III. Commitments to Be Entered into by Arianespace The Participants request Arianespace to enter into the following commitments, which will be embodied in the Agency-Arianespace convention provided for in paragraph 2.1. 3.1 The activity entrusted to Arianespace shall be carried out for peaceful purposes, in conformity with the obligations of the Convention and with the Articles of the Treaty on Principles governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, signed in 1967. Arianespace shall be required to conform to the decisions taken by the committee set up under paragraph 1.6. 3.2 Arianespace shall respect the geographical distribution of industrial work among the participating States resulting from the development and promotion phases. If Arianespace considers that this distribution cannot be respected because industrial proposals are unreasonable in terms of price, quality or delivery dates, it shall put the work out to competitive tender. Before doing so, Arianespace shall inform the State concerned and the Director General of the Agency, with a view to seeking a solution. In the event of an objection on the part of a participating States, the Ariane Launcher Programme Board shall be consulted, in conformity with paragraph 2.6. The previous contractor may match the best financial offer and shall have priority in relation to all industrial proposals that are equivalent in terms of prices, delivery dates and quality. 3.3 Arianespace shall have technical and financial responsibility for maintaining in good operational order the assets made available to it under the terms of paragraphs 1.7 and 2.2. Arianespace may, after consulting the owners, make such modifications to these assets as it may necessary for its activities. Failing agreements, Arianespace may carry out such modifications, guaranteeing that the assets will be restored to their initial state at the time of returning them. The management and maintenance arrangements relating to the assets shall be defined in the Agency-Arianespace convention provided for in paragraph 2.1. 3.4 Arianespace shall restrict use of the rights and data made available to it under paragraphs 1.7 and 2.2 to the requirements of the launcher production. Rights and data of which the Agency is the owner may not be passed on to third parties without the Agency's agreement in accordance with the provisions of the ESA Convention and the Ariane Agreement. Rights and information that are the property of a Participant may not be passed on without prior agreement of the latter. 3.5 Arianespace shall undertake to pay the Agency, for the use of the CSG and in respect of each sale, a fee calculated on the basis laid down in Annex 2. This fee shall be used to reduce the contributions of the States. 3.6 Arianespace will supply the Agency and the Participants, giving them priority over third-party customers, with the launch services and slots required, under the following conditions: – the Agency and the Participants will communicate to Arianespace their request for services as their requirements arise (cost-free options); in the event of a conflict of priorities between the Agency and a Participant, the Agency shall have priority; – when a third-party customer requests a fee-paying option, or wishes to place a firm order, in respect of a slot reserved cost-free by the Agency or a Participant, the Agency or the Participant in question may convert its cost-free option into a fee-paying option or a firm order and retain its priority; – the Agency-Arianespace convention will contain a model clause, which is to be included in the sale contracts, defining the procedure to be applied in the event of a slip-page of the launch slot. 3.7 Arianespace shall undertake, in its relations with its customers and the public, to emphasize the European and multilateral character of the development and production of the Ariane launcher. 3.8 In the event of proceedings being taken by the victims of damage caused by Ariane launches, Arianespace shall be r4equired to reimburse the French Government, within a ceiling of 400 million French francs per launch, the amount of any damages it may be required to pay under the terms of paragraph 4.1. 3.9 Arianespace shall practice a pricing policy conforming to the provisions of paragraph 1.5. Even if the prices invoiced by Arianespace for launches not covered by paragraphs 1.4(a) and 1.4(b) differ from the recommended prices, Arianespace alone shall bear the financial consequences. 3.10 The Participants invite the Board of Directors of Arianespace to: (a) take cognizance of this Declaration; (b) authorize its Chairman to negotiate and conclude with the Agency the convention referred to in paragraph 2.1. Pending the setting-up of Arianespace, the Participants invite the signatories of the Le Bourget Transpace Protocol of 12 June 1979 to nominate a representative empowered to negotiate the convention in question.