Document:

Exhibit 4.26.1

 

AGREEMENT  No.1

on Amendments to Agency Agreement No.35-06-23 dated November 01st, 2006

 

	
  Moscow

  	
                        
        , 2008

  

 

Open Joint-Stock Company Long Distance and
International Telecommunications Rostelecom, hereinafter referred to as “Rostelecom”
represented by its Director General Mr. K.Yu. Solodukhin, acting on the
basis of the Articles of Association, on the one part, and Open Joint-Stock
Company North-West Telecom, hereinafter referred to as the “Operator”,
represented by its Director General Mr.V.A. Akulich, acting on the basis of the
Articles of Association, on the other part, jointly referred to as the “Parties”,
have made this Agreement as follows:

 

1.                   Agency Agreement No. 35-06-23 dated
November 01st, 2006 shall be
revised in compliance with Appendix No.1 to this Agreement (Revision 2).

 

2.                   Any financial obligations arisen and not
fulfilled prior to this Agreement taking effect shall be performed in
compliance with Agreement No. 35-06-23 dated November 01st, 2006.

 

3.                   This Agreement shall take effect from its
signing by the Parties.

 

4.                   This Agreement is made in duplicate with the
same legal effect with one copy for each Party.

 

Signatures of the Parties:

 

	
  Rostelecom OJSC:

   

  Legal
  address:

  Russia
  191002, Saint Petersburg

  15,
  Dostoevskogo Street

  Postal
  address:

  Russia
  191002, Saint Petersburg

  15,
  Dostoevskogo Street

  Tel.
  (812) 164-23-29

  Fax:
  (812) 164-15-49

  TIN
  7707049388

  KPP
  784002001, s/account 40702810700300010657

  with Svyaz-Bank OJSC AKB, Petersburg branch,

  correspondent account 30101810200000000759, 
  BIC 

  044030759, OKONKh (All-Russia Classifier of Sectors

  of the National Economy) 52300,

  OKPO 17514186 

  	
   

  	
  North-West Telecom OJSC:

   

  Address
  (legal address): 191186, St. Petersburg,

  14/26 Gorokhovaya Street

   

  Postal
  address (for correspondence):

  191186
  14/26 Gorokhovaya Street

  Tel.
  (812) 719 93 24

  Fax:
  (812) 710 62 77

   

  TIN
  7808020593

  Settlement
  account: 40702810900300000001

  with
  Svyaz-Bank OJSC AKB, 191014, Saint

  Petersburg, 12, Baskov Lane

  Correspondent
  account 30101810200000000759 in

  GRKC GU CB in Saint Petersburg

  BIC
  044030759

  OGRN 1027809169849

  KPP 784001001

  
	
   

  	
   

  	
   

  
	
  Director
  General

  Rostelecom
  OJSC

   

                                       Mr. K.Yu. Solodukhin

   

                        
        , 2008

  Seal here

  	
   

  	
  Director General

  North-West
  Telecom OJSC

   

                                           Mr. V.A.Akulich

   

                        
        , 2008

  Seal here

  

 

 

APPENDIX No.1 to AGREEMENT No.1

dated                     
       , 2008

on Amendments to Agency Agreement No.35-06-23 dated November 01st, 2006

Agency Agreement No.35-06-23 (revision 2)

 

Rostelecom
Open Joint-Stock Company of Long Distance and International Communication,
hereinafter referred to as “Rostelecom” represented by its Director General Mr. K.Yu.
Solodukhin, acting on the basis of the Articles of Association, on the one
part, and Open Joint-Stock Company North-West Telecom, hereinafter referred to
as the “Operator”, represented by its Director General Mr.V.A. Akulich, acting
on the basis of the Articles of Association, on the other part, hereinafter
jointly referred to as the “Parties”, have made this Agreement as follows:

 

1.                                     TERMS AND DEFINITIONS

 

In
this Agreement the following terms shall have the following meanings unless
otherwise directly stated herein:

 

1.1.                             “Agreement” shall mean this Agreement with any Appendixes,
Amendments, Modifications and Additional Agreements hereto.

 

1.2.                             “Corporate  Users” shall
mean any legal entities which are the Operator’s subscribers ordering and (or)
using Rostelecom long distance and (or) international telephone communication services
access to which is provided by the Operator.

 

1.3.                             “Individual Users” shall mean any individual subscribers of
the Operator ordering and (or) using Rostelecom long distance and (or)
international telephone services access to which is provided by the Operator.

 

1.4.                             “Users” shall mean both Corporate Users and Individual Users.

 

1.5.                             “Reporting Period” shall mean a calendar month during which
the Operator carried out any legal or other actions specified as the subject of
this Agreement on behalf and at the expense of Rostelecom.

 

1.6.                             “Accounting Period” shall mean a calendar month starting
directly after the Reporting Period.

 

1.7.                             “Agreement Form” shall mean an agreement form for Rostelecom
long distance and international communication services to the Users on
condition of Rostelecom pre-selection as an operator providing long distance
and international communication services, the obligation for executing which
shall be borne by the Operator in compliance with this Agreement.

 

1.8.                             “Instructions” shall mean a document attached to the
Agreement Form with Corporate Users and defining the maximum amount of
amendments which may be made to agreements with Corporate Users executed by the
Operator in compliance with this Agreement as compared to the corresponding
Agreement Form. The requirements to the Instructions content and application
are given in Appendix No.2 hereto.

