Appendix 1A to the Agreement on Terms and Conditions

for the Opening and Operation of RTGS Account in SORBNET-EURO system

The detailed terms and conditions of opening and maintaining the banking account in euro in the SORBNET-EURO system for Banks

TITLE 1. GENERAL PROVISIONS

Paragraph 1. Definitions

The terms employed in the Appendix shall be construed as follows: 1) another account – an account in euro other than the account, maintained with the NBP; 2) another department – a department of the NBP Head Office other than the PSD; 3) another NBP organisational unit – an NBP organisational unit other than the NBP Head Office; 4) authentication – a property enabling the declared identity of the sender of information to be

confirmed; 5) bank customer – a holder of an account with the said bank or a natural person or entity

which makes a cash deposit at the said bank; a foreign bank that has an account with the said Bank shall also be deemed a customer;

6) clearing bank – a Bank, which clears banking operations on behalf of another bank while not

being its correspondent bank; 7) confidentiality – a property consisting in information being inaccessible to unauthorised parties; 8) correspondent bank – a Bank, which maintains a account in euro for another bank, which

performs money settlements in euro via the correspondent bank; 9) critical order – a payment order concerning settlements with regard to external systems operated

by the National Clearing House, the National Depository for Securities and the settlement of the STEP2 system as well as an interbank payment;

10) cryptographic protection suite – a set of IT tools delivered by the NBP to the Bank to be used when sending to the PSD payment orders and other messages drawn up using the banking module via the electronic data exchange system, the Internet or using a protected floppy disk, the purpose of which is to ensure confidentiality, integrity and nonrepudiation;

11) customer order – a payment order concerning a money settlement performed between a Bank and a customer of another bank or between customers of different banks, which results – where executed – in interbank settlement in the SORBNET-EURO system;

12) detailed bank module user’s manual – the user’s manual for the SORBNET_BW application entitled “Operating Orders for the Bank Client Module of the SORBNET and SORBNET-EURO systems” developed by the NBP and delivered to the Bank;

13) end of operating day at the PSD – 6 p. m. ECB time; 14) entry of a payment order into the SORBNET-EURO system – registering the order in the

computer bookkeeping system; 15) execution of a payment order – moment of the debiting the account of sending bank with the

amount of the payment order ; 16) initiation of execution of the order – a verification following the entry of a payment order into the

SORBNET-EURO system, in terms of: a. the completeness and validity of material elements of the payment order; b. the Bank having sufficient funds on its account in order to execute the payment order;

17) integrity – a property demonstrating that information has not been tampered with from the moment of signature pursuant to point 25 below to the moment of verification of the said signature;

18) interbank market – a market on which transactions between Banks are executed; 19) Internet – an emergency method of transferring payment orders by the Bank to the PSD via the

dedicated Web portal of the SORBNET-EURO system and of transmitting information concerning orders crediting the Bank’s account as well as information concerning the account and its balance by the PSD to the Bank; the said method is used in the case of a failure of the electronic data exchange system;

20) message – a strictly defined set of information created in the banking module or the main module of the SORBNET-EURO system in an ordered form enabling its transmission as a package via the electronic data exchange system, the Internet or using a protected floppy disk between the Bank and the PSD, as well as its automatic interpretation;

21) NCH clearing session – a period of time within an operating day at the PSD during which interbank settlement resulting from the exchange of payment orders between Banks via the EuroELIXIR system operated by the NCH is performed in the SORBNET-EURO system; the session begins upon the submission of payment orders by the NCH to the PSD, and ends upon the last entry being made. during the said session;

22) NDS participant – a participant of the deposit and settlement system operated by the NDS; 23) nonrepudiation – a property consisting in the sender of information being unable to deny the fact

of sending the said information; 24) operating day – a day on which the PSD accepts and executes in the SORBNET-EURO system

payment orders issued by the NCH, the NDS or banks; 25) package – a set of messages transmitted together, originating from a single sender and destined

for a single recipient indicated in the package; 26) payer bank – a Bank which is an NDS participant and has an account in euro maintained with the

PSD used to clear transactions regarding securities or other financial instruments of which the NDS maintains records, or other operations related to the responsibilities of the NDS;

27) protected floppy disk – a floppy disk containing a package with payment orders created using the banking module, signed pursuant to point 29 and encrypted using the cryptographic protection suite;

28) PSD – Payment Systems Department in the NBP Head Office; 29) signature – an action consisting in appending data enabling the verification of authenticity and

integrity of signed information, as well as the authentication of the Bank or the PSD.

