Annual report 2010

12If either party causes any damage to the other party, which is the owner ofproprietary i nformation, du e t o t he nonperformance o r improper performance ofthe a greement, t he bre aching pa rty i ndemnifies the ot her pa rty f or i ts l osses i naccordance with the laws of the Russian Federation.Term of the agreement:The t erm o f the ag reement i s on e (1) y ear, effect ive f rom t he d ate o f itsexecution. Unless terminated by either party upon at least one month’s notice priorto the expiration date, the agreement is deemed to be renewed upon the same termsand conditions and for the same period.The agreement may be terminated earlier by ei ther party at any time uponseven days’ prior notice in writing to the other party.Neither party is released f rom i ts o bligations under the a greement b y t heearly termination or expiration of the agreement in re lation t o a ny proprietaryinformation received by such party before the early termination or expiration of theagreement. Such obligations survive t he agreement for a period of two (2) yearsafter its expiration or early termination.Dispute resolution:Any dispute, controversy, or claim which may arise out of or in connectionwith the agreement, o r t he ex ecution, amendment, p erformance, breach,repudiation, t ermination, o r va lidity thereof, s hall be s ettled by the M oscowArbitration Court.Any amendments and supplements to the agreement are agreed upon by theparties and a re e ffective i f e xecuted as sup plementary a greements s igned b y t heparties.S. I. Shmatko, E. V. Dod, V. M. Kravchenko, V. V. Kudryavy,S. V. Maslov, S. Remes, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsiy,V. N. Titov, D. V. Fedorov, and P. O. Shatsky voted “For.”N. N. Shvets and G. F. Binko, failing to be i ndependent directors, did n otparticipate in the voting.Approved una nimously by independent di rectors who w ere no t re latedparties to the transaction.7.7. The proprietary information protection agreement between JSC IDGCHolding a nd OAO ID GC of t he N orth C aucasus, w hich i s a re lated p artytransaction, s hall be approved su bject to the f ollowing m aterial t erms andconditions:Parties to the agreement:JSC IDGC HoldingOAO IDGC of the North CaucasusSubject matter of the agreement:The p arties t o t he ag reement pro vide ea ch ot her with acc ess t o t heirrespective i nformation resources c ontaining pr oprietary i nformation a nd a greeupon the terms and conditions governing the disclosure of proprietary information.Either pa rty a grees t o be o bligated not t o d isclose t he ot her party’sproprietary information, undertakes to apply special measures to the protection and