Cabinet of Ministers Regulations No. 118 in 2016 (1 March. No 10 3) rules for financial instruments and Fund of Fund for the implementation of operational programmes for the "growth and jobs" 3.1.1. specific aid target "to promote small and medium-sized business creation and development, particularly in the manufacturing sector and priority sectors" and RIS3 3.1.2. specific objective "to increase the growth of the number of operators ' implementation of measures issued in accordance with the European Union's structural funds and the cohesion fund the 2014 – 2020 programming period management law article 20 paragraph 14 i. General questions 1. determines the : 1.1 the procedures for implementing the action programme "growth and employment" 3.1.1. specific aid target "to promote small and medium-sized business creation and development, particularly in the manufacturing sector and RIS3 in priority sectors" (hereinafter 3.1.1. specified the purpose of the aid) and specific support for 3.1.2. target "to increase the growth of the number of operators" (hereinafter referred to as 3.1.2. specified objective) measures in the form of financial instruments through a Foundation Fund (hereinafter Fund); 1.2. the funds available under the Fund; 1.3. financial instruments the Fund and actions supported and eligible costs. 2. the funds of the European Parliament and of the Council of 17 December 2013 Regulation (EU) No 1303/2013 laying down common provisions on the European regional development fund, the European Social Fund, the Cohesion Fund, the European agricultural fund for rural development and the European Fund for Maritime Affairs and fisheries and general provisions on the European regional development fund, the European Social Fund, the Cohesion Fund and the European Fund for Maritime Affairs and fisheries (hereinafter Regulation No 1303/2013) Article 2, paragraph 27 and article 37 within the meaning of paragraph 1 shall be established to support the implementation of the specific objectives of the measures to support the financial instruments in the form of final beneficiaries that do not attract enough funding from the financial markets of viable projects. The final recipient of the regulations No 1303/2013 article 12, paragraph 2, the meaning is a person who receives financial support through financial instruments. 3. the funds within the overall European Regional Development Fund for financing specific 3.1.1 and 3.1.2. the objective of the aid is eur 126 000 000 (see reserve volume 7 560 000 euro): 3.1.  3.1.1. the specific objective of the aid – € 51 000 000; 3.2.3.1.2. specific aid target-75 000 000 euro. 4. The European regional development fund, the conclusion of this provision the funding referred to in paragraph 14 of the agreement on the implementation of the Fund (hereinafter referred to as the financing agreement) is 118 440 000 euro. 5. the Fund's financial instruments funded in addition to can be attached to shares of the company "development financial institution Viola" (hereinafter referred to as society Viola), financing or pay off the previous programming period, as well as financial intermediaries financial resources intended for financial instruments the State aid programme (hereinafter referred to as the State aid program). In addition to the community of Viola can be attached to the loan, as well as other financial resources, European strategic investment fund. 6. From 1 January 2019, a responsible authority following the decision of the European Commission for the implementation of performance frameworks may propose to increase the available European regional development fund to this provision in paragraph 3 above. 7. within the framework of the Fund, monitoring indicators and milestones to be achieved values: 7.1 until 2023 December 31 3.1.1. specific aid objectives achievable within a specific table of results according to the steps in the "growth and employment": fixed in 7.1.1. small and medium-sized merchants per 1 000-40 merchant; 7.1.2. small and medium-sized business productivity per employee, eur 16 757; 7.2. to 2023 December 31 3.1.2. specific aid objectives achievable within a specific table of results according to the steps in the "growth and employment" defined-growth economic operators by revenue growth – 625 merchant; 7.3. to 2023 December 31 3.1.1. specific aid objectives within achievable outcome indicator according to the steps in the "growth and employment" defined: 7.3.1. operators who receive financial aid, not gravel,-790 merchants; 7.3.2. supported the newly established merchant number 160 merchant; 7.3.3. attract private financing – 12 750 000 euro; 7.3.4. employment growth has supported enterprises-160 pilnslodž equivalent; 7.4. to 2018 31 December 3.1.1. specific aid objectives within achievable outcome score values: 7.4.1. economic operators who receive financial aid, not gravel,-250 economic operators; 7.4.2. supported the newly created operator of 50 merchants; 7.4.3. attract private co-financing, eur 2 000 000; 7.4.4. the growth in employment support companies-50 pilnslodž equivalent; 7.5. to 2023 December 31 3.1.2. specific aid objectives within achievable outcome indicator according to the steps in the "growth and employment" defined: 7.5.1. merchants who receive financial aid, not gravel,-100 merchants; 7.5.2. supported the newly created operator of 60 economic operators; 7.5.3. attract private financing-23 375 000 euro; 7.6. to 2018 31 December 3.1.2. specific aid objectives within achievable outcome score values: 7.6.1. merchants who receive financial aid, not gravel, 34 merchants; 7.6.2. supported the newly created operator of 24 merchant; 7.6.3. attract private financing – 4 500 000 euro; 7.7. to 2018 December 31 target financial ratios: 7.7.1.  3.1.1. the specific objective of aid certified by the European regional development fund expenditure of eur 8 399 700; 7.7.2.3.1.2. specific support objective, certified by the European regional development fund expenditure of eur 18 750 000.

