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AMENDMENT NUMBER FIVE TO Development Objective Grant Agreement between the United States of America and Georgia for "Democratic Checks and Balances and Accountable Governance", dated December 22,2015, as amended Development Objective Grant Agreement No. AAG-114-G-16-00001 March 20, 2020 AMENDMENT NUMBER FIVE to the Development Objective Grant Agreement between the United States of America, acting through the United States Agency for International Development ("USAID"), and Georgia, acting through the Ministry ofFinance of Georgia (hereinafter referred to as the "Grantee"), for "Democratic Checks and Balances and Accountable Governance", dated as of December 22,2015 (referred to herein as the "Agreement"); WHEREAS, on December 22, 2015 the Grantee and USAID (the "Parties") entered into the Agreement to further the Development Objective of Democratic Checks and Balances and Accountable Governance, as described in Annex 1 (the "Amplified Description") to the Agreement; WHEREAS, the Grantee and USAID desire to amend the Agreement in order to (a) reflect an increase of the total amount of the Grant by SI.810,928.39, from $36,100,981 to $37,911,909.39; (b) increase USAID's total estimated contribution by $14,643,100, from $50,000,000 to $64,643,100; (c) increase the Grantee's contribution by $603,643.13, from $12,033,660 to $12,637,303.13; and (d) update the Financial Plan accordingly; NOW, THEREFORE, the Parties to the Agreement hereby agree that the Agreement shall be amended as tbllows: 1. Section 3.1 (a) of the Agreement titled "The Grant" is deleted in its entirety and the following is substituted therefore: "(a) The Grant. To help achieve the Objective set forth in this Agreement, USAID, pursuant to the foreign Assistance Act of 1961, as amended, hereby grants to the Grantee under the terms of the Agreement an amount not to exceed thirty-seven million, nine hundred eleven thousand, nine hundred nine United States ("U.S.") Dollars and thirty-nine cents ($37.911.909.39) (the "Grant")." 2. In the first sentence of Section 3.1(b) of the Agreement, titled "Total Estimated USAID Contribution", the amount '\$50,000,000" is deleted and replaced with "$64,643,100." 3. In the first sentence of Section 3.2(b) of the Agreement entitled "Grantee Contribution", the amount "$12,033,660" is deleted and replaced with "$12.637,303.13." 4. The table in ''Annex 1, Attachment A, Financial Plan: Democratic Checks and Balances and Accountable Governance Development Objective (DOAG) Agreement" is deleted in itsentirety and thefollowing is substituted therefore: Cumulative USAID Program Areas: Rule of Law and Contribution as or Amendment .Additional USAID USAID Contribution as of Contribution FOUR Current Change in Total Total Estimated Estimated USAID Contribution USAID Amendment FIVE Contribution New Total Estimated USAID Contribution (Ceiling)* (Ceiling)* $19,996,394 $679,000 $20,675,394 $24,562,871 $508,775 $25,071,646 Good Governance $12,374,587 $1,131,928.39 513,506.515.39 $20,507,129 53,354,325 $23,861,454 Civil Society S3.730.000 53,730,000 $4,930,000 510,780.000 $15,710,000 537,911,909.39 550,000,000 $14,643,100 564,643,100 Human Rights SO — S36,100,981 Total j 51,810,928.39 1 5. Except as amended herein, all other terms and conditions of the Agreement remain unchanged and in full force and effect. IN WITNESS HEREOF, the United States of America and Georgia, each acting through its duly authorized representative, have caused this Amendment Number FIVE to be signed in their names and delivered as of the day, month and yearfirst written above: UNITED STATES OF AMERICA By: GEORGIA By: Peter A. Wiebler Ivane Matcha^riani Mission Director Minister of Finance of Georgia USAID/Georgia Amendment Number FIVE to the Development Objective Grant Agreement between the United States of America and Georgia for ^'Democratic Checks and Balances and Accountable Governance", dated December 22,2015

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AMENDMENT NUMBER FOUR TO Development Objective Grant Agreement bet>vecn the United States of America Bnd Georgia for "Democratic Checks iind Balances and Accountable Governance , dated December 22,2015, as amended i I Development Objective Grant Agreement No. AAG-114-0-16^00001 i May 14,2019 | ! I AMENDMENT NUMBER FOUR to the Devclopmeni Objective Grant Agreement between the United States of America, acting through the United States Agency for International Development rUSAID"). and Georgia, acting through the Mimst^ of j Finance ofGeorgia (hereinafter referred to as the "Grantee"), for' Democratic Checks | WHEREAS, on December 22,2015 the Grantee and USAID (the "Panics") ; ami Accountable Governance in Georgia, as described in Annex 1(the Amplilied Description") to the Agreement; j WHEREAS, the Grantee and USAID desire to amend Uie Agreement in order lo (a) mcrease ofthe total amount ofthe Grant by $8,168,864 from $27,932,117 to $36,100,98U (b) increase USAlD's total estimated contribution by $7,216,477 | j | and Balances and Accountable Governance", dated as of December 22,2015, as amended j (referred to herein as the "Agreement"). | the Agreement to further the Development Objective of Demacraiic Checks and Balances $42 783,523 to $50,000,000; (c) increase the Grantee's contribution by a)-,722,y5a, CTom \ SqIi 0,705 10 $12,033,660; (d) update the Financial Plan accordingly; and (e) extend the : completion date lo Scpteinber 30.2025 (o provide additional time to complete all i activities tmder the Agreement. NOW, THEREFORE, the Parties to the .A^greement hereby agree that the Agreement shall : be amended as follows: 1. Section 3.1(a) of the Agreettieni titled -The Gram" is deleted in its entirety and the following is substituted therefore: "(a) The Grant. To help achieve the Objective set forth in this Agreenient, USAID, pursuant to the Foreign Assistance Act of 1961, as amended, hereby grants to the Grantee under the terms of the Agreement thirty-six million, one hundred thousand, nine hundred eighty-one United States ("U.S.") Dollars ($36,100,981) (the -'Grant"). 2. In the nrst sentcncc ofSection 3.Ub) of the Agreement titled -'Tolal EsUimWd USAID Contribution", the amount •$42,783,523 -is deleted and replaced with "$50,000,000". 3. In the nrst sentence ofSection 3.2(b) of the Agreement, the Grantee ContribuUOn amount "$9,310,705" is deleted and replaced with "SI2.033.660 . i 4. Article 4(a) ofihe Agreement is deleted in Its entirely and the following is substitute4 therefore: "(a) The Completion Dale, whicli is September 30,2025, or such pS^iL may agree to in writing, is the date by which the Part.^ Se"nLssary to achieve the Objective and Results wtll be completed. 5 The table and in "Annex 1, Attachment A, Financial Plan: Objective (DOAG) Balances Accountable Governance Development Agreement" is deleted in its entirety and the following is substmiled therefore. USAID Contribution Program Areas; as of Amendment AddilionnI USAID Contribution Three Rule ofUw Cumulntivc USAID Contribution ns of Amendment Four Current ~ Change In Total Total Estimated USAID Estimated USAID Contribution (Ceiling)* (Ceiling) * 519.996,394 523.746,394 S24»S6l871 54,375,000 S816,477 $15,621,394 S12.374.587 S15.307.129 m5$129 $3,793,86'! $5,200,000 S8.580.723 : S3.730,000 $3,730,000 SI.200,000 $4,930'000 542.783,523 S7.216i477 ! SSO^OOO^OOD Governance Civil Society USjMD Contribution Contribution and Human Rights NewiTctal Estimated $3,730,000 527.932,117 58.168,864 536.100,981 *Subjecnp availabiliiy offunds 6. Except as amended herein, all other terms and conditions ofthe Agreement remtun unchanged and in full force and effcci. rxT \uTTMF<iq HFREOF the United Svmes of America and Georgia, each acting through UNITED STATES OF AMERICA GEORGIA By Kane Matcha^riani Peter A. Wiebler Minister ofFinance ofGeorgia Mission Director USAID/Georgia Date: Amendment Number FOUR to the Date: <r//y//^

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amendment number three TO Development Objective Grant Agreement be^vecn the United f and Georgia forGovernance", "Democraticdated ChecksDecember and BalancM and Accountable 22,2015 Development Objective Grant Agreement No. AAG-114-G-16-00001 March 22,2018 amendment NUMBER TOME » to herein as the Agreement ). WHEREAS, on December 22,2015 ihc "Amplified Description") to the Agrcemcni; =SrHS:5SS~= WHEREAS, the Grantee and USAID desire w to (a) increase the total amount ol Uic $27,932,117; (b) increase USAID s ^® to by $12,101,406, from • contribution by $5,131,372, NOW, THEREFORE, the Parties to the Agreement hereby agree that the Agr shall be amended as follows: ,, Section 3.Ua) ofthe Agreement entitled "The Grttnf is deleted in its entirety and the following issubstituted there k)rc. •'(a) The Grant. To help achieve ObjectWe set toh i^this A^«. USAID. pursuant to "$42,783,523." W A~ ,,,,ed "7 /• / "$9,310,705." 4 Table in Annex 1.AUaehmem Aenti.led Financial Plan is deleted inits entirety and the following is substituted therefore. Current USAID Additional Contribution L'SAID us of Contribution Program Areas; Cumulative USAID Contribution Amendment Total Total New Total Estimated USAtD Estimated Estim^d Contribution Contribution Contribution CCclllng) IISAID USAIO Ceilin Two Rule of Law and Human Righis Change In S17.371.394 $23,746,394 $6,738,000 SI 5.621.394 $6J75,000 SS,883.394 $8,580,723 $5,726,406 54,260,723 $9,580,723 $15,307,129 $4,320,000 SI.480.000 S2.250.000 S3.730.000 S3.730.000 527,932,117 530,682,117 512,538,000 S15,394,1I7 Good Governance Civil Society $3,730,000 512,101,406 $41,783,523 5 Exceptas amended herein, all other tenns and conditions ofthe Agreement 3nunchanged and in full force and cliect. ,NWlTNESSHERE0F,theUni.e2:«-^« rmo!esigSTnteirS^esand d'elivered as ofthe day. month and yearfus written above: UNITED STATES OF AMERICA GEORGIA By; Xille: Mission Direclpj: rule: ^TgATn/Cieorgia Date . nf/FinmcP ofGgofPS fIcifoK, 20/S Date: 03 Amendment NumberTHREE to ";•« ?„rCmocra"tfIcCand

