CCM GF Secretariat Local Fund Agent Sub-Recipient Principal Recipient

 MINISTRY OF FINANCE AND DEVELOPING PLANNING – GLOBAL FUND COORDINATING UNIT

The Global Fund entered into a Program Grant Agreement with the Principal Recipient (PR).
The PR is a legal entity validly existing under the laws of the jurisdiction in which it was
formed. The Principal Recipient therefore has all the necessary power, authority and legal
capacity to: (i) own its assets; (ii) conduct Program activities; and (iii) enter into this
Agreement.

The Principal Recipient’s activities are operated in compliance with Host Country law and
other applicable law, including but not limited to intellectual property law.

The Grants coordinated by PR are in addition to the resources that Lesotho receives from
external and domestic sources to fight the diseases HIV and TB, or, if applicable, health
expenditure (if Health Systems Strengthening).

The targets set for the Program National targets that need to be reported and are made
possible by the additional funding provided by the Global Fund under all the agreements
signed with the PR.

COVENANTS OF THE PRINCIPAL RECIPIENT

The Principal Recipient always covenants and agrees with the Global Fund the following
during the Program Term:

Authority. The person signing documents related to this Agreement (including any
amendments to this Agreement) will have, at the time of such signing, the authority to sign
such documents.

Notice of Material Events. The Principal Recipient shall immediately provide written notice
to the Global Fund of any claims, investigations or proceedings which, if determined
adversely, could reasonably be expected to result in a material adverse effect on the ability of
the Principal Recipient or any Sub-recipient (as described in Article 14 of this Agreement) to
implement the Program or perform any of the other obligations under this Agreement.

Conduct of Business. The Principal Recipient shall, and will ensure that each Sub-recipient
shall, do all the things necessary to preserve, renew, and keep in full force and effect its legal
existence and the rights, licenses and permits which may be required to implement Program
activities for which they are responsible.

Compliance with Laws. The Principal Recipient shall, and shall ensure that each of its Sub-recipients
shall, comply with Host Country law and other applicable law, including but not
limited to intellectual property law, when carrying out Program activities.

Notification of Additional Funding. The Principal Recipient shall provide written notice to
the Global Fund of any additional funding received by the Principal Recipient which may
require an adjustment to the Program in order to meet its obligations.
.
The Principal Recipient is obliged to provide to the Global Fund the periodic reports and
Annual Progress reports as specified in all the agreements signed. In addition, the Principal
Recipient is expected to provide to the Global Fund such other information and reports at
such times as the Global Fund may request. From time to time, the Global Fund may provide
to the Principal Recipient guidance, through postings on the Global Fund’s Internet web site
or through implementation letters, on the acceptable frequency, form and content of the
reports required under this Article. The Principal Recipient is expected to provide to the
CCM a copy of all reports that the Principal Recipient submits to the Global Fund.

1. Periodic Reports. : The periodic reports are expected to be submitted not later
   than 45 days after the end of each reporting period which will include report on
   the progress towards Program objectives and targets for that period. The
   Principal Recipient must submit periodic reports on the form provided by the
   GF. For the period in question, the Principal Recipient shall explain in the
   report any variance between planned and actual achievements and between
   planned and actual expenditures.
   
2. Annual Progress Reports. Not later than 18 months after the Phase 1 Starting
   Date, and every year thereafter, the Principal Recipient should submit to the
   Global Fund, in form and substance satisfactory to the Global Fund, an Annual
   Progress Report covering programmatic progress during the Principal
   Recipient’s preceding programmatic or fiscal year. Guidance on the form of
   this report is available upon request from the Global Fund.

Representative authorizes to sign on behalf of the Lesotho Government or PR is the Hon.
Minister of Finance and Development Planning, Dr. Timothy Thahane while the Name of the
Person for notices to the Principal Recipient is Mr. Nicholas Mosito Khethisa, the Chief
Executive, and PDA & FA