GRANT AGREEMENT between The FINANCIAL MECHANISM COMMITTEE established by Iceland, Liechtenstein and Norway and The Ministry of Finance of the Republic of Latvia, hereinafter referred to as the "Focal Point", representing the Republic of Latvia, hereinafter referred to as the "Beneficiary State" together hereinafter referred to as the "Parties" for the financing of the "NGO fund" hereinafter referred to as the "Fund"

1. pants

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Description

of sub projects

1.1 Eligible activities

(sub-measures if any):

The Fund shall provide financial

support for activities carried out by non-governmental

organizations in the priorities and sub-priorities set out in the

EEA and Norwegian Financial Mechanisms.

The Fund shall support activities

within a framework based on three measures:

- NGO activity support measure,

providing support for regular NGO activities in accordance with

NGO long term action plans and annual work programmes;

- NGO capacity strengthening

measure, providing support for new organizations or such

organizations which want to start their activity in a new field

and need a financial push forward;

- NGO project measure, providing

support for implementation of projects in priority fields of the

EEA Financial Mechanism and Norwegian Financial Mechanism.

1.2 Eligible applicants:

Eligible applicants must be NGOs -

societies, foundations and social partners. Applicants must be

registered in the Republic of Latvia. Eligible applicants must

fulfil the following conditions; voluntary organizations

(established on a voluntary basis and voluntary participation);

independent legal body; act in the interest for a wider societal

benefit on a nonprofit basis; employers organizations registered

in Latvia as society or foundation; trade unions acting in Latvia

in compliance with the law on trade unions.

1.3 Minimum and maximum grant

amount per sub project:

Measure 1

Min. (EUR)

Max. (EUR)

1. 2007 work programme (from

1 March 2007)

8,000

20,000

2. 2008 work programme

9,600

24,000

3. 2009 work programme

9,600

24,000

4. 2010 work programme

(until 28 February 2011)

11,200

28,000

Measure 2:

Minimal amount of grant is 5,000

EUR.

Maximal amount of grant is 30,000

EUR.

Measure 3:

Minimal amount of grant is 8,000

EUR.

Maximal amount of grant is 100,000

EUR.

1.4 Duration of sub projects:

Measure 1:

Minimum: 1 year

Maximum 3,2 years (38 months)

Measure 2:

Minimum: No limitation

Maximum 1,5 years (18 months)

Measure 3:

Minimum: No limitation

Maximum: 2 years

1.5 Co-financing:

A grant from the Fund shall not

exceed 90 percent of total eligible costs of the sub-project.

The remaining cost of the

sub-project shall be provided or obtained by the end-recipient

from other sources.

1.6 Eligibility of costs,

including in-kind:

Costs are eligible if they are

justified, necessary and appropriate, related to the

sub-project's long term effects and planned results. Further,

eligible costs must be duly explained and in line with the

Detailed eligibility provisions - expenditure guideline.

Eligible costs vary between the

three measures due the different focus each of the measures.

Eligible costs in measure 1 are

concentrated on day-to-day activities. Eligible costs in measure

2 are concentrated on strengthening of organisational capacity

including limited infrastructure improvements. Eligible costs in

measure 3 are concentrated on project related activities such

travel & subsistence and external expertise.

In-kind contributions that fall

within Article 2.2 of the Detailed Eligibility Provisions -

Expenditure are eligible. In-kind contribution can constitute

up to 5 percent of the total eligible cost of the

sub-project.