KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
AGREEMENT No. 523-78-000002-10 for Package Insurance
Saint Petersburg city
November 2,
2010
KIT Finance Insurance (JSC), License of the Federal Insurance Supervisory Authority S No. 1675 78 dated May 25, 2006, hereinafter referred to as the Underwriter, in the person of the Deputy Director General, Potitov Alexander Gennadyevich, acting on the grounds of the Power of Attorney No. 004/10 dated January 1, 2010, on one part, and the Company BroCo Investments Inc., hereinafter referred to as the Insurant, in the person of the Director, Valeriy Maltsev, acting on the grounds of the Statutes, on the other part, have concluded the present Agreement as follows: 1. SUBJECT OF THE AGREEMENT. 1.1. Under the present Agreement, the Underwriter shall, for the fee (insurance premium) specified in the present Agreement, upon occurrence of the event (insured event) provided for herein, to compensate any damages caused by this event in the insured property or damages related to the Insurant’s other property interests (to pay insurance compensation) to the Insurant or any other person in favor of which the present Agreement has been concluded (the Beneficiary), to the extent of the amount specified hereby (amount of insurance). 1.2. Under the present Agreement, the Insurant’s property interests related to the Insurant’s loss of income (additional expenses) which the Insurant could incur in consequence of its activities as well as the risk of loss of the Insurant’s property (monetary funds) shall be insured.
2. INSURED RISKS. 2.1. The insurance shall cover: 2.1.1. The Insurant’s damages resulting from any intended unlawful acts established in an effective court verdict, committed by any member of the Insurant, whether single-handed or conspired with any other persons, with a view to inflict harm to the Insurant or acquire unlawful financial profits, from: - commercial operations (any operations related to purchase and sale of securities, metals and other exchange tradable goods, futures, options, currency etc.). In the context hereof, members are considered to be: - persons working in the premises owned by the Insurant, obtaining salaries for labor and subordinate to the Insurant during the entire term of performance of this work; - the Insurant’s managing officers who are members of the board of directors/other collegial executive body of the Insurant and employed for the period when they carry out their employment duties, in the premises owned by the Insurant; - persons doing practical training in any premises owned by the Insurant; - temporary (dual jobholders/seasonable workers/those working for less than two months) employees of the Insurant, except for those whose work is related to processing of electronic data, programming, software and other similar activity. 2.1.2. Damages caused by forgery (fraud including forgery of documents) proved by an effective court verdict: а) forgery of certificates of deposit (any other documents issued by the Insurant, supporting the acceptance of money on deposit); б) counterfeit of any proxy for withdrawal of money. The damage shall be compensated to the Insurant only provided that: - the appropriate payment documents were executed in hard copy. 2.2. All cases of damages incurred by the Insurant whether in consequence of intended acts or because of a person’s negligence, whether or not this person is the member of the Insurant, shall be cumulatively considered to be one damage. 2.3. An insured event shall be deemed to have occurred not earlier than the effective date of the court verdict establishing the culpability of the appropriate persons in the crimes specified in Clauses 2.1.1-2.1.2 hereof, and equally the causal connection between such criminal acts and damages incurred by the Insurant.