Paragraph 2. Defining the List of Documents Related to Maintenance of Account to be Submitted by the Bank to the PSD

1. Subject to sections 4 and 5, in order to maintain an account, the Bank shall submit the following documents to the PSD before signing this Agreement: 1) the legal act establishing the Bank or a document certifying that it has been established in

accordance with applicable laws, 2) the Bank’s articles of association, 3) an copy from the National Court Register or another document indicating the individuals

authorised to issue statements with respect to property rights and responsibilities on behalf of the Bank ,

4) certificate with respect to the REGON identification number, subject to section 1b, 5) capacity opinion issued by the Bank or an external law firm, unless such opinion has been

previously received by the NBP for the participation in SORBNET – EURO System, 6) country opinion issued by an external law firm, taking into account the provisions of the

laws of the country from which the Bank originates if the Bank is not a Polish company; 7) specimen signature card, 8) a list of individuals authorised by the Bank to obtain the following from the PSD:

a) information regarding the inability to cancel a payment order, as set forth in Para. 26, section 9,

b) information regarding the return of a payment order, as set forth in Para. 29, section 10, point 2,

c) information regarding the rejection of a payment order, as set forth in Para. 29, section 11,

d) information regarding the amendment of an error in the Bank’s account, as set forth in Para. 39, section 5,

e) information regarding queued pending orders, as set forth in Para. 32, sections 6 and 7, 9) a list of individuals authorised by the Bank to obtain information on the account balance and

turnover from the PSD, as set forth in Para. 34, sections 7 and 8, 10) a list of individuals authorised by the Bank to deliver the following directly to the NBP Head

Office: a) payment orders on a protected floppy disk or paper media, as set forth in Para. 22,

section 1 and Para. 23, section 3, respectively, b) payment order revocations on paper media, as set forth in Para. 26, section 3, point 3, c) account separation order for an NCH session on paper media, as set forth in Para. 8,

section 12, d) payment order cancellations on paper media, as set forth in Para. 27, section 1,

11) a list of individuals authorised by the Bank to receive the Bank’s account statements, as set forth in Para. 35, section 6, point 2.

12) a list of banks for which the Bank is a correspondent bank in euro and to whom payment orders can be directed in the SORBNET-EURO system along with their BIC identificators (Bank Identification Code).

1a. A branch of a credit institution shall provide the NBP with the information obtained by the

Banking Supervision Commission from the competent supervisory authorities of the home State that the branch in question is authorised to operate within the territory of the Republic of Poland.

1b. Credit institutions are not obliged to provide the NBP with the documents referred to in section 1

point 4.

2. The lists of individuals set forth in section 1, points 8 and 9 should also (apart from full names of the authorized individuals) include their work times and telephone numbers, as well as a fax number to ensure that appropriate information can be transferred during the entire operating day.

3. The lists of individuals stipulated in section 1, points 8—11, and the Bank’s written requests, if applicable, stipulated in Para. 35, sections 7 and 9, shall be signed by the individuals authorised to issue statements with respect to property rights and responsibilities on behalf of the Bank, whose signatures are listed in the specimen signature card submitted to the PSD, and whose authorisations stem from the documents set forth in section 1, point 3.

4. The Bank undertakes to update the documents set forth in section 1 on an ongoing basis. Changes to documents shall be effective upon their approval by the PSD, subject to Para. 3, sections 12 of Attachment 9 hereto.

5. The provisions for the development and submission of specimen signature cards by the Bank to the PSD as set forth in section 1, point 7, or directed to other organisational units of the NBP and submitted to the PSD for confirmation are provided in Attachment 9 hereto.

6. The NBP shall be obliged to consider a Bank’s application for opening of an account within 14 days from the date of the submission of required documents to the NBP.