 

2.                                     SUBJECT OF AGREEMENT

 

2.1.                             In
compliance with this Agreement the Operator shall carry out on behalf and at
the expense of Rostelecom the following legal and other actions:

 

2.1.1.                    make
on behalf of Rostelecom using one of the Agreement Forms approved by Rostelecom
in compliance with Appendix No.1 hereto agreements for long distance and
international communication services by Rostelecom on condition of
pre-selection of Rostelecom as an operator of long distance and international
communication services with Corporate Users which apply to the Operator for
making such agreements by executing one document.

 

2.1.2.                    make
on behalf of Rostelecom using one of the Agreement Forms approved by Rostelecom
in compliance with Appendix No.1 hereto agreements for long distance and
international communication services by Rostelecom on condition of
pre-selection of Rostelecom as an operator of long distance and international
communication services with Individual Users, including the following
activities:

 

 

a)             Upon Rostelecom’s
authorization:

 

1.                   Printing according to the layouts provided by Rostelecom;

 

2.                   Forming packages for delivery to individuals;

 

3.                   Converting packages for delivery to individuals;

 

4.                   Arranging for package delivery to individuals;

 

b)            upon request by
Individual Users:

 

1.                   Processing documents received from individual
users;

 

2.                   Compilation and sending to Rostelecom registers
of documents received by COK from individuals.

 

2.1.3.                    provide
reference and information services to any Individual Users in case of campaigns
upon Rostelecom’s request within the terms agreed by the Parties concerning
long distance and international communication services provided to Users on
condition of Rostelecom pre-selection as an operator of long distance and
international communication services.

 

3.                                    GENERAL REQUIREMENTS TO EXECUTING ORDERS

 

3.1.                            The
Operator upon making agreements with Corporate Users specified in Clause 2.1.1
according to the Agreement Forms approved by Rostelecom, may not recede from
the contractual terms given in the corresponding Agreement Form unless
otherwise is directly specified by the Instructions to the corresponding
Agreement Form. If any Corporate User does not agree to sign the agreement on
the terms prescribed by the Agreement Form and suggests in compliance with
Clause 3, Appendix No.2 hereto, amending such terms, the Operator may agree to
such amendments without a prior written consent from Rostelecom only to the
extent allowed by the Instructions to the corresponding Agreement Form.

 

3.2.                            Upon
signing agreements with Individual Users as specified by Clause 2.1.2 according
to the Agreement Forms approved by Rostelecom, the Operator may not recede from
the contractual terms prescribed by the corresponding Agreement Form.

 

3.3.                            The
Operator shall perform Clause 2.1.2 in compliance with the official notice from
Rostelecom on signing agreements with Individual Users. With the notice the
Operator shall receive a package of documents required for the activities in
compliance with Clause 2.1.2. The notice shall specify the beginning and period
of the Operator’s signing agreements with Individual Users and selection
criteria  in respect of Individual Users.

 

4.                                    MAKING AGREEMENTS WITH USERS

 

4.1.                            When
any User (or his/its duly authorized representative) applies to the Operator to
sign an agreement for Rostelecom long distance and international communication
services, the Operator shall promptly sign with such User an agreement using
one of the Agreement Forms approved by Rostelecom in compliance with Appendix
No.1 hereto.

 

4.2.                            With
any Users which are state-financed organizations the Operator shall, if
required, make an agreement for Rostelecom long distance and international
communication services specifying that such agreement shall be effective from
the date following the expiration date of the previous agreement with
Rostelecom for long distance and international communication services made with
the corresponding User.

 

4.3.                            The
agreement with any User shall be signed in duplicate by the Operator and the
User and sealed by the Operator. If the agreement is signed with any Corporate
Users, such agreement shall be sealed by the Corporate User and the Operator.
One copy shall be provided to the User and the other shall be sent to
Rostelecom within 5 (five) days after signing the agreement but no later than
the 1st day of the month following the month when such agreement with the User
was signed.

 

3

 

4.4.                            If any
Corporate User makes any suggestions regarding the Agreement Form not
specified by the Parties in the Instructions attached to the Agreement Form suggested
to such Corporate User, the Operator shall send the suggestions of such Corporate
User to Rostelecom and shall not make an agreement with such Corporate User
until receipt of the corresponding written instructions from Rostelecom.

 

5.                                    THE OPERATOR’S REMUNERATION

 

5.1.                             For
performing the agency functions in compliance with this Agreement, Rostelecom
shall pay the following remuneration to the Operator:

 

5.1.1.                    For
each agreement signed with a Corporate User in compliance with Clause 2.1.1
hereof — a one-time fee of 500 (five hundred) rubles (without VAT) calculated
at the rate effective on the corresponding billing date.

 

5.1.2.                    For
the works carried out in compliance with Subclauses 1-4, Clause 2.1.2 — 80
(eighty) rubles for each package (without VAT);

 

5.1.3.                    For
each agreement signed with an Individual User including payment for the works
carried out in compliance with Subclauses 5-6, Clause 2.1.2 — 80 (eighty)
rubles for each package (without VAT).

 

5.1.4.                    For
each agreement signed with a User which is a state-funded organization (in case
an agreement was previously signed with such User which expired) in compliance
with Clause 2.1.1 hereof — a one-time fee of 200 (two hundred) rubles (without
VAT) calculated at the rate effective on the corresponding billing date.

