deemed to have been made on the date on which the Commission's account is debited. 4. The payment periods referred to in paragraph 1 and in Article 7.4. may be suspended by the Commission at any time if it informs the Contractor that his payment request is not admissible, either because the amount is not due or because the necessary supporting documents have not been produced. 5. The Financial Regulation applicable to the general budget of the European Communities imposes a limitation in the form of a final date for implementation on legal commitments towards third parties extending over more than one financial year by which all the phases of execution have to be completed and the payments made. This final date shall be determined by adding to the date on which the tasks have to be completed (date of the end of the performance period specified in Article 2) : - the maximum periods laid down for the submission of reports and other documents required from the Contractor (see Article 7 and Annex II), - the maximum periods laid down for their approval (see Article 7 and Annex II), - the maximum payment period (see Article 4.1), - where applicable, the maximum period laid down for acceptance of the services and release of the performance guarantee. In the event of amendment of the date on which the above-mentioned tasks have to be completed or of the periods indicated above, the final date for implementation shall automatically be modified accordingly. 5

6. Should the amount to be paid differ from the amount on the payment request drawn up by the Contractor, the Contractor shall submit a debit/credit note for the difference to the relevant Commission department. 7. In the event of late payment the Contractor may claim interest within two months of receiving the payment. Interest shall be calculated at the rate applied by the European Central Bank to its main refinancing operations plus seven percentage points, as published in the C series of the Official Journal of the European Union on the first calendar day of the month in which the debt is due. Interest shall be calculated from the day following the expiry of the payment deadline up to the date on which the debt is repaid in full. Suspension of payment by the Commission may not be deemed to constitute late payment. 8. The Commission may suspend payment at any time in the event of failure by the Contractor to comply with the contractual obligations, and in particular following the results of the checks and audits. It shall notify the Contractor by registered letter with acknowledgement of receipt. 9. For the purpose of the payments due to him under the Contract, the Contractor shall designate a bank established in the Member State in which the Contractor s registered office is located. The payments shall be made to the Contractor s bank account, identified as follows: Name of the bank: Full address of the bank, including branch: Swift Code N : Account N : (When signing the present Contract, the Contractor shall be requested to complete and sign the bank ID standard form attached as Annex VI). 10. Without prejudice to Article 19, if any of the data contained in paragraph 9 changes during the currency of this Contract, the Contractor shall request, by registered letter, that such change[s] apply to the Contract. An amendment will then be drawn up and shall take effect on the date of its signature by the last contracting party. 11. If total payments made exceed the amount actually due under the Contract or if recovery is justified in accordance with the terms of the Contract, the Contractor shall reimburse the appropriate amount in euro on receipt of the debit note, in the manner and within the time limits set by the Commission. 12. In the event of failure to pay by the deadline specified in the request for reimbursement, the sum due shall bear interest at the rate indicated in paragraph 7. Interest shall be calculated from the calendar day following the expiry of the payment deadline up to the date on which the debt is repaid in full. If necessary, the Commission may recover the excess by claiming against the guarantee, if any. 13. The Commission may, after informing the Contractor, recover amounts established as receivable by offsetting, in cases where the Contractor also has a claim on the Communities that is certain, of a fixed amount and due. The Commission may also claim against the guarantee, if any. The agreement of the Contractor is not required. 14. The Contractor is aware that the Commission may formally establish an amount as being receivable from persons other than States by means of a decision which shall be enforceable within the meaning of Article 256 of the EC Treaty. Article 5 Financial guarantee covering the pre-financing 1. Before the Commission makes its first payment, the Contractor shall provide a financial guarantee in the form of a bank guarantee or equivalent supplied by a bank or an authorised financial institution (guarantor) equal to at least EUR [amount in figures and in words] to cover pre-financing under the Contract. The guarantor shall pay to the Commission at its request an amount corresponding to payments made by it to the Contractor, which have not yet been covered by equivalent work on his part. 6

The guarantor shall stand as first-call guarantor and shall not require the Commission to have recourse against the principal debtor (the Contractor). The guarantee shall specify that it enters into force on the date on which the Contractor receives the pre-financing. 2. The Commission shall release the guarantor from its obligations as soon as the Contractor has demonstrated that any pre-financing has been covered by equivalent work evidenced by acceptance of the technical and administrative assistance services or approval of the interim report(s). The guarantee shall be retained until the pre-financing has been deducted from interim payments or payment of the balance provided for in Article 4.1. to the Contractor. It shall be released the following month. The cost of providing such guarantee shall be borne by the Contractor. Article 6 Payment requests The Contractor shall submit requests for payment, in the form of a normal invoice, expressed in euros, to the Commission, as laid down in Annex III, accompanied, where required, by the following: (a) (b) (c) Financial guarantee documentation Invoices Statements of eligible expenses (d) Reports, as laid down in Article 7. Each invoice shall bear clear indication of the Contract reference N and the type of payment concerned (pre-financing, interim, final, reimbursement) : Pre-financing payment request, if any, on Part A, Fees and direct costs, of the Breakdown of prices attached as Annex III; Interim payment request, if any, on Part A, Fees and direct costs, of the Breakdown of prices; Final payment request on Part A, Fees anddirect costs, of the Breakdown of prices; Reimbursement request(s) under Part B, Reimbursables, of the Breakdown of prices. N.B.: Invoices not complying with the present provisions may be returned by the Commission to the Contractor. See also Article 20.2 for the Commission s address to be used for invoicing, and Article 23.2. for the fiscal provisions linked with invoicing. Article 7 Reports 1. The Contractor shall draw up the following technical reports on the tasks executed under the Contract in accordance with the instructions in Annex II, and shall send 3 copies of them in French or English (preference to be notified by the Commission), to the Commission. The reports shall describe in detail inter alia work carried out, results obtained, and resources mobilised, and it shall assess progress on the Contract giving details of any divergences from the tasks described in Annex I. 2. Within 45 calendar days following the end of each quarter of the contractual year, the Contractor shall submit an interim technical report to the Commission for approval. 3. The Contractor shall submit a final technical report to the Commission within 90 calendar days following the end of the contractual year. In addition to the information required in this Article, it shall also contain final conclusions. 7

4. On receiving an interim or final report, the Commission shall have 60 days in which to: (a) (b) approve it, with or without comments, reservations or requests for additional information, or request a new report. If the Commission does not react within this 60-day period, the report shall be deemed to have been approved. 5. Should the Contractor be late in presenting a report, the Commission may claim an indemnity of 0,2 % for each calendar day beyond the deadline. For the quarterly reports, this percentage is to be applied upon the amount of the corresponding quarterly invoice (before deduction of 10% retention sum and pre-financing) for fees and direct costs (part A of the Breakdown of prices). Concerning the final report, this percentage is to be applied upon the amount of the corresponding final invoice (before deduction of any other penalty (see Article 11). 6. Where the Commission requests a new interim or final report, it shall be submitted within 30 days of the request. Failing this, the Commission may claim the indemnity provided for in paragraph 5 for each day after the deadline until it receives the new report. 7. The new report shall be subject to the provisions set out in paragraph 4. Should the Commission reject this new report and request yet another one, the Contractor shall be liable to pay the indemnity referred to in paragraph 5 for each day beyond the deadline until such time as the Commission receives a report which it approves. Article 8 Performance of the Contract 1. The Contractor shall perform the Contract according to the highest professional standards. The Contractor shall have sole responsibility for complying with all legal obligations incumbent on him, notably those arising from employment law, tax law and social legislation. 2. The Contractor shall perform the Contract off Commission premises 3. The Contractor shall not represent the Commission and may not behave in any way that would give such an impression. The Contractor shall inform third parties that he does not belong to the European public service, but that he is exercising the tasks on behalf of the European Community. 4. The Contractor shall index and register all documents and information in his possession relating to the execution of the tasks specified in Annex I, in whatever form and on whatever medium. He shall pass them over to the Commission with the final report or, in the event of termination of the Contract under Article 18, at the commencement of the termination procedure provided for in that Article. 5. In performing the Contract, the Contractor shall use his own professional staff with the qualifications and experience required for the execution of the tasks, without prejudice to Article 9. Any reference made to the Contractor s staff, within this Contract, refers exclusively to individuals involved in the performance of the Contract. 6. The Contractor shall be solely responsible for the staff who execute the tasks; they may not be given orders directly by the Commission. The Contractor shall include the following clauses in employment or service Contracts with his Staff: (a) a clause specifying that the staff executing the tasks may not be given orders directly by the Commission; (b) a clause specifying that : (i) the Commission may not under any circumstances be considered to be the employer of such staff, and 8

