Dear Customer, we kindly ask you to provide us with the following confirmation and instruction in connection with the envisaged transfer of depository receipts into the underlying Russian shares. For the avoidance of doubt, we would like to emphasize that this opportunity is limited to your existing holdings in respective depository receipts. We do not offer this service for any future investment into the Russian market. RISKS OF INVESTING IN RUSSIAN SECURITIES Special risks are associated with investment in securities markets in Russia. These include (but are not limited to) the lack of a developed legislative or regulatory infrastructure, and a high measure of legal uncertainty concerning the rights and duties of market participants. The Customer agrees that before making any such investment he will independently satisfy himself that he understands those risks and that such investment is suitable for him. By providing a custodial service in respect of Russian Securities, the Custodian does not represent that such securities are a suitable investment for the Customer. The Customer ́s particular attention is drawn to the following points. 1. Level of Service. Because of conditions in the markets in Russia, the Custodian is not able to offer the level of service in the safekeeping, settlement and administration of securities that is customary in more developed markets. 2. Market Infrastructure and Settlement. Although the regulatory bodies make efforts to increase visibility and liquidity of the market, it remains at present mostly OTC. In an attempt to reduce the risk inherent to the market where enforceable regulations and the central depository are absent a large number of trades settle offshore with transfers of title taking place through the use of nominees and funds being transferred in hard currency. The counterparty default risk is assumed by the Customer. Section 384 subparagraph 3 HGB (German Commercial Code) as well as paragraph 9 sentence 1 Special Conditions for Dealings in Securities are excluded. The Custodian is liable for the exercise of due care in the selection and instruction of any commission agent but shall not be liable for the proper settlement of the execution transaction by its contracting party, the contracting party of any intermediate commission agent or the Custodian ́s commission agent in respect of Russian Securities. Trades in shares not registered in the nominee name of a local custodian is hampered by the procedure that each transfer of shares has to be registered in the shareholder's register. Re-registrations from one nominee name into another nominee name has to take place through a respective registrar as well. Usually, this register is situated in the same town as the company. Because of the logistics and procedures involved in settling share trades, occasional delays beyond anticipated Settlement Date may be expected. In general under Russian law, a transferee of Russian Securities that are held in custody with a custodian has no proprietary rights in respect of such Securities until its name appears on the books of the custodian, and the short selling of Securities is prohibited. For these reasons, the value date for Securities transferred into the Customer ́s account will be the date of crediting the Customer ́s account opened with the custodian. Before INTERNAL |