OGSM: I~CC-612-2006/092-00 COUNTRY: MALAWI AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND PLANET AID, INC. FOR SUPPLY OF AGRICULTURAL COMMODITIES UNDER THE FOOD FOR PROGRESS ACT Preamble The Govemment of the United States of America, acting through the Commodity Credit Corporation (hereafter referred to as CCC), and Planet Aid, Inc. (hereafter referred to as the Cooperating Sponsor); In an effort to use the food resources of the United States in supp011 of countries that have made commitments to introduce or expand free enterprise elements in their agricultural economies through changes in commodity prices, marketing, input availability, distribution, and ptivate sector involvement; Desiring to set forth the understandings that will govem the supply of agricultural commodities to the Cooperating Sponsor for distribution in Malawi pursuant to the Food for Progress Act of 1985, as amended; Agree as follows: PART I GENERAL PROVISIONS A. This Agreement is subject to the terms and conditions set f011h in 7 C.F.R. Part 1499, except as may be specifically provided herein. B. CCC agrees to provide to the Cooperating Sponsor the agricultural commodities, and quantities thereof, specified in Part II, Item I (hereafter referred to as the "commodities") for assistance in Malawi and, to the extent specifically included in Part II, Items II and Ill, pay ocean transportation and other costs associated with providing the commodities. C. The Cooperating Sponsor agrees to use the commodities only in accordance with this Agreement and the approved Plan of Operation, Attachment A, which is attached hereto and made a part of this Agreement, and shall not sell or barter the commodities except as specified in Attachment A or otherwise specifically agreed in writing by CCc. 2 D. Except as may be authorized by CCC, all deliveries of the commodities will be made within the supply period(s) specified in Part II, Item 1. E. The Cooperating Sponsor shall not sell or transship the commodities to locations outside of Malawi. F. The Cooperating Sponsor shall distribute or, if approved by CCC, sell the commodities provided under this Agreement within Malawi at the earliest practical time. G. The Cooperating Sponsor shall submit semiannual logistics reports (Form CCC-620) required by 7 C.F.R. section 1499.16(c)(l) and, where applicable, monetization reports (Form CCC-62l) required by 7 c.F.R. section 1499.16(c)(2) as follows: For agreements signed October 1 through March 31, the first report(s) is due by the following May 16 and shall cover the period from the agreement signing date through March 31. For agreements signed April 1 through September 30, the first report(s) is due by the following November 16 and shall cover the period from the agreement signing date through September 30. Thereafter, logistics reports shall cover each subsequent six (6) month period until all commodities have been distributed or sold. Monetization repolis, where applicable, shall also cover each subsequent six (6) month period until all proceeds from commodity sales under this Agreement have been disbursed. These reports shall be submitted to the Director, Programming Division, FAS/USDA, 1400 Independence Avenue, S.W., Stop 1034, Washington, D.C. 20250-1034. H. Notwithstanding the provisions of 7 C.F.R. section 1499.7(i), the quarterly financial statements relating to this Agreement shall be submitted to the Director, Programming Division, FAS/USDA. 1. The Cooperating Sponsor shall submit a copy of the annual audit required by 7 C.F.R. section 1499.17 to the Director, Programming Division, FAS/USDA. 3 PART II PARTICULAR PROVISIONS I ~ Commodities A. The commodities to be made available under this Agreement are as follows: Packaging Commodity Maximum Quantity Metric Tons (MT) Supply Period to U.S. Port(s) Wheat 50 kg bags 10,000 Aug/Sep 2006 Wheat 50 kg bags 10,000 Aug/Sep 2007 Wheat 50 kg bags 10,000 Aug/Sep 2008 30,O()() Total B. The commodities to be provided by CCC will be in accordance with the specifications in Attachment B, which is attached hereto and made a part of this Agreement. Hem ~ Payment of Costs The payment of all costs associated with the processing, packaging, transporting, handling, and other charges incurred in the distribution of the commodities will be apportioned as follows: A. CCC agrees to donate the commodities without charge and pay the following costs after delivery to the Cooperating Sponsor: ocean transportation to the designated discharge port(s) and reasonable transportation costs incurred in moving the commodities from the designated discharge POlt(S) to the point(s) of initial discharge. B. The Cooperating Sponsor agrees to arrange for the following: ocean transportation and transportation, handling, storage and distribution in Malawi. The Cooperating Sponsor will arrange for transportation from the designated discharge port(s) to the point(s) of initial discharge using one of the following methods, as approved by CCC: 1. A through bilI of lading, or ') Direct contracts with suppliers of services. 