Artikel 10

1. Subject to the availability of funds and to the provisions of this Article, each Party shall bear its own costs of discharging its responsibilities under this Agreement and for associated Projects.
2. Except as provided in paragraph 1 of this Article, this Agreement creates no standing financial commitments.
3. The Parties or, where appropriate, the Participants, may agree to share costs for Cooperative Activity. Detailed descriptions of the financial provisions for Cooperative Activity, including the total cost of the activity and each Party’s or Participant’s cost share, shall be agreed in accordance with paragraph 4 of this Article.
4. The Project Arrangement shall specify in advance the equitable share of the total costs, including, where appropriate, overhead costs and administrative costs, a cost ceiling, and the apportionment of potential liability to be borne by each Party or Participant in the Project. In determining the equitable share of total costs, the Parties or Participants may take into account:
a) funds provided for work under this Agreement (“financial contributions”);
b) material, personnel, use of Equipment and Material and facilities provided for the performance of work under this Agreement (“non-financial contributions”) to directly support Project efforts. Prior work can constitute a non-financial contribution; and
c) the ownership of Project Background Information utilized in the Project.
5. The following costs shall be borne entirely by the Party or Participant incurring the costs and are not included in the cost target, cost ceiling, or overall costs:
a) costs associated with any unique national requirements and/or
b) any costs not expressly stated as shared costs or any costs that are outside the scope of this Agreement.
6. A Party or Participant shall promptly notify the other Party or Participant if available funds are not adequate to undertake activities arising as a result of this Agreement. If a Party or Participant notifies the other that it is terminating or reducing its funding for a Project, both Parties or the Participants shall immediately consult with a view toward continuation on a changed or reduced basis. If the discussion that leads to a decision that is not acceptable to both Parties or the Participants, the respective rights and responsibilities of the Parties and Participants under Articles 11 (Information Security), 12 (Intellectual Property Management and Use of Information), 13 (Publication of Research Results), 16 (Third Party Sales and Transfers), and Annex I shall continue notwithstanding the termination or expiration of the Project.
7. Each Party shall be responsible for any audit of its activities in support of Cooperative Activity, including the activities of any of its Participants. Each Party’s audits shall be in accordance with its own national practices. Where funds are transferred from one Party to the other Party, the receiving Party shall be responsible for the internal audit regarding administration of the sending Party’s funds in accordance with national practices. Audit reports of such funds shall be promptly made available by the receiving Party to the other.