Common use of Parties’ Settlement Clause in Contracts

Parties’ Settlement. 4.1. The mutual settlement between the Parties are performed monthly, on the basis of the Agreement, the report of the fulfillment of the agency commission of Rostelecom sent by the Operator to Rostelecom in accordance with paragraph 3.3.3. (hereinafter - “Report”), and the Acceptance Act for of the Services rendered (hereinafter - “Act”). 4.2. The consideration, the service costs and the amount of the consideration payments are calculated in accordance with the procedure specified in Appendix No. 2 hereunder. The mutual payments of the Parties are calculated as follows: 4.2.1. The Operator performs the transfer to Rostelecom of the total Accrued income within the term no later than the last day of the month of the Billing period, for the services of the long-distance and international telecommunication services by Rostelecom to the Users during the reporting month. The amount of the Accrued income is determined on the basis of the Report. 4.2.2. The Operator has the right to deduct from the regular payment to Rostelecom: (1) the amounts of the consideration payments for the performance of the actions indicated in paragraph 3.3.1. hereunder. The sums indicated are calculated on the basis of the Report. (2) service payments indicated in paragraph 3.3.2. hereunder. The sum indicated is calculated on the basis of the Acceptance Act for the Services rendered. (3) refund of the expenses connected with the fulfillment by the Operator of the agency commission in accordance with Appendix No. 2 hereunder. 4.3. The Report is drawn up in accordance with the form presented in Appendix No. 3. The Statement of acceptance of the Services rendered is drawn up in accordance with the form presented in Appendix No. 5 of the Agreement. The Operator presents the Report and the Act to Rostelecom within the term no later than the 5th day of the Billing period. Together with the Report, the Operator sends to Rostelecom the invoice indicating the amount of consideration and the cost of the services rendered. 4.4. Rostelecom considers the Report and the Act and confirms/signs them. Together with the signing of the Report, Rostelecom presents to the Operator the xxxx for the amount of the Accrued income in accordance with the confirmed Report. 4.5. Should any comments arise to the Report or Act presented by the Operator, Rostelecom notifies the Operator about the data discrepancy of the current Report within the period of 5 days upon receipt of the corresponding documentation. At that, Rostelecom confirms/signs the Report and Act with comments, and the Parties settle the accounts on the amount of the undisputed sum. 4.6. In order to eliminate the shortcomings of the Report, the Parties conduct negotiations within the period of one month and perform a reconciliation/detailed elaboration of the data of the Parties. In accordance with the results of the revision, the Troubleshooting Report is signed by the Parties, and, if required, a new account of payments is made in the Billing periods that follow. The signing by the Parties of the Troubleshooting Report also means the confirmation of the Operator’s Report by Rostelecom. In case of need the Parties make a new account of payments in the Billing periods that follow. 4.7. Not being limited by the conditions mentioned in paragraph 4.6. hereunder, in case of detection by one of the Parties of unreliable Report data provided, the Party that detects the aforementioned discrepancy notifies immediately the other Party about this fact. The Parties conduct negotiations in order to eliminate the data discrepancy within the period of one month from the moment of the detection of the unreliable data provided. In case of need the Parties make a new account of payments in the Billing periods that follow. 4.8. The signing of the Report by Rostelecom also means the confirmation of fulfillment of cross obligations of Rostelecom on the payment to the Operator of the consideration and the refund of charges of the Operator during their fulfillment of commission under the Agreement and the obligations of the Operator on the transfer to Rostelecom of the payments by the Users for the Services rendered. 4.9. By the last day of the Billing period the Operator transfers to Rostelecom the payments in the amount of the Accrued income in accordance with the Agency Report with the deduction of the sums indicated in paragraph 4.2. hereunder. At that, the payment amounts transferred by the Operator securing the guarantee of the fulfillment by the Users of their obligations on Service payment, concerning the Service payments with respect to which the 0% VAT rate was applied, are transferred by a separate payment order in accordance with the procedure specified in Section 2 of Appendix No. 4 of the Agreement. 4.10. The date of fulfillment of the Operator’s monetary obligations is the date of receipt of payments on the correspondent account of the service bank of Rostelecom. 4.11. All payments by the Users are to be charged to the Operator’s accounts. 4.12. Quarterly and upon necessity Rostelecom and the Operator perform the inspection of mutual settlements. The Reconciliation Report of Mutual Settlements is drawn up by the Party concerned penaltied in two counterparts and signed by the authorized representatives of the Parties. The Party receiving the Reconciliation Report of Mutual Settlements must sign the Reconciliation Report of Mutual Settlements or present its objections concerning the reliability of the information contained in it within the period of twenty (20) days from the date of dispatch of the Reconciliation Report of Mutual Settlements. 4.13. The Parties agree that, if the total amount of payments transferred by the Operator to Rostelecom in accordance with paragraph 4.2. hereunder for the corresponding Billing period and the total amount of the obligations of Rostelecom on the consideration for the actions identified in paragraph 3.3.1. and the services identified in paragraph 3.3.2. of the Agreement and the refund of charges of the Operator during the same period, in the aggregate exceeds the sum received by the Operator from the Users for the Services rendered during the same Billing period, in the case of the like excess of the payments transferred by the Operator to Rostelecom (hereinafter - “Collateral”) are considered transferred as the result of the fulfillment by the Operator of their obligations specified in paragraph 3.3.3. hereunder.

