Overview of salary structure in Bulgaria May 2011

In 2011, total employer contribution is 17.9% over gross salary, while employee contribution is 12.9% Slide 2Source: InvestBulgaria; National Statistics Institute The above contributions are calculated on the remuneration and other employment income of the employee for the respective month but on no more than the maximum monthly insurance base fixed annually in the Mandatory National Insurance Budget Act. The fixed base as of 2008 is BGN (~ EUR 1 023) * Employees working under the conditions of 3rd category work and born after year Type of insurance Paid by Total (%) Employer (%)Employee (%) Health Social: Pension insurance fund * Additional Compulsory Pension Insurance * Sickness & motherhood insurance fund Employment insurance fund** Unemployment fund Total ** Employment insurance fund contributions (paid by the employer) basically are between 0.40% and 1.10% depending on the economic activities of the employees

Net salary is about 77% of gross salary, while total cost to the employer is about 118% of gross salary Net salary 77.1% Total 117.9% OtherPensionMedical 3.2% Tax 10.0% Maternity 0.4% Unemployment 100% GrossMedicalPension 2.1% Maternity 0.6% Unemployment 0.5% 1.4% Slide 3Source: InvestBulgaria; National Statistics Institute Paid by employee Paid by employer

Loaded cost for unskilled labor is € per month, for administration is € Slide 4Source: InvestBulgaria; National Statistics Institute

Average salaries have been relatively stable throughout 2010 and do not differ much per region EUR / month Slide 5Source: InvestBulgaria; National Statistics Institute