(ii) the Staff undertake not to invoke against the Commission any right arising from the working relationship between the Commission and the Contractor. 7. In the event of malfunction, involving the actions of one or more members of staff, the Contractor shall replace them without delay. The Commission shall have the right to request the replacement of any member of staff, stating its reasons for doing so. The new staff shall have the qualifications specified at paragraph 5 and shall be capable of performing the Contract under the same contractual conditions. Any replacement of staff that the Contractor makes must be approved in advance by the Commission, and all expenditure incurred as a result of such replacements shall be borne by the Contractor. In order to enable the Commission to ensure that the provisions of this paragraph are complied with, the Contractor shall notify the Commission of any change of staff without delay. 8. The Contractor shall notify the Commission immediately, in writing, of any change in his legal, financial or economic circumstances, relating in particular to the legal form at the time of signing the Contract and the resources used to perform the Contract, and any major change in shareholders or in authorised capital. 9. The Contractor shall pass on the obligations provided for in the Contract in document form to his board, directors, and to all third parties involved in the performance of the Contract. 10. Procedure in case of unforeseen problems: Should any event, action or omission directly or indirectly hamper execution of the tasks, either partially or totally, the Contractor shall immediately and at his own initiative register it and report it to the Commission. The report shall include a description of the problem and an indication of the date when it started. In such an event, the Contractor shall give priority to solving the problem rather than determining liability. Article 9 - Conflict of interest, confidentiality and corruption in the performance of the Contract 1. The Contractor shall take all necessary measures in order to avoid any risk of conflict of interest, and to ensure confidentiality. Should such a conflict of interest arise, the Contractor shall notify the Commission in writing without delay. The Commission reserves the right to verify that these measures are adequate and may require that additional measures be taken if necessary. The Contractor shall ensure that his staff, board and directors are not placed in a situation which could give rise to conflict of interest. Without prejudice to Article 8, the Contractor shall replace, immediately and without compensation from the Commission, any member of his staff exposed to such a situation. 2. The Contractor declares that no conflict of interest exists between his tasks under the present Contract and any of his other activities. 3. The Contractor undertakes to treat in the strictest confidence and not make use of or divulge to third parties any information or documents which are linked, directly or indirectly, to the execution of the tasks. The Contractor shall continue to be bound by this undertaking for one year after the tasks have ended. 4. The Contractor shall obtain from each member of his staff, board and directors a written undertaking that they will respect the confidentiality of any information which is linked, directly or indirectly, to the execution of the tasks and that they will not divulge to third parties or use for their own benefit or that of any third party any document or information not available publicly, even after completion of the tasks. A copy of the undertaking shall be sent to the Commission. 5. The Contractor shall abstain from any contact likely to compromise his independence. 6. The Contractor declares: that he has not made, and will not make, any offer of any type whatsoever, from which an advantage can be derived, 9

that he has not granted and will not grant, has not sought and will not seek, has not attempted and will not attempt to obtain, and has not accepted and will not accept, any advantage, financial or in kind, to or from any party whatsoever, when such an advantage constitutes an illegal practice or involves corruption, either directly or indirectly, by being an incentive or reward related to the performance of the Contract. 7. The Contractor shall pass on all the relevant obligations in writing to his Staff, board, and directors as well as to third parties involved in the performance of the Contract. He shall provide the Commission with a copy of the instructions given and the undertakings made in this respect. Article 10 - Liability 1. The Commission shall not be liable for damage sustained by the Contractor or his staff, board, and directors, in the performance of the Contract. 2. The Contractor shall be liable for any loss or damage caused by himself or his staff, board, and directors, directly or indirectly, in the performance of the Contract. The Commission shall not be liable for any act or default on the part of the Contractor during the performance of the Contract. 3. The Contractor fully guarantees the Commission, and agrees to indemnify it, against any action, claim or proceeding brought by a third party against it as a result of damage caused by the Contractor in the performance of the Contract. 4. In the event of any action brought by a third party against the Commission in connection with the performance of the Contract, the Contractor shall assist the Commission. 5. In the event of any action brought by a third party against the Contractor in connection with the performance of the Contract, the Commission may assist the Contractor upon written request by the latter. The incidental costs incurred by the Commission shall be borne by the Contractor. 6. The Contractor shall take out the necessary insurance against risks and damage, notably in respect of civil and professional liability, relating to the performance of the Contract. A copy of all insurance contracts shall be sent upon request to the Commission. Article 11 Penalties Should the Contractor fail to execute the tasks in accordance with the specifications given in this Contract, and in particular in Article 8 and Annex I, the Commission may - without prejudice to its right to terminate the Contract deduct from the final payment an amount up to a maximum of the 10% sum retained upon the payments for Part A, Fees and direct costs of the Breakdown of prices, referred to in Article 4. This provision applies to the quality requirements as well as to the respect of deadlines set for the services following table under Annex III and those set for the submission of the reports following Article 7 and Annex II. In case of a failure concerning the quality requirements, the penalty will be determined in proportion to the magnitude of the failure. In case of late delivery of a service, the penalty will be calculated as follows : 0,4 % per calendar day of delay, to be applied upon the service cost following table under Annex III. In case of late delivery of a report, the penalty will be calculated following Article 7.5. Article 12 Assignment and sub-contracting 1. The Contractor shall not, without the prior and written authorisation of the Commission, assign the rights and obligations arising from the Contract in whole or in part, nor shall it subcontract, or cause the Contract to be performed in practice by third parties. 10

2. In the absence of the authorisation referred to in paragraph 1, or in the event of failure to observe the terms thereof, the assignment by the Contractor shall not be enforceable against and shall have no effect on the Commission. 3. Where the Commission authorises the Contractor to subcontract to third parties, he shall nonetheless remain bound by his obligations to the Commission under the Contract. 4. The Contractor shall make sure that, in situations such as those described in paragraph 1, the Commission enjoys the same rights and guarantees in relation to third parties as in relation to the Contractor himself. Article 13 Taxation 1. The Contractor shall have sole responsibility for compliance with the tax laws which apply to him. 2. The Contractor recognises that the Commission is, as a rule, exempt from all taxes and dues, including value added tax (VAT), pursuant to the provisions of Articles 3 and 4 of the Protocol on the Privileges and Immunities of the European Communities. The Contractor shall accordingly complete the necessary formalities with the relevant authorities to ensure that the goods and services required for performance of the Contract are exempt from taxes and dues, including VAT. 3. Invoices presented by the Contractor shall specify separately the amounts exclusive of VAT and the amounts inclusive of VAT. Article 14 Financial management, audit and control 1. The Contractor shall perform the Contract in accordance with the principles of sound financial management. 2. The Contractor shall keep a separate analytical account, for which he shall be liable, to record the costs incurred in performing the Contract. 3. The Contractor shall provide all the detailed data requested by the Commission with a view to checking that the Contract is being properly managed and performed. 4. The Contractor shall, if so requested, attend meetings organised by the Commission or by any other body acting on its behalf with a view to monitoring, supervising and assessing performance of the Contract. He shall facilitate the monitoring, supervision and assessment of such performance. 5. The Contractor shall keep at the Commission's disposal the original or, in exceptional cases, duly substantiated, authenticated copies, of all documents relating to the Contract for up to five years from the payment of the balance provided for in Article 4.1. 6. The Commission may, at any time within the time limits set out in paragraph 7, arrange for an audit to be carried out, either by an outside body of its choice, or by the Commission departments themselves. The object of such an audit shall be to verify the Contractor s compliance with the Contract. The cost shall be borne by the Commission. 7. Commission audits, whether carried out by its own departments or by an outside body, may take place at any time up to five years following the payment of the balance provided for in Article 4.1. 8. In order to carry out these audits, the Commission's departments and the outside bodies concerned shall have total on-the-spot access, notably to the Contractor's offices, at all times and to all the information needed for control purposes. Where such information involves personal data, its use, distribution and publication shall be in accordance with Regulation (EC) No 45/2001 of the European Parliament and the Council of 18 December 2000 on the 11

protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data 1. 9. The European Court of Auditors shall have the same rights as the Commission, notably right of access, for the purpose of checks and audits. Article 15 Intellectual and industrial property 1. Any results or rights, including intellectual or industrial property rights, obtained in the performance of the Contract, shall be owned by the Community, which may use them as it sees fit, subject to pre-existing rights. The Community is hereby granted a royalty-free right of access to all supporting devices, in whatever form, developed or used by the Contractor, that are required for the use, full exploitation and further development of the results obtained through the performance of the Contract. 2. Copyright and any other right of ownership in respect of the tasks executed, and results obtained in the performance of the Contract, including the right to reproduce, adapt, translate, publish, distribute, communicate, make available to the public and sell all or part thereof in any manner and in any language regardless of form and medium, shall belong exclusively and without geographical limitation to the Community, which may transfer all or part of such rights to third parties on its own terms, subject to pre-existing rights. 3. The Contractor shall specify any part of the tasks, including illustrations, maps and graphs, on which copyright or any intellectual or industrial property right already exists and shall indicate who holds the rights. The Contractor hereby affirms that he has obtained permission to use any such parts from the holder(s) of such rights or from his (their) legal representatives, and that he is entitled to transfer the copyright or other intellectual or industrial property rights in respect of the subject matter of the Contract, save as otherwise provided in paragraph 2. Any costs for which the Contractor may become liable in respect of such permission shall be borne by him. 4. The end of the tasks shall not affect the rights and obligations provided for under this Article, which shall last for the duration of the intellectual or industrial property concerned in accordance with the relevant applicable laws. Article 16 Use, distribution and publication of information 1. The Commission shall be entitled to use, distribute and publish, for whatever purpose, by whatever means and on whatever medium, information relating to the Contract, in particular the identity of the Contractor, the subject matter, the duration, its financial contribution and the reports. Where such information involves personal data, use, distribution and publication shall be in accordance with Regulation (EC) No 45/2001. 2. The Commission shall not be required to distribute or publish documents or information supplied in pursuance of the Contract. If it decides not to publish the documents or information supplied, the Contractor may not have them distributed or published elsewhere without prior written authorisation from the Commission. 3. Any distribution or publication of information relating to the Contract by the Contractor shall require prior written authorisation from the Commission and shall mention in appropriate manner the Community financing and the Programme. It shall state that the opinions expressed are those of the Contractor only and do not represent the Commission's official position. 1 OJ L 8, 12.1.2001, p. 1. 12