 

5.2.                            For
the services provided in compliance with Clause 2.1.3 — monthly payments of
525,000 (five hundred and twenty-five thousand) rubles (without VAT) calculated
at the rate effective on the corresponding billing date, within 3 (three)
months after the starting date of sending packages to Individual Users in
compliance with Clause 2.1.2 as agreed by the Parties.

 

6.                                    REPORT AND SETTLEMENT PROCEDURE

 

6.1.                            Settlements
between the Parties shall be made on a monthly basis in compliance with this
Agreement and the Operator’s report on performance of the agency functions (“Operator’s
Report”) in the forms attached in Appendix No.3.

 

6.2.                            By the
5th day of the Accounting Period the Operator shall send to Rostelecom the
Operator’s Report and a bill for payment. 
A copy of the Operator’s Report, bill for payment and invoice shall be
sent to Rostelecom by fax with a delivery confirmation. Their originals shall
be sent by a registered letter with a delivery confirmation. The date of the
actual delivery of such documents shall be the date of the fax receipt. The
invoice shall be provided within the terms prescribed by the tax laws of the
Russian Federation.

 

6.3.                            The
Operator’s Report on signing agreements with Individual Users in compliance
with Subclauses 1-4, Clause 2.1.2 hereof (form 3 Appendix No.3) shall be
provided to Rostelecom with the register of individuals who received the
agreements, with their telephone numbers and dates of the package sending. The
register may be provided electronically only. Within 20 days after receiving
such register Rostelecom may request from the Operator on a selective basis
copies of the source documents confirming that the packages were sent to
Individual Users which shall be provided to Rostelecom within 10 business days
after such request.

 

6.4.                            Rostelecom
shall review the documents provided by the Operator and in case Rostelecom has
no objections, it shall approve the Operator’s Report within 2 (two) business
days after receiving the Operator’s Report. In case Rostelecom has any comments
on the documents provided by the Operator, Rostelecom shall inform the Operator
thereof in writing within 2 (two) business days after receiving the documents
by fax.  Rostelecom shall approve the
Operator’s Report with its comments on it. A copy of the approved Operator’s
Report shall be sent to the Operator by fax with a delivery confirmation. The
original documents shall be sent by registered mail with a delivery
confirmation. The date of the document delivery shall be the date of their
receipt by fax.

 

4

 

6.5.                            Within
20 (Twenty) days after approving the Operator’s Report Rostelecom shall pay the
Operator its remuneration defined in compliance with Clause 5.1  hereof for performing the agency functions.
In case the Operator’s Report is approved with comments, settlements shall be
made for the uncontested amount.

 

6.6.                            To
eliminate any defects regarding documents provided by the Operator the Parties
shall carry out further negotiations and shall inspect/itemize the issues in
question within 10 business days after Rostelecom sent a written notice of its
objections to the Operator. According to the data verification results the
Parties shall execute and sign the reconciliation report for the amount of
services provided by the Parties (hereinafter referred to as the “Reconciliation
Report”) and, if required, shall recalculate payments for any further
Accounting Periods. The signing of the Reconciliation Report by the Parties
shall mean approval of the Operator’s Report by Rostelecom.

 

6.7.                            On a
quarterly basis and if required Rostelecom and the Operator shall reconcile
their calculations. The reconciliation report shall be made by the interested
Party in duplicate and shall be signed by the authorized representatives of the
Parties. The Party which receives the Reconciliation Report shall sign it or
provide its objections regarding the validity of the information it contains
within 20 (twenty) days after the sending date of the Reconciliation Report.

 

6.8.                            The
bills for monthly remuneration for the services under Clause 2.1.3 shall be
provided by the Operator to Rostelecom by the last day of the corresponding
month and shall be paid within 20 (twenty) days after the billing date.

 

7.                                    LIABILITY OF THE PARTIES.

 

7.1.                            The
Parties shall be liable for failure to fulfill or improper fulfillment of their
obligations under this Agreement in compliance with the procedure and to the
extent prescribed by the current laws of the Russian Federation and this
Agreement.

 

7.2.                            Any
actual damage incurred by either Party due to failure to fulfill or improper
fulfillment by the other Party of its contractual obligations under this
Agreement shall be reimbursed.

 

7.3.                            In
case of violation by either Party of the terms for fulfillment of its
obligations under this Agreement or their improper performance, the Party in
default shall pay to the other Party upon demand a penalty of 0.01% of the
total agency fee specified in Clause 5.1 hereof for the calendar month when
such violation took place, for each day of delay in proper fulfillment of its
obligations but no more than 10% of such agency fee.  The penalty shall be paid within 10 days
after receipt of the corresponding request from the other Party.

 

8.                                    CONFIDENTIALITY.

 

8.1.                            The
confidentiality conditions prescribed by Confidentiality Agreement No. 39-06-30
dated August 30th, 2006 signed by the Parties shall fully apply to the
legal relations between the Parties under this Agreement.

 

8.2.                            Any
information exchange between the Parties under this Agreement shall be done in
a way providing for its confidentiality in compliance with the Confidentiality
Agreement.

 

9.                                    TERM OF AGREEMENT AND CANCELLATION PROCEDURE.

 

9.1.                            This
Agreement shall take effect when signed by the Parties and shall be valid for
one year. Unless either Party announces the termination of this Agreement 30
(thirty) calendar days prior to its expiration, the Agreement shall be
automatically extended for each following year. The number of terms for which
the Agreement may be extended shall not be limited.

