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FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN LATVIAN NATIONAL ARMED FORCES AND ESTONIAN DEFENCE FORCES CONCERNING TRAINING OF FIGHTER CONTROLLERS OF LATVIAN AIR FORCE IN LIVE AIRCRAFT INTERCEPT MISSION

The Latvian National Armed Forces, as represented by the Latvian Air Force, and the Estonian Defence Forces, as represented by the Estonian Air Force (hereinafter - the Parties),

Taking into account the provisions of section XI, paragraph 11.2. of the Memorandum of Understanding between the Estonian Defence Forces and Latvian National Armed Forces concerning training of fighter controllers of Latvian Air Force in live aircraft intercept mission signed on October 26, 2006 in Riga (hereinafter - MoU), which allow the MoU amended or terminated by mutual agreement of the Parties,

Have agreed to make the following amendments to the MoU:

1. Section V, paragraph 2, due to the changes in the costs of one flying hour, will be modified as follows:

"5.2. The cost of one (1) flying hour is specified in Annex";

2. In Section V, paragraph 3, due to the changes in requested amount of flying hours, will be modified as follows:

"5.3. The total amount of the expenditures on training of the Fighter controllers and training period is specified in Annex.";

3. Annex to the MoU will be introduced in a new wording as follows:

ANNEX

Breakdown of the costs of flying hour for jet trainer aircraft L-39 Albatross

1. Total amount of the expenditures for training period from the 26^th March until the 31^st of December 2007 is 100 hours with 3 030€ per hour.

2. Breakdown of the costs of flying hour for jet trainer aircraft L-39 Albatross:

The cost of one flying hour of L-39 consists of:

a. Costs for rent of the jet trainer aircraft L-39 Albatross in €: 2 614€

b. Costs for fuel JET-1 per hour in €:

- 448€ (maximum 700 liters per hour at 0,64€ per liter)

- 416€ (average 650 liters per hour at 0,64€ per liter)

c. Costs for navigation services when Estonian Air Force Base Ämari becomes u/s due snow and icing:

- Landing fee at Tallinn airport 22,60 €

- Terminal navigation services 29 €

- Total fees per mission, per a/c: 51,60 € (average 35 € per hour)

The average costs of one flying hour of the jet trainer aircraft L-39 Albatross are equal to 3 030€ (3 062€ at maximum fuel consumption) plus 51,60€ for each mission starting and ending in Tallinn.

4. The First amendment will enter into force on the date of the last signature.

Done in 2 (two) original copies in the English language, one for each of the Parties.