Common use of Mechanism Clause in Contracts

Mechanism. 1. An automatic correction mechanism of the initial operational contribution of Armenia for year N, as adjusted in accordance with Article 3(8), shall apply and shall be calculated in year N+2. It shall be based on the performance of and Armenian legal entities in the parts of the Horizon Europe Programme which are implemented through competitive grants financed from commitment appropriations from the year N, increased in accordance with Article 3(4). The amount of the automatic correction shall be calculated based on the difference between: a) the initial amounts of the legal commitments for competitive grants actually entered into with Armenia or Armenian legal entities financed from commitment appropriations of the year N, increased in accordance with Article 3(4); and b) the corresponding operational contribution of the year N paid by Armenia as adjusted pursuant Article 3(8), excluding non-intervention costs financed from commitment appropriations from the year N, increased in accordance with Article 3(4). 2. Where the amount referred to in paragraph 1, whether that amount is positive or negative, exceeds 8 % of the corresponding initial operational contribution as adjusted pursuant to Article 3(8), the initial operational contribution of Armenia for year N shall be corrected. The amount due by or to be received by Armenia as an additional contribution or reduction of Armenia ’s contribution under the automatic correction mechanism shall be the amount exceeding this 8 % threshold, the amount below this threshold of 8 % will not be taken into account in calculating the additional contribution due or compensated. 3. Detailed rules on the automatic correction mechanism are laid down in Annex I.

Mechanism. 1. An automatic correction mechanism of the initial operational contribution of Armenia Albania for year N, as adjusted in accordance with Article 3(8), shall apply and shall be calculated in year N+2. It shall be based on the performance of Albania and Armenian Albanian legal entities in the parts of the Horizon Europe Programme which are implemented through competitive grants financed from commitment appropriations from the year N, increased in accordance with Article 3(4). The amount of the automatic correction shall be calculated based on the difference between: a) the initial amounts of the legal commitments for competitive grants actually entered into with Armenia Albania or Armenian Albanian legal entities financed from commitment appropriations of the year N, increased in accordance with Article 3(4); and b) the corresponding operational contribution of the year N paid by Armenia Albania as adjusted pursuant Article 3(8), excluding non-intervention costs financed from commitment appropriations from the year N, increased in accordance with Article 3(4). 2. Where the amount referred to in paragraph 1, whether that amount is positive or negative, exceeds 8 % of the corresponding initial operational contribution as adjusted pursuant to Article 3(8), the initial operational contribution of Armenia Albania for year N shall be corrected. The amount due by or to be received by Armenia Albania as an additional contribution or reduction of Armenia Albania’s contribution under the automatic correction mechanism shall be the amount exceeding this 8 % threshold, the . The amount below this threshold of 8 % will not be taken into account in calculating the additional contribution due or compensated. 3. Detailed rules on the automatic correction mechanism are laid down in Annex I.

Mechanism. 1. An automatic correction mechanism of the initial operational contribution of Armenia Serbia for year N, as adjusted in accordance with Article 3(8), shall apply and shall be calculated in year N+2. It shall be based on the performance of Serbia and Armenian Serbian legal entities in the parts of the Horizon Europe Programme which are implemented through competitive grants financed from commitment appropriations from the year N, increased in accordance with Article 3(4). The amount of the automatic correction shall be calculated based on the difference between: a) the initial amounts of the legal commitments for competitive grants actually entered into with Armenia Serbia or Armenian Serbian legal entities financed from commitment appropriations of the year N, increased in accordance with Article 3(4); and b) the corresponding operational contribution of the year N paid by Armenia Serbia as adjusted pursuant Article 3(8), excluding non-intervention costs financed from commitment appropriations from the year N, increased in accordance with Article 3(4). 2. Where the amount referred to in paragraph 1, whether that amount is positive or negative, exceeds 8 % of the corresponding initial operational contribution as adjusted pursuant to Article 3(8), the initial operational contribution of Armenia Serbia for year N shall be corrected. The amount due by or to be received by Armenia Serbia as an additional contribution or reduction of Armenia Serbia’s contribution under the automatic correction mechanism shall be the amount exceeding this 8 % threshold, the . The amount below this threshold of 8 % will not be taken into account in calculating the additional contribution due or compensated. 3. Detailed rules on the automatic correction mechanism are laid down in Annex I.

Mechanism. 1. An automatic correction mechanism of the initial operational contribution of Armenia Kosovo for year N, as adjusted in accordance with Article 3(8), shall apply and shall be calculated in year N+2. It shall be based on the performance of Kosovo and Armenian Kosovo legal entities in the parts of the Horizon Europe Programme which are implemented through competitive grants financed from commitment appropriations from the year N, increased in accordance with Article 3(4). The amount of the automatic correction shall be calculated based on the difference between: a) the initial amounts of the legal commitments for competitive grants actually entered into with Armenia Kosovo or Armenian Kosovo legal entities financed from commitment appropriations of the year N, increased in accordance with Article 3(4); and b) the corresponding operational contribution of the year N paid by Armenia Kosovo as adjusted pursuant Article 3(8), excluding non-intervention costs financed from commitment appropriations from the year N, increased in accordance with Article 3(4). 2. Where the amount referred to in paragraph 1, whether that amount is positive or negative, exceeds 8 % of the corresponding initial operational contribution as adjusted pursuant to Article 3(8), the initial operational contribution of Armenia Kosovo for year N shall be corrected. The amount due by or to be received by Armenia Kosovo as an additional contribution or reduction of Armenia Kosovo’s contribution under the automatic correction mechanism shall be the amount exceeding this 8 % threshold, the . The amount below this threshold of 8 % will not be taken into account in calculating the additional contribution due or compensated. 3. Detailed rules on the automatic correction mechanism are laid down in Annex I.

Mechanism. 1. An automatic correction mechanism of the initial operational contribution of Armenia Montenegro for year N, as adjusted in accordance with Article 3(8), shall apply and shall be calculated in year N+2. It shall be based on the performance of Montenegro and Armenian Montenegrin legal entities in the parts of the Horizon Europe Programme which are implemented through competitive grants financed from commitment appropriations from the year N, increased in accordance with Article 3(4). The amount of the automatic correction shall be calculated based on the difference between: a) the initial amounts of the legal commitments for competitive grants actually entered into with Armenia Montenegro or Armenian Montenegrin legal entities financed from commitment appropriations of the year N, increased in accordance with Article 3(4); and b) the corresponding operational contribution of the year N paid by Armenia Montenegro as adjusted pursuant Article 3(8), excluding non-intervention costs financed from commitment appropriations from the year N, increased in accordance with Article 3(4). 2. Where the amount referred to in paragraph 1, whether that amount is positive or negative, exceeds 8 % of the corresponding initial operational contribution as adjusted pursuant to Article 3(8), the initial operational contribution of Armenia Montenegro for year N shall be corrected. The amount due by or to be received by Armenia Montenegro as an additional contribution or reduction of Armenia Montenegro’s contribution under the automatic correction mechanism shall be the amount exceeding this 8 % threshold, the . The amount below this threshold of 8 % will not be taken into account in calculating the additional contribution due or compensated. 3. Detailed rules on the automatic correction mechanism are laid down in Annex I.