 

9.2.                            This
Agreement may be cancelled pre-term upon consent of the Parties or on any other
grounds prescribed by the current laws of the Russian Federation.

 

9.3.                            Upon
cancellation of this Agreement the Parties shall complete all mutual
settlements within thirty days after the cancellation date.

 

5

 

10.                             OTHER TERMS.

 

10.1.                      This
Agreement shall be made in duplicate with one copy for each Party having the
same legal effect.

 

10.2.                      Neither
Party may transfer its rights and obligations under this Agreement without a
prior written consent of the other Party.

 

10.3.                      The Parties
shall acknowledge each other’s rights for any trademarks and trade names and
shall not use them in any way without a prior written consent. This clause
shall remain in force after termination of this Agreement.

 

10.4.                      To inform
the Operator of any agreements with Users made by Rostelecom independently,
Rostelecom shall send a list of such agreements made within the Reporting
Period to the Operator on a monthly basis.

 

10.5.                      Any notices
and communications may be sent by the Parties by facsimile, electronic mail,
registered mail or courier with a delivery confirmation. A delivery
confirmation for an electronic mail shall be a confirmation of delivery by the
corresponding mail software and in case of delivery by facsimile - a copy of
notice with the proper mark (report) of the sending fax on the proper
transmission of the message to the corresponding telephone number.

 

10.6.                      List of
Appendixes:

 

Appendix No.1
Approval Procedure for Instructions.

 

Appendix No.2
Requirements to the Contents of Instructions and their Application.

 

Appendix No.3
Forms for the Operator’s Report on Agency Functions Performance.

 

10.7.                      Either Party
to this Agreement may make suggestions for amending it. Any modifications and
amendments properly agreed and executed shall form an integral part of this
Agreement.

 

11.                             SIGNATURES AND BANKING DETAILS OF THE PARTIES

 

	
  Rostelecom OJSC:

   

  Legal
  address:

  Russia
  191002, Saint Petersburg

  15,
  Dostoevskogo Street

  Postal
  address:

  Russia
  191002, Saint Petersburg

  15,
  Dostoevskogo Street

  Tel.
  (812) 164-23-29

  Fax:
  (812) 164-15-49

  TIN
  7707049388

  KPP
  784002001, s/account 40702810700300010657

  with Svyaz-Bank OJSC AKB, Petersburg branch,

  correspondent account 30101810200000000759, 
  BIC 

  044030759, OKONKh (All-Russia Classifier of

  Sectors
  of the National Economy) 52300,

  OKPO 17514186 

  	
   

  	
  North-West Telecom OJSC:

   

  Address
  (legal address): 191186, St. Petersburg, 

  14/26 Gorokhovaya Street

  Postal
  address (for correspondence):

  191186
  14/26 Gorokhovaya Street

  Tel.
  (812) 719 93 24

  Fax:
  (812) 710 62 77

  TIN
  7808020593

  Settlement
  account: 40702810900300000001

  with
  Svyaz-Bank OJSC AKB, 191014, Saint

  Petersburg, 12, Baskov Lane

  Correspondent
  account 30101810200000000759 in

  GRKC GU CB in Saint Petersburg

  BIC
  044030759

  OGRN 1027809169849

  KPP 784001001

  
	
   

  	
   

  	
   

  
	
  Rostelecom:

  Director
  General

   

  Rostelecom
  OJSC

   

                                       Mr. K.Yu. Solodukhin

                        
        , 2008

  Seal here

  	
   

  	
  Operator:

  Director General

   

  North-West
  Telecom OJSC

   

                                           Mr. V.A.Akulich

                        
        , 2008

  Seal here

  

 

6

 

APPENDIX No.1

to Agency Agreement No.35-06-23 (revision 2)

dated                     
       , 2008

 

Approval Procedure for the Instructions

 

1.                   Within 10 (ten) days after signing this
Agreement Rostelecom shall send to the Operator all the Agreement Forms. With
the Agreement Forms Rostelecom shall send to the Operator the Instructions to
the Agreement Forms with Corporate Users.

2.                   All the Agreement Forms shall be approved by
Rostelecom without the Operator’s consent and shall be sent in duplicate.

3.                   The Instructions shall be sent to the Operator
in duplicate with the mark “Approved” on
each Instruction signed by Rostelecom’s authorized representative and sealed by
Rostelecom.

4.                   Within 10 (ten) days after receiving the
Instructions from Rostelecom and in case there are no suggestions for amending
such Instructions, the Operator shall approve them and send one copy of each
Instruction to Rostelecom with the mark “Approved” on
each Instruction signed by the Operator’s authorized representative and sealed
by the Operator.

5.                   If the Operator has any suggestions for
amending the Instructions, the Operator shall within 10 (ten) days after their receipt
from Rostelecom send its suggestions to Rostelecom.

6.                   In case Rostelecom accepts the Operator’s
suggestions for amending the Instructions, Rostelecom shall send the amended
Instructions to the Operator for approval within 10 (ten) days after receipt of
the Operator’s suggestions. The approval procedure shall be repeated in
compliance with Clause 4 of this Appendix.

7.                   If Rostelecom does not accept the Operator’s
suggestions for amending the Instructions, the Parties shall carry out
negotiations within 20 (twenty) days after receipt by Rostelecom of the
corresponding suggestions for amending the Instructions from the Operator.