4. The use of information obtained by the Contractor in the course of the Contract for purposes other than its performance shall be subject to specific, prior written authorisation from the Commission. 5. The Contractor shall be required to provide, at the request of the Commission or its authorised representatives, data necessary for the review of the Community programme for which administrative and technical assistance is being carried out under the Contract. Such request may be made throughout the performance of the Contract and up to five years after the payment of the balance provided for in Article 4.1. Article 17 Force majeure 1. Force majeure shall mean any unforeseeable and exceptional event affecting the Contract, which is beyond the control of the contracting parties and cannot be overcome despite their best efforts. 2. If either of the contracting parties is subject to force majeure liable to affect the fulfilment of his contractual obligations, he shall notify the other party without delay, stating the nature, likely duration and foreseeable effects. 3. Neither contracting party shall be considered to be in breach of his/its contractual obligations if he has been prevented from complying by force majeure. Where the Contractor cannot fulfil his contractual obligations owing to force majeure, he shall only have the right to remuneration for tasks actually executed. 4. The contracting parties shall take the necessary measures to reduce damage to a minimum. Article 18 Termination 1. Termination by either party Either contracting party may terminate the Contract at any time by giving a 3 months notice. 2. Termination by the Commission The Commission may terminate the Contract without notice in the following circumstances: a) where a change in the Contractor s legal, financial, technical or organisational situation could have a significant effect on performance of the Contract; b) where the project leader and his full team as well as the reception office in Brussels are not effectively in place within 3 months of the date of effect of the present contract; c) where the Contractor has failed to fulfil any of his obligations under the Contract; d) where the Contractor or any person under his responsibility has been found guilty by the competent bodies of serious professional misconduct; e) in the case of force majeure, notified in accordance with Article 17; f) where the Contractor is declared bankrupt, is wound up, has ceased trading, has been wound up by court order or is in composition with his creditors entailing suspension of business, is in receivership or is in any other comparable situation provided for by the laws or regulations of his country; g) where the Contractor has made false, incomplete or incorrect statements or has failed to provide information in attempting to obtain the Contract or any benefit resulting therefrom, or where this was the effect of his action; h) in the event of fraud or serious financial irregularity. 13

3. Termination procedures The termination procedures shall be initiated by registered letter with acknowledgement of receipt. Where prior notice is not required, termination shall take effect from the day after the day on which the letter terminating the Contract is received. Where prior notice is required, termination shall take effect at the end of the period specified, which shall start to run on the date on which the letter terminating the Contract is received. 4. Consequences of termination On receipt of the letter terminating the Contract or on dispatch of his letter of termination, as the case may be, the Contractor shall complete the tasks begun on the best basis possible. He shall take all appropriate measures to minimise costs, prevent damage, and cancel or reduce his commitments. He shall draw up a final report, an invoice for the tasks carried out up to the date on which termination takes effect, within a period not exceeding 60 days from that date. The Contractor shall be entitled to remuneration for the tasks carried out in accordance with Annex I to the Contract and accepted by the Commission. However, in case of termination on the grounds set out in points (b), (c), (d), (g), or (h) under heading 2, the Commission may recover any sum paid to the Contractor under the Contract. Article 19 Amendments Any amendment to this Contract shall be the subject of a written agreement concluded by the authorised representatives of the contracting parties. An oral agreement shall not be binding on the contracting parties. The Contractor s request(s) for amendment(s) will be considered only if the Commission receives 2 them in writing at the latest one calendar month before the end of the period of performance specified in Article 2 of the present Contract. Article 20 Correspondence 1. The reports referred to in Article 7 and, as a general rule, all correspondence relating to the Contract - with the exception of financial information - shall be sent to the following addresses: a) Commission: To be used for overall management of the Contract and technical matters relating to the implementation of the Contract. European Commission, attn. DG AGRI/F3, L130 06/197, B-1049 Brussels b) Contractor: Mr/Ms (authorised representative) [Function] [Company name] [Full official address] 2. The Contractor shall send financial information, including requests for payment, which shall bear the reference number of the Contract, to the following address: European Commission, attn. Directorate General AGRI Archive Department, L130-4/166, Service Courrier, (Attention of Unit F3, 06/197), B-1049 Brussels 2 Official receipt date by DG Agriculture, attested by its Archive Department, Internal Mail Service Stamp. 14

Please note that, for the application of Article 4 of the present Contract, the invoices will be registered by the above-mentioned Archive Department of the Commission. It is the sole responsibility of the Contractor to ensure that all his invoices are properly addressed to the archive address indicated above, and with a clear indication of the mention INVOICE. Article 21 Applicable law and settlement of disputes Any dispute between the parties resulting from the interpretation or application of this Contract which it has not been possible to settle amicably shall be submitted to the courts for Brussels. The Contract shall be governed by the national substantive law of the competent court. Article 22 Annexes The following annexes are an integral part of the Contract: I - Technical specifications and monitoring. II - Reporting III - Breakdown of prices IV - Contractor s offer (including CV s) V Fiscal Provisions regarding invoicing by the Contractor VI Model of Bank Guarantee The terms of the Contract shall take precedence over those of the annexes. Should the provisions of two annexes differ, the provisions of the Annex bearing the smallest number shall apply. Article 23 Special conditions 1. Interest as a result of late payment Further to Article 4, the modalities governing the payment of interest by the Commission to the Contractor for the present contract are completed as follows : the 45 calendar day payment period will run from the later date among : - the date of official reception 3 by the Commission of the payment request; - the date of official reception 8 by the Commission of any document which is expected to be submitted by the Contractor together with the corresponding invoice, according to Article 4, Payments; - the date of official approval (see Annex II, Reporting) by the Commission of any document which is expected to be first approved by the Commission before the corresponding invoice is made payable, according to Article 4, Payments. 2. Taxation provisions (Further to Article 13) Further to Article 13, Taxation, the modalities concerning the taxes matters (including VAT) as regards the present Contract are set as follows: 1. The Commission is exempt from all taxes and duties, including value added tax (VAT), pursuant to the provisions of Articles 3 and 4 of the Protocol on the privileges and immunities of the European Communities with regards to its contribution under the present Contract. 3 Official receipt date by DG AGRI, attested by its Archive Department, Internal Mail Service stamp. 15

2. If the Contractor is subject to VAT, he must indicate both its VAT Identification Number and its place of fiscal imposition (i.e. the Member State where relevant fiscal authorities will be responsible for the VAT management, including decisions on VAT exemptions, as regards the invoicing based on the present Contract): - VAT identification number:.. - Place of fiscal imposition:.. 3. When invoicing, the Contractor shall comply with the provisions specified in Annex V, Fiscal provisions regarding invoicing by the Contractor. 16

Done at Brussels, [date] For the Contractor, [Company name/forename/surname/function] signature(s): For the Commission, Mr SILVA RODRIGUEZ, Director-General of Agriculture signature: In duplicate in english. 17

ANNEX I Technical specifications and monitoring The purpose of this Annex is to enable the Commission to conduct, throughout the Contract, an exact appraisal of whether the Contractor is executing the tasks in conformity with the content of the Contract. The technical specifications consist of : 1. GENERAL PURPOSE 1.1. General background On 14 April 2000 the Commission adopted a Communication 4 to the Member States laying down the guidelines for LEADER+, one of the four Community Initiatives under the Structural Funds for the period 2000-06. LEADER+ is structured around three actions: action 1: integrated territorial rural development strategies of a pilot nature, action 2: support for cooperation between rural territories, action 3: networking. As part of action 3, this Communication provides for the establishment at Community level of An Observatory of rural areas led by the Commission which will ensure and promote networking at Community level. The aims of the Observatory will be: gathering, processing and disseminating information on Community measures to stimulate rural development, collecting, consolidating and disseminating at Community level good practice in local development in rural areas, providing information for rural actors on major trends in the situation of rural areas within the Community and in third countries, serving as a meeting point at Community level for beneficiaries under the initiative and stimulating transnational cooperation, providing assistance for national and regional administrations in order to facilitate the exchange of expertise, 4 See the Communication laying down the guidelines for LEADER+, (OJ C 139, 18.5.2000). 18

assisting national administrations in their coordinating role and in putting beneficiaries under the initiative in contact with one another in the interests of cooperation, preparing reports on the implementation and progress of LEADER+ at Community level, examining the lessons of LEADER+ and the implications for rural policy. In each country of the European Union, this European Observatory of rural areas will be assisted by national network units established and managed by the competent authorities of the Member States. The network concerns all rural areas, whether or not they are eligible under the Initiative, and all organisations and administrations involved in these territorial approaches. The main beneficiaries of networking will be: local action groups, (LAGs), partnerships of private and public actors involved in implementing Leader projects. LAGs may have experience or be beginners and some of them will already have been involved in Leader I and/or II. The areas eligible under action 1 of LEADER+ represent about 1 000 rural micro-regions 5. It should be noted that active participation in the network is mandatory for all beneficiaries of LEADER+. This means making available all the information needed on the measures being taken or already implemented and the results obtained and the involvement of the LAGs in the various activities, the national networks established under action 3 of the LEADER+ Initiative, the administrations and institutions participating in the implementation of LEADER+ (the European Commission, the national and regional authorities responsible for managing LEADER+, the management bodies and other public bodies involved with LEADER+), various bodies concerned with rural development (rural networks, including Rural Carrefours, associations). Networking involves not only facilitating the exchange and transfer of experiences but also seeks to: promote and ensure the success of interterritorial cooperation (action 2 of the Initiative), extract information and learn lessons about rural development. Against this background, the European Commission wishes to obtain technical assistance the contractor, who will supply the services described under point 2. 5 By the end of 2002, 692 LEADER+ LAGs had been selected by the Member States out of an expected total of 938. 19