Q3QJOQJ0B6 5cj8j)6o cnAo ^obiboft b4BA66(ico QoojiBbaoBi^o j,«30a»6aaol>8o«b6obaj^l^bflal»a«^66«3s"^Bb8^#AAG-U4-C3-16^XXX)1 2017 ^(jnob 1-^0bod(io8&0<^o bj,o<^coo3<n6ob(n e)a63ocr>o(«.3&o ftO 0 g ®* bia>«TC!8«="*ao3cj0&<»") (aaao&cn33o «goo>i>6bao&i")- ^ b6d>fto)30<!?wgo .. W-' w 3n6^(«)(n<ffo e,663oa)5Aoaob 8o<b5ob boc£?9o^a^&"^co3ob. 6(n;icnfto 0^ Bao)i6b8o8ob l-^o 3„6. o ®»6. a<^. B i , o b aoacoab. USAI D ^ ^ S7«^S.6ffi.ll7USAIDHib 8o«c««6o 8o»b,ron)bncno a<.fc5oW»» j^.'bX^^b $5,594,350 o<n 8®j; <g4 (B)aabsftjaoba® a4B4b(!»©3b go6»6b36o aoj9»- "a>t>6b5 $25,087,767" 96o8<-0&:> 30"03c:?0a^ <="^Bboa) $30.682.117 . - USAII>ob I . •TTg ATTvJjt us/vn>^ USAED-ob USAID-ob USAID-ob or»3©63o630(S?o e«5a^(K?0t^ 8oxijoa6o 8<n5i^ocE?0'^ 8o8<39o6y«)0 8oxijoa6o 8o&b<5?c«H^Boox) o)dAoQobo)3ob 8oib<E[KO{^oo)o 8n549(*STO(TB<^ 8c)66^o<ga(^ ftflgpocpa^ $13,871,394 $17.371394 S6.738.000 $3,500,000 $3,218,000 $8,904,373 $9,580,^ Sl.950.000 54.320.000 $676,350 C^08(n3ft:»^^o^J<E?o $2,312,000 $3,730,000 lK>8<o<j5<E['id<^ 51,480.000 $1,418,000 $850,000 $6,018,000 $12,538,000 ^.087,767 d^^6»8ob bgoAnfl&o: 3i6wBnb Xp'bjJBiiibtT&ACOi r)?y?o^- bA'bcM 7ta0ig6oa)oSb6 3. •bo8<n. o6oW oac^o^rO^O^"" ^Q3(rrjQ(w>o5 09^ (oRq^^ d6<i;['59o. 8cD^«rtiSc> 8oab(jxno5oow BctSsCoct^ $30,682,117 ^0^«a3«^'CK'3»n'> sao^^ bbs. 60«^8o6a5o So^ic^Obo / j)3oAo3ob 1/ 1/ jj^ai Dg3o<i«o a>c>5j>8(50&f^^^'- Missi2B-DiES££sr USAID/Georgia o)66oqo: ih/iu iy- o.»6i,3®!)a"a»: b.d^o.aoc?"'' ooi(noc2o;

amendment number wo TO dated December 22,201 ? Development Objective Grant Agreement No. AAG-114-G-16-00001 September 1,2017 amendment number two to tlic s[r« A^^ herein as the "Agreement"). WHEREAS on December22. 2015 the Grantee and USAID (the '[P^rtie^ Balances and Accountable Governance mGeorgia, as described mAn "Amplified Description") to the Agreement; WHEREAS, the Grantee andUSAID desire to 087^767 to^ increa^USAID^s total estimated contribution by $5 594 350, from $25,087,767 $30,682,117; and (b) update the Financial Plan accorduigly. NOW, THEREFORE, the Partiesto the Agreement hereby agree thatdie Agreement shaU be amended as follows: 2. Table in Annex 1. AtUchment Aentided Financial Plan is deleted in its entiretyand the following issubstituted therefore: / / USAID Cumulative USAID Contributions to Contribution Date Original Program Areas; Rule of Law and Human Rights Good Estimated USAID Contribution (Ceiling) USAID USAID Contribution (Ceiling) Contrlbutiun fCeiUng) $13,871,394 $17,371,394 $6,73R.OOO 53.500,000 $3,218,000 $8,904,373 $9,580,723 54,320.000 $676,350 51,950,000 312,000 $3,730,000 51,480,000 $1.41.8,000 5850,000 55,594,350 S6,018«000 525,087,767 mjmjvi 512,538,000 Governance Civil Society NewToitsl Estimated Ciiange in Total Current Total Estimated 3 Ex«p.asameadedherein,aUomerten„sandcondiaonsof.heAgreem«nt«ma« unchanged and in full forec and effect. IN WmlESS HEREOF. U« SST.SiS'SSSd„of,h.d.,,y» «"•™«" united states of AMERICA o Iw GEORGIA By: Dimitri Kumsishvili Douglas H. Ball Title: MissioiiDirector Title: Minister of USAID/Georgia Dale Date: Amendment Number TWO to . q///Xo17 nfGeorgia

Qg(jnoQjg&6 6w0o6o g6cno p<Ba d o u ggbibo&lwftAiSticiBooDaBbao&iSo Tn??:S.JTsrrs^ „330f)j)6b8o&i>"). «- -»«• r»T "zt (»bi63(f>0<n&O(I«O ac>90<^^")5 I Ana (6i cr; anacoBob 8™6.?o<s.3«B^: ft) 3o«.^« So6.6baftomb8». „w e,A.6e,o. 5o6i,a«o»«^o Ba^ebaaaom ^Cjob aobn^fio Qjsbajftoaob 8abiba» »d(5" • ^„ft(„;,g„Anbci U»J3®Cl" (USAID) ^oBsasaBjAa aamjObOabob aoAnaaB"' ' ^ oo33si53&niBO>> <nn<^83e)0 bao»b^. jfoB6obaoac3»o»»o>3obvanangbcn:,Gbob. " 35"° ^ .scx-iftb ($12,538,000)3o<c.on6 {3a3c9a' ' 0B«'3A»aa6o ^o«b »3aA030b 333A<nO»a^<> 3<1^«50^'' ®"=^ .,^(«»65(5o")". ?»o3<i.oBj (gjaanOS'ffO^' ouBbooi .$4,179,333 . 3. ^B..o>o.,ab.o<:ro.b.b3«"c,,oB.Bb^jr,o^.a.?..3«.3B.acn^o^^ aCxofttTiSob bgo^Jj^' 3i5cnBob x3*boBa3bn&5 USAID-ob 2016 5oi?^ USAID-ob o)a3C9i3o630C?o ft TT^ nil 8o)^c?«^ flmfmn%Rn USAID-ob USAID-ob 6oji5?o55o I TTr 8o6b(!«(oaftocno eo&>^<!?OW^ awB66og»flcn&& ma(<?ogwbo)3ol> atnSa^cKPflctfta $3,218,000 $'3,520,000 $1,950,000 $2,370,000 $6,738,000 $13,871,394 5QM8ro0ob CO{)0{n3'^5j5<i!CJ^'" aa:>fto>;^(}C?'t*t^ bi3nd^^d" $850,000 b5'br«oq3wnfta y^^Byifio o>a6ba $6.018,000.00 $630,000 $6.520.000 $4,320,000 $1,480,000 $12.538.000 $8,904,373 $2,312,000 $25.087.767 4. "boa^jQeoaBa-ffo o3<c.o<!roaoii' >> ^q3(w>jj(w>o5 QDi d5(j;»53o. bo<!?aa3fit3<£r3»""> saa-sr^ i«bacra&ocn <?:. -.3 asc^o^^ «.b.53"W" aoa.n.naaa's? •scof. i8o<oo3ob l^'rector bibg(i;;'o: <jpo9o(5<^o jJ^jjSboBQOC^o o)5650C5o2>"2>^- USAIDZGiiargia ooiAoQo: 0)560500: <s^ ^''•- 50^60^" l>abg(!wo: <5t3a(5!'fb &roci:>o 0>iBA8(5J)b(n&i: (So^aoSoao ®» ioMi^o <i7niii>Bbg?» ^fi^obf.'jC^fl

amendment number one TO Development Objcctivc Grant Agreement between the United States of America and Georgia for "Democratic Checks and Balances and Accountable Governance", dated December 22,2015 Development Objective Grant Agreement No. AAG-114-G-16-00001 December 22,2016 AMENDMENT NUMBER ONE to the Development Objective Grant Agreement between the United Slates of America, acting tlirough the United States International Development ("USAID") and Oeorgi^ *r"n.™„^Scks Finance of Georgia (hereinafter referred to as the "Grantee ) and Balances and Accountable Governance", dated as ot December 22,2015 (referred to herein as ihc "Agrecmciii"). WHEREAS, on December 22,2015 the Grantee and USAID (the into the Agree,non. to lurtl.cv the Development ()bjective . Balances and AccotmuMe Oovenmnce in Georgia, as described mAnnex (the "Amplified Dcscriplion") lo the Atueement; WHEREAS, the Graniec uikI USAlD desire lo amend Ihe increase the toial aniouni of the Grant by $6,520,000, ^» ' Financial $12,538,000; (b) increase the Grantee's Contribution; and (c) update the Fmancial Plan accord intily. NOW, TWlil<r:i-01^E. ihc I'arlies to the Agreement hereby agree that the Agreement shall be amended as Ibllows: 1. Section 3.1(a) of .ho Agreement entitled "fhe Grant" is deleted in its entirety and the following is substituted therefore: "(a) Thv Gram. To help achieve the Objective set forth in this Agreement. USAin. iHirsii^iP.t to Ihc Foreign Assistance Act of 1961, as grant, u/.hc (.ranteo under .he terms or.he Agreement ^ ^ exceed twelve million, five hundred thmy-eight thousand United States ("U.S ") Dollars ($12,538,000) (the "Gram"). 2 In the first sciilence ofSection 3.2(b) ofthe Agreement entitled 'grantee • Contribution." the amount "$2,006,000" is deleted and replaced with "$4.179,3.~-:i.'' 3. Table in Ak..s1, .•u.ac:-.M-..nt Aentitled Financial Plan is deleted in its entirety and the foll<'^vini4 is subi^'.itiued ihcretore. 1 Program Arens; | Original USAIU Addition:! 1 t-'Y Contribiilion 2016 USA ID Coiilribulion Cumulative USAID Contribution to Date Total Estimated USAID Contribution (Celling) Rule of Law and Human Rights $3,218,000 $3,520,000 $6,738,000 $13,871,394 Good Governnnce $1,950,000 $2,370,000 $4,320,000 $8,904,373 Civil Society SS50.000 $630,000 $1,480,000 $2,312,000 ' .S6.01N.000 56.520,000 $12,538,000 $25,087,767 Total 4, Except a.s aincnOLci herein, all other terms and conditions of the Agreement remain uiiciuuigcd and in lull force and eifect. IN WITNBSS lll -Rl -OF, the United States ofAmerica and Georgia, each acting through its duly auiiuu-ized represeniative, have caused this Amendment Number ONE to be siiiiicd iri .iieir names and delivered as of the day, month and year first written abow: UNITED STATi :S ()i' AMEKICA GEORGIA By: Name: Doni'.las 1! Ball Tiile: N/Hnis;ie.r of Fi»^nre ofGeorgia Title: USA in \ Date: Name: Dimitry Kumsishvili ^irgia Dale: Amcndmcm 'Number ONli to the Development Objective Grant Agreement bete^me Ini.c..l St.tes of America and Ccorgia for-Democratic Checks and Balanc.^ -.in.l AccountableGoverniincc",dated December22,2015

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(nfn8g(«'0(5 ^g(ncn b6;3<ir^«5 ^9 3x36jj(i)ao anoDbngBgbb. Page 45 MAARD-114-16-001 $1,700,000 7215/161037-A07/A030-114-M-GEORGIA-E+E-ES-2015/2016-T603001-4100100 $1,518,000 7215/161037-A07/A031-114-1V1-GEORGIA-E+E-ES-2015/2016-T603101-4100100 $700,000 7215/161037-A08/A034-114-M-GEOR6IA-E+E-ES-2015/2016-T603401-4100100 $600,000 7215/161037-A08/A035-114-M-GEORGIA-E+E-ES-GFSI-2015/2016-T603501-4100100 $650,000 7215/161037-A08/A036-114-M-GEORGIA-E+E-ES-6FSI-2015/2016-T603601-4100100 $850,000 7215/161037-A10/A044-114-M-GEORGIA-E+E-ES-2015/2016-T604401-4100100 TOTAL: $6,018,000 } JCASLJJi/TBILISf fn/\* ixtdMrnty