8.                   In case the Parties fail to reach an agreement
in compliance with Clause 7 regarding amending the corresponding Instructions,
such Instructions shall be deemed as approved in Rostelecom’s revision, and the
Parties shall execute such approval in compliance with the procedure prescribed
by Clause 4 of this Appendix.

9.                   In case within the term of this Agreement
Rostelecom develops any Instructions other than those approved in compliance
with Clauses 1-8 of this Appendix, Rostelecom shall send such Instructions to
the Operator. In such case the Parties shall complete the approval procedure
prescribed by Clauses 1-8 of this Appendix.

 

	
  Rostelecom:

  Director
  General

   

  Rostelecom
  OJSC

  	
  Operator:

  Director
  General

   

  North-West
  Telecom OJSC

  
	
   

  	
   

  
	
                                       Mr. K.Yu. Solodukhin

                        
        , 2008

  Seal
  here

  	
                                           Mr. V.A.Akulich

                        
        , 2008

  Seal
  here

  

 

7

 

APPENDIX  No.2

to Agency Agreement No.35-06-23 (revision 2)

dated                      
       , 2008

 

Requirements to the Contents of Instructions and their Application

 

1.               The Instructions provided in compliance with
Clause 1, Appendix No.1 hereto shall contain the following:

 

·                  indication of any provisions (clauses,
articles, sections, etc.)  of the
Agreement Forms which may be amended;

·                  character or extent of possible amendments.

 

2.               The Instructions provided in compliance with
Clause 1, Appendix No.1 hereto may contain the following:

 

·                  alternative revisions of provisions (clauses,
articles, sections, etc.) of the Agreement Forms which may be amended;

·                  variability of amendments (for instance, a
10-day term may be extended by no more than 10 days);

·                  additional explanations to the Agreement Forms.

 

3.               When signing agreements with Corporate Users as
specified in Clause 2.1.1 of the Agreement the Operator may amend the Agreement
Forms only to the extent allowed by the corresponding Instructions and only if
such amendments are initiated by the Corporate User in writing (for instance,
in a discrepancy report sent to the Operator).

 

	
  Rostelecom:

  Director
  General

  Rostelecom OJSC

  	
  Operator:

  Director
  General

  North-West Telecom OJSC

  
	
   

  	
   

  
	
                                       Mr. K.Yu. Solodukhin

                        
        , 2008

  Seal
  here

  	
                                           Mr. V.A.Akulich

                        
        , 2008

  Seal
  here

  

 

8

 

APPENDIX No.3

to Agency Agreement No.35-06-23 (revision 2)

dated                     
       , 2008

 

Forms of the Operator’s Report

on Agency Functions Performance

under
Agreement No.                  
dated

for                             
month (reporting period)                   year.

 

Form 1.
The
Operator’s Report on agreements with Corporate Users for communication services
in the reporting period in compliance with Clause 2.1.1 hereof.

 

	
   

  	
   

  	
  Number
  of

  agreements signed in

  the reporting period

  	
   

  	
  Branch
  1

  	
   

  	
  Branch
  2

  	
   

  	
  Branch
  3

  	
   

  	
  ...

  	
   

  	
  Total
  in

  the

  reporting

  period

  	
   

  	
  Fee  per

  agreement,

  rub.

  	
   

  	
  Total

  fee,

  rub.

  without

  VAT

  
	
  1.

  	
   

  	
  Agreements with Corporate Users

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Note:

 

1.               Reports by the Operator’s branches in Form 2 shall be attached to the Operator’s Report in Form 1.

2.               The Report in Form 2 shall be approved by
the manager of the Operator’s branch.

 

Form 2.

 

Report                     by
the communication services branch for                       ,
200    .

 

	
  Branch

  	
   

  	
  No.

  	
   

  	
  Corporate  User’s name

  	
   

  	
  TIN

  	
   

  	
  Unique

  account

  number

  	
   

  	
  Agreement

  number

  	
   

  	
  Agreement  

  date

  	
   

  	
  Document

  certifying

  sending by the

  Operator of

  agreements

  made with

  Corporate Users

  
	
   

  	
   

  	
   

  	
   

  	
  Agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1

  	
   

  	
  Ptizefabrika
  OOO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The
Operator’s fee is                                               
rub. without VAT.

The
VAT of 18% is                                                                 
rub.

The
total Operator’s fee is                                           
rub. without VAT.

 

Form 3. The Operator’s Report on signing agreements
with individual users in compliance with Subclauses 1-4, Clause 2.1.2 hereof:

 

	
   

  	
   

  	
   

  	
   

  	
  Total sent in the

  reporting period

  	
   

  	
  Fee  per  agreement,

  rub.

  	
   

  	
  Total fee,

  rub. without VAT

  
	
  1

  	
   

  	
  Agreements
  with Individual Users

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The
Operator’s fee is                                               
rub. without VAT.

The
VAT of 18% is                                                                 
rub.

The
total Operator’s fee is                                           
rub. without VAT.

 

9

 

Form 4. The Operator’s Report on signing agreements
with individual users in compliance with Subclauses 5-6, Clause 2.1.2 hereof:

 

	
   

  	
   

  	
  Number of agreements signed

  in the reporting period

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  Including provided
  to Rostelecom

  	
   

  	
  Fee  per  

  agreement, rub.

  	
   

  	
  Total fee,

  rub. without VAT

  
	
  1

  	
  Agreements
  with  Individual Users

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

The
Operator’s fee is                                               
rub. without VAT.