Parties’ Settlement. 4.1. The mutual settlement between the Parties are performed monthly, on the basis of the Agreement, the report of the fulfillment of the agency commission of Rostelecom sent by the Operator to Rostelecom in accordance with paragraph 3.3.3. (hereinafter - “Report”), and the Acceptance Act for of the Services rendered (hereinafter - “Act”). 4.2. The consideration, the service costs and the amount of the consideration payments are calculated in accordance with the procedure specified in Appendix No. 2 hereunder. The mutual payments of the Parties are calculated as follows: 4.2.1. The Operator performs the transfer to Rostelecom of the total Accrued income within the term no later than the last day of the month of the Billing period, for the services of the long-distance and international telecommunication services by Rostelecom to the Users during the reporting accounting month. The amount of the Accrued income is determined on the basis of the Report. 4.2.2. The Operator has the right to deduct from the regular payment to Rostelecom: (1) the amounts of the consideration payments for the performance of the actions indicated in paragraph 3.3.1. hereunder. The sums indicated are calculated on the basis of the Report. (2) service payments indicated in paragraph 3.3.2. hereunder. The sum indicated is calculated on the basis of the Acceptance Act for the Services rendered. (3) refund of the expenses connected with the fulfillment by the Operator of the agency commission in accordance with Appendix No. 2 hereunder. 4.3. The Report is drawn up in accordance with the form presented in Appendix No. 3. The Statement of acceptance of the Services rendered is drawn up in accordance with the form presented in Appendix No. 5 of the Agreement. The Operator presents the Report and the Act to Rostelecom within the term no later than the 5th day of the Billing period. Together with the Report, the Operator sends to Rostelecom the invoice indicating the amount of consideration and the cost of the services rendered. 4.4. Rostelecom considers the Report and the Act and confirms/signs them. Together with the signing of the Report, Rostelecom presents to the Operator the xxxx for the amount of the Accrued income in accordance with the confirmed Report. 4.5. Should any comments arise to the Report or Act presented by the Operator, Rostelecom notifies the Operator about the data discrepancy of the current Report within the period of 5 days upon receipt of the corresponding documentation. At that, Rostelecom confirms/signs the Report and Act with comments, and the Parties settle the accounts on the amount of the undisputed sum. 4.6. In order to eliminate the shortcomings of the Report, the Parties conduct negotiations within the period of one month and perform a reconciliation/detailed elaboration of the data of the Parties. In accordance with the results of the revision, the Troubleshooting Trubleshooting Report is signed by the Parties, and, if required, a new account of payments is made in the Billing periods that follow. The signing by the Parties of the Troubleshooting Trubleshooting Report also means the confirmation of the Operator’s Report by Rostelecom. In case of need the Parties make a new account of payments in the Billing periods that follow. 4.7. Not being limited by the conditions mentioned in paragraph 4.6. hereunder, in case of detection by one of the Parties of unreliable Report data provided, the Party that detects the aforementioned discrepancy notifies immediately the other Party about this fact. The Parties conduct negotiations in order to eliminate the data discrepancy within the period of one month from the moment of the detection of the unreliable data provided. In case of need the Parties make a new account of payments in the Billing periods that follow. 4.8. The signing of the Report by Rostelecom also means the confirmation of fulfillment of cross obligations of Rostelecom on the payment to the Operator of the consideration and the refund of charges of the Operator during their fulfillment of commission under the Agreement and the obligations of the Operator on the transfer to Rostelecom of the payments by the Users for the Services rendered. 4.9. By the last day of the Billing period the Operator transfers to Rostelecom the payments in the amount of the Accrued income in accordance with the Agency Report with the deduction of the sums indicated in paragraph 4.2. hereunder. At that, the payment amounts transferred by the Operator securing the guarantee of the fulfillment by the Users of their obligations on Service payment, concerning the Service payments with respect to which the 0% VAT rate was applied, are transferred by a separate payment order in accordance with the procedure specified in Section 2 of Appendix No. 4 of the Agreement. 4.10. The date of fulfillment of the Operator’s monetary obligations is the date of receipt of payments on the correspondent account of the service bank of Rostelecom. 4.11. All payments by the Users are to be charged to the Operator’s accounts. 