A general description of the tasks entailed by these lots was given in the preinformation notice 2002/S 247-196762 published in OJ S 247 on 20 December 2002. This specification refers to Lot 1 Contact point. The terms Contact point and Observatory are to be understood as follows: G G Observatory = the European Observatory of rural areas, as defined under point 1.1; Contact point: means the team established by the contractor providing, within the framework of the Observatory, the services described under point 2. 1.2. General obligations to be observed by the contractor The services described below, which the contractor must be able to provide in their entirety, are not intended to relate to duties properly the preserve of public authorities. Contractors may not identify themselves, directly or indirectly, to the Observatory, which must be explicitly associated with the Commission. It must be clear that contractors are providing services for the Commission, without taking its place. When carrying out the various services under point 2, the contractor shall follow the policy line adopted by the Commission and shall refrain from adopting any position which the Commission has not approved. In addition, the contractor shall be bound to make available at the end of the contract 6 all information which it has obtained while carrying out these services and any finished and semi-finished products. Furthermore, contractors may not retain or acquire interests of a nature or size such as would be likely to compromise their independence in carrying out the duties assigned to them in implementing the contract to which this specification relates. 2. SPECIFIC PURPOSE OF THE CONTRACT EUROPEAN OBSERVATORY OF RURAL AREAS : CONTACT POINT The contractor in charge of the contact point shall provide a team with the qualifications (excellent knowledge of the common agricultural policy, and in particular of rural development) and linguistic knowledge needed to ensure, possibly with assistance from outside experts, the main functions of the European Observatory of rural areas described under this point. In the implementation of the contract, no expenditure on services provided on the territories of the new Member States, including preparatory expenditure, may be incurred before 1 May 2004. 6 And during its implementation, if the Commission so requests. 20

As regards publications, the contact point will be responsible for both seeking out and proposing subjects, collecting and processing information and drafting texts. In the specific case of the LEADER+ magazine, this is journalistic work. The design of products as regards their presentation and lay-out is not one of the services to be provided by the contact point. However, the Commission will be willing to consider any proposal which the contact point wishes to make in this regard. To ensure consistency and sound management, the contractor shall take account of the work carried out elsewhere under the information and communications policy of the Directorate-General for Agriculture. 2.1. Basic functions 2.1.1. Treatment of requests for information 2.1.1.1. Reception of visitors (service code A) To be provided during working hours 7 for normal requests; an appointment may be required for presentations requiring a degree of specialisation. The contractor shall set up in Brussels a well-located 8 reception desk facility. and independent 2.1.1.2. Telephone answering service (service code B) To be provided during working hours 9 ; general questions must be answered immediately while a reply to more specific questions may be deferred. 2.1.1.3. Mail management (service code C) Both traditional and electronic mail (see point 2.1.2.). The contractor s team, possibly assisted by outside experts, must ensure the rapid and independent treatment of requests for information 10. Experience acquired under Leader II suggests that the number of requests for information 11 may be estimated at about 1 500 per year. This estimated quantity may fall as the web site becomes operational and towards the end of the programming period but this expected fall over time may well be offset by a substantial increase as a result of enlargement. Questions shall not be referred to DG Agriculture unless they are exceptional or political in nature. The contractor shall put in place a system for monitoring the treatment of requests for information which will be introduced and made available to the 7 8 9 10 11 9 a.m. to 12.30 p.m. and 2 p.m. to 6 p.m.; a different timetable may be submitted for the Commission s approval. With regard to the Commission s headquarters and more particularly DG Agriculture s offices 9 a.m. to 12.30 p.m. and 2 p.m. to 6 p.m.; a different timetable may be submitted for the Commission s approval. Cf. contractor's offer stating the average time required for a simple request and for a complex request. In various forms, but excluding requests by e-mail. 21

Commission at any time. The system must include at least the following information: date of entry, reference number of the incoming document, subject, date of reply, method of reply, reference number of the outgoing document. Replies should normally be provided in writing (traditional or electronic mail). 2.1.2. Web site (estimated quantity: 5 000 pages) service code D This entails management of the LEADER+ web site at Community level on the Commission s server, including its development 12, promotion and updating, including the collection of information 13. While the site developed under Leader II (archived site, which may be consulted at http://europa.eu.int/comm/archives/leader2) may provide a basis, a creative approach using advanced techniques is expected. The content of the site and changes to it must be submitted to the Commission for prior approval. This site, hosted on the Commission s server, must include at least the following (non-exhaustive list): Electronic mail box (AGRI-LEADER@cec.eu.int) to be managed by the contractor under the criteria set out at 2.1.1. An instrument for exchanges between beneficiaries of the Initiative and others involved in rural development, particularly with a view to encouraging the emergence of cooperation projects (action 2). A library containing in electronic form all the Observatory s publications (in the broad sense). A database containing a description of each LAG (action 1) so that they can be selected using various criteria 14. This will require collecting information from those involved in LEADER+ and feeding the database using a format approved by the unit of DG Agriculture responsible for leading the Observatory (DG Agriculture, Unit F.3). A database containing a description of each cooperation project (action 2) designed and updated in a fashion similar to that for the LAGs data base. Contact details of the national and regional administrations and the managing authorities. Links to national, regional and local sites. 12 13 14 DG Agriculture has already created the basis of the site (http://europa.eu.int/comm/leaderplus) Some information may be provided by DG Agriculture and some will have to be obtained from those involved in LEADER+. E.g.: country, region, priority theme, budget, etc. 22

Any useful information about LEADER+ 15 and rural development. A current events page including information about seminars. Other: FAQ, News, etc. The home page, menus and general information must be available in the official languages of the enlarged European Union. The Commission will provide all the publications of the Observatory in electronic format to the contact point, which will make all the language versions 16 available on the site. The selection criteria used for the databases must be available in the official languages of the enlarged European Union while the descriptive parts of the LAGs and the cooperation projects must be available in the language of origin and in a version translated into English by the contact point. The contractor is required to comply with the Guide pour les producteurs d information/information providers guide (accessible at http://europa.eu.int/comm/ipg). The requirements of that guide have precedence over the information at point 2.1.2. At the request of the Commission, the contractor will publish on the site information 17 on LEADER+ and rural development in general which it provides. 2.1.3. Electronic newsletter (service code E) Creation, production and dispatch of an electronic newsletter every two weeks (indicative frequency). This letter will be sent to all those involved in LEADER+ (LAGs, administrations, etc.) to provide them rapidly and directly with information of concern to them, particularly as regards the activities of the Observatory 18. The content of the letter, which should normally not exceed two pages in length, will be agreed with DG Agriculture, Unit F.3. It will be available in three languages (EN, FR and DE). It is estimated that the mailing list will run to about 10 000 names. The contractor will undertake to send at least six electronic newsletters per contractual quarter (a possible reduction during July and August will be offset during the last four months of the year). Any deviation from this timing will require the Commission s written agreement, either through the annual planning exercise or separately (see Article 11 of the draft contract attached as document 3). 15 16 17 18 The Commission expects, for example, access from the site to cartographical information provided by its own departments (or by another contractor), a calendar of LEADER+ events organised by the Member States, etc. See also point 3.4.2.3. For example, maps produced for the Commission and made available to the contractor. For example, announcements of seminars, new publications, new postings on the web site; etc. 23

2.1.4. Mailing lists and individual dispatch of publications (service code F) The contact point will be responsible for compiling and updating the address lists (estimated quantity: 10 000 addresses) to be used for the grouped dispatch of the various publications; however, it will not make these dispatches. Various versions of the mailing lists will be required depending on the target public for each publication. The Commission will provide the lists used under Leader II and indicate its desires as regards the target publics. The contractor will adjust these lists once the Observatory begins operations in the light of those newly involved in LEADER+ and update them throughout the life of the Initiative. The contact point will collect information in this regard from the national networks and other sources 19. The contact point will receive the remaining copies of publications (after the grouped dispatch), which the Commission will send it, and store them. From this stock, it will make individual dispatches in response to the requests which it receives directly or via the Commission, and make the publications available to those attending representational and promotional events. Likewise, the contact point will receive the support material which the Commission sends it and ensure that it reaches the places where these events are being held. The contractor will inform the Commission in good time when some publications are running short and, in the light of demand, advise it as to whether reprinting is needed. On the basis of this information on consumption, the contact point will advise the Commission on adjustments to the initial print run for the various types of publications. 2.1.5. Promotion and representation (estimated quantity for representation: participation in 25 events per year + provision of 75 presentations per year) service code G Promotion of the LEADER+ Initiative and representational events. Identification and selection of media and/or events raising the visibility of LEADER+. One-off approaches to bodies (NGOs, universities, etc.). The tender will include a plan for a communications strategy. The contractor will consult with the Commission to harmonise work on the promotion and representation of the Observatory with the strategy adopted by the Directorate-General for Agriculture. The contractor will submit any document or presentation text which it intends to use to provide this service to the Commission for its prior approval. The Commission will undertake to organise production of display boards for stands. 19 Including the new Member States. 24