EXECUTION COPY Development Objective Grant Agreement (DOAG) Principal Text USAID Agreement No. AAG-114-G-16-00001 DEVELOPMENT OBJECTIVE GRANT AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND GEORGIA FOR DEMOCRATIC CHECKS AND BALANCES AND ACCOUNTABLE GOVERNANCE December 22,2015 Fiscal Data Treasury Symbol: 7215/161037 Km Area/Element: A07/A030. A07/A03I, A08/A034. A08/A035. A08/A036. A10/A044 Amount Obligated: $6,018,000 Agreement Number: AAG-114-G-16-00001 Development Objective Grant Agreement Table of Contents Article I: Purpose. Article 2: Development Objective and Results. Section 2.1. Development Objective. Section 2.2. Results. Section 2.3. Annex 1, Amplified Description. Article 3: Contributions ofthe Parties. Section 3.1. USAID Contribution. Section 3.2. Grantee Contribution. Article 4; Completion Date. Article 5: Conditions Precedent to Disbursement. Section 5.1. First Disbursement. Section 5.2. Notification. Section 5.3. Terminal Dates for Conditions Precedent. Article 6: Special Covenants. Article 7; Miscellaneous. Section 7.1. Communications. Section 7.2. Representatives. Section 7.3. Standard Provisions Annex. Section 7.4. Amendment Section 7.5. Entry into Force Section 7.6. Language ofAgreement. Annex I: Amplified Description Annex 2: Standard Provisions DEVELOPMENT OBJECTIVE GRANT AGREEMENT December 22,2015 Between The United States ofAmerica, acting through the United States Agency for International Development ("USAID") and Georgia, acting through the Ministry of Finance (hereinafter referred to as the "Grantee") Article 1: Purpose. The purpose ofthis Development Objective Grant Agreement ("Agreement )is to set out the understanding ofthe parties named above (the "Patties") aljout the Development Objective described below. Article 2: Development Objective and Results. Section 2.1. Development Objective. The Development Objective ("Objective") ofthe Agreement is Democratic Checks and Balances and Accountable Governance Advanced. Section 2.2. Results. ,n order to achieve that Objective, the Parties agree to work together to achieve the following Results: (a) Transparent, responsive and effective (b) Independent, consistent, and professional application ofthe rule oflaw. and (c) Amore informed and engaged citizenry. Section 2.3. Annex 1, Amplified Description. Annex I, attached, amplifies the above Objective and Implementation Letters. Article 3: Contributions ofthe Parties. Section 3.1. USAID Contribution. be'" (a) The Grant. To help achieve the Objective set forth in this Agreement, USAID, pursuant to the Foreign Assistance Act of 1961, as amended, hereby grants to the Grantee under the terms ofthe Agreement an amount not to exceed six million, eighteen thousand United States ("U.S.") Dollars ($6,018,000) (the "Grant"). (b) Total Estimated USAID Contribution. USAlD's total estimated contribution to achievement of the Objective will be U.S. $25,087,767. which will be provided in increments. Subsequent increments will be subject to the availability of funds to USAID for this purpose and may be provided by USAID upon written notice to the Grantee. The Parties agree that each such incremental contribution provided, ifany, shall cumulatively increase the total amount of the Grant set forth in Section 3.1 (a) and consequently may increase the Grantee's contribution under Section 3.2. The Grantee further agrees to acknowledge by written notice to USAID each such incremental contribution, .fany. (c) Ifat any time USAID determines that its contribution under Section 3.1(a) exceeds the amount which reasonably can be committed for achieving the Objective or Results during the current or next U.S. fiscal year, USAID may. upon written notice to the Grantee, withdraw the excess amount, thereby reducing the amount ofthe Grant as se forth in Section 3.1(a). Actions taken pursuant to this subsection will not revise USAID total estimated contribution set forth in 3.1(b). Section 3.2. Grantee Contribution. (al The Grantee agrees to provide or cause to be provided all funds, in addition to tliose on or before the Completion Date, all activities necessary to achieve the Results. (b) The Grantee's contribution, based on USAlD's contribution in Se«ion 3.1(a), wUI not be less than the equivalent ofU.S. $2,006,000. including in-kmd contributions to the ObSiveofthis Agn^ement. IfUSAID increases or decreases the amo""' Section 31(a) incrementally, as contemplated herein, the Grantee scontribu ion fncle ordecrease with eLh incrementaccordingly, such that the Grantee s contribution will not be less than the equivalent of one-third ofthat portion o It Is us" dto support activities that either directly provides substantial benefi to the Government of Georgia or involves the direct and substantial Government ofGeorgia in the administration, contro The precise amount I'Sj^irwUrbe subject to availability offunds to the reiraSr^atriotr^^^^^^ contributions. Article 4: Completion Date. (a) The Completion Date, which is September 30, 2020, or such other date as the Parties may agree to in writing, is the date by which the Parties estimate that all the activities necessary to achieve the Objective and Results will be completed. (b) Except as USAID may otherwise agree to in writing, USAID will not issue or approve documentation that would authorize disbursement of the Grant for services performed or goods furnished after the Completion Dale. (c) Requests for disbursement, accompanied by necessary supporting documentation prescribed in Implementation Letters, are to be received by USAID no later than nine (9) months following the Completion Date, orsuch other period as USAID agrees to in writing before orafter such period. After such period USAID, at any time ortimes, may give notice in writing to the Grantee and reduce the amount ofthe Grant by all orany part thereof for which requests for disbursement, accompanied by necessary supporting documentation prescribed in Implementation Letters, were not received before the expiration of such period. Article 5: Conditions Precedent to Disbursement. Section 5.1. First Disbursement. Prior to the first disbursement under the Grant, or to the issuance by USAID ofdocumentation pursuant to which disbursement will be made, the Grantee will, except as the Parties may otherwise agree in writing, furnish to USAID in form and substance satisfactory to USAID: (a) An opinion of the Ministry ofJustice acceptable to USAID that (i) this Agreement has been duly authorized or ratified by, and executed on behalfof the Grantee, and (ii) this Agreement constitutes avalid and legally binding obligation of the Grantee in accordance with all of its terms, and (iii) all internal actions and approvals necessary to give effect to this Agreement have been obtained by or on behalf of the Grantee; and (b) Asigned statement in the name ofthe person holding or acting in the office of the Grantee specified in Section 7.2, which designates by name and title any additional representatives, each of whom may act pursuant to Section 7.2, if any. Section 5.2. Notification. USAID will promptly notify the Grantee when USAID has determined that acondition precedent has been met. Section 5.3. Terminal Dates for Conditions Precedent. The terminal date for meeting the conditions specified in Section 5.1 is 90 days from the date of this Agreement or such later date as USAID may agree to in writing before or after the above terminal date. If the conditions precedent in Section 5.1 have not been met by the above terminal date, USAID, at any time, may terminate this Agreement by written notice to the Grantee. Article 6: Special Covenants. (a)The Grantee, in conjunction with theappropriate Government of Georgia ministries and offices, hereby covenants and agrees to issue, renew and/or extend free of charge and in a timely manner all official permits, visas, exemptions and any other permissions (including all approvals as may be required from lime to time toensure full access to information, project sites and relevant offices) for the Applicable Persons (as defined below) carrying out activities financed by USAID under this Agreement (collectively, the "Required Documents")- For purposes ofthis provision. Applicable Persons is defined as: (i) employees and consultants ofany contractors, grantees and other organizations carrying out activities financed by USAID under this Agreement and (ii) members of such employees' and consultants' households. Any renewals or extensions of such Required Documents that are required, or become required, in order for such employees, consultants and dependent family members to legally reside in Georgia and undertake the activities contemplated by and financed under this Agreement shall also be issued free of charge. (b) Subcommitting, subobligating and disbursing funds. With respect to disbursements made under this Agreement, the Grantee agrees that after satisfaction of the Conditions Precedent set forth in Section 5.1, USAID may subcommit, subobligate and disburse Grant funds available under Section 3.1(a) through such contracts and grants with entities selected by USAID, so long as such actions