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FIRST AMENDMENT TO MILLEIYMT'M CIIALLENGE COMPACT BETWEEN TIIE UMTED STATES OF AMERICA ACTING TEROUGII TIIE MILLENNIUM CIIALLENGE CORTORATION A.I{D THE GOVERNMENT OF GEORGIA FIRST AMENDMENT TO MILLENNIUM CHALLENGE COMPACT This FIRST AMENDMENT TO MILLENNIUM CHALLENGE COMPACT (this "Amcndmen?), date.d as ofNovember 20, 2008 is Eade by aDd betweeD ttre Udted Slates of Americ4 acting tluough the Millennium Challenge Corporation, a United Stales govemment corporation ("MCC'), and the Government of Georgia (l}le "Gowrincnf ) (each refened to hereia individually as a "Part " and collectivety, as the "Pdli6"). All capitalized terms used in this Amendment tlat arc not otherwise de6-ned herein have the meanings given to such terms in the Compact (as defircd below). RDCITAI,s WHEREAS, the Parties entered iDto tbat c€nain Milleoniurn Challenge Compaat by ad betweeD the Uniied States ofA.eedca, actilg through MCC, and the Govemoent, on SepteEb€r l2,2OO5 (tte"Co,npoc-t'), pursuatrt to which MCC gra ed 10 rhc GovemmeEt, subject !o the terms aad conditions ofthe Compact, aa amouot trot to exceed Two Hundred Ninety-Five Mitlion Tlfee Hundred Thousand Urdted States Dollars (JS$295,300,000) for a program ro reduc€ poverty thrcugh ecooomic growth in Georgia; WHEREAS, MCC Dow dcsies to gEnt additional fundhg to the Govemment in an amoult not 10 exceed One Hundred Million United States Dollars (JS$100,000,000) to cover shorffalls in the original budget for the Projecls and allow complction ofthe Projccts as originally contemplated by the Compact (the "Atklitionol Furulittgl'); utd' WHEREAS, the Panics desire to amend c€rtain parts of the Compact as more fi:lly described herein to memoriatize the Additioaal Funding; NOW, THEREFORE, in consideration ofthe forcgoing and the mutual covenants and agre€ments set forth hereiD ald in the CoEpact, the Padies hercby agree as follows: AMENDMENTS 1. AEeodment to Section 2.1(r). Section 2.1(a) (MCC b Co/lttibution) of he Compact is ameDded'and rcslaled to read as follows: "(a) MCC's Contribution. MCC hEreby Erants to the GoveEEent' subject to the tcrms and conditions of this Compacg an aEount Dot to exceed Three Huodred Ninety-Five tvtrltio4 Three Hundred Thousard Udted States Dollas (US$395,300,000) ('MCC Fradizgr) during the Conpact TerItr to emble the GoverDment to impl€ment the Program and achieve the Objectives," 2. AEendEclt to Scction 5.1. \:-ten that reads Section 5.1 (Comnunicatiors\ of the Compact is amended by (i) dcletlg "Enail: la5hanidzo@ncg.ge'; from the notice i.nfonnation for Millennium Cbaltenge Georgia Fund C'MCO) and Gi) replacing the notice information for MCC with the fotlowing: "To MCC: Miltenuium Challenge Corporation Attentioo: Vicakesidetrt,CompactlrnpleEentation (with a copy to the Vice Prcsidert and GenemJ Counsel) 875 l5th Stre€t, N.W. WashitrgtoD, DC 20005 Unit€d States of A-Eerica Telephone: +l (202) 521-3600 Facsimile: +l (202) 521-3700 \rPlrnplementation@mcc.gov (Vice Presiden! Compact Implementatiotr); VPGeneralCounsel@,rncc.gov (Vice President a.nd Geneml Courcel)" 3. Amcldmetrt to Section 5.2. Sectiot 5-2 (Represen arive) of the Conpact is amended by deleting the phrasc "Vice President for Coutry Programs" ftom the first sentence thereof and replacing it with "Vice Presidetrt, Compact Implementation." 4. A-EcndmeDt to Sectiotr 5.11. Section 5.1 I (Sr8aa/u,es) ofthe Compact is amcnded by deleting the phrase "or an ameDdment to this Compact pusuant to SectioE 5.3" fiom tlte 6ist sentence thereof. 