3. Article

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.