(Signature) |signature|
(Signature) |signature| Page 1. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78
KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
3. PLACE OF INSURANCE. 3.1. The location of the insured property (territory (place) of insurance) has essential meaning in the establishment of the insured risk. 3.2. The place of insurance under the present Agreement shall be the city of Limassol, Cyprus 4. INSURANCE EXCLUSIONS. 4.1. Unlawful financial profit covered by the insurance in accordance with Clause 2.1.1 of the present Agreement shall not include: - salary and rise therein; - fees, commission; - participation in profits; - other types of income or remuneration including participation in business receptions, valuable gifts, compensation of travel, food, vacation etc. 4.2. Damages caused by loss or fail of information or data recorded on magnetic media, as well as those incurred by disruptions (errors) in any electronic internal transactions on accounts shall not be compensated as not relating to valuable property. 4.3. Insured events shall not include: а) any damages: - incurred by the Insurant before the Insurance Agreement takes effect, including damages on all the transactions which have been produced before the Agreement takes effect; - detected by the Insurant before the beginning of the term of the Insurance Agreement; - detected after the expiration of the Insurance Agreement; - communicated to other Underwriters having concluded an Insurance Agreement with the Insurant earlier; b) any damage incurred by the Insurant fully or partially in consequence of acts or errors committed by the Insurant’s management (persons being members of the Insurant’s executive management bodies); c) any damage caused directly or indirectly by any intended unlawful acts of the Insurant’s employed members not resulting in obtaining of unlawful financial profits in accordance with Clause 2.1.1 hereof; d) any damage caused fully or partially by full or partial non-payment or failure to fulfill any liabilities under loans and credits, whether legally or illegally obtained, by real or fictitious documents, by honest way or by deception, fraud and other intended unlawful acts except as otherwise provided in Clauses 2.1.1 and 2.1.2 of the present Agreement; e) any damage fully or partially resultant from the Insurant’s fulfillment of payments or writing off constituting its liabilities under any produced transactions which have not been fully implemented because of any reasons including forgery, fraud and other intended unlawful acts, except as otherwise provided in sections of Clauses 2.1.1 hereof; f) any damage incurred by the Insurant, resultant from erroneous payments, transfers, deliveries of cash, issuance of loans to legal entities, provision of any lending (loans) to individual persons; and conduct of other transactions on any accounts, except as otherwise provided in Clause 2.1.1 of the present Agreement; g) direct and indirect damages incurred by the Insurant in consequence of any other fraudulent and illegal changes than those that fall under the coverage in accordance with sections of Clauses 2.1.1 and 2.1.2 of the present Agreement; including but not limited to: falsifications in the following documents issued by the Insurant: - cheques (a kind of bill of exchange where a Bank acts as payer, in the form of a client’s conclusive order to the Bank operating its current account, to pay a certain amount to the cheque presenter or to another person indicated in the cheque); - demand drafts (bills of exchange issued by the Bank for itself and to be paid on demand at the head office or at a subsidiary); - promissory notes (conclusive written undertakings issued by the maker of promissory note to the holder of promissory note and containing the liability for payment to the holder of promissory note on demand or by a defined term or by its order; - bankers' acceptances (bills of exchange accepted by the Bank); from forgery of signature of from unlawful changes in the promissory note accepted for payment by the Insurant h) direct or indirect damages incurred by the Insurant whether from genuine or from fictitious consignment notes, bills of lading, warehouse-keeper's receipts, powers of attorney or any other accounts, documents and receipts similar by purpose, except for damages which are covered in accordance with Clause 2.1.1. hereof; i) damages related to loss or depreciation of income (profit), including interest, dividends, fees, commissions, salaries and other surcharges; j) complete or partial damages incurred by the Insurant and caused by another financial institution or depository, as well as those caused due to the fault of their successors or any liquidation committee (except in the cases where these damages are covered in accordance with Clause 2.1.1 of the present Agreement, and related to: - non-payment, non-return of monetary funds which are in their possession; - refusal to compensate the incurred damages to the Insurant, for which they are responsible; (Signature) |signature|
(Signature) |signature| Page 2. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78
KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
