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Grant AgreementABC-Rainforest ExpeditionsHarpy Eagle Conservation Project in Madre de Dios, 2005200620 October 2005

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GRANT AGREEMENT BETWEEN

AMERICAN BIRD CONSERVANCY

AND

RAINFOREST EXPEDITIONS

This Grant Agreement is entered into effective 20 October 2005, by and between American BirdConservancy (hereinafter referred to as ABC), P.O. Box 249, 4249 Loudoun Avenue, The Plains,Virginia 20198 USA, Federal Tax ID No. 52-1501259, and Rainforest Expeditions, a corporation, whoseaddress is Av. Aramburu 166, Dep. 4b, Miraflores, Lima 18, Per (hereinafter referred to as Grantee).

Whereas, the Grantee and ABC have worked cooperatively to identify a funding need for threatened birdconservation in Peru;

Whereas, this project is fully consistent with the mission of ABC;

Whereas, ABC and the grantee have succeed in raising funding in support of this project;

Whereas, the Grantee is capable and willing to receive funds from ABC and agrees to expend all suchfunds in support ofthe Grantees project Harpy Eagle Conservation Project in Madre de Dios20052006 described in Attachment A in accordance with the terms and conditions of this GrantAgreement.

Now, Therefore, upon the terms and conditions set forth herein, and for good and valuable consideration,including the mutual benefits accruing to each of the parties, ABC and Grantee agree as follows:

A. Scope of Project and Grantee PerformanceGrantee shall competently and diligently accomplish the tasks described in Attachment A, Statement ofWork for Grantee, which is incorporated by reference herein, and as may be amended from time to timeby mutual written agreement of the parties (hereinafter referred to as the Project).

B. Performance ScheduleGrantee shall use his/her best efforts to complete performance of the Project in accordance with theconditions and schedule included in Attachment A.

C. Term of Grant AgreementThe term of this Grant Agreement shall begin on the date of signing, hereafter termed theCommencement Date and shall remain in effect until 1 November 2006 (Expiration Date), or untilthe work required is satisfactorily completed, whichever occurs first, or upon termination by ABC,subject to Paragraph H of this Agreement. Any extension of this term beyond the Expiration Date mustbe in writing and signed by the parties below.

D. Technical Direction

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Grantee shall provide ABCs Project Manager, Dr. Paul Salaman, or his designee, as authorized inwriting, with a monthly written update on Grantees activities in furtherance of the Project. Granteeagrees to adhere to the technical direction provided by ABCs Project Manager in performance of thisProject, including technical direction regarding the scope of work and level of effort to be undertaken by

Grantee.

E. Representations and WarrantiesGrantee represents and warrants that it shall perform all work for the Project in accordance with allapplicable legal requirements and professional standards, and with that standard of care, skill anddiligence normally provided by a professional person or organization in the performance of similar work.Grantee agrees to correct any portion of the Project which fails to meet the above requirements.

F. Consideration and Payment1. In consideration for all work performed pursuant to this Grant, and all rights conveyed, such as

rights to inventions, designs, copyrights, patents and trademarks, ABC shall pay Grantee no morethan $2,479US.

2. Invoices. No invoices will be required under the Grant Agreement.G. Independent GranteeIn performing work for this Project, Grantee shall operate as and have the status of an independent entityand shall not act as or be deemed an employee, servant, agent, partner or joint venturer of ABC. ThisGrant does not constitute an offer of or contract of employment. ABC is not responsible for withholding,and shall not withhold, FICA or taxes of any kind from any payments which it transfers to the Grantee.The Grantee is not entitled to receive any benefits which the employees of ABC are entitled to receive onaccount of their work for ABC. Grantee shall have no power of authority to enter into any agreement orobligation on behalf of ABC.

H. Termination of GrantNotwithstanding any other provision of this Grant Agreement, ABC shall have the right, at its sole option,without cause, and without incurring liability for damages, to terminate this Grant Agreement by givingGrantee thirty (30) days advance written notice. If Grantee defaults on any obligation under this GrantAgreement, ABC may terminate this grant at any time, and Grantee shall return all funds provided byABC in support of the Project within 30 days. In the event that the Grantee cannot utilize the funds asdescribed, Grantee will notify ABC immediately and return all funds received from ABC under this GrantAgreement to ABC within 30 days.

I. Compliance with LawsGrantee agrees to comply with all applicable federal, state, province, district, department, and local lawsof the Grantees home country, or country where work is taking place, in performing this work.

J. Insurance and Hold Harmless and IndemnificationAs an independent entity, Grantee agrees to carry adequate liability and other necessary insurance.Grantee will indemnify and hold harmless ABC and its officers, directors, agents, and employees from

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and against any and all claims, demands, or actions arising out of or resulting from the performance ofthis Project or as a result of this Grant, including instances where such damage is the result of Granteesnegligence, omissions, or other acts.