7. If the NBP considers the financial standing of the Bank to be sound, the NBP shall notify the Bank about the possibility of opening such an account within 30 days from the date of submitting the

application. The same time limit applies to the notification of a lack of the possibility to open such an account.

Paragraph 3. Issuers of Payment Orders

1. The Bank’s account shall be debited on the basis of payment orders, which may be issued by the following entities: 1) the NCH, submitting orders with authorisation and on behalf of the Bank, subject to section

2; 2) the NBP, issuing orders with authorisation of the Bank; 3) the NDS, submitting orders with authorisation and on behalf of the Bank, subject to section

2; 4) the Bank; listed in the order corresponding to the priority of execution of the orders issued by the said entities.

2. The Bank’s account may be debited on the basis of payment orders issued by the NCH, provided that the Bank is a Bank of the EuroELIXIR system operated by the NCH or on the basis of payment orders issued by the NDS, provided that the Bank is a payer bank as defined in Para. 6, section 7.

3. The Bank’s account shall be credited on the basis of incoming payment orders which may be issued by the entities listed under section 1 above, Banks whose accounts in euro are maintained with the NBP, and other customers of the NBP, on the basis of incoming cross-border payment orders received from the TARGET system, or on the basis of intraday credit in euro provided by the NBP.

TITLE 2. ORDERS ISSUED BY THE NCH

Paragraph 4. Types of Orders Issued by the NCH

1. The Bank authorises the NBP to execute orders issued and submitted on behalf of the Bank by the NCH that debit the Bank’s account with the net amount of liabilities resulting from the exchange of payment orders performed via the NCH with other Banks of the EuroELIXIR system and credit with the said amount the account in euro of the NCH maintained with the PSD.

2. The debiting and crediting of an account of a Bank due to exchange of payment orders directed to the settlement in the STEP-2 system are executed on a basis of payment orders issued by the NCH.

3. The orders issued by the NCH that debit the account of the NCH and credit the Bank’s account with the net amount of claims resulting from the exchange of payment orders performed via the NCH with other Banks of the EuroELIXIR system shall be submitted to the PSD by the NCH on its own behalf.

Paragraph 5. Principles of Submitting Domestic Orders by the NCH

1. The NCH shall submit domestic orders at two NCH clearing sessions during the operating day:

1) the morning session; 2) the afternoon session.

2. The detailed procedure and hours of submission of orders by the NCH shall be stipulated in a separate agreement concluded between the NBP and the NCH (as stipulated in Appendix 1C to the Agreement).

3. The Bank agrees on the defining by the NBP and the NCH of the detailed mode and hours of submitting of orders by the NCH, in accordance with the “Rules of the EuroELIXIR system” as provided on the NCH website (www.kir.pl) .

Paragraph 6. Principles of Submitting Cross-Border Orders by the NCH

1. The NCH shall submit payment orders pertaining to the settlement of cross-border orders sent by the Bank to the STEP-2 system on the date preceding the settlement. The Bank undertakes to ensure on that date sufficient balance to fully cover its liabilities resulting from orders submitted for settlement in the STEP-2 system. The NBP, on the basis of information received from the NCH, shall at 5.30 pm ECB time separate the funds on account of the cross-border orders sent by the Bank to the NCH, subject to section 2.

2. Where the NCH submits to the PSD new information concerning the amount that should be separated on the Bank’s account on the basis of a report from the STEP-2 system, the NBP, at the end of operating day preceding the settlement in the STEP-2 system at the latest, shall adjust the amount of funds previously separated and separate the funds again in the amount stipulated in the latest information received from the NCH.

2a. The separation existing on the account of a Bank at the end of the operating day shall be irrevocable from the point in time at which it has been set last time as referred to in section 1 and 2.

3. The NBP shall debit the Bank’s account for cross-border orders transmitted to the STEP-2 system at 7 a. m. ECB time on the date on which the settlement in the STEP-2 system takes place, i.e. on the next operational day after the funds in the account have been separated as stipulated in section 1.

4. The NBP shall credit the Bank’s account with the amount resulting from payment orders received by the Bank from the STEP-2 system at the hours stipulated by the Rules of the EuroELIXIR system operated by the NCH during the afternoon cross-border clearing session of the NCH.

