The admission of members of the Exchange

Article 12.

The procedure for admission to Securities Exchange membership shall start by the prescribed request form that is to be completed (hereinafter: the Request) and that is to be submitted by a registered letter or directly to the Exchange.

Article 13.

An authorized participant must enclose, with the request, documents that prove that he meets requirements for admission to membership.

The Board of Directors of the Exchange shall decide on the request for the membership admission.

Following documents have to be enclosed with the request mentioned in the previous item:

• The Foundation Act;
• Decision of the Court Registry with other documents about the entry into the register
• The Statute
• The Rules of Functioning
• License to do business issued by the authorized organ;
• Information on persons with special responsibilities and authorizations;
• Statement that he would harmonize his acts with the Exchange acts that regulate rights and obligations of members of the Exchange within 3 months following the day of acquiring the membership;
• Financial reports for the last business year if an authorized participant does business more than one year;
• Decision on admission to the membership in CDA;
• Names of authorized brokers.

The Board of Directors of the Exchange may request from an authorized participant to submit other information or documents as well.

The request is to be submitted in original, whereas other documents may be submitted either in original or in a photocopy that is certified by a responsible person of the issuer.

Article 14.

The Board of Directors of the Exchange may give back the request to an authorized participant, if the request is not prepared in accordance with provisions of the first and third item of the previous Article, to amend or to change it. The deadline for the request to be amended, that is changed can be neither shorter than 8 days nor longer than 30 days.

The Board of Directors shall dismiss the request, if an authorized participant doesn’t amend, that is change the request within the deadline from the previous item.

Article 15.

The Board of Directors shall make decision on the request at the meeting that is not public.

The deadline for making the decision is 30 days at the latest, following the day of receiving the request or the day of amending or changing the request.

Article 16.

The Board of Directors shall refuse the request if it finds out that an authorized participant doesn’t meet the requirements for the membership admission.

The Board of Directors informs the claimant on its decision within 8 days following the day of making decision.

The decision must be explained so that the reason for the refusal of request is clearly stated.

The decision from the previous item must state that an authorized participant may lodge an appeal within 15 days at the latest, following the delivery of the decision.

The Securities Commission shall decide on the appeal.

Article 17.

All members of the Exchange shall be informed on the admission of a new member.

An authorized participant must conclude a contract of using the trading system and meet other requirements in accordance with the Rules within the deadline prescribed by the decision on the admission.

If an authorized participant doesn’t fulfill his duties from the previous item within the prescribed deadline, the Board of Directors may cancel its decision or determine a new deadline for fulfillment of participant’s duties within 10 days following the day when the duties should have been fulfilled.