II. the Fund's requirements and the adopters of the financing arrangements for the conclusion of an agreement between Foundation panels 8 under regulations No 1303/2013 article 38 paragraph 4 b ii "section is a company, and Viola financing agreement at the time of the conclusion of the Ministry of economy as the responsible authority and the Ministry of finance as a managing authority has confirmed its compliance with the European Commission on March 3, 2014. the delegated Regulation (EU) no 480/2014 supplementing the European Parliament and Council Regulation (EU) No 1303/2013 laying down common provisions on the European regional development fund, the European Social Fund, the Cohesion Fund, the European agricultural fund for rural development and the European Fund for Maritime Affairs and fisheries and general provisions on the European regional development fund, the European Social Fund, the Cohesion Fund and the European Fund for Maritime Affairs and fisheries (hereinafter Regulation No 480/2014) , article 7. The company and the Viola of 3.1.1.3.1.2. specific measures in support of the objectives of introducing a directly or indirectly in the form of financial instruments in accordance with the State aid programs and funding agreement. 9. the Fund shall be implemented according to the assessment of market failures that were developed by the Ministry of economy of Regulation No 1303/2013 article 37 2 and 3 point. The Ministry of economy market failures during the initial and subsequent versions of the information submitted to the European Union's structural funds and the Cohesion Fund Monitoring Committee (hereinafter referred to as the Committee). 10. the company's development fund investment of Alto strategy and implementation plan (the total business plan) pursuant to Regulation (EC) No 1303/13 Annex IV, paragraph 1, "a" and "b" to point and Development financial institutions act, article 12 a third part, including information about each specific objective measures of the impact of financial instruments, risks and expected losses, the financial results of each programme implementation costs and repayment amount. 11. the Ministry of the economy 20 working days of the appearance of the company's business plan submitted to the Viola, and according to the internal regulations of the Ministry of Economic Affairs the Act assess whether it complies with the provisions of paragraph 10 of the above requirements, or it prevents the market failures in the area of access to finance, as well as the business plan or operations are defined in the State aid programs (if applicable). If the business plan need to clarify or supplement, the Ministry of economy on the letter to inform the public of the Viola and asked to troubleshoot failures within 10 working days from the date of dispatch of the letter. 12. Ministry of the economy within 10 working days of the receipt of the adjusted business plan to consider and, if it complies with the rules in paragraph 11 of the said conditions, shall take a decision on the company's business plan approval of the Viola and the Viola Forum together with the company's business plan forward to the liaison body. 13. the cooperation of the authority and the public 25 business days Viola after the rules referred to in paragraph 12 of the decision of the receiving switch financing agreement under Regulation No 1303/13 Annex IV, subject to the provisions of paragraph 4. 14. cooperation authority have the right to unilaterally withdraw from the financing agreement: for 14.1 if the company Alta financing agreement during the implementation of the cooperation body deliberately provides false information; 14.2. in the other cases laid down in the financing agreement. III. Fund and the financial instrument for the implementation of the 15 public fund and funded by the Viola financial derivatives separated as a separate block of finance, in accordance with Regulation No. 1303/2013 38. paragraph 6 of article.