The
VAT of 18% is                                                                 
rub.

The
total Operator’s fee is                                           
rub. without VAT.

 

	
  For
  Rostelecom:

  	
   

  	
  For the
  Operator:

  
	
   

  	
   

  	
   

  
	
  Rostelecom
  OJSC

  	
   

  	
  North-West
  Telecom OJSC

  
	
   

  	
   

  	
   

  
	
                              
  ,
  200 

  Seal here

  	
   

  	
                              
  , 200  

  Seal here

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Rostelecom:

  Director
  General

  Rostelecom
  OJSC

   

                                       Mr. K.Yu. Solodukhin

                        
        , 2008

  Seal here

  	
   

  	
  Operator:

  Director
  General

  North-West
  Telecom OJSC

   

                                           Mr. V.A.Akulich

                        
        , 2008

  Seal here

  

 

102009 ESIP revised

4957 Lakemont Blvd SE

C-4 Suite #239

Bellevue, WA 98006

 

P · 425·747·5500

f · 425·747·5501

MONTAVO, INC. 

2009 STOCK INCENTIVE PLAN FOR EMPLOYEES, CONTRACTORS,
CONSULTANTS, ADVISERS, BOARD ADVISORS, BOARD MEMBERS, AND OTHERS

CONTENTS 

1.

Definitions:

2

2.

Purpose
of Plan:

3

3.

Administration:

3

4.

Indemnification
of Committee Members:

3

5.

Maximum
Number of Shares Subject to Plan:

3

6.

Participants:

4

7.

Written
Agreement:

4

8.

Allotment
of Shares:

4

9.

Stock
Option Price:

4

10.

Stock
Price:

4

11.

Payment
of Stock Option Price:

5

11.

Granting
and Exercising of Stock Options:

5

12.

Non-transferability
of Stock Options:

6

13.

Term
of Stock:

6

14.

Reclassification,
Consolidation Or Merger:

6

15.

Non-transferability
of Stock Rights:

6

16.

Continuation
of Employment:

6

17.

Rights
to Continued Employment:

7

18.

Effectiveness
of Plan:

7

19.

Termination,
Duration and Amendments of Plan:

7

Page
1 of 7

                                     

 

1.

Definitions:
 

As used herein, the
following definitions shall apply:

(a)

"Board of Directors" shall mean the Board of Directors of
the Corporation.

(b)

 "Committee" shall mean the Compensation Committee
designated by the Board of Directors of the Corporation, or such other committee
as shall be specified by the Board of Directors to perform the functions and
duties of the Committee under the Plan; provided, however, that, the Committee
shall comply with the requirements of (i) Rule 16b-3 of the Rules and
Regulations under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and (ii) Section 162(m) of the Internal Revenue
Code of 1986, as amended (the "Code"), and the regulations
thereunder.

(c)

"Corporation" shall mean Montavo, Inc., a Delaware
corporation, or any successor thereof.

(d)

"Discretion" shall mean in the sole discretion of the
Committee, with no requirement whatsoever that the Committee follow past
practices, act in a manner consistent with past practices, or treat an employee
or consultant in a manner consistent with the treatment afforded other employees
or consultants with respect to the Plan.

(e)

"Participant" shall mean any individual designated by the
Committee under Paragraph 6 for participation in the Plan.

(f)

"Plan" shall mean this Montavo, Inc. 2009 Stock Incentive
Plan for Employees and Consultants, as amended.

(g)

"Subsidiary" shall mean any corporation or similar entity
in which the Corporation owns, directly or indirectly, stock or other equity
interest ("Stock") possessing more than 25% of the combined voting power
of all classes of Stock; provided, however, that an Incentive Option may be
granted to an employee of a Subsidiary only if the Subsidiary is a corporation
and the Corporation owns, directly or indirectly, 50% or more of the total
combined voting power of all classes of Stock of the Subsidiary.

(h)

"Incentive Option" shall mean an option to purchase Common
Stock of the Corporation which meets the requirements set forth in the Plan and
also meets the definition of an incentive stock option within the meaning of
Section 422 of the Code.  The stock option agreement for an Incentive
Option shall state that the option is intended to be an Incentive Option.

Page
2 of 7

                                     

 

(i)

"Nonqualified Option" shall mean an option to purchase
Common Stock of the Corporation which meets the requirements set forth in the
Plan but does not meet the definition of an incentive stock option within the
meaning of Section 422 of the Code.  The stock option agreement for a
Nonqualified Option shall state that the option is intended to be a Nonqualified
Option.

2.

Purpose
of Plan:  

The purpose of the Plan is to provide employees and consultants of
the Corporation and its Subsidiaries with an increased incentive to make
significant and extraordinary contributions to the long-term performance and
growth of the Corporation and its Subsidiaries, to join the interests of
employees and consultants with the interests of the shareholders of the
Corporation, and to facilitate attracting and retaining employees and
consultants of exceptional ability.  

3.

Administration:
 

The Plan shall be administered by the Committee.  Subject to
the provisions of the Plan, the Committee shall determine, from those eligible
to be Participants under the Plan, the persons to be granted stock or stock
options, the amount of stock or options to be granted to each such person, and
the terms and conditions of any grant.  Subject to the provisions of the
Plan, the Committee is authorized to interpret the Plan, to make, amend and
rescind rules and regulations relating to the Plan and to make all other
determinations necessary or advisable for the Plan's administration.
 Interpretation and construction of any provision of the Plan by the
Committee shall, unless otherwise determined by the Board of Directors of the
Corporation, be final and conclusive.  A majority of the Committee shall
constitute a quorum, and the acts approved by a majority of the members present
at any meeting at which a quorum is present, or acts approved in writing by a
majority of the Committee, shall be the acts of the Committee.