k) damages incurred by the Insurant resultant from applying a penalty, except for direct financial damages incurred by the Insurant directly in consequence of compensation payment produced by the Insurant to any third parties for any damages caused to them in relation to the subjects covered under the present insurance; l) indirect damages incurred by the Insurant in consequence of occurrence of an insured event, as well as any subsequent damages; m) expenses incurred by the Insurant upon estimation or effort to estimate the fact and amount of damages to be covered by the present insurance; n) expenses incurred by the Insurant in the Insurant’s protection of its interests, except for legal expenses to be covered in accordance with Clause 2.1.1 of the present Agreement; o) direct or indirect damages upon commercial operations, except for cases where these damages are to be covered in accordance with Clauses 2.1.1, 2.1.2 of the present Agreement; p) losses incurred in consequence of acts of God and natural disasters (typhoons, hurricanes, cyclones, volcanic eruptions, earthquakes, etc.) and subsequent fire, flooding, looting, etc.; q) damages which are directly or indirectly related to war, hostilities, invasion, military actions of foreign enemies (whether war was declared or not), rebellion, insurrection, revolution, civil unrest, civil war, imposing of martial law and usurpation of power, curfews or actions of representatives of legitimate authority, and at any stage of settlement of damages under the Insurance Agreement, including arbitration or court proceedings, the burden of proof that the damages do not fall under this exception, shall fall on the Insurant; r) any damages, loss of or damage to property, incurred expenses or legal liability of the Insurant towards third parties for damages, directly or indirectly caused by or resulting from: - ionizing radiation or radioactive contamination (nuclear fuel, radioactive waste, nuclear fuel); - the use of radioactive, toxic, explosive or other property that contains in its composition radioactive substances and components thereof; s) damages incurred by the Insurant as a result of input, modification and destruction of electronic data, except in cases where such damages are subject to coverage in accordance with Clause 2.1.1 of the present Agreement; t) damages incurred by the Insurant in consequence of input of orders included in payment instructions and communications into the Insurant’s computer network by means of teletype, terminal or any other device, except in cases where such damages are subject to coverage under Clause 2.1.1 of the present Agreement.
5. AMOUNT OF INSURANCE. 5.1. The amount of insurance shall be the amount established by the agreement of the Insurant and the Underwriter, within which the Underwriter hereunder undertakes to pay the insurance compensation to the Insurant: 5.1.1 the aggregate amount of insurance for the entire insurance period shall make USD 10 000 000 (Ten million US dollars). 5.1.2. the amount of insurance for any and each insured event shall make USD 1 000 000 (One million US dollars). 5.2. If the Insurant of Beneficiary has obtained compensation of damages from third parties, the Underwriter shall pay only the difference between the amount to be paid under the provisions of the present Agreement and the amount obtained from the third parties. The Insurant shall immediately, within not more than 48 hours, notify the Underwriter on reception of such amounts. 5.3. The damage which is not subject to the Underwriter’s compensation (deducted from the recovery amount), which is unconditional franchise under the present agreement, is established in the amount 10 000.00 (ten thousand US dollars) for any and each insured event. 5.4. After payment of the insurance compensation, the amount of insurance under the effective Agreement shall be deemed to be reduced by the amount of payment, from the day of occurrence of the insured event. The Insurant can recover the required amount of the insurance compensation for an additional insurance premium after restoration of the damaged property.
6. CONCLUSION OF INSURANCE AGREEMENT, TERM OF THE AGREEMENT, PAYMENT OF INSURANCE PREMIUM. 6.1. While concluding the Insurance Agreement, the Insurant shall inform the Underwriter of any circumstances which are essential for estimation of the insured risk. In any case, the circumstances specified in the Underwriter’s written request – Insurance Declaration (Article 944 of the Civil Code of the Russian Federation), shall be deemed to be essential. The Declaration filled in by the Insurant (Supplement 1) shall be a base and an integral part hereof. The Insurant’s indication to the Underwriter of knowingly false information in the Declaration (Supplement 1) on circumstances having essential importance for estimation of the insured risk shall make the Underwriter entitled to claim for annulment of the present Agreement and for enforcement of the consequences provided for in Clause 2, Article 179 of the Civil Code of the Russian Federation. 6.2. The present Agreement shall take effect from the day of the deposit of the insurance premium (or the first installment of the premium payable in installments) to the Insurant’s current account. 6.3. The term of the present Agreement shall be 12 months from November 3, 2010 to November 2, 2011 6.4. The term of start of the insurance provided for hereby shall be: (Signature) |signature|
(Signature) |signature| Page 3. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78
KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