4.12. Quarterly and upon necessity Rostelecom and the Operator perform the inspection of mutual settlements. The Reconciliation Report of Mutual Settlements is drawn up by the Party concerned penaltied penaltyed party in two counterparts and signed by the authorized representatives of the Parties. The Party receiving the Reconciliation Report of Mutual Settlements must sign the Reconciliation Report of Mutual Settlements or present its objections concerning the reliability of the information contained in it within the period of twenty (20) days from the date of dispatch of the Reconciliation Report of Mutual Settlements. 4.13. The Parties agree that, if the total amount of payments transferred by the Operator to Rostelecom in accordance with paragraph 4.2. hereunder for the corresponding Billing period and the total amount of the obligations of Rostelecom on the consideration for the actions identified in paragraph 3.3.1. and the services identified in paragraph 3.3.2. of the Agreement and the refund of charges of the Operator during the same period, in the aggregate exceeds the sum received by the Operator from the Users for the Services rendered during the same Billing period, in the case of the like excess of the payments transferred by the Operator to Rostelecom (hereinafter - “Collateral”) are considered transferred as the result of the fulfillment by the Operator of their obligations specified in paragraph 3.3.3. hereunder.

Parties’ Settlement. 4.1. The mutual settlement Mutual settlements between the Parties are performed monthly, made monthly on the basis of the this Agreement, the report Report of the fulfillment of Operator according to the agency commission of Rostelecom sent by the Operator to Rostelecom form given in accordance with paragraph 3.3.3. Appendix 3 (hereinafter - “The Operator’s Report”), Acceptance act of delivery and acceptance of services according to the form given in Appendix 5 (Acceptance Act), Offset Act for of the Services rendered counter-claims (hereinafter - “Offset Act”) and Invoice (Invoice). 4.2. The consideration, the service costs and the amount of the consideration payments Sums due to payment under this Agreement are calculated in accordance with according to the procedure specified in Appendix No. 2 hereunder. The mutual payments of the Parties are calculated as followsfollowing: 4.2.14.1.1. The Operator performs the should transfer to Rostelecom 100% (hundred percent) of the total Accrued income within the term no later than the last day of the month of the Billing period, Earned Income for the services of the long-distance and international telecommunication services by Rostelecom to the Users during the reporting month. The amount of the Accrued income is determined on the basis of the Report. 4.2.2. The Operator has the right to deduct from the regular payment to Rostelecom: (1) the amounts of the consideration payments for the performance of the actions indicated in paragraph 3.3.1. hereunderTelecommunication Services. The sums indicated are calculated on the basis of the Operator’s Report. (2) service payments indicated 4.1.2. Rostelecom shall transfer the Operator the payment for the services rendered by the Operator to Rostelecom in paragraph 3.3.2accordance to para. hereunder2.2 and the refund for the actions of the Operator negotiated in para. 2.1, Section 2 of this Agreement. The sum amount of payment, the procedure of settlement of the accounts between the Parties for the services rendered by the Operator to Rostelecom, is negotiated in Appendix 2 to the Agreement. The sums indicated is are calculated on the basis of the Acceptance Act for the Services renderedAct. 4.1.3. The Parties agree about the possibility of offsetting of counter-claims (3obligations) refund by way of signing an Offset Act indicated in Appendix 7. The transfer of money from the Operator to Rostelecom is performed in the part, which was not written off by set off, and is made on the basis of the expenses connected with invoice issued by Rostelecom. 4.1.4. Notwithstanding the fulfillment by provisions of para. 4.1.3., against the obligations fulfillment, indicated in para. 4.1.1. the Operator of the agency commission in accordance with Appendix No. 2 hereunder. 4.3. The Report is drawn up in accordance with the form presented in Appendix No. 3. The Statement of acceptance of the Services rendered is drawn up in accordance with the form presented in Appendix No. 5 of the Agreement. The Operator presents the Report and the Act to Rostelecom within the term shall on a monthly basis, no later than the 5th 25th day of a month of the Billing Period to make a minimum payment to Rostelecom in the amount of 39% of the Accrued Income according to the invoice issued by Rostelecom and in compliance to para. 4.3 of this Agreement. 4.2. The Operator sends the Operator’s report to Rostelecom no later than the 7th day of the Billing month. If the day of submission coincides with a day-off, the Operator sends such a report no later that a last but one working day of the indicated period. Together with the Report, Report the Operator sends to Rostelecom an Acceptance Act and invoices with the invoice indicating the amount price of consideration services and the cost refund of the services renderedOperator. Copies of the Operator’s Report, Acceptance Act and invoices shall be given to Rostelecom by a facsimile transmission with confirmation report, while original documents shall be sent by registered mail with receipt acknowledged. The date of facsimile transmission shall be the effective date of documents delivery. 