4.

Indemnification
of Committee Members:  

In addition to such other rights of indemnification as they may
have, the members of the Committee shall be indemnified by the Corporation in
connection with any claim, action, suit or proceeding relating to any action
taken or failure to act under or in connection with the Plan or any stock or
option granted hereunder to the full extent permitted by applicable law or
provided for under the Corporation's Articles of Incorporation or Bylaws with
respect to indemnification of directors of the Corporation.

5.

Maximum
Number of Shares Subject to Plan:  

The maximum number of shares and/or stock options which may be
granted under the Plan shall be 6,000,000 shares in the aggregate of Common
Stock of the Corporation. 

The number of shares subject to each outstanding stock option
shall be subject to such adjustment as the Committee, in its Discretion, deems
appropriate to reflect such events as stock dividends, stock splits,
recapitalizations, mergers, consolidations or reorganizations of or by the
Corporation; provided, however, that no fractional shares shall be issued
pursuant 

Page
3 of 7

                                     

 

to the Plan, no rights may be granted under the Plan with respect
to fractional shares, and any fractional shares resulting from such adjustments
shall be eliminated from any outstanding stock option.

6.

Participants:
 

The Committee shall determine and designate from time to time, in
its Discretion, those employees and consultants of the Corporation or any
Subsidiary to receive stock or options that, in the judgment of the Committee,
are or will become responsible for the direction and financial success of the
Corporation or any Subsidiary.

7.

Written
Agreement:  

Each stock or option award shall be evidenced by a written
agreement (each a "Corporation-Participant Agreement") containing such
provisions as may be approved by the Committee.  Each such
Corporation-Participant Agreement shall constitute a binding contract between
the Corporation and the Participant and every Participant, upon acceptance of
such Agreement, shall be bound by the terms and restrictions of the Plan and of
such Agreement.  The terms of each such Corporation-Participant Agreement
shall be in accordance with the Plan, but each Corporation- Participant
Agreement may include such additional provisions and restrictions determined by
the Committee, in its Discretion, provided that such additional provisions and
restrictions are not inconsistent with the terms of the Plan.

8.

Allotment
of Shares:  

The Committee shall determine and fix, in its Discretion, the
number of shares of Common Stock or options to purchase shares of Common Stock
with respect to which a Participant may be granted.

9.

Stock
Option Price:  

The Committee, in its Discretion, shall establish the price per
share for which the shares covered by the option may be purchased.

10.

Stock
Price:  

The initial and standard price per share of common stock to be
issued directly shall be the Fair Market Value per share, but may be changed in
each case by the Board, or its designee, from time to time. If the share price
is changed, the Board, or its designee, shall determine the share price no later
than the date of the issuance of the shares and at such other times as the
Board, or its designee, deems necessary. The Board shall have absolute final
discretion to determine the price of the common stock under the Plan. In the
absence of such specific determination, the share price will be the Fair Market
Value per share. "Fair Market Value" shall mean, if there is an established
market for the Company's Common Stock on a stock exchange, in an
over-the-counter market or otherwise, the Closing Bid Price of the Company's
stock for the trading day which is the valuation date, provided that the Board
may, in its discretion provide an alternative definition for Fair Market Value
in the instrument granting the right. Unless otherwise specified by the Board at
the time of grant (or 

Page
4 of 7

                                     

 

in the formula applicable to such grant), the valuation date for
purposes of determining the stock price shall be the date of grant. The Board
may specify that, instead of the date of grant, the valuation date shall be a
valuation period of up to ninety (90) days prior to the date of grant, and Fair
Market Value for purposes of such grant shall be the average over the valuation
period of the mean of the highest and lowest quoted selling prices on each date
on which sales were made in the valuation period. If there is no established
market for the Company's Common Stock, or if there were no sales during the
applicable valuation period, the determination of Fair Market Value shall be
established by the Board in its sole discretion, considering the criteria set
forth in Treas. Reg. Section 20.2031-2 or successor regulations.

11.

Payment
of Stock Option Price:  

To exercise in whole or in part any stock option granted
hereunder, payment of the option price in full in cash or, with the consent of
the Committee, in Common Stock of the Corporation or by a promissory note
payable to the order of the Corporation in a form acceptable to the Committee,
shall be made by the Participant for all shares so purchased.  Such payment
may, with the consent of the Committee, also consist of a cash down payment and
delivery of such promissory note in the amount of the unpaid exercise price.
 In the Discretion of and subject to such conditions as may be established
by the Committee, payment of the option price may also be made by the
Corporation retaining from the shares to be delivered upon exercise of the stock
option that number of shares having a fair market value on the date of exercise
equal to the option price of the number of shares with respect to which the
Participant exercises the stock option.   Such payment may also be
made in such other manner as the Committee determines is appropriate, in its
Discretion.   No Participant shall have any of the rights of a
shareholder of the Corporation under any stock option until the actual issuance
of shares to said Participant, and prior to such issuance no adjustment shall be
made for dividends, distributions or other rights in respect of such shares,
except as provided in Paragraph 5.

11.