4 (a) The Cooperating Sponsor will submit an invoice to CCC indicating the actual costs it has incurred. This invoice will be accompanied by documentation supporting the amounts claimed and a statement from the Cooperating Sponsor that it considers the costs to be reasonable. The Cooperating Sponsor will send all documents to: Director, Operations Division, USDA/FAS, Stop 1031, 1400 Independence Avenue, S.W., Washington, D.C. 20250-1031. (b) The Cooperating Sponsor wiIl, to the extent practicable, inform CCC of costs to be incun'ed prior to incurring such costs, (c) CCC will make payment to the Cooperating Sponsor in dollars, c. CCC will provide the Cooperating Sponsor not more than $595,795.20 to provide assistance in the administration and monitoring of food assistance programs undertaken by the Cooperating Sponsor. The Cooperating Sponsor may make expenditures of funds generated from a sale of the commodities that is otherwise permitted under this Agreement (henceforth refelTed to as the "monetization proceeds") or funds provided in dollars by CCC for the costs, and up to the amounts, specified in the approved Program Operation Budget in Attachment C, which is attached hereto and made a part of this Agreement. Notwithstanding the provisions of 7 C.F.R. section 1499.7(e), the Cooperating Sponsor may make adjustments between items identified under "Direct Costs" in Attachment C of up to 20 percent of the "Total Direct Costs" approved for all funds or $50,000, whichever is less, without any further approval; provided, however, that the Cooperating Sponsor may not make any adjustment to the amounts provided in dollars by CCC for items designated "Activities" or "Internal Transportation, Storage and Handling (ITSH)," if any. Adjustments beyond these limits must be specifically approved by CCc. If the Cooperating Sponsor uses less than the total amount that is specified in Attachment C under "Grand Total Costs" approved for monetization proceeds, if any, the Cooperating Sponsor will either use the unused portion of the monetization proceeds for an alternative use that may be specified in section 6(e) of Attachment A or request CCC to amend the Agreement to permit an alternative use. D, The amounts specified for indirect costs in Attachment C are based upon a provisional rate contained in a Negotiated Indirect Cost Recovery Agreement (NICRA), In the event that the NICRA final rate for a particular period is lower than the provisional rate, the Cooperating Sponsor: (a) in the case where CCC has made an indirect cost recovery payment in dollars, will return the difference to CCC; and (b) in the case where the indirect cost recovery payment will come from the monetization proceeds, will return the difference to CCC; use the difference for an alternative use that may be specified in section 6(e) of Attachment A; or request CCC to amend the Agreement to permit the Cooperating Sponsor to use the difference for an alternative lise. In the event that the NICRA final rate for a particular period is higher than the provisional rate, the Cooperating Sponsor: (a) in the case where CCC has made an indirect cost recovery 5 payment in dollars, will not be entitled to additional funds for the difference or any part thereof; and (b) in the case where the indirect cost recovery payment will come from the monetization proceeds, may shift an amount of the monetization proceeds equal to or less than the difference from direct costs to indirect costs, to the extent permitted in section 6(e) of Attachment A, or request CCC to amend the Agreement to permit the Cooperating Sponsor to use the difference for an alternative use. In evaluating a request for an amendment, CCC will consider the effect that such an amendment may have on the sLlccessful implementation of the Agreement. Item III - Ocean Carrier Loss and Damage A. The provisions of 7 C.F.R. section 1499.15(d), Ocean carrier loss and damage, will not apply to the ocean transportation of any commodities which are to be sold in accordance with the Agreement if the Cooperating Sponsor notifies CCC prior to delivery of the commodities to the Cooperating Sponsor that: (1) the commodities have been sold on terms that require full payment based upon bill of lading quantities, or (2) the Cooperating Sponsor is the purchaser of insurance against marine cargo loss and damage (including general average losses) for at least the landed value of the commodities. B. In the event that 7 C.F.R. section 1499.15(d), Ocean carrier loss and damage, does apply to the ocean transportation of commodities provided under this Agreement, CCC will pay for an independent cargo surveyor to attend the discharge of the cargo and prepare a report of its findings. Unless CCC determines otherwise, the Cooperating Sponsor will arrange for an independent cargo surveyor in accordance with 7 C.F.R. section 1499.15(c). Item IV - Certification Regarding Terrorist Financing By signing this Agreement, the Cooperating Sponsor provides the certification set forth in the "Foreign Agricultural Service Terrorist Financing Certification for Food Aid Grant Agreements, April, 2005," Attachment D, which is attached hereto and made a part of this Agreement. Item V - Compliance with Debarment and Suspension and Drug-Free WOl'kplace Requirements The Cooperating Sponsor agrees to comply with the applicable provisions of 7 C.F.R. part 3017, Government-wide Debarment and Suspension (Nonprocurement), and 7 C.F.R. part 3021, Government-wide Requirements for Drug-Free Workplace (Financial Assistance). 