5. Anendmetrt to Exhibit A. Exhlbit A(DeJinitions) ofthe Compact is amended by amending and restating the definitioN of "Compact" "MCA" and "Principal Representative" appeari.Dg theEin to read as follows: "Corrpac, means the Millennium Challenge Compact made betwe€tr the Udted States of Americ4 acting ttuough the Millermium Chatlenge Corporation and the Govemmetrt of Georgi4 as amended or otherwise modifred ftom time to tine." "ifC.4 means the Millennium Challenge Account." "P ncipal Representaave shall have has the meaning set forth in Sectiotr 5.2." 6. AEcndmeEl to Schedule I to A.Ener I. Schedule I to A-onex I (Regional Inlrastracnre Rehabilitotion Projecr) ofth€ Compact is amended by amending aud rcstating Sectiotr 2(a)(i) thereofto read as follows: "(0 Sub-Activities. MCC Fuading witl be used to rehabilitate or constuct, a.!i applicabte, the road sections set out below (he "Prcject Rood'), as well as (l) rehabilitate and improve cxisting bridges alory the Project Road alignment, (2) improve existing drainagc facilities along the road atignmcnt, (3) provide road safety featues, and (4) provide local access and ancillary stuchres: (A) Teleti-Koda-Tsalka; (B) Tsalka-Ninotsminda; (C) Ninotsminda - the Armenian border; (D) A.khalka.laki - the Turkish border; and (E) Khertvisi to Vadzia." 7. Ameodmetrt to Erhibil A to 4g49II. Exhibit A to Ann€x Il (Multi-Year Financial Plaz ) ofthe Compact is amcnded by insertiDg a new table at the end thereofto read as set forth in Aftachment I to this Amendment, which table sets forth the allocation of the Additional Frmding and supplements the information contained in Exhibit A to 4!49Lll. GENERAL PROWSIONS & trurtbcr A$urrtrcca. Each Party hereby covenants atrd agr€€s, without nec€ssity of atry fifiher coosideratioq to execute alrd deliver aly aod all such further documents aDd take aDy and all such other action as may be Easoqably necessEy or apprcpdate to carry out the iDtcnt and purposc of this Amendmotrt. 9. Efiect of lhi! A-EerdECnL From aod after the Amendment EEcctive Date (as deErcd betow), the Compact aod this A-oendment shall be read togethcr atrd clnstued as oDe docuEent, and each rcferenc€ in the Compact to the 'Compact ' "heEunder," "hel€of' or words oflike import referring to the Compact, atrd each reference to the 'Compact " 'thereunder," "thereof' or words oflike import ia any Supptcmental Agre€meDt or itr atry other docuEent or iDstru.meDt delivered pu6uant to the Compact or any Supplemeotat Agreemen! shall E€an ord b€ coDstued as a reference to the Compact, as amended by this Ame Eent. 10. LimitrtioDs. Exc€pt as expressly a.mcnded by this Ameudmeot' all ofthe provisious ofthe Compact reEain unchanged and in firll force and effecl ll. AmendEctra Effective Drte. This Amendment shall enter into force on the date of the last letter in aD exchange of lette6 its between the Pdncipal Representatives of each Party contrrEhg that each Party has completed forth in domestic rcquirements foi entry into force of this A.EendEetrt (including as sa the Paragraph li) aDd tlat all conditions set forth in Paragmph l3 have beeo satisfied by Government and MC C (thrc'Ancadnent Elledive DotC')' 12. DomesticRequirements. ProEptly a-fter the conclusion of this Amendment, the Governoent shall proceed in a timely manner to s€ek domestic ratification of this Ametrdmenl as Eecessary or required by the laws of Georgi4 or similar domestic rcquircmen! in