The World Bank H str*t N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELO MENTLJ Rrington D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION M U.SP3 Cable Address: INDEVAS 00CUMEN SDev Growing Innovatior February 14, 2013 Mr. Bagrat Yengibaryan Director Enterprise Incubator Foundation 123 Hovsep Emin Street Yerevan 0051 Republic of Armenia Dear Mr. Yengibaryan: Regional Mobile Applications Lab in Armenia Grant, TF099367 Amendment to the Grant Agreement We refer to the Grant Agreement between the Enterprise Incubator Foundation ('Recipient') and the International Bank for Reconstruction and Development, acting as administrator of grant funds provided by the infoDev Multi-Donor Trust Fund (the 'Bank') dated April 6, 2011, as amended from time to time. We also refer to discussions held between the Recipient and the Bank staff and the letter dated January 10, 2013, requesting modifications to the Grant Agreement. The Bank, after due consideration, accepts your request. Accordingly, the Grant Agreement is hereby amended as indicated in the Attachment to this amendment letter. Except as specifically amended by this amendment letter, all other provisions of the Grant Agreement remain in full force and effect. Please confirm your agreement to this amendment by signing the form of confirmation set forth below, and returning to us one fully executed original of this amendment letter at your earliest convenience, and retaining one original for your records. RCA 248423 0 WUI 64145 L., FAX (202) 477-6391 Enterprise Incubator Foundation -2- February 14, 2013 Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Valerie D'Costa infoDev Manager AGREED: Enterprise Incu tion Authorized Representative Name 74 AM Title _ _ _ _ _ DateJ Enterprise Incubator Foundation -3- February 14, 2013 ATTACHMENT 1) Paragraph one (1) of the Agreement is revised and hereby amended to read as follows: 'Following the recent competitive tendering process for establishing a mobile applications lab in the ECA region, I am pleased to inform you that the International Bank for Reconstruction and Development ("World Bank"), acting as administrator of grant funds provided by the infoDev/ Finland Trust Fund on Creating Sustainable Businesses in the Knowledge Economy, proposes to extend to the Enterprise Incubator Foundation ("Recipient") a grant in an amount not to exceed Five Hundred and Eighty Five Thousand United States Dollars (U.S.$585,000) ("Grant") on the terms and conditions set forth or referred to in this Grant Agreement ("Agreement"), which includes the attached Annexes, to assist in the financing of the project that is described in the Annexes ("Project").' 2) The Annex to the Agreement is revised and is hereby amended to read as follows: 'PART 1: Project Objective and Activities The objective of the Project is to increase the competitiveness of innovative enterprises in the mobile content and applications area, and to ensure that locally relevant applications are created to meet growing developing country user demands. The Project consists of: 1) Establishment and operation of a regional Mobile Applications Laboratory (mLab), which will provide infrastructure and resources and serve as a regional hub for building and promotinq core competencies in development of innovative mobile applications/ solutions in the ECA Region. 2) Supporting early stage innovators to develop and commercialize innovative mobile applications, content and services by implementing a serious of training, awareness and outreach efforts, innovation acceleration, and pre-incubation activities. 3) Stimulating local eco-system to increase commercialization rate of innovative mobile applications, content and services that have potentialfor significant development impact, and that target and have greater reach to developing country users and bottom of the pyramid populations. Enterprise Incubator Foundation -4- February 14, 2013 4) Strengthening competitiveness of mLab incubatees and beneficiaries to form new and viable startups through coaching, mentoring and quality and productivity management. 5) Developing a business case for the mLab to ensure that long term sustainability is prioritized. 6) Establishing and implementing a monitoring and evaluation framework and process for the mLab . PART 3: Project Scorecard The Intermediary Project deliverables are as follows: Activity 1: Establish and launch a regional Mobile Applications Laboratory (mlab), which will provide infrastructure and resources and serve as a regional hub for building and promoting core competencies in development of innovative mobile applications/ solutions in the ECA Region. Activity 1.01: mLab space opened Activity 1.02: mLab Manager hired Activity 1.03: Mobile application testing environment setup Activity 1.04: A virtual space established (website created, providing a repository of articles, resources, database of application developers and helpful tools) Activity 2: Source and nurture early stage innovators to develop and commercialize mobile applications, content and services by implementing a serious of awareness and outreach efforts, innovation acceleration, and pre-incubation activities Activity 2.01: Several developer events, competitions and challenges organized, including a regional challenge in collaboration with ECA mHubs and other partners covering 11 countries and implementation of best rural apps contest Activity 2.02: Outreach activities held in Moldova, Georgia, and Ukraine Activity 2.03: 200 students trained in mobile app development, business & entrepreneurship training Enterprise Incubator Foundation -5- February 14, 2013 Activity 3: Strengthen competitiveness of m:ab incubatees through quality and productivity management Activity 3.01: 15 trained incubatees brought to the market, including at least 10 startups hosted within the mLab Activity 3.02: Up to two teams benefiting from a seed funding and support as a result of the m2Work challenge and hackathon Activity 3.03: A minimum of two winning teams from the rural mobile apps hackathon will be incubated in the mLab and assisted in getting their products to the market Activity 4: Stimulate local eco-system to increase commercialization rate of mobile applications, products and services that have potentialfor significant development impact, and that target rural, local and bottom of the pyramid populations Activity 4.01: Market research on mobile applications on rural development conducted and findings disseminated Activity 4.02: Organize a hackathon to develop applications/solutions that meet demands of rural enterprises, complemented with one month intensive mentoring and coaching of these teams prior to the hackathon Activity 4.02: Include Inclusive Innovation aspects into other activities of the mLab Activity 5: Develop a business case for the mLab to ensure that long that term sustainability is prioritized Activity 5.01: Business plan for the mLab to be submitted annually at a date specified in the scorecard, and progress towards meeting sustainability targets as specified in the scorecard. The business plan should include at least the following: * A Business model detailing product/service offering and key partnerships * A sustainability and revenue plan for the lab (to be submitted annually at a date specified in the scorecard) * Targets and Key Performance Indicators * Marketing Plan * Staffing Plan * Governance Structure Enterprise Incubator Foundation -6- February 14, 2013 Activity 5.02: Bring on one other financial sponsor Activity 5.03: Collaboration with mHubs and with other similar organizations within ECA and with other regional mLabs Activity 6: Establish and implement a monitoring and evaluation framework and process Activity 6.01: Development of an mLab scorecard. In consultation with, and with advice from the World Bank, the Recipient will develop a scorecard to measure the outcomes and impacts of the mLab, as well as the performance of the mLab implementation process. Activity 6.02: An updated scorecard should be submitted at a semi-annual basis, at the end of the grant period and one year post-implementation. In order to monitor the implementation of the Project and to evaluate the outcomes, the indicators should be reported in a timely manner with a full summary at the completion of the Project.