and disbursements are consistent with the terms and conditions of Annex 1(Amplified Description) hereof without any further approval or concurrence. (c) USAID will inform on quarterly basis the Grantee of all disbursements directly made by USAID under this Agreement, providing the Grantee with the amount(s) and purpose(s) ofsuch disbursement(s). Article 7: Miscellaneous. Section 7,1. Communications. Any notice, request, document, or other communication submitted by either Party to 'he other under this Agreement will be in writing or by telegram, telefax, cable, or electronic mail ( email"), and will be deemed duly given or sent when delivered to such Party at the following address; To USAID: Mission Director Mail Address: United States Agency for International Development United Stales Embassy Georgia 11 George Balanchine Street Tbilisi 0131 Georgia Telefax: (995)322.544.145 E-mail: DOAG_Georgia@usaid.gov To the Grantee: Minister of Finance Mail Address: 16 Gorgasali Street Tbilisi, Georgia Telefax: (995)322.262.423 All such communications will be in English, unless the Parties otherwise agree in writing. Other addresses may be substituted for the above upon the giving ofnotice. Section 7.2. Representatives. For all purposes relevant to this Agreement, the Grantee shall be represented by the individual MdU or acting as MinisterofFinance ofGeorgia and USAID will individual holding or acting as Mission Director, designate additional representatives for all purposes other Agreement orexercising the loUSm the 3"® and willTprovided pursuant to Section 5.1(b) duly authorized any instrument ^ of iheir authority. Section 7.3. Standard Provisions Annex. A"Standard Provisions Annex" (Annex 2) is attached to and forms par, ofthis Agreement. Section 7.4. Amendment -y b. "P" w by the Parties and will enter into force in such amanner as this Agr^ment such Amendments shall constitute an integral part ofthis Agreemen . Section 7.5. Entry into Force ThiUSAID, s Agreement shal l enteri n t o ofwritten notification that the Grantee has tm.sneo entry into force of the Agreement. Section 7.6. Language ofAgreement. day and year first above written. GEORGIA: UNITED STATES OF AMERICA: By: Name: Douglas H. Ball rule: USAID Mission Director Name: Nodar Khaduri Title: Minister ofFinance f2 Annex 1 Amplified Description Development Objective Agreement (DOAG) for Democratic Checlcs and Balances and Accountable Governance I. Introduction This Annex describes the activities to be undertaken and the results to be achieved with the funds obligated under this Development Objective Agreement for Democratic Checks and Balances and Accountable Governance. Nothing in this Annex I shall be construed as amending any of the definitions or terms of the Agreement. II. Background The watershed parliamentary elections in October 2012 brought Georgia's first peaceful transfer of power through democratic elections since the country declared independence in 1991. Reforms initiated by the new government demonstrate an apparent willingness to improve good governance and civic participation. The election ofanew government, direct elections of mayors in all municipalities for the first time, and the shift ofConstitutional power from the Presidency to the office of Prime Minister creates an opportune time to support efforts ofthe Government ofGeorgia (GOG) to improve the transparency, accountability and effectiveness of key institutions. In 2011, Georgia joined the Open Government Partnership (OGP), an international initiative to seek commitments from participating governments to promote transparency, increase civic participation, Hght corruption, and harness new technologies to make government more open, effective, and accountable. The new GOG's prioritization oftransparent governance has been exemplified by its efforts to accelerate progress towards OGP commitments, including those associated with access to public information. Despite the advance of important reforms, Georgia's governance systems and processes require continued support to improve transparency, accountability and civic participation. Understanding the link between civic education and future generations ofGeorgian leaders, the Ministry of Education and Science is taking important steps to support and institutionalize civic education. While the GOG requires that amandatory curriculum be taught in ninth and tenth grades, there is no consistent teaching method that is institutionalized at the national level. USAID has been the most active donor to provide important support to civic education in recent years. Assistance has involved developing curriculum materials, providing civic education training for school teachers and principals, and training young leaders through small grants to execute service projects and advocacy campaigns in their communities. These activities have resulted in a new cadre ofactive youth and accredited civic education teachers in 50% ofall high schools in Georgia. More work, however, is needed to ensure the sustainability ofthese activities in the future. The arrival ofa new government following the October 2012 elections was anew turning point for justice system reform, as well. During 2013, the Parliament adopted several legislative changes aimed at empowering individual judges and reducing centralization of the judiciary. For the first time, judges could elect their representatives in the High Council ofJustice (HCOJ) by secret ballot and were able to freely organize themselves into associations to openly voice their ideas and engage in discussions on judiciary reform. Meetings of the HCOJ became public, and interested parties can now observe the process of decision-making on crucial issues for the judiciary. Even more importantly, cameras were allowed in courts and the public gamed the ability to access information about proceedings through the media. The Criminal Procedure Code was also modified. Moreover, the Parliament ofGeorgia approved the National Human Rights Strategy of Georgia, where GOG reaffirms its commitment to rule of law reforms. Building upon the basic principles and directions identified by the National Human Rights Strategy, the GOG endorsed aHuman Rights Action Plan that describes in detail particular tasks to be implemented by the relevant ministries and other government agencies. However, a mechanism that will monitor the process of Human Rights Strategy and Action Plan implementation is yet to be developed. Despite the progress of the past decade, it appears t^hat the rule of law in Georgia does not yet ensure due process and full protection of human rights. HI. Funding Financial Plan. The financial plan for the Program is set forth in the attached table (Annex 1. Attachment A.) IV. Results to be Achieved/Results Frameworks Accountable governance systems are based on the separation and constraint ofpolitical power and on citizen oversight ofgovernment. Enhancing democratic checks and balances and accountable governance will help to .strengthen and sustain Georgia's democratic transforma . Increased government commitment to democratic checks and balances and accountable governance requires progress in two supply-side strategic areas - independent. <=0"^'®'®"''^ professional application ofthe rule oflaw; and, transparent and effective governance and servi delivery. Increased societal demand for democratic checks and balances and accountable governance requires achieving amore informed and engaged citizenry. Accordingly, enhancing "Democratic Checks and Balances and Accountable Governance" is premised on three Intermediate Results: • Transparent, responsive and effective governance and service delivery . Independent, consistent, and professional application ofthe rule oflaw • A more informed and engaged citizenry Because well-functioning democratic systems are made up of interdependent and mutually reinforcing sets of institutions and processes, this development objective is design. Ifsuccessful, activities under this Agreement will increase the percentage who actively participate in the governance oftheir nation. Government will become mere s g responsive to Georgians' aspirations, preferences, and needs. More broadly, w.th stronger more vital links between state and society, Georgia's political system will become more democratic. V. Indicators The Parties will measure progress towards achieving the Intermediate Results and Development Objective through improvement in the following measurements: . Freedom House Nations in Transit Aggregate Score (D^o'racy Sc»r^ . Percent ofyouth in target schools participating myouth-mit.ated activities (e.g. advocacy, environmental which government officials • Number of public forums resulting from USG assistance in wniwi g . r.nL I. processes which are participatory, evidence-based and transparem VI. Activities/Activity Section ..... HRVTransr.r.n. »--Pon^iv ^nd effective .n^^r-rnnnce .nd service delivery result will develop national and municipal administrative capacity, to help g agencies follow carefully considered and evidence-based strategies that optimize resources; increase agencies' ability to incorporate inclusive, gender-sensitive, and participatory decisionmaking