4.44.3. Rostelecom considers reviews the submitted by the Operator documents. If there are no remarks, Rostelecom approves the Operator’s Report and the Act and confirms/signs themAcceptance Act. Together with that Rostelecom bills the signing of Operator. If Rostelecom has objections against the Report, Rostelecom presents to the Operator the xxxx for the amount of the Accrued income in accordance with the confirmed Report. 4.5. Should any comments arise to the Report or Act presented documents submitted by the Operator, Rostelecom notifies shall give written notice to the Operator about of such objections within three (3) business days after receipt of documents by facsimile. Rostelecom approves the data discrepancy Operator’s Report and the Acceptance Act with remarks, and issues the Xxxx for the settlement of payments for the uncontested amount. Copies of the current Xxxx and the approved Operator’s Report within and Acceptance Act shall be sent the period of 5 days upon receipt Operator by fax. Originals of the corresponding documentation. At that, Rostelecom confirms/signs the Report and Act documents are sent by registered mail with comments, and the Parties settle the accounts on the amount of the undisputed sumrecept acknowledged. 4.64.4. In order to To eliminate objections against the shortcomings of documents submitted by the ReportOperator, the Parties conduct shall, within 10 business days after the date when Rostelecom gives written notice of such objections to the Operator, hold negotiations within the period of one month and perform a reconciliation/detailed elaboration of the data of the Partiesshall reconcile / analyze their respective data. In accordance with the results of the revisionreconciliation, the Troubleshooting Report is signed by the Parties, and, if required, a new account of payments is made in the Billing periods that follow. The signing by the Parties of the Troubleshooting Report also means the confirmation of the Operator’s Report by Rostelecom. In case of need the Parties make a new account of payments in the Billing periods that follow. 4.74.5. Not being Being not limited by the conditions mentioned in paragraph 4.6. hereunder, in case provisions of detection by one of the Parties of unreliable Report data provided, the Party that detects the aforementioned discrepancy notifies immediately the other Party about this fact. The Parties conduct negotiations in order to eliminate the data discrepancy within the period of one month from the moment of the detection of the unreliable data provided. In case of need the Parties make a new account of payments in the Billing periods that followpara. 4.8. The signing of the Report by Rostelecom also means the confirmation of fulfillment of cross obligations of Rostelecom on the payment to the Operator of the consideration and the refund of charges of the Operator during their fulfillment of commission under the Agreement and the obligations of the Operator on the transfer to Rostelecom of the payments by the Users for the Services rendered. 4.9. By the last day of the Billing period the Operator transfers to Rostelecom the payments in the amount of the Accrued income in accordance with the Agency Report with the deduction of the sums indicated in paragraph 4.2. hereunder. At that, the payment amounts transferred by the Operator securing the guarantee of the fulfillment by the Users of their obligations on Service payment, concerning the Service payments with respect to which the 0% VAT rate was applied, are transferred by a separate payment order in accordance with the procedure specified in Section 2 of Appendix No. 4 of the Agreement. 4.10. The date of fulfillment of the Operator’s monetary obligations is the date of receipt of payments on the correspondent account of the service bank of Rostelecom. 4.11. All payments by the Users are to be charged to the Operator’s accounts. 4.12. Quarterly and upon necessity Rostelecom and the Operator perform the inspection of mutual settlements. The Reconciliation Report of Mutual Settlements is drawn up by the Party concerned penaltied in two counterparts and signed by the authorized representatives of the Parties. The Party receiving the Reconciliation Report of Mutual Settlements must sign the Reconciliation Report of Mutual Settlements or present its objections concerning the reliability of the information contained in it within the period of twenty (20) days from the date of dispatch of the Reconciliation Report of Mutual Settlements. 4.13. The Parties agree that, if the total amount of payments transferred by the Operator to Rostelecom in accordance with paragraph 4.2. hereunder for the corresponding Billing period and the total amount of the obligations of Rostelecom on the consideration for the actions identified in paragraph 3.3.1. and the services identified in paragraph 3.3.2. of the Agreement and the refund of charges of the Operator during the same period, in the aggregate exceeds the sum received by the Operator from the Users for the Services rendered during the same Billing period, in the case of the like excess of the payments transferred by the Operator to Rostelecom (hereinafter - “Collateral”) are considered transferred as the result of the fulfillment by the Operator of their obligations specified in paragraph 3.3.3. hereunder.