6 PART HI FINAL PROVISIONS A. This Agreement may be terminated by either party for any reason by notice of termination, in writing, to the other party. B. This Agreement shall enter into force upon signature. In witness whereof, the respective representatives, duly authorized for the pUl1Jose, have signed the Agreement. FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA FOR PLANET AID, INC. \, W. Kirk Miller Title: BY:~~_-~~_·"'.-+-13fsu~~-,,-,--~--\\-· ~ltrup , Title: General Sales Manager and Vice President, Commodity Credit Corporation Date: President Date: • I __ ATTACHMENT A PLAN OF OPERATION FOOD FOR PROGRESS 2006 1. NAME AND ADDRESS OF APPLICANT Planet Aid, Inc. One Cross Street, Holliston, MA 01746, USA Phone: (410) 309 6828 Contact at U.S. Headquarters Ms. Ester Neltrup President of the Board, Planet Aid, Inc. E-mail: eneltrup@planetaid.org Cell: + 1-703-447-0335 Program Contact: Ms. Marie Lichtenberg International Partnerships Planet Aid, Inc. & Humana People to People Email: mariel@humana.org Cell: + 27-73-200-5690 Cell: + 263-91-400-544 Contact in Malawi: Mrs. Lisbeth Thomsen, Director, Development Aid from People to People in Malawi, Private Bag 342, Chichiri, Blantyre 3 Malawi Phone: + 265-996-0306 E-mail: It@africa-online.net COUNTRY OF DONATION Malawi 3. and 4. KIND AND QUANTITY OF COMMODITIES REQUESTED AND DELIVERY SCHEDULE Commodity Hard Red Winter Wheat TOTAL Use of Cmnmodity Quantity Metric Tons (MT) Package Size 10,000 50 kg bags 10,000 50 kg bags 10,000 50 kg bags Monetization - Delivery at US Port Aug/Sep 2006 Aug/Sep 2007 Aug/Sep 2008 30,000 The Commodity Credit Corporation (CCC) will not deliver the commodities to Planet Aid, Inc. (PAl) until PAl notifies CCC, in writing, that PAl has entered into a contract(s) with a buyer(s) for the sale of the commodities. A-2 5. PROGRAM DESCRIPTION (a) Activity Objectives PAl will monetize 30,000 MT of Hard Red Winter Wheat and, over a period of approximately 3 years, use proceeds from such sale to implement the following activities in Malawi: ~ @ ~ @ @ Establish Farmers Clubs to increase farm income through training in agricultural production and marketing and through provision of small agribusiness grants. Operate a Total Control of the Epidemic (TCE) program to promote behavior modification and reduce the incidence of HlV/AIDS. Provide Teacher Training to prepare teachers to work in rural primary schools and establish a model farm at the existing teacher training college. Construct and establish a New Teacher Training College and provide support for its first year of operation. Provide Nutrition Training for TCE field officers and student teachers to expand awareness of the impact of nutrition on overall health and disease prevention. (b) Method of Choosing Beneficiaries PAl selected six geographic areas within two regions of Malawi to carry out activities under this agreement by using the following criteria and information sources: Information assessments in consultation with development-aid providing local nongovernmental organizations (NOOs) in Malawi Official Malawi government statistics @ Existing presence and infrastructure of development-aid projects operated by NOOs in Malawi @ @ The targeted areas are: 1) Chiradzulu District, Southern Region 2) Blantyre Rural District, Southern Region 3) Zomba District, Southern Region 4) South West Division, Blantyre Rural, Southern Region 5) Shire Highlands Division, Southern Region 6) Lilongwe District, Central Region. PAl will select the most needy families, individuals or communities for participation. For specific activities, PAl will give priority to those who meet the following criteria: A-3 Farmers Clubs - Are members of local development-aid agencies' Child Aid Program - Have access to land - Have demonstrated a commitment to participate in the Farmers Clubs program - Are willing to work collaboratively with other farming families Teacher Training - Have committed to work in rural areas for a minimum of 2 years after graduation - Have satisfactory skills in reading and writing - Have completed 12 years in school (c) Program Administ.ration PAl will work with its recipient agency to ensure that a total of approximately nine staff resources are dedicated to this program, which includes managerial, monetization, operational, and technical resources. The