mechanisms into their planning processes, to better account for the needs of all citizens, increase e-governance and ease of access to information; and, enhance government policy formulation, regulatory functions, and service delivery, to help increase citizens' satisfaction with the day-to-day operations of their government. National adminislralive capacity andparlicipalory decision-making developed Activities will build the capacity ofstate institutions to plan, implement, monitor, and evaluate strategies and action plans that are based on factual analysis, budget realities and public participation. Programming will address the issue ofwomen's limited role In public decisionmaking by building the skills of female and male civil servants, promoting the values of diversity, and supporting equitable employment and career opportunities for female civil servants. Additionally, activities will focus on the Open Government Partnership to increase transparency, build public trust in government institutions, support institutionalized implementation ofGeorgia's laws related to freedom of information and, availability and improved quality of information regularly made public to inform citizens government budgeting, procurement activities, planning, and other activities. Focusing on developing national administrative capacity and participatory decision-makmg, and further advance innovative service delivery. Interventions will increase analyze and develop policy options, encourage stakeholder feedback, and ® human resources systems to improve and institutionalize administrative reform withm target Programmmg will mcrease the particip op^ent and Droaram budgeting, and assist women, and minorities' different needs into their planning and activities. increased openness atall levels ofgovernment 10 Activities will support initiatives to help national and local government to better connect with its citizens by improving governmental transparency and openness to citizens and non governmental actors. By supporting e-governance and information communication technology, aclivilies will assist national and local government entities in improving their use ofelectronic communications for transparency, more efficient service delivery, sound contracting and monitoring practices, and constituent outreach. Technical assistance activities will help national and local government bodies improve public participation in their budget development and monitoring systems. Interventions will focus on engaging national and local government institutions in the Open Government Partnership to increase civil society's participation in decision-makmg processes, and will facilitate dialogue between government and non-governmental actors. Activities will promote civil society participation techniques with government and will facilitate adoption of participatory public hearings, public meetings to discuss national and local priorities, public monitoring mechanisms, and creating additional channels and strengthening existing avenues of communication and information between government and civil society, mcludmg through the use of information communication technology. Intirmt^riiaie Re^.ilf IndenendePl mn^iaent. and professional appliralion ofttie rule of lavv Aiusiice system that provides for the protection of human rights, and allows for the constructive b. ~ .rfc provides its citizens. If. by expanding access to justicc. increasmg judicial '"^pend®nce. promoting more know/ledgeable. skilled legal professionals. Georgia srule oflaw can be eLbiished Programs under this IR will improve judicial capacity and independence, creating judicial affairs, including legal rights NGOs and the Georgian Bar Association. training. Assistance to the HSOJ will include development and and development of new methodologies to improve the teachmg Activities will promote stronger legal safeguards for judicial independenc 11 ^ High Council ofJustice (HCOJ) to upgrade it into the lead strategic and policy institution ofthe judiciary. Application ofclue process expanded and access 10justice increased USAID/Caucasus will work closely with government stakeholders, including the Mmistry of Justice HCOJ, and the Supreme Court to refine Georgian laws and to ensure they provide protection for individual rights and liberties. USAID assistance will support civil society to closely monitor application ofthe laws and promote consistent and equitable implementation o these guarantees. USAID assistance will engage judges in discussions on legislative reforms related to the justice system. Activities will build on the achievements ofUSAlD's rule of law programs and promote better access to justice through eliminating barriers that prevent people from understandmg and exercising their rights, and will continue support to strengthen mechanisms for the protectio rights and resolution ofdisputes. Skills, knowledge, and ethical standards oflegal professionals enhanced Activities will further strengthen the Georgian efforts to enforce and protect high practire ills ofall Georgian lawyers. USAID will also work to raise awareness and expand training programs on legal ethics among judges and attorneys. Since education is at the core of USAlD's support to improve legal practice and qualiHcation, activities will contribute to the development ofGeorgian introduction ofmore practical legal skills training for law students. ^ rGeorgian methodologies, and developing and supplying textbooks and teaching materials in the Georgian language. Intermediate Result: Amore informed and engaged otizenry role in the governance oftheir communities and will be better informed about the political, social, and economic issues oftheir country. Enhanced civic educationforyoung people Hvic oarticioation by Activities seek to jump-start the process ofdemocratic socialization and civic part p J promoting support for democratic behaviors and values among ordinary citizens. civic education is designed to achieve the following broad goals: 12 • To encourage responsible and informed political participation. Acentral goal is to use civic education as ameans to increase the skills and commitment of youth to participatory democracy. Programmatic efforts in this area will create afoundation for constructive and effective citizen participation in Georgia's political processes by expanding young people's knowledge about democratic institutions, principles and practices. The expected end result will be changes in attitudes and behaviors, as aconsequence of greater knowledge of how citizens can effectively engage with other citizens and the government to influence public policy and ensure greater government responsiveness. VII. Roles and Responsibilities of the Parties a. Government of the United States USAID will implement activities described in section VI above through the award of contracts, cooperative agreements and grants to private companies, non-governmental or governmental organizations and/or to Government of Georgia (GOG) organizations with funds obligated mthis Agreement. USAID will follow Us procedures and rules for direct contracts and gratits. USAID will coordinate closely with Government ofGeorgia counterparts in the implementalion ofthese activities, and whenever appropriate, will seek to implement through Georgian companies, nongovernmental or governmental organizations. USAID/Caucasus will, on aquarterly basis, submit to the Ministry of Finance ofGeorgia all quarterly performance reports prepared by implementing partners for the activities included in this DOAG. b. Government of Georgia Progress towards enhancing democratic checks and balances and accountable government will depend greatly on the efforts ofthe Government of Georgia. In order to improve public administration and financial management at the ^ levels, the Grantee will demonstrate progress in these areas within the framework '^e Administration Reform Roadmap and the European Union Association Agreement Action Plan. In order to improve the legislative and regulatory framework for amerit-based, service, the Grantee will demonstrate progress towards the Civil Service Reform Cone p( Decree #627) and related strategic documents. In order to increase government transparency and accountability as well as engage decision-making, the Grantee will demonstrate progress towards Open Government Partne p (OGP) Action Plan and Anti-Corruption Action Plan commitments. 