2.2. Planning and organisation of seminars, the conference and steering committees (service code H) The contact point will be required to undertake the planning and documentation for the seminars, conference and meetings and to participate in the running of these events, for which the Commission will undertake the logistical organisation using either its own staff or a contractor. The contractor will also be required to plan and organise any presentations by outside experts (not part of the team) at events. In such cases, a detailed proposal (including CV) will be sent to the Commission so that, if it agrees, it can enter into a contract directly with the expert. Depending on the type of event and using the various services under this contract, the contact point will also undertake advance publicity for the event 20, and media coverage 21. The annual programme of events shall be agreed with DG Agriculture, Unit F.3. The contractor takes account of the fact that, in implementing the contract, no expenditure relating to the organisation of an event within the territory of a new Member State may be incurred before the enlargement of the European Union (date fixed at 1 May 2004). The thematic dossiers which emerge from the seminars and/or the conference will, after editing, be sent to DG Agriculture, Unit F.3, which will organise their translation and publication, once it has approved them. The preparatory documents for seminars (see point 2.2.1), to be drafted in FR or EN by the contact point, are working documents with a simple presentation. After the basic versions have been approved, they will be translated by the Commission, which will send the translations to the contact point. The contractor will ensure that there are enough copies available at the seminar and will be responsible for producing these. The preparatory documents for the conference (see point 2.2.3) require a highquality presentation and so will be sent to DG Agriculture, Unit F.3. which, once it has approved them, will organise their translation and publication. The Commission will ensure these documents are transported to the conference. Subject to the prior agreement in writing of DG Agriculture, Unit F.3, changes may be made to the above provisions concerning documents for seminars and the conference. The contact point will also assist the Commission in planning and running meetings of the steering committee, to be held once or twice a year. According to the Commission s guidelines on LEADER+, 22 the steering committee should comprise representatives of the national administrations (managing authorities) and of the national networks and will be chaired by the Commission. Each Member State sends two participants to the meeting (one 20 21 22 Web site, electronic mail, etc. Point 2.1.4. See point 1.1. 25

or two extra participants may attend, depending on the agenda). The committee is an opportunity to exchange information on the progress of the Initiative, and ensure Community-level monitoring of the cooperation action. The contractor will assist the Commission at meetings of the steering committee by making summary presentations on the implementation of the three LEADER+ actions, based on the analytical work referred to in 2.5.1.2. The contractor will also help the committee in its monitoring of the cooperation action and will provide information on the progress achieved and the quality and efficiency of implementation under action 2 of the Initiative 23. This role of assisting with meetings of the steering committee may also take the form of proposals regarding the agenda, the possible preparation and presentation of a horizontal topic, and the presentation of case-studies, as well as more general assistance with running the event. 2.2.1. Seminars (service code H1) Each year the Commission intends to organise six subject-based seminars 24 lasting three days each and attended by some 60 25 people (indicative figures). These seminars will be organised for the Local Action Groups in three or four Community languages (indicative number). The seminars, which as a rule will be organised in one of the territories selected under action 1 of the Initiative, 26 will normally include a field visit. The aims of the seminars will be principally: the acquisition of technical knowledge, the exchange of experience and good practice, the emergence and promotion of cooperation initiatives under action 2 of the Initiative. 2.2.2. Steering committee (service code H2) The LEADER+ Steering Committee brings together administrations and national networks 27 and is chaired by the Commission. It is expected that there will be one or two meetings a year attended by some 60 people and held in Brussels. 23 24 25 26 27 See also analytical work under point 2.5.1.2. See the four priority themes for action 1 in the Commission s Communication of 14 April 2000. Annual planning may also provide for seminars on horizontal topics, for example in the context of methodological support (cooperation, evaluation, etc.). Some subject-based seminars may be aimed at a wider audience (say, 100 to 200 people). Therefore within the European Union, normally in places away from the major cites. See point 3.3. of the Communication to the Member States of 18 May 2002, OJ C 139. 26

2.2.3. Conference (service code H3) The Commission reserves the right to organise during the Initiative a conference to publicise its achievements widely. As well as people broadly engaged in LEADER+, others involved in rural development may attend. This high-profile conference will be planned for 1 200 people, will last for two days (estimates) and will be organised in Brussels or elsewhere in the European Union near an international airport and with the necessary infrastructure (rooms, hotels, etc.). If the Commission decides to organise such a conference, the work programme for that year will be adjusted to balance the workload. In that event, the number of seminars in the annual programme will be reduced from six to four. 2.3. Methodological support for those engaged in LEADER+ (service code I) Methodological support to the authorities responsible for LEADER+ programmes, the national networks and/or LAGs. Direct technical support to the LAGs will be provided primarily by the national networks while the contact point will offer advice and practical information and will undertake the research and dissemination of good practice. More specifically, the fields concerned are cooperation and evaluation work. The contractor must ask the Commission for the guidelines which will already have been adopted in these two fields 28 and will ensure that its methodological support follows them. In the event of major questions concerning the interpretation of these guidelines or omissions from them, the contractor will be told by the Commission what position to adopt. Needs in other fields may emerge during the implementation of the Initiative, through requests made to the Observatory or the Commission. 2.4. Editing of the LEADER+ magazine (service code J) The LEADER+ magazine, containing reports, background articles and articles on a current issue, will be designed and edited in order to be published three times a year (indicative frequency). The role of the contact point will be editorial, including proposing subjects, collecting and processing information, etc. The contact point will undertake the journalistic work, while the Commission will take the steps needed to deal with the technical aspects of lay-out, graphics, illustrations, etc. The texts for publication in the three issues of the magazine must be sent to DG Agriculture, Unit F.3, no later than two months before the end of the second, third and fourth contractual quarters. After it has approved them, DG Agriculture, Unit F.3, will organise translation and publishing. Any change in this timing will require approval in writing by the Commission, either as part 28 A guide on cooperation and the guidelines on evaluation will be available on the Commission s LEADER+ site: http://europa.eu.int/comm/leaderplus 27

of the annual programme or on a one-off basis (see Article 11 of the draft contract attached as document 3). 2.5. Summaries and analyses of the 73 LEADER+ programmes/presentation of pilot actions and best practices (service code K) 2.5.1. Compilation of data, analysis and summaries Establishment of a tool (database and team) allowing the contractor to produce the following information when required. 2.5.1.1. Summary presentation of the 73 LEADER+ programmes approved (service code K1) Analysis and preparation of a summary of the 73 LEADER+ programmes. The aim of this document is to provide the reader with an overview, setting out the most salient points including (but not restricted to): general trends noted among the LEADER+ programmes, comparison with the previous programming period, comparisons between programmes/countries/regions and, from various angles: financial aspects, themes selected or planned for actions 1 and 2, options selected for action 3, areas and populations concerned, selection criteria others. The draft document resulting from this study will be sent to DG Agriculture, Unit F.3, no later than three months before the end of the first contractual year, for approval prior to translation and publication. Any change in this timing will require approval in writing by the Commission, either as part of the annual programme or on a one-off basis (see Article 11 of the draft contract attached as document 3). 2.5.1.2. Periodic summary and analytical information (service code K2) (Basic information: annual reports by the Member States, to be forwarded by the Commission, and the CAP-IDIM data base managed by the Commission) Periodic provision of summary and analytical information on progress in implementing LEADER+. On the occasion of each meeting of the steering committee and at its request, the Commission must receive a brief summary and analytical presentation of the information contained in the two sources of 28

information listed above. Some of the data to be processed will be qualitative, others quantitative. The qualitative information will be analysed in the annual reports; the sources for the quantitative data will be the financial information in the annual reports and the monitoring indicator 29 information in the CAP- IDIM data base. The Commission will provide the contractor with access to this data base. The contractor will set up an appropriated tool that will allow the generation of summary tables at any given moment, as well as analytical data in an easily readable format. It will be up to the contractor to design this tool in the light of the products required under points 2.5.1.1. and 2.1.2. (databases concerning projects under actions 1 and 2 on the web site). The summary and analytical information will be made available to DG Agriculture, Unit F3, no later than two weeks before meeting of the LEADER+ steering committee. 2.5.2. Presentation of pilot actions and best practice The contractor must plan for the editorial capacity to produce, from the second contractual year, the content of the following products, in the indicative annual quantities given below (to be confirmed in the annual work programme). These products will be widely distributed and should constitute a showcase for rural development in general and LEADER+ in particular. This will involve supplementing the information available from those involved in LEADER+ through work under point 2.5.1 or from other sources of information. The contractor will ensure that the selection, to be approved by the Commission, is well balanced. 2.5.2.1. Creation and updating of data sheets presenting pilot actions for local development in rural areas (service code K3) This involves identifying examples of the operations which are most relevant in view of the features of LEADER+ (pilot aspect and quality of strategies, unifying themes, target groups, complementarity with other programmes). Once the operations have been identified, they will have to be organised and classified by area of assistance. This instrument will constitute a (descriptive) showcase of theachievements of LEADER+, which can be supplemented by some examples of Leader over the longer term (Leader II) or some examples of good practice of the Leader type in the new Member States. However, care will have to be taken to avoid duplication with similar publications by Unit B.1. 30 of DG Agriculture and by DG Regional Policy. 29 30 The document Common indicators for monitoring LEADER+ programming is available on the LEADER+ site (http://europa.eu.int/comm/leaderplus). Information policy on agriculture and rural development. 29