6.4.1. with non-cash payment of insurance premium - at 00 o’clock of the day following the day of the deposit of the premium (or the first installment thereof) to the Insurant’s current account; 6.5. The term of expiration of the insurance provided for hereby shall be at 24 o’clock of the day of the expiration of the Agreement. 6.6. The insurance premium shall mean the payment for the insurance which the Insurant (Beneficiary) shall pay in the procedure and within the terms specified hereby. 6.6.1. Under the present Agreement, the insurance premium shall make 12 000.00 (Twelve thousand US dollars). 6.6.2. Rate of the insurance premium shall be 0.12% per annum of the amount of insurance. 6.7. The order of payment of the insurance premium 6.7.1. The insurance premium shall be paid by the Insurant in a lump sum, after the drawing-up of the transaction passport, until November 30, 2010. 6.7.2. Payment of the insurance premium shall be produced in non-cash form in US dollars. The Insurant shall bear all the bank charges related to the transfer of the insurance premium. 6.8. The present Agreement shall be terminated before the term for which it was concluded in the cases provided for herein. 6.8.1. The Insurance Agreement shall be terminated in such cases: - termination of the Agreement; - the Underwriter’s implementation of its liabilities under the Agreement in the full scope; - the Insurant’s non-payment of the insurance premium (or any appropriate part thereof) within the terms specified herein; - willful or compulsory liquidation of the Insurant, as well as in case of appointment of an Insolvency Official or an interim administration, any agreement reached with creditors, establishment of control over the Insurant’s activities by any state authority; - liquidation of the Insurant, except for the cases provided for in the legislation of the Russian Federation; - termination of the Agreement under any court decision; - in other cases specified in the legislation of the Russian Federation. 6.9. The Insurance Agreement shall be terminated before the expiration of the term for which it was concluded if, after it takes effect, the possibility of occurrence of the insured event has become irrelevant, and if the insured risk does not exist any more under the circumstances other than the insured event. 6.10. At the request of the Underwriter, the Insurance Agreement can be terminated early, with notification of the Insurant not less than 30 days before the intended date of termination. At the request of the Insurant the Insurance Contract can be terminated early, with notification of the Underwriter not less than 30 days before the intended date of termination. Upon early termination of the Agreement (for whatever reason) the insurance premium paid by the Insurant shall not be refundable. 7. CHANGE OF RISK PROFILE. 7.1. During the period of the present Agreement, the Insurant (the Beneficiary) shall immediately (within 48 hours) notify the Underwriter in writing on any discovered changes in the circumstances communicated to the Underwriter upon conclusion of the present Agreement if such changes can significantly affect the increase of the insured risk (Article 959 of the Civil Code of the Russian Federation). Any changes in the circumstances indicated by the Insurant particularly in the Insurance Declaration (Supplement 1) shall be deemed to be significant in any case. 7.2. In all other regards, any changes in the risk profile shall be governed by applicable law.
8. RESPONSIBILITIES OF THE PARTIES. 8.1. The Underwriter shall be obliged: а) to effect insurance payment within the period specified in the Insurance Agreement upon occurrence of the insured event; b) not to disclose the information about the Insurant obtained in the course of the Underwriter’s professional activities; c) to effect the insurance payment in accordance with the provisions of the Insurance Agreement within 10 bank days after the obtaining of all the documents from the Insurant, which are required for judgment on the reasons for occurrence of the insured event and the amount of damage, and for signing of the Claim Report by the Parties. 8.2. The Insurant shall be obliged: а) to pay insurance contributions on timely basis; b) while concluding the Insurance Agreement, to notify the Underwriter on all known circumstances that are significant to estimate the insured risk, and on all agreements concluded and those subject to conclude in relation to the current object of insurance; c) in case of a claim or lawsuit against the Insurant in respect of acts or events related to the damages covered by this insurance: - to notify the Underwriter immediately, as soon as the same is discovered, on any such claim or lawsuit and, at the request of the Underwriter, to produce all copies of all motions (of the plaintiff and defendant) and other court procedure documents; (Signature) |signature|
(Signature) |signature| Page 4. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78
KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