13 In order lo enhance Independent, consistent, and professional application ofthe rule of law the Grantee will demonstrate progress towards the National Human Rights ° ^^ Action Plan ofthe Government ofGeorgia on the Protection of Human Rights (20 4-2016) and any subsequent action plans, and further legislative and regulatory reforms that bolsterjud.cia independence. ,n order to expand quality civic education for Georgian high schools. training methods and practical application ofcivic education con^pts 'he Gmntee .11 positive steps towards institutionalization. expansion and oversight ofcivic education. recognizing the Ministry of Education and Science as the ultimate guarantor. Vlll. Environment initial Environmental Examinations (lEEs), Environmental Asse^mcnt these activities, in close coordination with USAID lEEs. ln,pact will not be commenced without USAID are available forth in the lEE are met. lEEs and other environmental compliance documen at: I^trp-//gemini.i"f" ••«<iH gov/pnnt/fnvcomp/report ecr.pllBIX Monitoring and Evaluation -==rf—~£S=rr~' regular basis. Performance reportmg and timel.ne For each aciiviiy generally be the following: (M&E) plan) with specific timeline benchmark 14 ^sequent Work Plans / Under this DOAG USA ID/Caucasus expccts to perform an impact evaluation ofthe Momavlis Taoba (MT) civic education project. The impact evaluation will provide a base ofevidence to use in determining the most effective civic education interventions in Georgia. It will be conducted in close coordination with the Ministry of Education and Science in order to ensure that findings are relevant to education policy-making in Georgia. Several performance evaluations will be implemented over the course of this DOAG. Performance evaluations will look atthe quality of projects and activities and any adjustments/changes needed to better meet Georgia's needs in respective sectors. Evaluations will also examine whether interventions are achieving the intended results and generate learnmg opportunities that will inform program management and future program designs. The evaluation reports will be shared with host country counterparts, including the Ministry of Finance of Georgia. Monitoring and Evaluation work will be implemented in close collaboration with the Government ofGeorgia's relevant Ministries, agencies, and offices. X. Other Implementation Issues The Parties agree that with respect to the audit provisions set forth in Section B.5 ofAnnex 2to this Agreement (Standard Provisions), to the extent USAID funds non-grantee implementing partners directly for any activities under this Agreement, USAID will include necessary audi provisions in its implementing agreements with such partners in lieu ofthe Grantee submittmg the required audit plan as described in that section. 15 Annex 1 Attachment A Financial Plan: Democratic Checks and Balances and Accountable Governance DevelopmentObjective (DOAG) Agreement FY 2015 USAID Total Estimated Contribution USAID Contribution Rule of Law and Human Rights $3,218,000 $ 13,871,394 Good Governance $ 1,950,000 $ 8,904,373 $ 850,000 $2,312,000 S 6,018,000 $25,087,767 Program Areas: Civil Society Total 16 Annex 2 Standard Provisions Table of Contents Article A: Definitions and implementation Letters. Section A.l. Definitions. Section A.2. Implementation Letters. Article B: General Covenants. Section B.l. Consultation. Section B.2. Execution of Agreement. Section B.3. Utilization ofGoods and Services. S;" B.'; So'^and .nformation. Ag,^n,en. Booksand Records. Audi«. and Inspections Section B.6. Completeness ofInformation. Section B,7. Other Payments. Section B.8. Information and Marking. Article C; Procurement Provisions. Section C. 1. Source and Nationality Section C.2. Eligibility Date. Section C.3. Plans, Specifications and Contracts. Section C.4. Reasonable Price. Section C.5. Notification to Potential Suppliers. Section C.6. Transportation. Section C.7. Insurance. Section C.8. U.S. Government-Owned Excess Property. Section C.9. Procurement and Disbursement of Funds Article D: Disbursements. Section D. 1. Forms of Disbursement. Section D.2. Rate of Exchange. Article E: Termination; Remedies. Section E. I. Suspension and Termination. Section E.2. Refunds. 17 Section E.3. Non-waiver of Remedies. Section E.4. Assignment. Article F: Miscellaneous. Section F.l. Investment Promotion. Section F.2. Prohibilion on Assistance to Drug Traffickers. Section F.3. Workers' Rights. Section F.4. Terrorist Financing 18 Standard Provisions Article A: Definitions and Implementation Letters. Section A.!. Definitions. As used in this Annex, the "Agreement" refers to the Development Objective Grant Agreement to which this Annex is attached and of which this Annex forms a part. Terms used in this Annex have the same meaning or reference as in the Agreement. Section A.2. Implementation Letters. To assist the Grantee in the implementation ofthe Agreement, USAID, from time to time, will issue Implementation Letters that will furnish additional information about matters stated in this Agreement. The Parties may also issue jointly agreed-upon Implementation Letters to confirm and record their mutual understanding on aspects ofthe implementation ofthis Agreement. Implementation Letters can also be issued to record revisions or exceptions that are permitted by the Agreement. Article B: General Covenants. Section B.l. Consultation. The Parties will cooperate to assure that the Objective and Results of this Agreement will be accomplished. To this end, the Parties, at the request ofeither, will exchange views on progress towards the Objective and Results, the performance ofobligations under this Agreement, the performance ofany consultants, contractors, or suppliers engaged under the Agreement, and other matters relating to the Agreement. Section B.2. Execution of Agreement. The Grantee will: (a) Carry out the Agreement and the activities required to be undertaken directly (or caused to be undertaken) by the Grantee, or cause the Agreement and such acUvities to be carried out with due diligence and efficiency, in conformity with sound technical, financial, and management practices, and in conformity with those documents, plans, specifications, contracts, schedules, or other arrangements, and with any modificalions therein, approved by USAID pursuant to this Agreement; and (b) Provide qualified and experienced management for, and train such staffas may be appropriate for the maintenance and operation of activities financed under the Agreement, and, as applicable for continuing activities, cause those activities to be operated and maintained in such manner as to assure the continuing and successful achievement ofthe Objective and Results under the Agreement. 19 Section B.3. Utilization of Goods and Services. Any goods and services financed under this Agreement, unless otherwise agreed in writing by USAID, will be devoted to the Agreement until the completion or termination ofthe Agreement, and thereafter (as well as during any period of suspension ofthe Agreement) will be used to further ihe Objective ofthe Agreement and as USAID may direct in Implementation Letters. Section B.4. Taxation. (a) General Exemption. The Agreement and the assistance thereunder are free from any taxes imposed under laws in effect in the territory of the Grantee. (b) Except as provided otherwise in this provision, the General Exemption in subsection (a) applies lo. but is not limited to (I) any activity, contract, grant or other implementing agreement financed by USAID under this Agreement; (2) any transaction or supplies, equipment, materials, property or other goods (hereinafter collectively "goods )under ( ) above; (3) any contractor, grantee, or other organization carrymg out activities Hnance by USAID under this Agreement; (4) any employee ofsuch organization^ and (5) any individual contractor or grantee carrying out activities financed by USAID under this Agreement. (c) Except as provided otherwise in this provision, the General Exemption in subsection (a) applies to, but is not limited lo. the following taxes: (1) Exemption I. Customs duties, tariffs, import taxes, or other levies on the importation, use and re-exportation ofgoods or the personal ' ®'°"8'ngs an effLts (including personally-owned automobiles) for the personal use ofnonnational individuals or their family members. Exemption 1includes, but is not limited to. all charges based on the value ofsuch imported goods, but does not include service charges directly related to services performed to transfer goods or cargo. (2) Exemption 2. Taxes on the income, profits or property ofall (i) non-national organizations ofany type, (ii) non-national employees ofnational and non- national organizations, or (iii) non-national individual contractors SJ'ees^ Exemption 2includes income and social security taxes ofall types and all n^rcons The term "national" refers to organizations established under the laws the United States. (3) Exemption 3. Taxes levied on the last transaction for the purchase ofgoods or servSnled by USAID under this Agreement, including sales taxes, value20 added taxes (VAT), or taxes on purchases or rentals ofreal or personal properly. The term "last transaction" refers to the last transaction by which the goods or services were purchased for use in the activities financed by USAID under this Agreement. (d) If atax has been levied and paid contrary to the provisions ofan exemption, USAID may, in its discretion, (1) require the Grantee to refund to USAID or to others as USAID may'direct the amount ofsuch tax with funds other than those provided under the Agreement, or (2) offset the amount ofsuch tax from amounts to be disbursed under this or any other agreement between the Parties. (e) In the event of adisagreement about the application ofan exemption, the Parties agree to promptly meet and resolve such matters, guided by the principle that the assistance furnished by USAID is free from direct taxation, so that all ofthe assistance furnished by USAID will contribute directly to the economic development ofthe country ofthe Grantee. Section B.5. Reports and Information. Agreement Books and Records, Audits, and Inspections. (a) Reports and Information. The Grantee shall furnish USAID accounting records and such other information and reports relating to the Agreement as USAID may reasonab y request. (b) Grantee Agreement Books and Records. The Grantee shall maintain books, records, documents and other evidence relating to the show, without limitation, all costs incurred by the Grantee under the e receipt and use ofgoods and services acquired under the Agreement by the Gra . agreed-upon cost sharing requirements, the nature and extent . pLpective suppliers ofgoods and services acquired by the Grantee, the basis ofaward ofGrantee contracts and orders, and the overall progress ofthe rnmoletion TAsreement books and records"). The Grantee shall maintain Agreement books and records in accordance with generally accepted in the United States, or at the Grantee's option, with approval by USA D, other rcc^unti principles, such as those (I) prescribed by the International Accoun ng Standards Board (a subsidiary of the International Financial Reporting Standards r«!»