5. The detailed procedure and hours of submitting orders by the NCH shall be described in a separate agreement concluded between the NBP and the NCH (as stipulated in Appendix 1C to the Agreement), which shall comply with the provisions of “Rules of the EuroELIXIR system”, accepted by the Supervisory Board of the NCH.

6. The Bank agrees on the defining by the NBP and the NCH of the detailed mode and hours of submitting of orders by the NCH, in accordance with the “Rules of the EuroELIXIR system” (as stipulated in Appendix 1C to the Agreement),

Paragraph 7. Other Provisions

1. The Bank undertakes to ensure sufficient balance in its account to meet the liabilities resulting from the exchange of domestic payment orders performed via the NCH in the EuroELIXIR system at the latest at 5.30 p.m. ECB time.

2. In order to ensure sufficient funds in its account to meet the liabilities resulting from the exchange of payment orders performed via the EuroELIXIR system at the NCH, the Bank may separate funds in the said account beforehand by submitting an order to block the funds for the next session of the NCH.

3. Subject to section 6, the Bank may at any time increase or decrease the amount of funds separated or release all funds by submitting the order referred to in section 2 above.

4. The Bank shall perform the operations referred to in sections 2 and 3 above by transmitting appropriate orders to the PSD via the electronic data exchange system, subject to sections 12–16.

5. Para. 20, sections 2 and 3, Para. 25, Para. 29 and Para. 30, section 1 shall be duly applicable to the submission of orders to separate the balance for an NCH session by the Bank and their processing by the NBP, subject to section 6.

6. The orders referred to in section 4 above shall not be processed during NCH clearing sessions.

7. Immediately after the receipt of a properly submitted order referred to in sections 2 or 3 above, the PSD shall draw up and submit to the Bank a response containing information that funds have been separated or that funds could not be separated.

8. The response referred to in section 7 above shall be in the form of a message drawn up by the PSD and submitted to the Bank via the electronic data exchange system.

9. Upon the beginning of a given NCH clearing session, the following shall occur automatically: a) the funds separated by the Bank shall be released – where the NCH submits a payment order

crediting the Bank’s account, or

b) the amount of funds separated by the Bank shall be replaced by the net amount of the Bank’s liabilities during this session – where the NCH submits a payment order debiting the Bank’s account.

10. Where a demand to separate the funds has been submitted for an NCH session during which the NCH has not submitted a payment order regarding the Bank’s account, the funds shall be released immediately after the conclusion of the NCH clearing session.

11. The Bank undertakes to separate funds in its account solely for the purpose stipulated in section 2 above.

12. Where the orders referred to in sections 2 and 3 above cannot be submitted in the manner referred to in section 4 above, the Bank may submit such an order by fax or on paper media in a manner corresponding to the one referred to in Para. 24 and in Para. 23, section 3, respectively.

13. The order referred to in section 12 above, submitted by fax or on paper media, shall include at least the name of the Bank, the amount to be separated and the name of the NCH clearing session for which the funds are to be separated.

14. The order referred to in section 12 above, submitted by fax or on paper media, shall be authenticated pursuant to the procedure stipulated in Para. 24, sections 2 and 4 and in Para. 25, section 2, respectively.

15. The order referred to in section 12 above, submitted by fax or on paper media, shall not be processed by the PSD if drawn up, authenticated or delivered in breach of this Appendix.

16. The provisions of sections 9–11 above shall be duly applicable to funds separated in the manner referred to in section 12 above.

17. The NBP does not bear the responsibility for the contents of the payment orders submitted to the NBP by the NCH and their timely submission pursuant to the regulations referred to in Para. 8, section 2. The sole responsibility in the scope referred to in sentence 1 bears the NCH.

18. The Bank authorises the NBP to submit to the NCH – at the hours stipulated in section 1 above – information concerning the amount of the separated insufficient balance in the Bank’s account to meet the liabilities referred to in Para. 8, section 1.

Paragraph 8. Settlement Guarantee with Regard to Domestic Orders in Euro Submitted by the NCH

1. The Bank authorises the NBP to separate the funds available in the Bank’s account in the event of the Bank having insufficient balance in its account to cover the net liabilities resulting from the exchange of domestic orders performed via the NCH.

