13. Article

A budget containing the forecast of the level of the Costs for the first 3 year period, is attached hereto as Annex 3. The Parties acknowledge that such forecast has no binding value, and as a mere forecast made on the basis of the information available on the date hereof is subject to change should not be relied upon by the Parties or by any other third parties for the calculation of the Costs for the period considered. Annex 1 to Costs Appendix Estimated EIF Standard Cost rate for the year 2008 In accordance with the Funding Agreement, specifically allocated EIF personnel (defined in this Costs Appendix as "EIF JEREMIE Employees") will carry out the activities contemplated in the Funding Agreement in connection with the establishment and operation of the JEREMIE Holding Fund in Latvia. EIF expects assigned resources to equal 3.5 personnel for the first three years, as shown below. In addition to these assigned resources, the EIF will assign from time to time different personnel to the required tasks capitalising on the experience of approximately 100 professionals from EIF's Head Office in Luxembourg. The contribution of these additional resources is included in the calculation of the EIF Standard Costs Rate applicable from year to year, and will therefore entail no additional cost to the Government of Latvia. These additional resources will assist the allocated EIF JEREMIE Employees in any activities relevant for the JEREMIE Holding Fund, including investment-related activities such as product structuring, negotiation with financial intermediaries, due diligence reviews, and legal structuring of any transactions, and back office activities such as reporting and monitoring of investments, fund accounting and systems maintenance. The combination of dedicated resources working on the mandate and the additional expertise provided by EIF professionals will be continually managed by the relationship manager for the Government of Latvia to ensure all aspects of the Funding Agreement are successfully implemented. The table below provides an estimate of the EIF Standard Cost Rate applicable for the year