..1^..1"'tzrir or for such longer period, ifany, required to resolve any litigation, claims or a findings. For the avoidance ofdoubt, this Section B.5(b) app les so ey expended directly by the Grantee. (c) Grantee Audit. If$300,000 or more of USAID funds are expended directly by the SLnSn year under the Agreement, the Grantee shall have financial audits 21 '"® made ofthe expenditures in accordance with the following terms, except as the Parties may otherwise agree in writing: (1) With USAID approval, the Grantee shall use its Supreme Audit Institution or select an independent auditor in accordance with the "Guidelines for Financial Audits Contracted by Foreign Recipients" issued by the USAID inspector General ("Guidelines"), and the audits shall be performed in accordance with the "Guidelines"; and (2) The audit shall determine whether the receipt and expenditure ofthe funds provided under the Agreement are presented in accordance with generally accepted accounting principles agreed to in sub-section (b) above and whether the Grantee has complied with the terms ofthe Agreement. Each audit shall be completed no later than nine months after the close of the Grantee's year under audit. (d) Sub-recipient Audits. The Grantee, except as the Parties may otherwise agree ui writing, must ensure tliat "covered" sub-recipients, as defined below, are audited, an submit to USAID, no later than the end ofthe Grantee's year substance satisfactory to USAID, aplan for the audit of the sub-recipients, as defined below, that receive funds In connection with adirec contract agreement entered Into directly with the Grantee pursuant to the activities contemp ^r by this Agreement. (1) A"covered" sub-recipient is one who expends $300,000 or more in Its fiscal year in "USAID awards" (I.e., as contractors or sub-recipients under USAl financed development objective agreements and other grant agreements with foreign governments). (2) The plan shall describe the methodology to be used by the Grantee to satisfy Us auduUonslbiritles for covered sub-recipients. The Grantee may sat. ysuch audit responsibilities by relying on independent expanding the scope ofthe Independent financial audit ^ 0^' eto encompass testing ofsub-recipients' accounts; or acombination ofthese procedures. (3) The plan shall identify the funds made available to covered ^ will be covered by audits conducted in accordance with other audit provisions would satisfy the Grantee's audit responsibilities. (A nonprofit organized in the United States is required to arrange for its own a . profit comractor organized in the United States that has a USAID is audited by the cognizant U.S. ^ . USAID organization organized outside the United Slates with adirect grant from USAl 22 is required to arrange for its own audits. AGrantee contractor should be audited by the Grantee's auditing agency.) (4) The Grantee shall ensure that covered sub-recipients under direct contracts or agreements with the Grantee take appropriate and timely corrective actions; consider whether sub-recipients' audits necessitate adjustment of its own records; and require each such sub-recipient to permit independent auditors to have access to records and financial statements as necessary. (e) Audit Reports. The Grantee shall furnish or cause to be furnished to USAID an audit report for each audit arranged for by the Grantee in accordance with this Section within 30 days after completion ofthe audit and no later than nine months after the end ofthe period under audit. (0 Other Covered Sub-recipients. For "covered" sub-recipients 'I""'' .""''®' llie Agreement pursuant to direct contracts or agreements w/ith USAID. USAID wi include appropriate audit requirements in such contracts or agreernents and o" behalfof the Grantee, conduct the follow-up activities with regard to the audit reports furnished pursuant to such requirements. (a^ Cost ofAudits. Subject to USAID approval in writing, allowable, allocable and Silt-^ of i. charged to the Agreement. (h^ Audit by USAID. USAID retains the right to perform the audits required ""^er this A on behalfof the Grantee by utilizing funds under the Agreement or re!Lircesavailable to USAID for (hi. puipose. conduct afinancial of.wnizafion. a.|»..io, USAlD M Of ll« requirement. ri^ OoDortunity to Audit or Inspect. The Grantee shall afford authorized «presentaUves of USAID the opportunity at all reasonable times to audit or under the Agreement, the utilization of goods and services financed by US . books, records and other documents relating to the Agreement. (i) Sub-recipient Books and Records. The Grantee will fL (o^ and (i) ofthis provision into all sub-agreements with non-U.S. l?ga!:^;S;iihich^ie.theS300.000thr.ho^ agreements with non-U.S. organizations, which ^ Sub-agreements shall, at aminimum, incorporate paragraphs (h) and (i) ofthis prov B with U.S. organizations shall state that the U.S. organization is subject to the requirements contained in 0MB Circular A-133. 23 Section B.6. Completeness of Information. The Grantee confirms: (a) that the facts and circumstances of which it has informed USAID, or caused USAID to be informed, in the course ofreaching agreement with USAID on the Agreement, are accurate and complete, and include all facts and circumstances that might materially affect the Agreement and the discharge ofresponsibilities under this Agreement; and (b) that it will inform USAID in timely fashion ofany subsequent facts and circumstances that might materially affect, or that it is reasonable to believe might so affect, the Agreement or the discharge of responsibilities under this Agreement. Section B.7. Other Payments. Grantee affirms thai no payments have been or will be received by any official ofthe Grantee m connection with the procurement ofgoods or services financed under the Agreement, fees, taxes, or similar payments legally established in the country of the Grantee. p Section B.8. Information and Marking. The Grantee will give appropriate publicity to the Agreement as States has contributed, identify Agreement activity sites, and mark goo described in Implementation Letters. Article C: Procurement Provisions. Section C. 1. Source and Nationality. (a) All goods financed under the Agreement shall have their '"'I goods and services financed under the Agreement shall countries included in Geographic Code 937 or 110. except as USAID may otherwise agree in writing and as follows: rn Ocean transportation costs shall be financed under the Agreement only on C.6 on use of U.S. flag vessels. (2) Any motor vehicles financed under the Agreement will be ofUnited States manufacture, except as USAID may otherwise agree mwriting. (b) The nationality ofocean and air shipping will be deemed to be the ocean vessel's or aircraft's country of registry at the time ofshipment. (c) Provisions concerning restricted and ineligible goods and services may be provided in an Implementation Letter. 24 (d) Transportation by air of property or persons Financed under tiiis Agreement will be on carriers holding United States certification, to the extent service by such earners is available under the Fly America Act. This requirement may be further described by USAID in Implementation Letters. Section C.2. Eligibility Date. No goods or services may be financed under the Agreement which are procured pursuant to orders or contracts firmly placed or entered Into prior to the date ofthis Agreement, excep Parties may otherwise agree in writing. Section C.3. Plans, Specifications and Contracts. In order for there to be mutual agreement on the following matters, and except as the Parties may Otherwise agree in writing: (a) The Grantee will furnish to USAID upon preparation: (I) any plans, specifications, procurement or construction 0ier Lclentation between the Grantee and third parties, relating to goods or "<11 prtvosals. Material modilicMions in sueh documentaiion mil furnished USAID on preparation; and (2) such documentation will also be furnished to USAID. "P"" i^^frA^me!