The contact point will provide these data sheets (estimated at about 40 per year) and an outline for their classification to DG Agriculture, Unit F.3., which, when it has approved them, will organise their translation and publication. The timing is expected to be as follows: 10 data sheets will be sent to DG Agriculture, Unit F3, no later than two months before the end of the second and third contractual quarters; the remaining 20 data sheets will be sent two months before the end of the contractual year. Any change in this timing will require approval in writing by the Commission, either as part of the annual programme or on a one-off basis (see Article 11 of the contract). 2.5.2.2. Annual preparation of a list of the 15 best LEADER+ practices and of five good transnational projects and five good interterritorial projects (service code K4) The selection, drawn from the examples in the data sheets (see 2.5.2.1), will be made in cooperation with the Commission and the national units. This work therefore includes an analysis of these examples in order to make a selection of good practice. This instrument of external communication (estimated size 25 pages) will be sent no later than two months before the end of the contractual year to DG Agriculture, Unit F.3. which, when it has approved it, will organise its translation and publication. Any change in this timing will require approval in writing by the Commission, either as part of the annual programme or on a one-off basis (see Article 11 of the contract). 3. ORGANISATION OF THE WORK 3.1. Editing/translation and publication At various points the specification under point 2 states will be sent to DG Agriculture, Unit F.3. which, when it has approved it/them, will organise its/their translation and publication.. This means that the contractor responsible for the contact point prepares the document(s) in question in EN or FR, as preferred by the Commission, and incorporates in these texts any corrections required by the Commission. The contractor will be responsible for ensuring that the inter- institutional style guide 31 is applied to the original version. The contact point will send the Commission this original version (by mail). Once it has been adopted, DG Agriculture, Unit F.3, will decide to have translation and publication carried out either by the Commission or by one or more contractors. In order to ensure that documents sent electronically are received without delay, both the contractor and DG Agriculture, Unit F.3., will designate a mail box which can be accessed by several people, so that the absence of a member of staff will not delay receipt. The Commission will agree with the contractor a simple system for acknowledging receipt. 31 The interinstitutional style guide can be found on the Europa server at: http://publications.eu.int/general/en/code_fr.htm 30

3.2. Seminars, the conference and meetings This specification restricts the tasks of the contact point as regards seminars, the conference and meetings to planning, documentation and participation in the running of events. The Commission will undertake the logistical organisation itself or by calling upon a contractor. The contact point will prepare a draft annual programme of events 32 which, once approved by the Commission, will be followed for each event by a detailed programme, drawn up by the contact point and approved by the Commission. This detailed programme will set out the main variables 33 allowing the Commission to undertake the logistical organisation of the event. To this end, the contact point will have to finish drawing up the detailed programme, in agreement with the Commission, sufficiently well in advance to allow the logistical organisation to be carried out by the date set for the event. The deadline by which the detailed programme for an event and the preparatory documents must be made available to the Commission will be laid down in the annual programme. Any proposed changes to the main variables of a detailed programme must be approved by the Commission. If such a change is made after the deadline, the Commission will consider whether it can be accepted without adversely affecting the quality of the logistical organisation and without endangering the timing fixed for the event. 3.3. Meetings with the Commission The project leader 34 will be available for coordination meetings with the Commission, when it so requests. While it is difficult to forecast the frequency of these meetings, they will naturally happen more often in the early stages of the contract (indicative frequency : one a week). There should be provision for the project leader to be easily available 3.4. Composition and operation of the team 3.4.1. General provisions concerning the team To provide the products and services referred to in this call for tender, the contractor will make available a team having the expertise required to undertake the tasks described at point 2 of the specification to the highest standards of quality. The contractor will ensure that the team is sufficiently available, in view of the indicative quantities and frequencies set out for the various services and the average response times given in the tender. 32 33 34 Planning of seminars, the conference and meetings of the steering committee form an integral part of the annual work programme (see 3.5.1). Place, dates, number of participants, working languages, needs for rooms and equipment and any other factor likely to affect the cost of the logistical organisation. Subject to the Commission s prior agreement, the project leader may exceptionally be represented by a substitute or, depending on the purpose of the meeting, accompanied by a colleague. 31

The team may comprise both permanent and non-permanent members. A permanent member is one who devotes 100% of his or her working time to the Observatory s contact point. Any part-time working, whether by experts or administrative and technical support staff, must be organised so that the average response times given in the tender (see mainly points 2.1.1. and 2.1.2. mail box) can be met as regards replies to simple requests for information 35. However, as regards the treatment of more complex requests for information, the response time announced will be regarded as indicative, since for such requests the quality of the reply is the most important factor. The quantities and frequencies given in this specification are indicative. Reasonable divergences from these quantities and frequencies may not be cited as justifying invoicing beyond or in addition to the flat-rate unitary prices or maximum total amounts (see Annex III to the draft contract). The team shall be capable of responding to some variation in the workload, whether within a contractual year or from one year to another. The Commission has, however, tried to avoid excessive variations. To that end, the summary presentation of the 73 LEADER+ programmes (2.5.1.1) has been planned for the first contractual year while the data sheets on pilot actions (2.5.2.1) and the annual inventory of best practice (2.5.2.2) will not have to be carried out until the second contractual year. The extra workload resulting from the possible organisation of a conference (2.2.3) will be offset by a reduction in the number of seminars for that year. The designated senior manager who will deal directly with the Commission will be called "project leader" for the purpose of this contract. In addition to the operational contacts with the Commission departments, the project leader will coordinate the carrying out of the services which are the subject of the contract and will have to make sure that these are delivered within the specified deadlines and quality standards. He will also have to ensure that the work of administrative nature is completed in accordance with the contractual provisions (see annexes I and II of the draft contract attached as a document n 3).The tenderer will designate in the tender a high-level manager who will deal directly with the Commission. For the purposes of this contract, that person will be known as the project leader. The project leader will be responsible for the management and coordination of services and products requested by the Commission. In particular he or she will be responsible for the implementation and delivery of the services and products described in this specification, ensuring quality control, compliance with deadlines and the administrative and financial aspect of the implementation of the contract. The contractor, and in particular the project leader, will work in close contact with the Commission. To that end, every member of the team established by the contractor must have a good oral and written knowledge of the Commission s working languages, specifically English and French. The project leader will have a perfect knowledge of these two languages. 35 For the reception of visitors: see point 2.1.1.1. 32

3.4.2. Backgrounds The contractor will be responsible for ensuring the backgrounds of the members of the team are sufficient in order to provide the services needed at high standards of quality. For guidance, the Commission requires the following minimum qualifications. 3.4.2.1. Project leader Excellent knowledge of questions concerning the development of rural areas and the CAP. Good knowledge of the activities and operation of the European Institutions Good managerial skills Multilingual (Community languages), including excellent knowledge of English and French Excellent coordination abilities and skills in animation of a teams Substantial experience in the field of information and communications Substantial experience in planning and successful running of events (trans-national) Excellent ability to summarise and grasp key issues. 3.4.2.2. Members of the team In addition to the coverage by the team as a whole of the linguistic needs referred to at 3.2.2.3, each member of the proposed team must have at least a good knowledge of English and/or French. A good up-to-date knowledge of the information technology is also required, and previous experience of working in a multicultural environment would be highly desirable. An excellent knowledge of rural issues will be essential for most of the duties to be undertaken by the team responsible for the Contact point of the European Observatory of rural areas. Furthermore, the team as a whole must also be able to offer professional skills allowing it to deal with the following aspects of the products and services to be provided (non-exhaustive list): management of the web site, media relations, organisation of events, analysis and summary. The tenderer will ensure that editing and journalistic skills are available, and that the texts intended for publication, particularly those aimed at the general public, adopt a lively pedagogic style. 3.4.2.3. Language skills. The contractor in charge of the contact point is not therefore expected to provide translation capacity for long documents. However, some of the tasks 33

to be carried out by the contact point will require broad language cover in order to provide the normal services and give public talks on an independent basis. In preparing the tender, the tenderer may take into consideration the possibility of providing some different language versions of web pages or the electronic newsletter, with a time-lag of not more than one month. Treatment of requests for information (point 2.1.1) The team s passive language knowledge must enable it to understand all requests for information. The contact point will also independently provide replies, although it is understood that, if questions are posed in one of the less common languages, the answer may be given in EN, FR or DE. Web site (point 2.1.2) The contact point will independently provide the various language versions, as set out in point 2.1.2, the library being fed by the various language versions of the documents in question 36 (the contact point will not be required to provide translations of long documents: see below). Electronic newsletter (point 2.1.3) The contact point will independently provide the various language versions, as set out in point 2.1.3. Periodic information from the Commission under point 2.5.1.2. The contact point will independently provide the version in EN and/or FR, as required by the Commission. Promotion, representation and running of seminars and the conference and methodological support (points 2.1.5, 2.2 and 2.3) Broad language cover by the team will ensure the success of these events, which may take place in any country in the European Union, including from 1 May 2004 the new Member States (seminars and the conference will have interpreting facilities). Large and/or frequent documents These are: the LEADER+ magazine (2.4), summary of programmes (2.5.1.1), data sheets on pilot actions (2.5.2.1), inventory of best practice (2.5.2.2) and documents preparing for and resulting from seminars and the conference (2.2). 36 All the Observatory s publications, in the broad sense. 34