K. AcknowledgmentABC and the Grantee agree to acknowledge each other in any publications or promotional materialsconcerning the project and to display each of the partners organizational logos where feasible andpractical. This includes, but is not limited to, reports, magazine and newspaper articles, peer-reviewedjournal publications, web pages, press releases describing the project and any signs that may be posted atproject sites.

L. Governing LawThis Grant Agreement shall be governed and construed in accordance with the internal laws of theCommonwealth of Virginia, United States.

M. Executive Order on Terrorism FinancingThe Grantee is reminded that US Executive Orders and US Law prohibit transactions with, and provisionof resources and support to, individuals and organizations associated with terrorism. It is the legalresponsibility of the Grantee to ensure compliance with these Executive Orders and laws. This provisionmust be included in all subcontracts/sub-awards issued under this Agreement.

N. Collecting PolicyIt is the policy of American Bird Conservancy that no funds from any of its grants be used for thecollection or preparation of specimens

O. Entire AgreementThis Grant Agreement represents the entire Agreement between ABC and the Grantee. No modificationor alteration of this Grant is acceptable except upon written agreement signed by both parties.

In Witness Whereof, the parties hereto have caused this Grant Agreement to be executed as of the day andyear first above written.

SIGNATURES

For Rainforest Expeditions For American Bird Conservancy:

Name Name George E. WallaceTitle Title Vice President

Date Date

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ATTACHMENT A

SCOPE OF WORK FOR GRANTEE

The Project:

Harpy Eagle Conservation Project in Madre de Dios, 20052006

During the project execution, the researcher will focus his activities in involving Brazil nutcollectors in the conservation efforts of the Harpy Eagles in the Tambopata and Madre de Diosriver basins, department of Madre de Dios, south eastern Peru. For this I will contact Brazil nutextractors that work in the area in order to train them in the identification and monitoring of

some materials (posters, resumes, ). The methodology will be very similar to that used in theInfierno Native Community (INC).

The major goal of this project is to involve local people in the conservation efforts of this and

other raptor species. As previous studies have shown, people that extract Brazil nuts have greateropportunities to find Harpy Eagles nests than other forest resources extractors. For this, theirinvolvement in the conservation efforts for this and other raptor species is very important.

ACCA (Asociacion para la Conservacion de la Cuenca del Amazonas) a Peruvian NGO isworking in the management and certification of Brazil nut extraction. They are supporting anassociation of local Brazil nut collector that work along the Madre de Dios river. We are incoordination with ACCA staff to start our project with the members of this group.

One of the goals of this association is to achieve the certification of Brazil nut extraction. Wewill propose them to collect data on Harpy Eagles occurrence in their Brazil nut concessions. For

this we will coordinate with ACCA so they can get extra points to achieve the certification oftheir operations. This can promote extractors involvement in raptors conservation.

In addition, Harpy Eagles nests can be used as an ecotourism attraction if careful steps are takenin the process. I have worked with this approach in the INC for some year and as a result localinhabitants at de INC are deeply involved in the conservation of the species. Is important tomention, however that one of the reason of this success is the participation of the Peruvianecotourism company Rainforest Expeditions (RFE). Conversations will be conducted with RFEsmanager so they can include these nests in their operations (i.e. taking birdwatchers,photographers or filmmakers). This can provide an extra source of income for Brazil nutextractors participating in harpy Eagles monitoring and conservation.

Lastly, Peruvian National Institute for the Management of Natural Resources (INRENA) shouldbe involved in order to collect data on the occurrence of Harpy Eagles (and other eagle speciesas well). For this we will design a protocol for the gathering of data of nesting eagles. The formswill be filled by the nut extractors and passed to INRENA officers via ACCA. Ideally INRENAofficers will visit the extractors to check and complement the information.

After the conduction of this project we will have trained at least one group of well organized

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Brazil nut extractors in the identification and monitoring of Harpy Eagles nests and individuals.They will also be trained in order to conduct low impact ecotourism activities (mainlyobservation of adult and juvenile eagles) in their concessions. The project will help these peopleto generate and extra income through the sound management of this and other big raptor speciesand will contribute to their certification process.

In addition Peruvian authorities will be able to gather more data in the occurrence of HarpyEagles. This data will help to better understand the current status of the species in the Madre deDios department.

Timing of Grant: 20 October 20051 November 2006

Payment: $2,479 payable on receipt of signed grant agreement.

Products Required Under This Agreement:

The grantee will provide a final report detailing progress in achieving the proposed activities. Be

sure to describe any significant outcomes as well as problems in completing the project. Thisfinal report should not exceed 5 pages in length. The due date for this report is within 30 days ofthe end of the grant period.