GRANT AGREEMENT between The Royal Norwegian Ministry of Foreign Affairs Hereinafter referred to as the "NMFA" 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"

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The management cost of the

Intermediary shall not exceed EUR 585,074.

Article 3

Description of

the Fund

The purpose of the Fund is to

provide financial support for NGO activities in democracy and

civil society development fields, strengthen the capacity of NGOs

supporting priorities in the EEA and the Norwegian Financial

Mechanism and support NGO initiated projects in the priorities of

the EEA and Norwegian Financial Mechanisms, with the overall

objective of strengthening civil society in Latvia. Reference is

made to the application, dated 27 July 2006, and to

correspondence with the Focal point 8 September 2006 and 21

September 2006.

The completed Fund shall include

the following activities and results:

The Fund will support yearly work

programmes made by existing NGOs, establishment of new NGOs and

specific projects initiated by NGOs. Management activities will

focus on preparing and the implementation of the Fund.

The Project Promoter is the

Society Integration Foundation.

The Latvian government shall

provide at least 15 percent of the estimated eligible project

cost.

Further information on activities

and results is provided in the Project Implementation Plan (Annex

II). Further information on the Fund's set-up is provided in

Annex III.

Article 4

Eligibility of

expenses