^^ identified in Implementation Letters. matters under this subsection (a)(2) wil be (b) Documents related to the prequalification or proposals for goods and services USAID in writing prior to their issuance, and their terms will United States Standards and measurements; (c) Comracts and contractors financed under the otheTservices,^equipment, or professional services, for construction ™ly'uSAID in also be approved in writing by USAID prior to execution; and 25 financed under the Agreement as USAID may specify, and construction by the Grantee for the Agreement but not financed under the Agreement, shall be acceptable to USAID. Section C.4. Reasonable Price. No more than reasonable prices will be paid for any goods or services financed, in whole or in p^art' lr tiie Agreement Such items will be procured on afair and, to the max.mum extent practicable, competitive basis. Section C.5. Notification to Potential Suppliers. with .egard thereto, and at such times, as USAID may request mImplementation Letters. Section C.6.Transportation USAID approval, in writing: (I)« to« ««* <5M •'"* •"",'°"'L°2Sn»SbrusAio United States-flag commercial vessels, and States-flag commercial vessels. p ofthis subsection must be ach.eved w.th transported from U.S. ports and any cargo transported from non U.S. po separately. Section C.7. insurance. j Us, Ii<;a1D which are to be transported to tne !::r 26 (1) such insurance is placed at the most advantageous compelilive rate; (2) such insurance Is placed in acountry which is authorized under Section C.1(a); and (3) claims thereunder are payable in U.S. dollars or any freely convertible currency unless USAID agrees otherwise in writing. practice discriminates With respec anv State of the United States, then all (b) Except as USAID be insured, goods financed under the Lder the Agreement; such insurance risks incident to t h e i r w i t h sound commercial practice and will be issued on terms and conditions insist will insure the full value of the goods. Any or any loss of under such insurance will be used to rep ace P replacement or repair ofsuch goods. time of replacement and except as the the goods insured or will be usedofsource and nationality ofcountries listed in USAID ,be otherwise subject to the provisions of the Parties may agree in wntmg, win u Agreement. cSection >n„ rC.o. 8 US Excess Property. u.c). Government-Owned u The Grantee agrees that whe.ve^^^^^^^^ -.wnpH excess personal ^;:rC;::ry::"mL section C.9. Procurement and Disbursement ofFunds. The Grantee agrees that with respect to ^^ "--tly by USAID to Z. the Gran, may be third parties in accordance with ^ ^ agreed to by USAID in writing. USA Du ,o provide periodic reports to the under the Article D: Disbursements. 27 Section D.l. Forms ofDisbursement. Disbursements will be made through such means as the Parties agree to in writing oras set forth in Annex 1. Section D.2. Rate ofExchange. Iffunds provided under the Agreement are introduced into Georgia by USAID or any public or private agency for purposes ofcarrying out obligations of USAID hereunder, the Grantee will make such arrangements as may be necessary so that such funds may be converted into local currency at the highest rate ofexchange which, at the time the conversion is made, is not unlawful in the country of the Grantee to any person for any purpose. Article E: Termination; Remedies. Section E. 1. Suspension and Termination. (a) Either Party may terminate this Agreement in its entirety by giving the other Party thirty (30) days written notice. USAID also may terminate this Agreement mpart by giving the Grantee thirty (30) days written notice, and suspend this Agreement in who e rr,!. .p«. I" —i". i. "I«l= «. I" P'«. "P" """" ' JfusAlT fails to comply with any provision ofthis Agreement, (ii) an event occurs that USAID determines Ikes it improbable that the Objectiveor Resu ts f assistance program will be attained or that the Grantee will be able to perfoiw its to!, »»kl» » now or hereafter in effect. (b) Except for payment which the Parties are committed to make pursuant to noncancellable commitments entered into with third parties prior to termination, suspension or termination of this entire suspend (for the period ofthe suspension) or 3^3pended which is not suspended or terminated shall remain in full force and eff . (c) in addition, upon such full or partial suspension or IICAIDN exuense direct that title to goods financed under the Agreemen , deliverable state. Section E.2. Refunds. . .He case of any disbursement accordance with this Agreement, or which is not made or u Agreement, or which was for goods or services not used in accordan 28 ^7^;^the Agreement, USAID, notwithstanding the availability or exercise ofany other remedies under this Agreement, may require the Grantee to refund the amount of such disbursement in U.S. Dollars to USAID within sixty (60) days after receipt of a request therefor. (b) If the failure of Grantee to comply with any of its obligations under this Agreement has the result that goods or services financed or supported under the Agreement are not used effectively in accordance with this Agreement, USAID may require the Grantee to refund all or any part ofthe amount ofthe disbursements under this Agreement for or in connection with such goods orservices in U.S. Dollars to USAID within sixty (60) days after receipt of a request therefor. (c) The right under subsections (a) or (b) to require arefund ofadisbursement will continue, notwithstanding any other provision ofthis Agreement, for three years from the date of the last disbursement under this Agreement. (d) (1) Any refunds under subsections (a) or (b), or (2) any refund to USAID from a contractor, supplier, bank or other third party with respect to goods or services financed under the Agreement, which refund relates to an unreasonable price for or erroneous invoicing of goods or services, or to goods that did not conform to specifications, or to services that were inadequate, will (A) be made available first for the Agreement, to the extent justified, and (B) the remainder, if any, will be subtracted from the amount ofthe Grant. (e) Any interest or other earnings on funds disbursed by USAID to the Grantee under this Agreement prior to the authorized use ofsuch funds for the Agreement will be returned to USAID in U.S. Dollars by the Grantee, unless USAID otherwise agrees in writing. Section E.3. Non-waiver of Remedies. No delay in exercising any right or remedy accruing to aParty in connection with its financmg under this Agreement will be construed as awaiver ofsuch right or remedy. Section E.4. Assignment. The Grantee agrees, upon request, to execute an assignment to USAID ofany cause ofaction which may accrue to the Grantee in connection with or arising out ofthe contractual performance or breach ofperformance by aParty to adirect U.S. Dollar comract which USAID financed in whole or in part out offunds granted by USAID under this Agreement. Article F: Miscellaneous. Section F.l. Investment Promotion. 29 Except as specifically set forth in the Grant or otherwise authorized by USAID in writing, no funds or other support provided hereunder may be used to provide a financial incentive to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States ifsuch incentive or inducement is likely to reduce the number ofemployees ofsuch business enterprise in the United States because United States production is being replaced by such enterprise outside the United States. Section F.2. Prohibition on Assistance to Drug Traffickers. (a) USAID may terminate the Agreement or take other appropriate measures if the Grantee or akey individual of the Grantee is found to have been convicted ofanarcotics offense or to have been engaged in drug trafficking. (b) USAID may terminate assistance to, or take or take other appropriate measures with respect to. any participant approved by USAID who is found to have been convicted ofa narcotics offense or to have been engaged in drug trafficking. Section F.3. Workers' Rights. Except as specifically set forth in the Grant or otherwise authorized by USAID in writing, no funds or other support provided hereunder may be used for any activity that contributes to e violation of internationally recognized workers' rights in the Partner country. Section F.4. Terrorist Financing. lrus°Airfll'pravidTdTnd^^^^^^^^^^ are used to provide entities associated with termrism. USAID may issue Implementatton Utters that more fully describe the requirements ofthis section. 30 MAARD-114-16-001 .ES-2015/2016-T603001-4100100 $1700,000 7215/161037-A07/A030-114-M-GEORGIA-E+E'.ES-2015/2016-T603101-4100100 $1518,000 7215/161037.A07/A031-114-M-GEORGIA-E+E .ES-2015/2016-T603401-4100100 $700,000 7215/161037-A08/A034-114-M-GEORGIA-E+E •ES-QFS1-2015/2016-T603501-4100100 $600,000 7215/161037-A08/A035-114-IVI-GEOR61A-E+E.•ES-GFSI-2015/2016-T603601-4100100 $650,000 7215/161037-A08/A036-114-M-GEORGIA.E+E -ES -2015/2016-T604401-4100100 $850,000 7215/161037-A10/A044-114-M-GEORGIA-E+E TOTAL; $6,018,000 St USAlO/C A U C A S 'JS/TBI LI FUMOS AS/AfLAELE