16. the Fund supported the public forum is the Viola actions 3.1.1 and 3.1.2. specific aid. the target set by the financial instrument for the implementation and management. 17. the Foundation and framework of financial instruments the following eligible costs: 17.1. financial instruments the final beneficiaries of payments under the national support programmes; 17.2. features that guarantee in the form of financial instruments in support of specific target 3.1.1 3.1.1.1. measures of "the loan guarantee as part of" according to Regulation No 1303/2013 article 42 paragraph 1 point "b" above and Regulation No 480/2014 the procedures laid down in article 8; 17.3. capitalized on the guarantee fee subsidies 3.1.1. specific aid target 3.1.1.1. event "loan guarantees" under regulations No 1303/2013 article 42 paragraph 1 point "c" and in Regulation No 480/2014 of the procedures laid down in article 11, if the financial instrument of the State aid program provides a guarantee fee subsidies; 17.4. the introduction of the fund company's Alta management costs not exceeding the Regulation No 480/2014 article 13 and paragraph 3 limits. This costs referred to in the preparation of the implementation of the Fund may be allocated, from 30 April 2015; 17.5. indirect financial instruments financial intermediaries management fee set by procurement public procurement law; 10.9. the society of the financial instrument the Viola direct management costs by up to 2014 to Regulation No 480/article 13, paragraphs 2 and 3 limits. 18. the cost of implementing the management of the Fund, which is calculated based on performance results, apply a 2% reduction if, in accordance with Regulation No 480/2014 12 criteria defined in article: 18.1. incidence at the end of the period of the Fund within the framework of the European regional development fund learning is less than 80%; 18.2. the relevance of the Fund at the end of a period of total loss greater than 30% of the total amount of investments in financial instruments, other than investments in financial intermediaries management fees and management costs; 18.3. supported a number of economic operators indirectly financial instruments is less than 98.19. Fund implementation of the Viola society management costs and direct management of financial instruments, costs, if any, provided for the following cost items: 19.1. staff costs; 19.2. the consultant, expert and specialist remuneration; 19.3. the service (enterprise agreements); 19.4. learning, work and service travel and business travel costs; 19.5. the transport and transport costs; 12.2. logistics security acquisition and maintenance costs; 19.7. work equipment acquisition and maintenance costs; 19.8. the space, facilities and equipment means the rent and the rent; 12.4. the maintenance and management costs; 19.10. information database and system design and development costs; 19.11. software license costs. 19.12., office stationery, equipment and inventory costs; 19.13. communication costs; 19.14. information and publicity measures and material costs; 19.15. representation expenses and the membership fee of the Association; 19.16. health insurance costs; 19.17. vehicles, property and equipment insurance costs; 19.18. Management liability insurance costs; 19.19. recovery and recovery processes and the provision of associated costs; 19.20. the financial audit expenses; 19.21. society of equipment owned by the Alta depreciation expenses; 19.22. value added tax costs if they are not recoverable. 20. in paragraph 17 of these regulations, such costs are eligible if they are experiencing up to 2023 December 31 or later, if they comply with regulations No 1303/2013 and of article 42 (3) and Regulation No 480/2014 conditions of article 14. 21. the society of the introduction instruments the Viola direct management costs, but after December 31, 2023-public fund implementation of the Viola management costs, which are not included in these rules and in 17.4.10.9 in those eligible costs may be reimbursed, funding under Regulation No. 1303/2013 44 of the procedures laid down in article. Conditions of direct instruments of public implementation of the Viola in the management costs for the extension of the funding from the refund shall determine the relevant national support programmes under the European Commission's 2015 June 9 decision no SA. 36904 (2014/N) "on State aid and Development financial institutions of Latvia created" for management costs reimbursed. 22. Public funds and of the Alto instrument of management the financial cost is calculated in accordance with the firm's management of the Alto cost calculation methodologies that coordinate with the Ministry of economy and the Ministry of Finance before the financial closing of the agreement, subject to this provision 17, 20 and 21, as well as the European Commission guidelines. 23. All financial instruments are financed within the framework of the final beneficiaries ' activities in the Republic of Latvia to the extent that the Fund is invested in financial instruments total final beneficiary for financing other than financial intermediary management costs, or to a lesser extent, pursuant to Commission Regulation (EC) No 1303/2013 article 70, paragraph 2 limits and conditions. 