These fairly long documents require a high-quality translation in order to preserve the journalistic and editorial qualities of the originals prepared by the contact point. It is therefore planned to have them translated by the Commission s translation service or by experts contracted by the Commission. The contact point need not therefore have the capacity to translate these products. 3.4.2.4. Recording the team s activities It is understood that the unit prices for a day s work by an expert may only be invoiced for a day s work actually done 37. The project leader will be responsible for the accurate recording of the presence and absence of experts on the team; these records must show the services 38 for which this work was done. The contractor will make these records, updated daily, available to the Commission at any moment. 3.4.2.5. Changes in the composition of the team Since the tender is an integral part of the contract, the contractor is required to provide the services of the team as presented in the tender. For all questions concerning the possible replacement of an expert, the contractor should refer to Article 8.7 of the contract. So that the Commission can regularly identify the progress made in executing the tasks, in accordance with the technical specifications, appropriate monitoring, assessment, and supervisory procedures shall be set up. For these purposes, please refer to Annex II, which includes all necessary details for the submission and approval of reports. 37 38 Hence excluding days of absence for any reason (sickness, holiday, special leave, public holiday, etc.). By quoting the codes in the first column of the table Correspondance table between codes used for identification of services and paragraph numbers under tender specifications under Annex III. 35

ANNEX II Programming and Reporting 1. ANNUAL WORK PROGRAMME The annual work programme, including the annual programme of events 39, must be agreed with the Commission and will be preceded by a draft: for the first year 40 : to be submitted in the tender; for subsequent years 41 : to be sent to the Commission five months before the end of the previous year. This programme, which will cover the various services under the contract (see its Annex I) may be amended during the year at the initiative of the Commission if there is a change of priorities. Any amendment at the initiative of the contractor shall be subject to prior approval by the Commission. The elements of this programme shall be detailed early enough to allow completion on schedule of other work to be organised by the Commission, such as translation, publication or the logistical organisation of seminars. The detailed event programme will need to be completed in sufficient time to allow this logistical organisation to be carried out before the date set for the event. The deadline by which the Commission is to be given the detailed programme and preparatory documents for an event 42 will be fixed in the annual work programme. 2. QUARTERLY REPORTS At the end of each quarter of the contractual year, the contractor will submit a technical report on the work done during the previous quarter which it will send to the Commission within no more than 45 calendar days after the period in question (approval by the Commission of this interim report is a precondition for release of the interim payment). This report will set out progress with respect to the annual programme, explaining any deviations from it and the solutions which will be adopted by the end of the year to make up for any shortcomings. It will contain all the points which the tenderer thinks necessary to provide the Commission with a full picture. The report will also contain a summary of the data on the work done by the experts on the team, with details of the services to which their work relates, information on any prolonged absences by permanent staff and on the solutions adopted to replace them. 39 40 41 42 See also 3.2 under Annex I. Year means the twelve-month period covered by the contract. Year means the twelve-month period covered by the contract. Seminars, the conference, meetings of the steering committee. 36

3. ANNUAL REPORTS At the end of each contractual year a full review of the work done (which will allow payment of the balance) will be sent to the Commission within 90 calendar days of the end of the year. This report will contain a full description of all the work carried out during the year and an evaluation of the results of each action. The report will list achievements in relation to the annual programme and justify any deviations from it. It will include all the details which the tenderer considers necessary to provide the Commission with a complete picture of the work of the Observatory s contact point. The report will also contain detailed information on the work of the experts on the team, with details of the services to which their work related, information on any prolonged absences by permanent staff and on the solutions adopted to replace them 43. This document must be designed and drafted with the greatest care so that the Commission can judge the extent to which the contractor has complied with his contractual obligations. 4. ACCEPTANCE OF THE QUARTERLY AND ANNUAL REPORTS The rules to be observed on the transmission of reports by the contractor and their acceptance by the Commission are set out in Article 7 of the contract. 43 In accordance with point 3.4.2.4. under Annex I, the daily records of the individual services provided by the experts, related to the products, must be made immediately available on demand to the Commission or its designated auditors. 37

ANNEX III Breakdown of prices : Remuneration and reimbursable A. FEES AND DIRECT COSTS A1. Fees for specialised services (expert team members) : corresponding CV's under annex IV A1a. Permanent expert staff Function NAME Fixed unit prices per working day EURO Maximum number of units Maximum total per item EURO Maximum total amounts EURO A1b. Non permanent expert staff Function NAME Fixed unit prices per working day EURO Maximum number of units Maximum total per item EURO Maximum total amounts EURO A2. Other direct costs A2a. Administrative and technical support functions Fixed unit prices per calendar month EURO Maximum number of units Maximum total per item EURO Maximum total amounts EURO A2b. Operating costs Fixed unit prices per calendar month EURO Maximum number of units Maximum total per item EURO Maximum total amounts EURO SUBTOTAL PART A, FEES AND DIRECT COSTS 38

B. REIMBURSABLE EXPENSES B1. Travel costs and per diems (expert missions) B1a. Travel costs Average unit price per trip Maximum number of trips Maximum total per item EURO Maximum total amounts EURO B1b. Per diems (daily subsistence allowances) Average unit price per trip Maximum number of trips Maximum total per item EURO Maximum total amounts EURO B2. Other reimbursable costs B2a. Costs for transport (of material, publications, etc.) Average unit price per trip Maximum number of trips Maximum total per item EURO Maximum total amounts EURO B2b. Contingencies Approximative % of calculation base Calculation base (sub-total A + B1a + B1b + B2a) Maximum total amount EURO SUBTOTAL PART B, REIMBURSABLE EXPENSES OVERALL TOTAL A + B (maximum amount of the present contract) 39

General provisions 1. Maximum amounts It is understood that the above amounts are set, in parts A and B of the Breakdown of prices, as provisions only. They constitute a maximum for the overall cumulative value of all services rendered by the Contractor under the present Contract - they will be due only if services are actually rendered to the Commission according to this Contract and its Annexes. 2. Article 4 For general reimbursement provisions, reference is made to art. 4 of the contratct. 3. Preliminary agreement by the Commission Each mission likely to entail reimbursable expenses shall be submitted by the contractor in advance to the Commission for its approval, allowing five working days for a reply 44. Such request shall be sent to the Directorate-General for Agriculture, Unit F.3, 45 and state at least the event concerned 46, dates and location, the names of the participants and the number of nights foreseen for each. An estimate of travel costs and daily allowances should be attached. Modalities for calculation of amounts due under the present Contract A1. Fees and direct costs The fixed unit prices under A. Fees and direct costs are expected to cover the expert fees as well as all other costs related to the delivery of the services described under annex I (technical specifications and monitoring). These fixed unit prices do not include the reimbursable defined below under 2, 3 and 4. For a given working day of expert team members (permanent and non permanent), the hours worked beyond normal daily work time shall not be payable; normal work time is understood as respecting the law and regulations in force in the country where the services are to be performed. A1a + A1b : Permanent and non permanent staff The experts must correspond to the CV s under annex IV; functions as well as names are to be specified. The fixed unit prices per working day may only be invoiced for effectively worked days, to be justified with time sheets (excluded are non worked days for reasons of illness, holidays or ANY other reasons). A2a : Administrative and technical support functions Only functions, without names, are to be specified for administrative and technical support of non expert level. Invoicing will be calculated following the fixed prices per calendar month. A2b : Operating costs Are to be specified here ALL operating costs to be related to the contract : i.e. offices, material, fax, phone, postage, etc. Invoicing will be calculated following the fixed prices per calendar month. Invoicing of any overheads not specified in the above table with fixed unit prices for fees and direct costs will be rejected. B1a. Travel expenses These will be reimbursed within the following limits: Journeys have to be carried out by the most direct and economic route; Train journeys: first class; Air travel: full fare economy class (air travel allowed only for distances above 400 km, i.e. return flight above 800 km); Car journeys: equivalent of corresponding first class train ticket. 44 45 46 The Commission will do everything posible to reduce this period in the event of a proven emergency. See contact point under 5.10. An invitation or request to participate or other supporting document should be attached. 40