2. The Bank authorises the NBP to separate in the Bank’s account the amount of the Bank’s liabilities, adjusted for the amount of liabilities of the participant of the EuroELIXIR system that has not ensured sufficient balance in its account in order to perform the settlement of the domestic session of the NCH with regard to the Bank in the event of a participant, other than the Bank, of the EuroELIXIR system that is a Participant having insufficient balance in its account to cover the net liabilities resulting from the exchange of domestic orders performed via the NCH. Information concerning the balance of the Bank’s account shall be submitted to the NCH.

3. The Bank authorises the NBP to advise the NCH the information of the balance of the Bank’s account pursuant to the procedure referred to in Art. 104, para. 3 of the Banking Act.

4. The funds referred to in section 1 and 2 above shall be used for settlement on the basis of payment orders submitted again by the NCH.

5. The funds referred to in sections 1 and 2 above shall be released immediately after the settlement of domestic orders submitted by the NCH has been performed.

Paragraph 9. Settlement Guarantee with Regard to Cross-Border Orders in Euro Submitted for Settlement in the STEP-2 System and Submitted by the NCH

1. The Bank authorises the NBP to separate, after having received a set of balances from the NCH, an amount in the Bank’s account corresponding to the liabilities of the Bank resulting from payment orders sent to the STEP-2 system at the hours stipulated in the rules of the EuroELIXIR system.

2. Should the balance in the Bank’s account be insufficient to cover the Bank’s liabilities, the Bank authorises the NBP to separate the funds available and advise the NCH of the amount of the separated funds. Further actions of the NCH related to the Bank’s payment orders submitted for settlement in the STEP-2 system shall be stipulated by the rules of the EuroELIXIR system.

3. The NBP undertakes to release funds referred to in sections 1 and 2 above immediately after the NBP transfers the funds resulting from the settlement in the STEP-2 system, i.e. on the next operational day, by 7.20 a. m. ECB time at the latest.

Paragraph 10. The scope of entities to which the provisions concerning the settlement guarantee with regard to the payment orders in euro submitted by the NCH

The provisions of paragraphs 4 through 9 shall apply if the Bank is a participant of the EuroELIXIR system in NCH.

TITLE 3. PAYMENT ORDERS ISSUED BY THE NBP

Paragraph 11. Types of Payment Orders Issued by the NBP

1. The Bank authorises the NBP to debit the Bank’s account by the payment orders it issues according to the Bank’s authorisations stipulated in the Agreement, other agreements and documents or without such authorisation , for: 1) the repayment of loans extended to the Bank by the NBP, has this been provided for in the

loan agreement; 2) the payment of interest, fees and commissions due to the NBP; 3) the payment for securities issued or registered by the NBP; 4) the seizure of claims by an enforcement body; 5) the correction of the error referred to in Para. 39, section 4; 6) other operations provided for in separate agreements or authorisations.

2. The NBP shall issue payment orders crediting the Bank’s account on its own behalf or with authorisation of the Bank or another customer of the NBP.

TITLE 4. ORDERS ISSUED BY THE NDS

Paragraph 12. Types of Orders Issued by the NDS

1. The Bank authorises the NBP to execute orders issued and submitted on Bank’s behalf by the NDS, debiting the Bank’s account with the amount resulting from clearing of the following operations related to payments made by the Bank pursuant to a participation agreement concluded with the NDS or an authorisation granted to the NDS: 1) the purchase of Treasury bonds issued in euro from the Minister of Finance during tenders; 2) the purchase of bonds issued in euro by international financial institutions on the primary

market; 3) the purchase of securities in euro or other property rights registered with the NDS in the

regulated or unregulated market other than the transactions referred to in points 1 and 2 above;

4) transactions on the derivative rights market or a market of other property rights similar to derivative rights, registered with the NDS;

5) the exercise of rights related to securities; 6) the operation of the settlement guarantee system; 7) servicing security loans; 8) servicing the execution of warrants;

9) payments of benefits derived from securities, denominated in euro, to NDS participants by domestic issuers;

10) payments of benefits derived from securities of foreign issuers, to NDS participants; 11) transfers of funds related to the settlement of transactions performed according to the

Delivery versus Payment principle, resulting from the participation of the NDS in a foreign deposit and settlement institution;

12) money settlements of domestic transactions in euro, other than those listed under point 1–11 above.