main responsibilities for these positions are listed below. Main Responsibilit.ies Staff Monetization Staff Responsible for contacting and drafting contracts with buyer(s); managing the sale of the commodities; ensuring that the commodities are not sold below market value; monitoring timely payments by buyer(s); and maintaining liaison with government offices. Managerial Staff Responsible for directly supervising and managing project activities; ensuring that the necessary technical staff is in place; ensuring compliance with the terms of the agreement; providing support for the commodity monetization process; providing financial oversight of program activities; and acting as the primary interface with national level government representatives. A-4 Staff Main Responsibilities Operations Staff Responsible for implementing the program; ensuring that specific program targets are met on a monthly basis for the activities; overall planning and direct supervision of activities; development of technical staff; conducting meetings with field staff, solving challenges when they occur; advising on all key questions for the program to meet the objectives in a satisfactory and timely manner; compiling monthly data and producing reports on achievements and issues pertaining to the implementation ofproject activities. Responsible for monitoring project activities; providing technical assistance to activities; organizing and expediting field surveys and assessments; and compiling monthly data. Project/Technical Staff (d) Activity Budgets PAl has secured matching funds of $75,000 over 3 years from local and intemational partners to cover part of the operating costs of the teacher training program. All other costs for this program not covered by resources provided by CCC will be borne by PAL (e) Recipient Agency PAl will select a recipient agency (RAs) from among local organizations that have the following: EI EI EI CII Experience operating in the targeted region; Experience working with PAl; Demonstrated experience in agricultural and developmental projects; and Demonstrated management experience in handling financial matters. PAl will enter into an agreement with the RA that will define the responsibilities of both parties. PAl will consult with CCC prior to the selection of RA and provide a copy of the signed RA agreement to CCc. (f) Governmental or Non~governmental Entities The RA selected by PAl will work directly with the following entities: EI The Ministry of Agriculture EI The Ministry of Education EI The National AIDS Commission A-5 (g) Method of Educating Consumers PAJ will publish notifications in local newspapers to highlight its programs in the country. The United States Department of Agriculture (USDA) will be identified as the funding source of the project in these publications. In activities conducted under this agreement, PAl will notify participants that USDA provided funds for the program. PAl will recognize USDA in all printed materials produced by the program with USDA resources. (h) Criteria for Measuring Progress Anticipated monetization completion date: November 2008, or within 4 months after last delivery to Malawi, whichever is later. Anticipated activity completion date: March 2010 Activity Type and Number of Beneficiaries Intended Outcome over 3 years Monetization N/A 8OC}b of U.S. FOB commodity value will be received Farmers Clubs 11,500 families Total Control of the Epidemic 240,000 individuals 220 staff Fair and transparent sales process will be used - 230 Farmers Clubs established - Improved yield per acre (35%) - Improved income per farmer (50%) Decrease in loss of harvest (30%) - Increase in crop varieties (2OCfrJ) - Improved water access (20%) (progress within each area measured in average) - 240,000 people reached with individual HIV & AIDS counseling for behavior change - 1,000 active community volunteers (Passionates) - 400 youth clubs created by Passionates - 10,000 people referred to existing Voluntary Counseling and Testing Services - 2,000 pregnant women informed and referred to Prevention of Mother to Child Transmission Programs - 400 gardens established with vegetables and nutritional herbs to boost the immune system of people living with AIDS A-6 Adivity Type and Number of Beneficiaries Intended Outcome over 3 years Teacher Training 150 teachers New Teacher Training College 60 teacher - 150 teachers trained at Teacher Training College in Blantyre Rural, Malawi - 7,500 chi Idren recei ved lessons - Construction completed of one new rural Teacher Training College and teachers complete their first year of education - Operational support for first year Teachers attending the Teacher Training College received lessons in nutrition and simple methods to pass on the knowledge to students in primary schools in Malawi - Field Officers trained in nutrition and how to utilize the knowledge to spearhead initiatives in TCE to improve the nutritional status of children and adults 10 staff trainees