Annex III: Optional Programmes Covered by Article V.1 (b) of the Convention
Article I
1.
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If a
proposal for the carrying out of an optional programme covered by Article V.1
(b) of the Convention is made, the Chairman of the Council shall communicate
it to all Member States for examination.
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2.
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Once the
Council has, in accordance with Article XI.5 (c) (i) of the Convention,
accepted the carrying out of an optional programme with the framework of the
Agency, any Member State that does not intend to take part in the programme
shall, within three months, formally declare that it is not interested in
participating therein; the participating States shall draw up a Declaration
which, subject to Article III.1, shall set out their undertaking in respect
of
(a)
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the Phases
of the programme;
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(b)
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the
conditions under which it is to be carried out, including the timing, the
indicative financial envelope and sub-envelopes relating to Phases of the
programme, and any other provisions for its management and execution;
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(c)
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the scale of
contributions determined in accordance with Article XIII.2 of the Convention;
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(d)
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the duration
and amount of the first binding financial commitment.
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3.
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The
Declaration shall be transmitted to the Council for information, together
with draft implementing rules submitted to it for approval.
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4.
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If a participating
State is unable to accept the provisions set out in the Declaration and
implementing rules within the time limit laid down in the Declaration, it
shall cease to be a participating State. Other Member States may subsequently
become participating States by accepting these provisions in accordance with
conditions to be determined with the participating States.
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Article II
1.
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The
programme shall be executed in accordance with the provisions of the
Convention and, unless otherwise stipulated in this Annex or in the
implementing rules, with the rules and procedures in force in the Agency.
Decisions of the Council shall be taken in accordance with this Annex and the
implementing rules. Failing any specific provisions in this Annex or in the
implementing rules, the voting rules laid down in the Convention or the rules
of procedure of the Council shall apply.
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2.
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Decisions on
the start of a new Phase shall be taken by a two-thirds majority of all
participating States, provided that this majority represents at least
two-thirds of the contributions to the programme. If the decision to start a
new Phase cannot be taken, the participating States that wish, nevertheless,
to continue with the Programme shall consult among themselves and determine
arrangements for such continuation. They shall report accordingly to the
Council, which shall take any measure that may be required.
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Article III
1.
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If the
programme includes a project definition phase, the participating States
shall, at the end of the phase, reassess the cost of the programme. If the
reassessment shows that there is a cost overrun greater than 20% of the
indicative financial envelope referred to in Article I, any participating
State may withdraw from the programme. The participating States that wish,
nevertheless, to continue with the programme shall consult among themselves
and determine the arrangements for such continuation. They shall report
accordingly to the Council, which shall take any measures that may be
required.
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2.
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During each
Phase, as defined in the Declaration, the Council shall, by a two-thirds
majority of all participating States, adopt annual budgets within the
relevant financial envelope or sub-envelopes.
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3.
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The Council
shall lay down a procedure enabling the financial envelope or sub-envelopes
to be revised in the event of price-level variations.
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4.
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When the
financial envelope or a financial sub-envelope has to be revised for reasons
other than those referred to in paragraphs 1 and 3, the participating States
shall apply the following procedure:
(a)
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No
participating State shall be entitled to withdraw from the programme unless
the cumulative cost overrun is greater than 20% of the initial financial
envelope, or of the revised envelope defined in accordance with the procedure
laid down in paragraph 1.
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(b)
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If the
cumulative cost overrun is greater than 20% of the relevant financial
envelope, any participating State may withdraw from the programme. Those
States that wish, nevertheless, to continue with the programme shall consult
among themselves, determine the arrangements for such continuation and report
accordingly to the Council, which shall take any measures that may be
required.
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Article IV
The Agency, acting on behalf of the
participating States, shall be the owner of the satellites, space systems and
other items produced under the programme as well as of the facilities and
equipment acquired for its execution. Any transfer of ownership shall be
decided on by the Council.
Article V
1.
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Denunciation
of the Convention by a Member State shall entail the withdrawal of that
Member State from all the programmes in which it participates. Article XXIV
of the Convention shall apply to the rights and obligations arising out of
these programmes.
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2.
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Discontinuations
under Article II.2 and withdrawals under Article III.1 and III.4 (b) shall
take effect on the date on which the Council receives the information
referred to in those Articles.
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3.
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A
participating State that decides not to continue with a programme under
Article II.2, or withdraws from a programme under Article III.1 et III.4 (b),
shall retain the rights acquired by the participating States up to the
effective date of its withdrawal. Thereafter, no further right or obligation
shall arise from the remaining part of the programme in which it no longer
participates. It shall remain bound to finance its share of the payment
appropriations corresponding to contract authority approved under the budget
for the current or previous financial years and relating to the programme
Phase whose execution is in progress. However, the participating States may
unanimously agree, in the Declaration, that a State which decides not to
continue with, or withdraws from, a programme shall be bound to finance its
total share of the initial envelope or the sub-envelopes of the programme.
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Article VI
1.
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The
participating States may decide to discontinue a programme by a two-thirds
majority of all participating States representing at least two-thirds of the
contributions to the programme.
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2.
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The Agency
shall notify the participating States of the completion of the programme in
accordance with the implementing rules; these implementing rules shall cease
to be in force upon receipt of such notification.
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