3. pants

In addition to Clause 2 above,

the following defined terms and expressions shall bear the

following meaning, unless the context requires otherwise:

a) Annual Costs: means the

Costs incurred for the operation of the JEREMIE Holding Fund in a

given calendar year, as evidenced from year to year in the

relevant Cost Payment Statement;

b) Associated Expenses:

means the Costs mentioned in Clause 5 below;

c) Costs Payment Statement:

means the document, substantially in the form attached hereto as

Annex 2, to be provided by EIF to the Project Steering Committee

as provided under Clause 11 below, providing for the relevant

Annual Costs and details of calculation;

d) EIF Direct Costs: means

the aggregate of the EIF Standard Costs, the EIF Travel Costs and

the EIF Local Office Costs;

e) EIF Direct Costs

Advance: means the annual amount EIF will receive for each

calendar year, in quarterly instalments, in accordance with

Clause 9 below, to cover the forecasted EIF Direct Costs for the

same calendar year. For each calendar year, the amount of EIF

Direct Costs Advance applicable shall be indicated in the Annual

Budget;

f) EIF Direct Costs Balance

Payment: means, for any calendar year, the annual alignment

of the EIF Direct Costs Advance with the actual EIF Direct Costs

for such calendar year, to be made in accordance with Clause 11

below;

g) EIF Direct Costs Bank

Account: means the sub-bank account, to be opened by EIF

within the JEREMIE Bank Account, from where all EIF Direct Costs

are paid as provided in this Costs Appendix;

h) EIF JEREMIE Employee:

means any EIF operational staff member from time to time

allocated to the compliance with the Task, which includes the

performance of the JEREMIE Action;

i) EIF Local Office Costs:

means the costs and expenses, to be incurred by EIF in connection

with the compliance with the Task, relating to the establishment

and operation of the EIF office in Riga, calculated as provided

under Clause 4.3 below;

j) EIF Standard Costs:

means the costs and expenses to be incurred by EIF in connection

with the compliance with the Task, calculated on the basis of the

EIF Standard Cost Rate as provided under Clause 4.1 below;

k) EIF Travel Costs: means

the costs and expenses, to be incurred by EIF in connection with

the compliance with the Task, relating to travel of EIF JEREMIE

Employees, in accordance with the travel policy from time to time

applicable within the European Investment Bank group, calculated

as provided under Clause 4.2 below;

l) Expenses Bank Account:

means the sub-bank account, to be opened by EIF within the

JEREMIE Bank Account, from where all Associated Expenses are paid

as provided in this Costs Appendix.