Nutrition Training 150 teachers 200 Field Officers PAl will track implementation of the projects to evaluate progress towards the objectives. During the initial implementation phase, PAl will carry out a baseline survey for the Farmers Clubs and TCE projects. Progress will be measured against this baseline survey after 1.5 and 3 years. PAT will provide these outcomes to CCc. 6. USE OF FUNDS OR GOODS AND SERVICES GENERATED (a) Quantity and Type of Commodities to be Sold or Bartered Cmmnodity Hard Red Winter Wheat Amount to be Monetized 30,000 MT (b) Impact on Other Sales PAl has provided sufficient documentation for CCC to conclude that any sale or barter of the commodities to be supplied under this Agreement would not displace or interfere with any sales that may otherwise be made within Malawi. A-7 (c) Amount of Sale Pro{~eeds Commodity Hard Red Winter Wheat Anticipated Interest TOTAL Anticipated Amount to be Sold Estimated Sales (MT) Price Per Ton $200 30,000 Estimated Proceeds $6,000,000 $6,000 $6,006,000 30,000 (d) Private Sector Participation in the Sale of Commodities PAl will sell the commodities through a negotiated sales methodology. PAl surveyed the market and determined that a negotiated sale would ensure the most favorable price. PAl will keep the local U.S. Embassy informed throughout the sales process. PAl will require the buyer(s) to pay any duties or taxes associated with importing the product into the country. (e) Use of Sale Proceeds Subject to Part II, Item II, Paragraph C, PAl wi II use proceeds as set forth in the following table and in Attachment C: 1st Year Estimated Dollar Amount of Proceeds $400,000 2nd Year Estimated Dollar Amount of Proceeds $512,000 3 rd Year Estimated Dollar Amount of Proceeds $840,000 Total $1,752,000 Total Control of the Epidemic Teacher Training $600,000 $600,000 $600,000 $1,800,000 $250,000 $250,000 $250,000 $750,000 New Teacher Training College Nutrition Training $612,000 $500,000 $172,000 $1,284,000 $80,000 $80,000 $80,000 $240,000 $1,942,000 $1,942,000 $1,942,000 Activities Farmers Clubs TOTAL $5,826,000 A-8 If actual proceeds exceed the antici pated amount or PAl uses less than the total amount that is specified in Attachment C under "Grand Total Costs" approved for monetization proceeds, PAl will allocate the additional or unused proceeds to the Teacher Training activity. If actual proceeds are less than the anticipated amount, PAl will reduce the distribution of proceeds to the Farmers Clubs activity. Farmers Clubs PAl will ammge for the RA to establish Farmers Clubs and train farmers in Malawi to: 1) improve yields by using organic fertilizers and low cost irrigation, including rope pump water techniques; 2) decrease harvest loss through simple drying techniques and storage management; 3) utilize analyses of local commodity markets and prices to determine optimal crops for planting and best marketing strategies to increase income; and 4) negotiate favorable commodity transportation rates to develop new markets and achieve higher prices. The Farmers Clubs project will also include a small grants program. PAl will make approximately 100 small grants at $500-$1,000 per grant, giving priority to small farmers who can present a sound business plan. Approximately two-thirds of the grants will be made for agriculture activities, with the remaining to be made available for activities sllch as water systems, health improvement, construction of latrines and similar rural needs. Total Control of the Epidemic PAl will ammge for the RA to initiate and operate an HIV-education and mobilization drive aimed at behavior change referred to as the TCE program. The TCE systematic approach to behavior change aims to reach every person in a specific geographic area annually and will include recruiting and training of field officers for each of the six target areas. The TeE field officers will visit homes, schools and workplaces. The officers will talk, listen, answer any questions, facilitate decisions about safe sexual behavior, teach coping mechanisms to people living with HIV/AIDS, mobilize people to become volunteers (called Passionates), and train these volunteers to educate others about HIV/AIDS and how to prevent it. Additionally, officers will train peer educators, refer people to health services for voluntary counseling and testing, educate in the prevention of mother to child transmission, and establish vegetable and herb gardens to boost the immune system of people living with AIDS. Teacher Tr-aining PAl will allocate proceeds to train teachers at the existing Development Aid from People to People Teacher Training College. PAl will also use proceeds to improve the college's infrastructure and equipment and to supervise the teacher training program. The trained teachers will work in rural primary schools and provide instruction in the bai>ic core subjects. Teachers also will participate in specialized courses in small business development, health, women's advocacy