SECURITIES PROSPECTUS

The amount of loss from operations involving securities traded in the organized securitiesmarket is adjusted for the margin of fluctuation of the market price of securities.Securities traded in the organized securities market include securities permitted to be tradedby trade institutors which obtained the license from the federal authority governing the securitiesmarket.The market quotation of the security traded in the organized securities market means theaverage weighted price of the security in transactions executed during the trading day throughthe trade institutor. If transactions in the same security are executed through two or more tradeinstitutors, the taxpayer is entitled to select the market quotation of the security from one tradeinstitutor. Unless the average weighted price is calculated by the trade institutor, the averageweighted price is half the sum of maximum and minimum prices of transactions executed duringthe trading day through the trade institutor.Unless expenses incurred by the taxpayer in connection with the purchase, sale and storageof securities can be directly charged to expenses in connection with the purchase, sale andstorage of specific securities, the above-mentioned expenses are allocated in proportion to thevalue of securities which the above-mentioned expenses are associated. The value of securities isdetermined as of the date on which these expenses are paid.Loss from operations involving securities traded in the organized securities marketresulting from the above-mentioned operations executed in the tax period reduces the tax basefor the operations of purchase and sale of securities belonging to this category.Income from the operations of purchase and sale of securities not traded in the organizedsecurities market which as of their purchase date meet the requirements for securities traded inthe organized securities market can be reduced by the amount of loss from the operations ofpurchase and sale of securities traded in the organized securities market generated in the taxperiod.Date of actual income receipt:-day of income payment, including the crediting of income to the taxpayer’s bank accountsor, under the taxpayer’s instructions, to third-party accounts (when income is received in cash);-day of securities purchase.Tax base for securities purchase and sale operations and operations involving the financialinstruments of term transactions is determined when the tax period is over. The tax amount isassessed and paid by the tax agent after the tax period is over or when the tax agent pays funds tothe taxpayer before the regular tax period is over.If the tax agent pays funds before the regular tax period is over, tax is imposed on theportion of income corresponding to the actual sum of paid funds. Income portion is determinedas the product of total income and the ratio of paid sum to the value of securities as of the date ofpayment of funds for which the tax agent acts as broker. If funds are paid to the taxpayer morethan once during the tax period, the tax amount is calculated on a cumulative total basis byoffsetting the tax amounts paid earlier.The value of securities is determined based on the actually paid and documented expensesin connection with purchasing such securities.The payment of funds means the payment of cash or the crediting of funds to the individualbank account or third-party account upon request from the individual.If the source of income is unable to withhold the assessed tax amount from the taxpayer,the tax agent (broker, trust manager or other individual executing operations under agency,commission or other agreement in favor of the taxpayer), the tax authority with which it isregistered is given written notice of the impossibility to make the above-mentioned withholdingand the sum of debt owed by the taxpayer within one month of the day on which such obligationarises. In this case, tax is paid in accordance with Article 228 of the Tax Code.Procedure for the taxation of corporate entities.Tax type: profit tax.199