order ttEt: (a) this Amendment shall be considered an intemational agrcemenl utrder Georgian law, O) each of the provisions of this Amendrnent is valid, binding and in firl[ force and effect under tbe laws ofceorgia and (c) the Compact, as amended hereby, continues to be an intemational agecment and valid, binding and in full force and effect under the laws of Georgia. Notwithstanding anlthing to the cotrtraD, in this Amendment, this Parapph 12 shall provisionatly apply prior to the Amendment Effective Date. 13. CotrditioD Precedent to AmeDdEent Effective Date. As conditions precedent !o this Ametrdment entering into forc€, the Govemment sball deliver: (a) a c€rtificate signed and dated by the Principal Representative ofthe Government, or such other duly authoriz€d representative ofthe Government arc€ptable to MpC, tIEt: (D certifies that the Government has completed all of its domestic requirements for this Amendoent to be fully enforceable under Georgian law; and (iD attaches thereto, and certifies that such attachments are, true, coEect and complete, copies ofall decrees, legislatioo, rcgulations o! othet governmental documents relating to its domestic requiremeots for this Amendment to entei into force and the saGfaction of Pangraph I2, which MCC may post on its website or otherwise make publicly available. (b) a wriften statement as to the incumbency and specimen signaturc ofthe Principal Represe ative executing this Amendment, such writteD statemetrt to be signed by a duly authorized official of lhe GoverDnetrt other than the Principal Represeotative. 14. English Language. This Amendment is prepared and executed in English aDd, in the event of any ambiguit-v or coDllict between fis official English version and any taoslatiotr into any language made for the convenience ofthe Parties, this official English version shall prevail. 15. Govemirg Law. The Parties acknowledge and agee that this Amendment is an intemational agreement eotercd into for the purpose of amending the Compact and as such will be hteryreted in a maoner consistent with the Compact and will be govemed by the principles of htematiooal law. 16, Counaerparts. This Amendment may be executed itr counterpais, each ofwhich shall co[stitute an original, but when taken together, shall comtitute one instrument. 4 17. ProvisiotralApplicrtion, Upon sigDature ofthis Amendment, the Parties will provisionally apply this Amendment until the Amendment Effective Date. SIGNATI,R,E PAGE BEGINS ON THE NEXT PAGE IN WITNESS WIIEREOF, the uudersigned duly authorized by their respective governments, have sigred this Amendmetrt as of the dare first w tten above and this Amendmsnt shall entcr itrto force in acrordance with thc terms hereof. MILLENNITJM C}IALLENGE CORPORATION, ON BETIALF OF THE UMTED STATES OF AMEzuCA THE GOVERNMENT OF GEORGIA PacE To trfi.st A]rEriDitEM ro ItttLLElNNTtDt CgAt LENGE Coi,aacr BETVEEx TIE UNIf,D sIAIxs oF A.IIf,RICT ACTING TERoUGE TIIf, MILLENNIUM CIAIIENGE coxToMTIoN STGNATURE AND TllE GoVER]IMENT oF GEORG1A ATTACHMENT I SUPPLEMENI TO EXHIBIT A TO ANNEX II OF THE COMPACT AdditioDal FundiDg Totll Ycar 2 (UsD S nillion) l, R.gion.l ln fr.srructurc Rchrbilitrtior (.) Ro.d Rehabilitatiotr Projed A.tivity (b) R€gionrl rntr.nructu.. D.v.lopm.Dt (c) En.rgy R.habilit!tior Project Activit, Sub-Totrl N/A N/A 100 lE 00 19 00 6000 t30 7E0 16.90 26 00 065 190 E45 ll00 495 29 70 64l5 020 040 040 ' Progr.m AdninistrAtion end Control (c) Iiscrl and P.ocur.m.nt M.n.t.m.it t00