- to bear legal expenses in protection against the alleged cause of action against the Insurant in respect of acts or events related to the damages covered by this insurance; - to authorize the Underwriter to exercise protection through the appointed representatives who will act on behalf of the Insurant, and to provide all necessary information to the Underwriter and render all possible assistance for the implementation of such protection; - in the case where the amount of expenses incurred by the Underwriter during protection of the Insurant’s interests exceeds the share recoverable under the Insurance Agreement, to indemnify the Underwriter for the amount expended by the latter in excess of such share; - not to deny unfoundedly the fulfillment of the liabilities under any arrangements reached by the Underwriter on behalf of the Insurant in the course of legal protection; d) in case of consolidation or merger with another legal entity, and upon acquisition, reassignment, transfer of ownership, mortgage or sale of property or shares, which involves changes in ownership or control of the Insurant, including a case where one shareholder or a united group of shareholders concentrate ten or more per cent of voting shares, which allows to regard such fact as change in control of the Insurant: - to notify the Underwriter in writing on this fact within 30 days after the change in control (the notification to the Underwriter shall be deemed to be produced provided it is sent by the Insurant in writing and a written confirmation thereof is received from the Underwriter); - to provide promptly any necessary additional information to the Underwriter when the same is required; - to obtain the Underwriter’s written consent for survival of the Insurance Agreement with possible changes; - within 10 calendar days after the reception of the Insurance Agreement from the Underwriter with any required modifications, to notify the latter in writing about the Insurant’s consent to the proposed terms and conditions; - to pay additional premium (if any) to the Underwriter. Failure to fulfill these conditions shall be deemed to be the Insurant’s decision not to prolong the insurance. e) upon opening of new offices during the currency of the Insurance Agreement, to notify the Underwriter thereof 30 days before the date of opening, for the damages thereupon to be automatically covered by the Insurance Agreement after the opening thereof; f) as soon as possible, but in any case within 30 calendar days after detection of any damage which can result in any claim under the policy, to notify the Underwriter thereof in writing, herewith damages shall be deemed to be detected as soon as the Insurant discovers the facts which can duly serve as feature of a possible damage or a damage that has occurred, irrespective of: - whether or not the exact time of the event that caused the damage or impacted on the occurrence of the damage covered by this insurance is known; - whether or not the Insurant holds enough information at the moment to prove that this damage is covered in accordance with the insurance conditions - whether or not the circumstances and the amount of damage are known. The time of detection of damage shall be deemed to be the moment when the Underwriter receives notice on actual or potential events in consequence whereof it shall bear the liabilities to any third parties, which are covered under the Insurance Agreement, herewith it does not matter whether or not particular circumstances of these events and the amount of the liability are known. g) at the Underwriter’s request, at the time and place specified by the Underwriter, to deliver the documents required for expertise, including accounting reports, to provide the possibility to talk with any of the Insurant’s members or other persons, to transfer to the Underwriter all the required documents and to fulfill all the procedures required to effect any acts in respect of any third parties related to the damage that has occurred. h) within 6 months after the detection of the damage, to produce the documents to the Underwriter, which are certified by its Financial Director and which support the damage, and all other necessary information, wherewith the Insurant itself shall bear the responsibility to collect proofs supporting that the damage has been incurred by the Insurant in consequence of the occurrence of the insured event, and to discover any persons guilty in respect of the subjects mentioned below: - any damages whereof the claims for compensation shall be put forward in accordance with Clause 2.1.1. hereof: the Insurant shall identify the person responsible for the damage; the unlawful act which caused this damage; the amount of unlawful personal profit obtained by the person upon granting of a credit or fulfillment of a commercial transaction, and to prove that this damage has been incurred directly in consequence of the unlawful acts; - damages whereof any claims for compensation are put forward in accordance with Clause 2.1.2. of the present Agreement: the Insurant shall produce the evidence that the document contains forged signature, is false, or includes intended unlawful modifications; - The Insurant shall collect and produce the evidence that the damage has been incurred in consequence of occurrence of the insured event against which the current subject is insured, and that the damage has not been caused by changes in economic situation or any other reasons not subject to coverage under this policy, but which can cause the damage; i) after reception of insurance compensation, the Insurant shall assign to the Underwriter all the rights to recover the damages from any third parties in the scope of the paid amount. 8.3. The Insurance Agreement can establish other responsibilities of the Parties which do not contradict the legislation of the Russian Federation.
