Agreement on cfd and foreign currencies conversion arbitrage transactions

This AGREEMENT No. 70000-08/06 ON CFD AND FOREIGN CURRENCIES CONVERSION ARBITRAGE TRANSACTIONS (this “Agreement”) is made this 17 day of July 2006 by and between:

COMPANY LIMITED incorporated under the laws of British Virgin Islands with its registered office at Drake Chambers, Tortola, British Virgin Islands (the “Company”), represented by its Authorized Representative Ms. Poliakova Marina, acting on the basis of General Power of Attorney dated 23rd day of January 2009, and

Mr./Ms./Mrs. Ivan Ivanov holder of passport N 00 00 000000 issued by internal affairs department of Dalniy district of Moscow, department code 772-000, on 03.12.2003, residing at Apart. 1, 1, Enskaya St., Moscow, Russia (the “Counterparty”),
hence – “Parties”.

1. Terms and Definitions

Conversion Arbitrage Transaction shall mean a transaction between the Company and the Counterparty to purchase or sell one foreign currency for another foreign currency which is due to be settled on the agreed value date.

Arbitrage shall mean a transaction aimed to obtain profit on currency exchange rates (or CFD prices) fluctuations in the international exchanges. Arbitrage consists in execution of at least two opposite transactions to purchase and sell currencies (or CFDs) in equivalent amounts (or quantity of CFD contracts).

Margin Trading Account shall mean a special Counterparty's account, which the Company uses to ensure performance of the present Agreement and maintain the Counterparty's positions for transactions stipulated herein.

Open Position shall mean the amount of purchased (or sold) currency (or CFDs) not covered by the opposite sale (purchase) of the same currency (or CFD).

Value Date shall mean a day on which settlements are due to be made on the transaction dealt. Conversion Arbitrage Transaction shall be settled on the "spot" value date, i.e. on the second business day after the transaction was dealt, excluding holidays and days off.

Company Business Hours shall mean the time interval from 00.00 on Monday till 23.59 on Friday (Moscow time) on a twenty-four-hour basis. Company Business Hours shall not include holidays and days off, temporary changes in the internal regulations of the Company, and the time when servicing is impossible for technical reasons, in which cases the Company is obliged to take all reasonable actions to notify the Counterparty of these changes and make it possible for the Counterparty to eliminate exchange risks arising thereof.

Base Currency shall mean the currency, for which the Counterparty requests Bid or Ask exchange rate from the Company. On the Value Date the amount of the sold Base Currency shall be equal to the amount of the purchased Base Currency.

Counter currency shall mean the currency, which is sold or purchased against the Base Currency and in which the result of the arbitrage transaction is nominated.

Currency Swap shall mean a transaction, which consists of two opposite Conversion Transactions in equal amounts in Base Currency with different Value Dates and different exchange rates. A Spot/Next Swap shall mean the execution of two Conversion Transactions, of which one transaction falls on the spot Value Date, and the opposite transaction — on the spot date plus one day. A Tom/Next Swap shall mean that one of the transactions falls on the spot Value Date, and the opposite transaction – on the spot date minus one day.