Granting
and Exercising of Stock Options:  

Subject to the provisions of this Paragraph 11, each stock option
granted hereunder shall be exercisable at any such time or times or in any such
installments as may be determined by the Committee at the time of the grant.
 If the Common Stock of the Corporation is publicly traded and if a
Participant who is granted a stock option is a person who is regularly required
to report his or her ownership and changes in ownership of Common Stock of the
Corporation to the Securities and Exchange Commission and is subject to
short-swing profit liability under the provisions of Section 16(b) of the
 Exchange Act, then any election to exercise as well as any actual exercise
of such Participant's stock option shall be made only during the period
beginning on the third business day and ending on the twelfth business day
following the release for publication by the Corporation of quarterly or annual
summary statements of sales and earnings. Notwithstanding anything contained in
the Plan to the contrary, if the Common Stock of the Corporation is publicly
traded, stock options shall always be granted and exercised in such a manner as
to conform to the provisions of Rule 16b-3(e), or any replacement rule, adopted
pursuant to the provisions of the Exchange Act.  

Page
5 of 7

                                     

 

A Participant may exercise a stock option, if then exercisable, in
whole or in part by delivery to the Corporation of written notice of the
exercise, in such form as the Committee may prescribe, accompanied, in the case
of a stock option, by (i) payment for the shares with respect to which
the stock option is exercised in accordance with Paragraph 11, or (ii) in
the Discretion of the Committee, irrevocable instructions to a stock broker to
promptly deliver to the Corporation full payment for the shares with respect to
which the stock option is exercised from the proceeds of the stock broker's sale
of or loan against the shares.  Except as provided in Paragraph 15, stock
options may be exercised only while the Participant is an employee or consultant
of the Corporation or a Subsidiary.

Successive stock options may be granted to the same Participant,
whether or not the stock option(s) previously granted to such Participant remain
unexercised.  A Participant may exercise a stock option, if then
exercisable, notwithstanding those stock options previously granted to such
Participant remain unexercised.

12.

Non-transferability
of Stock Options:   

No stock option granted under the Plan to a Participant shall be
transferable by such Participant otherwise than by will or by the laws of
descent and distribution, and stock options shall be exercisable, during the
lifetime of the Participant, only by the Participant.

13.

Term
of Stock:  

If not sooner terminated, each stock option granted hereunder
shall expire not more than five (5) years from the date of the granting
thereof.

14.

Reclassification,
Consolidation Or Merger:  

If and to the extent that the number of issued shares of common
stock of the Company shall be increased or reduced by change in par value,
split-up reclassification, distribution of a dividend payable in stock, or the
like, the number of shares subject to direct issuance held by a person and the
price per share shall be proportionately adjusted. If the Company is reorganized
or consolidated or merged with another corporation, the person shall be entitled
to receive direct issuance covering shares of such reorganized, consolidated, or
merged company in the same proportion, at an equivalent price, and subject to
the same conditions.

15.

Non-transferability
of Stock Rights:   

No stock right granted under the Plan to a Participant shall be
transferable by such Participant otherwise than by will or by the laws of
descent and distribution.  However, any stock issued shall be freely
transferable after issuance.

16.

Continuation
of Employment:  

The Committee may require, in its Discretion, that any Participant
under the Plan to whom a stock or option shall be granted shall agree in writing
as a condition of the granting 

Page
6 of 7

                                     

 

of such stock or option award to remain in the employ or to remain
as a consultant of the Corporation or a Subsidiary for a designed minimum period
from the date of the granting of such stock or option award as shall be fixed by
the Committee.

17.

Rights
to Continued Employment:  

Nothing contained in the Plan or in any stock or option granted or
awarded pursuant to the Plan, nor any action taken by the Committee hereunder,
shall confer upon any Participant any right with respect to continuation of
employment or consultancy by the Corporation or a Subsidiary nor interfere in
any way with the right of the Corporation or a Subsidiary to terminate such
person's employment or consultancy at any time.

18.

Effectiveness
of Plan:  

The Plan shall be effective on the date the Board of Directors of
the Corporation adopts the Plan.

19.

Termination,
Duration and Amendments of Plan:  

The Plan may be abandoned or terminated at any time by the Board
of Directors of the Corporation.  Unless sooner terminated, the Plan shall
terminate on the date ten years after its adoption by the Board of Directors,
and no stock or option may be granted or awarded thereafter.  The
termination of the Plan shall not affect the validity of any stock or option
grant outstanding on the date of termination.

For the purpose of conforming to any changes in applicable law or
governmental regulations, or for any other lawful purpose, the Board of
Directors shall have the right, with or without approval of the shareholders of
the Corporation, to amend or revise the terms of the Plan at any time; provided,
however, that no such amendment or revision shall (i) without approval or
ratification of the shareholders of the Corporation (A) increase the maximum
number of shares in the aggregate which are subject to the Plan (subject,
however, to the provisions of Paragraph 5), (B) increase the maximum number of
shares for which any Participant may be granted stock or option under the Plan
(except as contemplated by Paragraph 5), (C) change the class of persons
eligible to be Participants under the Plan, or (D) materially increase the
benefits accruing to Participants under the Plan, or (ii) without the
consent of the holder thereof, change the stock price (except as contemplated by
Paragraph 5) or alter or impair any stock which shall have been previously
granted or awarded under the Plan.

BOARD OF DIRECTORS:

/s/ Brook Lang

 

                                     

 

 

Page
7 of 7

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