(Signature) |signature|
(Signature) |signature| Page 5. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78
KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
9. ESTIMATION OF DAMAGE AND RECOVERY AMOUNT. 9.1. Upon detection of a loss (damage), the Insurant shall immediately notify the Underwriter thereof by sending a Proof of Loss with all the documents attached, including those issued by competent authorities which enable to establish the damage and amount of the loss incurred. 9.2. Damages specified in Clauses 2.1.1. and 2.1.2. hereof shall be determined in the amount of the Insurant’s losses represented in the amount of sums of money appropriated by the members, the amounts of false additions and distortion of financial statements and other financial documents, the amounts in forged documents, the value of counterfeit securities, banknotes and coins, and other money stolen as a result of illegal acts of third parties during the period of the insured activity. Legitimacy of the amount of damage shall be confirmed by court decisions. This takes into account the possibility of recovery of documents in hard copy or on magnetic media, maintaining of the system of registration thereof, availability of copies provided to appropriate institutions in accordance with applicable law, which permit to make judgment on the damage incurred. 9.3. Estimation of the amount of insurance compensation shall be subject to the following conditions: а) any compensations of losses obtained by the Insurant from any third parties including return of the principal amount of a debt and interest money, dividends, commission etc., regardless of the time of reception thereof, shall be deducted from the amount of the insurance compensation, and in the case where the mentioned reimbursements are obtained by the Insurant after the Underwriter’s payment of the compensation to the Insurant, the latter shall refund the overpaid amount to the Underwriter; b) the amount of damage related to securities, currency, precious metals shall be established based on the market value thereof as of the time of the end of trading on the day preceding the day when the damage was detected; c) the amount of damage in respect of monetary units shall be determined based on the nominal value thereof; d) in the case of the Insurant’s damage or loss of accounting and other documents containing records necessary for the Insurant to perform its activities, the Underwriter shall bear the liability under this Policy provided such documents can be retrieved. Therewith the amount of compensation on this kind of damage shall not exceed the value of the blank forms and that of the work performed by the Insurant for copying the information. If it appears to be impossible to fulfill this condition, the value of the above-mentioned subjects shall be established under the Parties’ mutual agreement. If the lost securities, currency and precious metals can be substituted, the Insurant, after coordination with the Underwriter, can retrieve them with the Underwriter bearing the expenses. 9.4. Any disputes arising from estimation of the value of damages and the amount of damages shall be resolved in arbitration. Therewith the Underwriter’s liabilities under this Insurance Agreement shall be limited by the insurance amount (including franchise, if any) upon a particular risk, and they can not exceed this insurance amount, even where the amount of damage incurred by the Insurant exceeds the limit of the insurance compensation. 9.5. If the lost securities, currency, precious metals can be substituted, the Insurant, after agreement with the Underwriter, can restore them with the Underwriter bearing the expenses. 9.6. Any judicial expenses of the Insurant shall not be compensated by the Underwriter. 9.7. In case of payment of any damage under the Insurance Agreement, the amount of paid insurance compensation shall be deducted from the appropriate limit of the insurance compensation, established on a particular risk. If the insurance amount (insurance compensation limit) is completed, the Underwriter’s liabilities shall be deemed to be implemented in compensation of damages to the Insurer under the Insurance Agreement, including the compensation of legal, judicial expenses, duties and charges, as well as legal protection of the Insurant’s interests (herewith, after the reception of notice from the Underwriter that the insurance amount (insurance compensation limit) is completed, the Insurant shall assume full responsibility for its further legal protection. 9.8. If any damage incurred by the Insurant is subject at the same time to coverage of several risks, the maximum amount of insurance compensation in this case should not exceed the maximum insurance compensation limit left over for any of these risks. 