24. the introduction of the Fund, the company is obliged to: Alto 24.1. introducing specific measures in support of the objectives of direct financial instruments: 24.1.1. make the final selection of the beneficiaries, subject to state aid in the financial instrument for the implementation of certain conditions and financed investment projects of potential economic viability. Alta Museum society is obliged to ensure an open, transparent and justified the selection by ensuring equality and preventing conflict of interest; 24.1.2. to provide support in accordance with the conditions of State aid; 24.1.3. to inform the beneficiary of that aid financed from the European regional development fund; 24.1.4. to provide cooperation authority reports on support; 24.1.5. collect and publish information on end beneficiaries; 24.2. introducing specific measures in support of the objectives of the indirect financial instruments: 24.2.1. to organize the financial intermediary selection in an open, transparent, proportionate and non-discriminatory procedure, avoiding conflicts of interest and subject to the public procurement law, as well as Regulation No 480/2014 article 7 paragraph 3 of the terms and conditions; 24.2.2. conclude agreements with financial intermediaries pursuant to regulations No 1303/2013 IV; 24.2.3. to ensure that the financial intermediaries comply with Regulation No 480/2014 article 7, and that they comply with the obligations laid down in the Treaty, and make unbundled accounts and follow the publicity requirements; 24.2.4. to monitor and control the activities of financial intermediaries, to monitor the use of funding under the objectives and in accordance with the State aid specified in the program; 24.2.5. summarize the information provided by the financial intermediaries and to prepare reports for submission to the Office of cooperation for the implementation of the financial instrument; 24.2.6. collect and publish information on end beneficiaries; 24.3.25 working days after a new State aid programs (or Amendment) comes into force to review and propose amendments to the business plan (if applicable). Business plan amendment procedure laid down in the financing agreement; 15.2. the time limits laid down in the financing agreement to submit to the authority of the cooperation regulations No 1303/2013. the information referred to in article 46; 15.2. to accumulate, and the deadlines in the financing agreement for the cohesion policy fund management information system for information about the 2014 – 2020 programming period; 24.6. in accordance with the free management methodology to invest in the Fund and the financial instruments that are not used in these rules referred to in paragraph 17 of the eligible cost.

IV. obligations of the Ministry of Economic Affairs to the Ministry of Economy is 25 obligation: 25.1. review once a year and the current year to 1 may specify market assessments in accordance with the approved State aid schemes. If the Ministry of Economic development of market failures in the evaluation of financial instruments not listed on the application of State aid or State aid in financing specified exceeds the market failure in the assessment of the funding shortfall, the Ministry of economy shall make any amendments to the evaluation of market failures and submit it to the information in the Monitoring Committee before the State aid programme is approved; 25.2.25 working days, after the evaluation of market failures or its amendments are considered, the Monitoring Committee to have it published in the Ministry of Economic tīmekļvietn; 15.7. to take a decision on the company's business plan and the Viola of the amendment; 25.4. at the invitation of the liaison bodies to provide advice on the implementation of the Fund; 25.5. to collaborate with the public financial intermediaries in the Viola and to improve public support for the implementation of the programme. V. cooperation authority 26. Cooperation authority: 26.1. develop a financing agreement in accordance with regulations No 1303/13 Annex IV, with the exception of regulations No 1303/13 Annex IV, paragraph 1, of the "i" and "j". 26.2. the supervision of the implementation of the Fund in accordance with the laws of the order in which the inspections are carried out under the European Union's structural funds and the cohesion fund projects in 2014 – 2020 programming period, as well as subject to the provisions of Regulation No 480/2014 article 9 (1) of the regulation and other legislation and State aid Fund of the European Union; 16.3. the company's proposed amendments of Alto business plan with the Ministry of economy; 26.4. once a year, to inform the Secretariat of the Monitoring Committee of the company's eligible and approved of Alta management costs in accordance with Regulation No 480/2014 article 12 paragraph 2. Vi. Payment Fund. the Fund's implementation of 27 company open an account of the Viola in the State to which to transfer the funds within the financial resources provided. 28. The financing agreement shall determine the order in which the liaison body shall take the financing charges, interim payments to the Fund and the financial instruments of Regulation No 1303/2013 article 41, paragraph 1, as well as the procedures laid down pursuant to this provision of paragraph 4. VII. final question 29. Society of Viola within 15 working days after the date of entry into force of these regulations shall be submitted to the Ministry of the economy in the business plan. Prime Minister Māris kučinskis Deputy Prime Minister, Minister of economy of Ašeraden of Arvil