Legal framework: Subsidy contract & Partnership agreement

1. Legal framework:Subsidy contract & Partnership agreement Seminar for the projects approved in the seventh call for proposals JTS INTERREG IV A 2 Seas Lille, 1st July 2011

2. Signatories Subsidy Contract Partnership Agreement The Partnership Agreement is signed by the Lead Partner and the Project Partners The SubsidyContractissigned by the ManagingAuthority and the Lead Partner

3. Purpose Subsidy Contract Partnership Agreement The Partnership Agreement defines the relations within the partnership in order to implement the project as indicated in the approved Application Form and in the Subsidy Contract. The SubsidyContractdetermines the ERDF granting conditions for the wholepartnership as represented by the Lead Partner

4. Annexes Subsidy Contract Partnership Agreement The approved Application Form and its annexes (Letters of support, organization chart) The Subsidy Contract • The approved Application Form and its annexes (Letters of support, organization chart) • The Steering Committee decision

5. General presentation Subsidy Contract Partnership Agreement Trilingual document Contains 27 articles To be signed by each Partner who is to keep a copy of the agreement (a copy must be sent to the JTS before any payment can be made) Is composed of 2 parts: Part A: part that cannot be amended Part B: part that is to be defined and detailed and tailored to the partnership • Trilingual document • Contains 16 articles • Is issued in 3 copies • 1 original signed copy iskept by the Lead Partner, the 2 otheroriginals are to bereturned once signed to the JTS • Data pre-filled by the JTS (Article 2 and Article 5) in accordance with data provided in the application form: reporting dates, the ERDF requestedamount (per 6 monthsperiod), the total project budget, the breakdown of the approved budget at Partner level.

6. Content: legal framework Subsidy Contract Partnership Agreement Defined in the Preamble Its implementation is requested by EC Regulation and also stipulated in the Subsidy Contract (Article 6 (3), 7, 12 (7), • Defined by Article 1 • EC Regulations • Community rules regarding competition, state aid, equal opportunities • National rules • The Operational Programme • The Programme Guidance

7. Content:Duration Subsidy Contract Partnership Agreement Defined in Article 3 This Partnership Agreement will enter into force retrospectively from [the date of the approval decision of the Steering Committee or the start date of the project, whichever is the earlier] Better from 01/08/2009, start date of the eligibility of the costs, in case of doubts It shall terminate on the date on which the Partners have collected their share of the final transfer of ERDF funds from the Lead Partner intended to settle up the grant awarded within the context of the project (with exception of archiving and audit trail requirements: December 2025) • Defined in Article 2 The contractenters in force on the date of the last signatureand shallterminate on the date on which the Partners have collectedtheirshare of the final transfer of ERDF Fundsfrom the Lead Partner; however, the obligations arisingfromcommunity and national legislationwillstillapply (particularlyconcerningarchiving and audit trailrequirements) Start date for running the project: 01/08/2009 End date of the project as set in the AF + 2 extra months (+1 if necessary) to close final report

8. Content: eligibility of the expenditure Subsidy Contract Partnership Agreement Defined in Article 10 « the eligibility of the expenditure will be determined in compliance with the documents mentioned in the Subsidy Contract, Article 1… » • Defined by Article 4 • Listed in the approved Application Form • In compliance with Article 1 • Incurred, invoiced and paid in the eligibility period • No deviation from the annual forecast and detailed budget breakdown as set out in the Application Form unless approved by the MA/JTS major modification request

9. Content:Reporting Subsidy Contract Partnership Agreement Referred to in Article 4 (2) for the LP: « draw up and present progress reports as defined in the Subsidy Contract, Article 5 » « request payments according to the procedure set in the Subsidy Contract, Article 5 » « receive payment from the Certifying Authority and transfer portions of it to the partners as soon as possible » Referred to in Article 4 (3) for the Partners: « have its share of expenditure verified by a first level controller» « support the Lead Partner in drawing up and presenting progress reports as defined in the Subsidy Contract, Article 5 » « support the Lead Partner in preparing the payment requests according to the procedure set in the Subsidy Contract, Article 5 »  • Defined by Article 5 which describes the monitoring process • The Lead Partner has to present a progress report (activity report and financial report validated by a First level controller) as indicated in Article 4 and in Article 5(2). The progress report shall be accompanied by the individual partners’ signed validation of expenditure • Payments not requested in time, in full or not complying with the eligibility rules might be lost • Reporting is to be provided in English

10. Content: Lead Partner’s Obligations Subsidy Contract Partnership Agreement Article 4 (2): defines the Lead Partner’s obligations in terms of project implementation « The Lead Partner shall fulfill all obligations arising from the Subsidy Contract… » Article 11: defines the LP’s obligations in terms of budgetary and financial management • Article 6: defines the Lead Partner’s obligations • To be responsible for the implementation and management of the project in compliance with the approved Application Form • To be liable to the Managing Authority in the event of a demand for full or partial return payment • To represent the Project Partners • To implement a Partnership Agreement establishing mutual responsibilities • To keep the JTS informed if any change occurs (at activity or finance level) • To ensure that all Partners comply with the regulations referred to in Article 1

11. Content: Project Partners’ Obligations Subsidy Contract Partnership Agreement Article 4 (2): defines the LeadPartner’s obligations « The Lead Partner shallfulfill all obligations arisingfrom the SubsidyContract… » Waterfalleffect… Article 4 (3):defines the Project Partners’ obligations « everypartnershallfulfill all obligations arisingfrom the SubsidyContract… » • Article 11 states the Project Partners’ obligations in terms of budgetary and financial management (accounting system, first level control, traceability of the expenditure, respect of schedule…)

12. Content: Publicity Subsidy Contract Partnership Agreement Defined by Article 15: « All Partners must complywith the requirements set in Article 8 of the SubsidyContract » • Defined by Article 8 • Any notice or publication by the project have to indicate the Programme’s support and display the European flag and Programme logo • A copy of any communication material shall be produced to the JTS/MA

13. Content: Archiving Subsidy Contract Partnership Agreement Stipulated in Article 4 (2): the Lead Partner shall fulfill the following obligation: «properly archive documentation, as required by the Subsidy Contract, Article 11 » Stipulated in Article 4 (3): Every Partner shall fulfill the following obligation: «properly archive documentation, as required by the Subsidy Contract, Article 11 » • Defined by Article 11 • Any files, documents and data are to be kept for audit purposes on a customary data storage media until December 2025. • The Lead Partner is obliged to guarantee that the whole partnership fulfills this requirement.