or community leadership. The teacher training curriculum will include a component of A-9 business skills and the importance of economic development through agriculture. PAl wi II arrange for the RA to establish a model farm at the existing teacher training college both for practical training and to provide nutritious vegetables for the college and for local sale. The sale of vegetables will enable a lasting economic support for the college. New Teacher Training College PAJ will use proceeds during the first two years of the program to construct and equip one new Teacher Training College located in the southern region of Malawi. During the first two years of the program, PAJ will cover approximately 70 percent of the cost of construction and equipment with proceeds of commodity sales. PAl has obtained commitments from other entities to cover the remaining 30 percent. In the third year, PAl will allocate funds for operating support to start up the first team of 60 students who will graduate after 2.5 years. The Teacher Training College will serve as a learning institute and a boarding school with capacity to board up to 120 students and 15 teachers and other staff. The establishment of the new Teacher Training College will increase yearly intake of students, thus broadening the opportunity to create long term development for the rural population of Malawi. Nutrition Training PAJ will allocate proceeds to provide nutrition training and technical assistance to TCE officers. The training will include the importance of soy, but it will also include general training in the importance of good nutrition for people living with HIV/AIDS. PAl will also arrange for the RA to provide nutrition education to students at the existing development-aid agency's Teacher Training College. The training will focus on basic nutrition information, including macrol1utrients, micronutrients, changing nutritional needs throughout the lifecycle, the impact of nutrition on overall health and disease prevention, and dietary guidelines. PAl will provide handouts, pictures, charts and other visual material to facilitate discussion and help trainees share nutrition infonmltion with others in their communities. (f) Procedures for Assuring Receipt and Deposit of Sale Proceeds PAl will sell the commodities on terms that require the payment to be through an irrevocable letter of credit, or secured by either a bank guarantee or another form of payment through a reputable bank in the country or an international bank. PAl will require the buyer to pay 10 percent of the total sale price at the time that the contract is signed and 30 percent each on the date that shipping documents are delivered to the buyer, within 30 days of that date, and within 60 days of that date, respectively. PAl will require the sales agent to have the buyer deposit all sales proceeds into PAl's designated interest-bearing bank account in Malawi. A-lO 7. DISTRIBUTION METHODS (a) Descl'iption of Transportation and Storage PAl will work through a freight forwarder to recei ve bids and arrange shipment of the commodities from the U.S. port to a port in Mozambique with destination to Malawi. PAl will sell the commodities on terms that require the buyer to take delivery at the point(s) of initial discharge in Malawi and to be responsible for clearing cllstoms and handling internal transportation and storage of the commodities within Malawi. Ports in Mozambique have traditionally served as a transshipment points for moving goods in and out of southern Malawi. The ports are fully adequate to meet the needs of vessel harboring and discharge of the donated commodities. (b) Description of Any Reprocessing or Repackaging There will be no reprocessing or repackaging of the commodities. (c) Logistics Plan PAl has provided sufficient documentation for CCC to conclude that the port, transportation, storage and warehouse facilities in Mozambique and Malawi are adequate to handle the flow of commodities to recipients without undue spoilage or waste. 8. DUTY FREE ENTRY PAl will provide in its sale contract(s) that the buyer will be responsible for the payment of any duties or taxes imposed on the commodities. 9. ECONOMIC IMPACT PAl has provided sufficient documentation for CCC to conclude that the commodities to be supplied under this Agreement can be imported and distributed without a disruptive impact upon production, prices and rnarketing of the same or like products within Malawi. ATTACHMENT B COMMODITY SPECIFICATIONS WHEAT HARD RED WINTER Commodity Fact Sheet 1. 2. 3. 4. 5. 6. 7. 8. 