9.9. If the total amount of the Insurant’s damage is higher than the compensation paid under the Insurance Agreement, or if franchise is applied, the Underwriter’s liabilities on compensation of judicial and other legal expenses shall be limited to the share of legal expenses incurred and paid by whether the Insurant or the Underwriter, which is equal to the ratio of the amount of compensation for the damage to the total amount of loss. Such proportional amount shall be applied for the appropriate reduction of the insurance amount hereunder as a whole and the limit of insurance compensation for the appropriate insured risk. 9.10. If the insured event has occurred before the payment of the next insurance contribution whereof the deposit is overdue, the Underwriter shall be entitled to set off the amount of the insurance contribution overdue in estimation of the amount of the insurance payment. 9.11. In case of double insurance, the compensation shall be paid by the Underwriter only to the extent of the share of damage which is not covered by other insurance agreements. 9.12. The payment of the insurance compensation to the Insurant shall be produced within 10 bank days after signing of the Summary Claim Report by the Parties. 10. DENIAL OF INSURANCE BENEFIT 10.1. No beneficiaries other than the Insurant in the name of which the Insurance Agreement is issued shall be entitled to obtain the compensation of damages, and to perform any acts under the Insurance Agreement concluded on the current terms. 10.2. The Underwriter shall be entitled to deny the insurance compensation in such cases: (Signature) |signature|
(Signature) |signature| Page 6. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78
KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
- the Underwriter was not notified on the occurrence of the insured event within the terms specified in the Insurance Agreement, provided it is not proved that the Underwriter discovered the occurrence of the insured event on timely basis or the Underwriter’s deficiency of the information thereof could not impair its liability to produce the insurance compensation; - the damages have occurred due to the Underwriter’s intended failure to take reasonable and available measures to reduce the possible damages; - the insured event resulted from the Insurant’s design. 10.3. The decision to deny the insurance compensation shall be communicated to the Insurant in writing with the reasons justifying the denial indicated. 10.4. The Underwriter’s denial to produce the insurance compensation can be appealed in court or by arbitration by the Insurant. 12. DOUBLE INSURANCE 12.1. The Insurant and the Beneficiary shall inform the Underwriter in writing on any insurance agreements in relation to the insured property concluded with other insurance companies. Herewith the Insurant should indicate the names of such other insurance companies, and the insured risks covered there, as well as the insurance amounts. 12.2. If at the time of occurrence of the insured event in respect of the insured property any other insurance agreements are valid on similar risks for the amount exceeding as a whole the insured value thereof, the Undertaker shall compensate the damage in the amount which is proportional to the ratio of the insured amount under the Agreement concluded by the Undertaker to the total amount of all the insurance agreements concluded by the Insurant to cover this property. 12.3. If conclusion of several insurance agreements in respect of the property insured by the Underwriter for similar risks at the amount exceeding the insured value thereof (under the Agreement with the Underwriter), appears to be a consequence of the Insurant’s design, the Underwriter shall be entitled to claim for rescission of the Agreement and for compensation of any damages incurred thereby by the Underwriter. 13. ARBITRATION 13.1. Suit for claims arising from the Insurance Agreement can be produced within the statute of limitations established by the legislation in force. 13.2. If after completion of the Underwriter’s own investigation the Underwriter denies paying for the damage which, according to the Insurant’s opinion, is covered by the present Agreement, the dispute shall be settled by arbitration at the request of the Insurant. The Underwriter shall be represented in court by a person appointed by the Underwriter as its representative. Trial on the compensation of damages under the present cases shall be initiated not earlier than in three months after the submission of evidence of the damages produced by the Insurant.