B1b. DSAs (Daily Subsistence Allowances) (= perdiem rates) These cover all the subsistence costs of the Experts who are on mission outside their usual place of work, including their transport costs (by taxi and/or public transport). They will be paid for each calendar day spent on mission away from the usual place of work, provided that the corresponding assignment is of a short term nature (less than 6 calendar months). These daily subsistence allowances will vary according to the country in which the missions are to be carried out. The contractual rates (in EUR ( ) per calendar day) to be used in the framework of the present Framework Contract are set out in the following table: Member State Euro BEL 149,63 DAN 179,28 DEU 127,10 HEL 113,19 ESP 141,30 FRA 130,29 IRE 165,20 ITA 129,82 LUX 143,48 NED 147,69 POR 142,98 UNK 199,21 ÖST 121,81 SUO 155,60 SVE 156,54 The calculation of the DSA's will be done by 24 hour fractions, depending on the duration of the Expert's actual presence on the place of mission, according to the following rules: the duration to be considered for the calculation of the Expert's DSA's is counted from the Expert's arrival time to, until the departure time from the place of mission; the total DSA will be allowed only if the duration of the Expert's presence on the place of mission is more than 12 hours; if the duration of the Expert's presence on the place of mission is less than 12 hours but more than 6 hours, only half of the DSA may be allowed; if the duration of the Expert's presence on the place of mission is less than 6 hours and at least one meal has been taken by the Expert, only a quarter of the DSA may be allowed; if the duration of the Expert's presence on the place of mission is less than 6 hours and no meal has been taken by the Expert, no DSA is due. B2a. Other reimbursable expenditure In principle only invoicing of costs for transport of material, publications, etc. (to the place of an event) can be accepted under B2. Other reimbursable expenditures could exceptionally be admissible if the Commission has beforehand requested or accepted these expenses to be incurred, and if they are specified in the above Breakdown of Prices. B2b. Contingencies. The eventual provision for contingencies, if specified in the above Breakdown of Prices, cannot be used without the prior and express approval by the Commission, by the way of a written note allowing for reallocation(s) of part or total of this provision to one or several items above. 41

Service costs The following table mentions the service costs upon which the penalty for late delivery (see art 11) of 0,4 % per calendar day of delay (see also table service deadlines ) will be calculated. This penalty will apply for each delay concerning a single item within a service. Example : Service LEADER+ Magazine (code J) is to be deliverd 3 times a year, respectively 2 months before the end of the 2 nd, 3 rd and 4 th contractual quarter. In case of late delivery of 10 calendar days of numer one, in time delivery of numer 2 and 20 calendar days late delivery for number 3, the penalty will be of 30 x 0,4 % = 12 % to be applied upon the cost of service J (bottom line of table service costs hereunder ). However, as far as products H1, H2 and H3 are concerned, would late delivery of detailed planning or preparatory documents have serious implications on the quality of the event or imply the delay or cancellation of it, the Commission may then apply full or part of the 15 % penalty, in proportion to the magnitude of the failure. 42

Service costs Function Function A1a. Permanent expert staff NAME Subtotals permanent expert staff A1b. Non permanent expert staff NAME Subtotals Non permanent expert staff TOTALS A1a + A1b Fixed unit prices per working day EURO (1) Fixed unit prices per working day EURO (1) A A Maximum value of expert services for each task during 1 contract year (2) B C D E F G H I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Maximum value of expert services for each task during 1 contract year (2) B C D E F G H I J 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 J K K Other (2) Other (2) TOTALS TOTALS Service costs : PRO RATA distribution per service of the maximum of Part A. Fees and directs costs : A1a + A1b + A2a + A2b (3) #### #### #### #### #### #### #### #### #### #### #### ##### 0 (1) Values corresponding to column "Fixed unit prices per working day EURO" of Part A. Fees and direct costs of the Breakdown of prices (Annex III) (2) Maximum number of required working days for each service during 1 contract year (table "Expert staff : working days per product") multiplied by fixed unit prices (3) Correspondence with art. 3 and Annex III Correspondance table between codes used for identification of services and paragraph numbers under tender specifications Service codes Annex I draft contract Description Number tender specifications A Reception of visitors 2.1.1.1 B Telephone answering service 2.1.1.2 C Mail management 2.1.1.3 D Web site 2.1.2 E Electronic newsletter 2.1.3 F Mailing lists individual dispatch of publications 2.1.4 G Promotion and representation 2.1.5 H1 Seminars 2.2.1 H2 Meetings of the steering committee 2.2.2 H3 Conference 2.2.3 I Methodological support for those involved in Leader+ 2.3 J Editing of the Leader+ magazine 2.4 K1 Summary presentation of the 73 Leader+ programmes approved 2.5.1.1 K2 Periodic summary and analytical information 2.5.1.2 K3 Creation and updating of data sheets presenting pilot actions for local development in rural areas 2.5.2.1 K4 Annual preparation of an inventory of the 15 best Leader+ practices, five good transnational projects and five good interterritorial projects 2.5.2.2 43

Service deadlines Service codes Annex I draft contract Description Tender specification number A 2.1.1.1 B 2.1.1.2 C 2.1.1.3 D 2.1.2 E Dispatch of at least six electronic newsletters per contractual quarter (a possible reduction during July and August will be offset during the last four months of the year). 2.1.3 F 2.1.4 G 2.1.5 H1 2.2.1 The deadlines for providing the Commission with detailed planning for events and preparatory documents will H2 2.2.2 be laid down in the annual work schedule. H3 2.2.3 I 2.3 J Three issues of the magazine must be sent to DG Agriculture, Unit F3, no later than two months before the end 2.4 of the second, third and fourth contractual quarters. K1 The draft summary presentation of the 73 Leader+ programmes must be sent no later than three months before the end of the first contractual year. 2.5.1.1 K2 The summary and analytical information will be made available no later than two weeks before the meetings of 2.5.1.2 the Leader+ steering committee. K3 Ten sheets will be sent no later than two months before the end of the second and third contractual quarters; the remaining 20 sheets will be sent two months before the end of the contractual year. 2.5.2.1 K4 The list will be sent no later than two months before the end of the contractual year. 2.5.2.2 44

ANNEX IV Contractor s offer including CVs for permanent and non permanent expert team members 45

ANNEX V Fiscal provisions regarding invoicing by the Contractor [option 1, where the Contractor is subject to VAT and his place of fiscal imposition is in Belgium:] Local supplies and services Supplier with fiscal imposition place in Belgium services to be delivered in Belgium 1. VAT exemption - Exemption level In Belgium, the terms of the present Contract have the same value as the VAT exemption request No 450 (VAT exemption - Article 42, par. 3.3, VAT Code, circulaire No 2/1978). The European Commission benefits of a direct VAT exemption for all invoices of EUR 123.94 EUR and more. 2. Invoicing the Commission An invoice will be made for each payment related to the present Contract. The applied VAT rate and amount shall be specified. In order to allow for the VAT exemption, invoices addressed to the European Commission should bear the mention: "Exonération de la TVA, article 42, 3.3, du code TVA (Circulaire n 2/1989)" or "Vrijstelling van BTW, artikel 42, 3.3, BTW-Wetboek (Omzendbrief nr. 2/1998)". The above indication is given only as piece of information. The Contractor must refer to the Belgian national laws. [option 2, where the Contractor is subject to VAT and his place of fiscal imposition is a Member State other than Belgium :] Intra-community supplies and services Supplier with fiscal imposition place in a Member State other than Belgium services to be delivered in Belgium 1. VAT exemption level The European Commission benefits of a direct exemption of VAT for all invoices of EUR 123.94 and more. 2. Use of Form 15.10 To allow the Contractor to justify to the fiscal authorities an invoicing to the European Commission using a 0% VAT rate (direct exemption) or to enable the benefit of the exemption by reimbursement, it is necessary to use the form 15.10. These forms have been up-dated, and the new versions are the only ones to remain in official use. They entered into force on 01.04.1997, with a new ref. XXI/03278-01.04.1997. 3. Signature of the Form 15.10 - Delegation of signature The forms must normally be signed by the fiscal authorities of Belgium. However, a delegation of signature has been awarded by the Belgium authorities to the European Commission - ref. ET 76430 of 22.12.1992 (This ref. No should be inserted in box 7 of Form 15.10). The Commission 46

being represented for the present Contract by the Director-General of Agriculture, form 15.10 will therefore be signed by the latter. 4. Invoicing the Commission An invoice will be made for each payment related to the present Contract. The applied VAT rate and amount shall be specified. Concerning the direct VAT exemption (0% VAT rate), or VAT exemption by the way of reimbursement, the invoice shall bear all the necessary mentions. The above indication is given only as piece of information. The Contractor must refer to the national laws in force in his Member State of fiscal imposition. [option 3, where the Contractor is not subject to VAT: ] Annex V is not applicable to this Service Contract. 47

ANNEX VI MODEL FINANCIAL GUARANTEE (This document must be drawn up on the financial Organisation s headed paper) COVERING THE PREFINANCING MADE UNDER CONTRACT NUMBER. We, the undersigned (name, address and telephone number of financial organisation), represented by M.. (position), hereby undertake to provide an irrevocable and unconditional guarantee to and for the benefit of the European Commission for an amount not exceeding: Euros. (amount in figures and letters), equal to 30% of the fixed amount in Article I.3.1, part A, of the contract, to ensure that.. (name and address of firm) reimburse the prefinancing payment under contract number. signed on././. concerning.. This guarantee will be: 1. valid from its date of issue up to and including the fifteenth day following the date of full recovery of the pre-financing payment made by the Commission under this contract; 2. payable to the European Commission on its first irrevocable and unconditional request, on a simple declaration that... (name and address of firm) has failed to reimburse in full the pre-financing payment; 3. released only by the European Commission by the express release and return of the original guarantee to the beneficiary under the contract. In the event of partial release, the original will remain with the European Commission up to the date of receipt of a guarantee updated by the bank, in accordance with this model. Done at., /./ Signature(s) To be attached: a list of persons authorised to sign the guarantees with specimen signatures. 48