9. Class/Grade: Grade: Protein: Moisture (Max.): Dockage (Max.): Test weight Ibs/bu (Min.): Falling Number (Min.): Wheat of Other Classes (Max.): Total Defects (Max.): II Hard Red Winter U.S. No. 2/ob 12.5% 13% 0.6% 58.0 300 3.0% 3.sr~) 1/ Includes damaged kernels, foreign material and shrunken & broken kernels Packaging 50 kilogram bags. Source: USDA:FSA:CPPAD:EPB Janllary, 2005 (Contact 202-690-(194) 6/6/2006 Attachment C FY 2006 Planet Aid, Inc. Country Malawi Agreement #: FCC-612-2006/092-00 Budget#: 2006-105 Amendment: 0 Direct Costs: Activities Office Prof. Services TOTAL DIRECT COSTS: TOTAL INDIRECT COSTS: GRAND TOTAL COSTS: $5,826,000.00 $0.00 $180,000.00 $6,006,000.00 $0.00 $0.00 $0.00 $0.00 $5,826,000.00 $0.00 $595,795.20 $595,795.20 $6,006,000.00 $595,795.20 $6,601,795.20 $0.00 $180,000.00 $6,006,000.00 ATTACHMENT D FOREIGN AGRICULTUHAL SERVICE TERRORIST FINANCING CERTIFICA TION FOR FOOD AID GRANT AGREEMENTS, APRIL, 2005 1. The Cooperating Sponsor, to the best of its current knowledge, certifies that it did not provide, within the previous ten years, and will take all reasonable steps to ensure that it does not and will not knowingly provide, material support or resources to any individual or entity that commits, attempts to commit, advocates, facilitates, or participates in terrorist acts, or has committed, attempted to commit, facilitated, or participated in terrorist acts, as herein defined. For the purposes of this certification: a. "Material support and resources" means currency or monetary instruments or financial securities, financial services, lodging, training, expert advice or assistance, safehouses, false documentation or identification, communications equipment, facilities, weapons, lethal substances, explosives, personnel, transportation, and other physical assets, except medicine or religious materials. b. "Terrorist act" means(i) an act prohibited pursuant to one of the 12 United Nations Conventions and Protocols related to terrorism (see UN terrorism conventions Internet site: http://untreaty.un .org/EngJi sh/Terrori sm.asp); or (ii) an act of premeditated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine agents; or (iii) any other act intended to cause death or serious bodily injury to a civilian, or to any other person not taking an active part in hostilities in a situation of armed conflict, when the purpose of such act, by its nature or context, is to intimidate a population, or to compel a government or an international organization to do or to abstain from doing any act. c. "Entity" means a partnership, association, corporation, or other organization, group or subgroup. II. The following steps may enable the Cooperating Sponsor to comply with its obligations under paragraph 1, above: a. Before providing any material support or resources to an individual or entity, the Cooperating Sponsor will verify that the individual or entity (i) does not appear on the master list of Specially Designated Nationals and Blocked Persons, which list is maintained by the U.S. Treasury's Office of Foreign Assets Control (OFAC) and is available online at OFAC's website: http://www.treas.gov/offices/eotffc/ofac/sdn/t11 sdn.pdf ; (ii) is not included in any supplementary information concerning prohibited individuals or entities that may be provided by Commodity Credit Corporation or the United States Department of Agriculture to the Cooperating Sponsor; and (iii) has not been designated by the United Nations Security (UNSC) 0-2 sanctions committee established under UNSC Resolution 1267 (1999) (the "1267 Committee") [individuals and entities linked to the Taliban, Usama bin Laden, or the Al Qaida Organization] by referring to the consolidated list available online at the Committee's website: http://www.ul1.org/Oocs/sc/committees/1267/1267ListEng.htm. b. Before providing any material support or resources to an individual or entity, the Cooperating Sponsor will consider all information about that individual or entity of which it is aware and all public information that is reasonably available to it or of which it should be aware. c. The Cooperating Sponsor will also implement reasonable monitoring and oversight procedures to safeguard against assistance being diverted to support terrorist activity. III. References in this Financing Certification to the provision of material support and resources shall not be deemed to include the furnishing of funds or commodities to the ultimate beneficiaries of assistance, such as recipients of food, medical care, micro-enterprise loans, shelter, etc., unless the Cooperating Sponsor has reason to believe that one or more of these beneficiaries commits, attempts to commit, advocates, facilitates, or participates in terrorist acts, or has committed, attempted to commit, facilitated or participated in terrorist acts. IV. The Cooperating Sponsor's obligations under paragraph I are not applicable to the procurement of goods or services by the Cooperating Sponsor that are acquired in the ordinary course of business through contract or purchase, e.g., utilities, rents, office supplies, gasoline, etc., unless the Cooperating Sponsor has reason to believe that a vendor or supplier of such goods and services commits, attempts to commit, advocates, facilitates, or participates in terrorist acts, or has committed, attempted to commit, facilitated or participated in terrorist acts.