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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If a demand for

reimbursement to the NMFA is not complied with by the Focal

Point, or a dispute related to a demand for reimbursement arises

that cannot be solved in accordance with Article 7.1, the Parties

may bring the dispute before Oslo Tingrett in accordance with

Article 1.7 of the Rules and Procedures.

Article 6.3

General

suspension of disbursements

1.The NMFA may, after having

consulted the Focal Point with a view to reaching a solution,

suspend payments if:

(a) information or documents

obtained by or provided to the NMFA indicate the presence of

systemic or widespread shortcomings regarding the management of

the financial contribution from the Norwegian Financial Mechanism

2004-2009 in the Beneficiary State, or

(b) a demand for

reimbursement related to any type of project assistance in the

Beneficiary State financed by the Norwegian Financial Mechanism

2004-2009 has not been complied with by the Focal Point.

2.The procedures referred to in

paragraphs 3 to 5 of Article 6.2 shall apply mutatis mutandis to

suspension of disbursements under this article.

3.If the situation referred to in

paragraph 1(a) of this article relate directly to this Fund, the

NMFA can apply the procedures under Article 6.1.

Chapter 7

Final

provisions

Article 7.1

Dispute

settlement

The Parties waive their rights to

bring any dispute related to the Grant Agreement before any

national or international court, and agree to settle such a

dispute in an amicable manner. This article shall be without

prejudice to paragraph 9 of Article 6.2.

Article 7.2

Waiver of

Responsibility

1.Any appraisal of the Fund

undertaken before or after its approval by the NMFA, does not in

any way diminish the responsibility of the Focal Point to verify

and confirm the correctness of the documents and information

forming the basis of the Grant Agreement.

2.Nothing contained in the Grant

Agreement shall be construed as imposing upon the NMFA or the

Financial Mechanism Office any responsibility of any kind for the

supervision, execution, completion, or operation of the Fund or

its sub-projects.

3.The NMFA does not assume any

risk or responsibility whatsoever for any damages, injuries, or

other possible adverse effects caused by the Fund or its

sub-projects, including, but not limited to inconsistencies in

the planning of the Fund, its sub-projects, other project(s) that

might affect it or that it might affect, or public discontent. It

is the full and sole responsibility of the Focal Point to

satisfactorily address such issues.

4.Neither the Focal Point, nor the

Intermediary, nor the end-recipients or any other party shall

have recourse to the NMFA for further financial support or

assistance to the Fund in whatsoever form over and above what has

been provided for in the Grant Agreement.

5.Neither the European Free Trade

Association, its Secretariat, including the Financial Mechanism

Office, its officials or employees, nor the NMFA, its members or

alternate members, nor the Kingdom of Norway, can be held liable

for any damages or injuries of whatever nature sustained by the

Focal Point or the Beneficiary State, the Intermediary,

end-recipients or any other third person, in connection, be it

direct or indirect, with the Grant Agreement.

Article 7.3

Language

1.All communications shall take

place in the English language.

2.To the extent that original

documents are not available in the English language, the

documents shall be accompanied by full and accurate translations

into English.

3.The Focal Point shall bear the

responsibility for the accuracy of the translation and the

possible consequences that might arise from any inaccurate

translations.

Annex 2

Annex 3

EEA Financial Mechanism

2004-2009

Norwegian Financial Mechanism

2004-2009

Fund set-up