Article 46

Administrative or financial penalties may be imposed by the contracting authority on candidates or tenderers who are in one of the cases of exclusion provided for in Articles 43 and 44, after they have been given the opportunity to present their observations.

These penalties may consist:

1. (a)

   in the exclusion of the candidate or tenderer concerned from contracts and grants financed by the Agency's general budget, for a maximum period of five years;

2. (b)

   in the payment of financial penalties by the contractor in the case referred to in Article 43(1)(f) and by the candidate or tenderer in the cases referred to in Article 44 where they are really serious and without exceeding the value of the contract in question.

The penalties imposed shall be in proportion to the importance of the contract and the seriousness of the misconduct.