14. ADDITIONAL PROVISIONS. 14.1. Under an agreement between the Insurant and the Underwriter, the present Agreement may be amended or modified, based on the specific needs of the Insurant in the insurance of its property or other property interests. All such modifications and amendments to the present Agreement shall be made in writing and in two copies, and take effect on the date established by the agreement of the Parties. 14.2. All the applications and notices provided for herein shall be made by the Parties in writing, and Declarations on Termination of Insurance – by registered letter. 14.3. Other conditions and reservations: 14.3.1. The Beneficiary under the present Agreement shall be the person indicated herein. 14.4. The parties agree and understand that the Agreement is concluded in favor of the Beneficiary, unless otherwise is stipulated in the conditions, exclusions, provisions and terms contained herein and / or Supplements and Additional Agreements hereto. 14.4.1. Upon the occurrence of the insured event, the Underwriter undertakes to compensate damages of the insured property to the Beneficiary incurred as a result of this event, within the amount insured. 14.4.2. Conclusion of the Insurance Agreement in favor of the Beneficiary shall not exempt the Insurant from fulfillment of the responsibilities under the present Agreement, provided that such responsibilities are not performed by the Beneficiary 14.4.3. The Underwriter shall be entitled to claim for the Beneficiary’s performance of its responsibilities under the Agreement, including the responsibilities lying upon the Insurant but not fulfilled by it upon the Beneficiary’s claim for the insurance compensation. The Beneficiary shall bear the risk of consequences of non-performance or delayed performance of the responsibilities that should have been fulfilled earlier. 14.4.4. The Insurant shall be obliged to familiarize the Beneficiary with the Agreement wherefore the Underwriter shall render additional copies of these documents.
(Signature) |signature|
(Signature) |signature| Page 7. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78
KIT Finance Insurance (JSC). Agreement for Package Insurance.
4A Finlyandskiy avenue Saint-Petersburg, Russia 194044 Business centre “Petrovsky fort” Tel.:+7(812)449-47-58 Fax:+7(812)449-47-59 8-800-100-2-111 www.kfins.ru
14.5. If any insurance amounts, franchises, premiums are indicated herein in rubles, the amount of the damage to be compensated in relation to the insurance event of damage and the damage (unconditional franchise) not to be compensated by the Underwriter (deducted from the amount of insurance compensation) shall be determined in rubles as of the date of execution of the Summary Claim Report. 14.6. All relationships under the present Agreement shall be governed by the legislation of the Russian Federation. 14.7. This Agreement is made in two copies, one for each party, both copies being equally valid.
15. SUPPLEMENTS Supplement 1.
Insurance Declaration dated September 26, 2010, No. 23-78-000002-10
16. ADDRESSES AND BANK DETAILS OF THE PARTIES. Beneficiary: BroCo Investments Inc Beneficiary's address: Office 113, 2-nd Floor, Medine Mews, Chaussee Str., Port Louis, Mauritius Beneficiary bank: OJSC Promsvyazbank, Cyprus Branch Bank's address: ACHILLEOS BUILDING 224 FLOOR 5 ARCH MAKARIOS III, Limassol, Cyprus SWIFT: PRMSCY2N Currency: USD Account: 40807840900000317703 IBAN: CY57120000134080784090317703 Correspondent Account: 04414147 Correspondent Bank: Deutsche Bank Trust Company Americas, New York, SWIFT BKTRUS33
From the Insurant
|signature| __________________ (V. Maltsev)
Seal: BroCo Investments Inc. Company number 079262 C1/GBL
(Signature) |signature|
The name of organization: KIT Finance Insurance (JSC) Address: 194044, RUSSIA, St. Petersburg, Finlyandskiy pr. 4-a Beneficiary account № 40701840451005000004 ISC “Bank VTB North-West” 197022, RUSSIA, St.Petersburg, ul. Lva Tolstogo 9 leter A, office block 10N BRANCH: Kirovsky obyedinenny S.W.I.F.T. CODE: ICSPRU2P
From the Underwriter
|signature| __________________ (A.G. Potitov)
Seal: Joint-Stock Company Saint-Petersburg KIT Finance Insurance
(Signature) |signature| Page 8. Total pages: 8 KIT Finance Insurance (JSC) Licence C №1675 78