2. Payment orders regarding the transactions referred to in section 1, points 1 and 2 shall pertain to single purchases of Treasury bonds or bonds issued by international financial institutions, and shall be settled without using the ancillary account of the NDS with the PSD.

3. Payment orders regarding the operations referred to in section 1, points 3–11 may include, depending on the type of operations or the stage of their settlement, amounts of liabilities resulting from single transactions or operations settled by the Bank or amounts of liabilities resulting from the compensation of liabilities and claims, which are the result of executed transactions or operations settled by the Bank.

4. The operations referred to in section 1, points 3–11 may be settled, depending on the type of transactions or operations or the stage of their settlement, with the use of the ancillary account of the NDS with the PSD or without using the said account.

5. Payment orders debiting an account of another Participant with the PSD or the ancillary account of the NDS with the PSD and crediting the Bank’s account shall be issued and submitted by the NDS on behalf of the Bank whose account is being debited or on its own behalf, respectively.

6. Where the Bank fulfils the function of a payer bank, the provisions of sections 1–5 above shall apply.

Paragraph 13. Principles of Submission of Orders by the NDS

1. The detailed procedure and principles of submitting payment orders by the NDS shall be stipulated in an agreement concluded between the NBP and the NDS . (as described in the Appendix 1B).

2. The Bank agrees on the stipulation by the NBP and the NDS of the detailed mode and rules for issuing of orders by the NDS.

Paragraph 14. Other Provisions

1. The determination of banks for whom the Bank shall fulfil the function of the clearing bank with regard to the purchase of Treasury bonds issued in euro during tenders or bonds issued in euro by international financial institutions as well as NDS Banks for whom the Bank shall fulfil the function of the payer bank clearing the operations referred to in Para. 12, section 1, points 3–11, and on behalf of whom the Bank shall execute payments using its account, shall take place according to an arrangement between the Bank, the NDS and the said Banks.

2. The NBP does not bear the responsibility for the contents of the payment orders submitted to the NBP by the NDS and their timely submission pursuant to Para. 14, section 1. The sole responsibility in the scope referred to in sentence 1 bears the NDS.

3. The Bank undertakes to ensure sufficient funds in its account to meet the liabilities referred to in Para. 12, section 1.

4. The Bank authorises the NBP to advise the NDS of the balance of the Bank’s account being insufficient to meet the liabilities referred to in Para. 12, section 1.

5. An NDS order may be cancelled by the NDS unless it has already been executed.

TITLE 5. ORDERS ISSUED BY THE BANK

Paragraph 15. Types of Orders Issued by the Bank

1. In order to perform an interbank settlement with another Bank, whose account is maintained with the NBP: 1) the Bank shall issue and submit to the PSD orders to debit its account and credit the account

of the counterpart bank for its own operation or an operation of a bank for whom it is the clearing bank, conducted with the counterpart bank or a bank, whose clearing bank is the counterpart bank, on the interbank monetary, foreign exchange or securities market or with regard to other interbank operations;

2) the Bank may issue and submit to the PSD customer orders containing orders to debit its account and credit the counterparty’s account.

2. In order to perform an interbank settlement with other bank whose bank-correspondent or settlement bank is the Bank and whose other account is maintained with the NBP, the Bank shall submit to the PSD orders to debit its account and credit an account of other bank.

3. In order to perform an interbank settlement with the NBP with regard to operations conducted with the NBP pursuant to the Agreement, with the exception of the operations referred to in Para. 11 section 1, the Bank shall issue and submit to the PSD orders to debit its account and credit an NBP own account.

4. Unless separate agreements provide otherwise, in order to transfer Bank’s funds to or from Bank’s another account, the Bank shall issue and submit respectively: 1) to the PSD – orders to debit its account and credit another of its accounts, or 2) to the PSD or another NBP organisational unit which maintains Bank’s another account –

orders to debit another of its accounts and credit its account. 5. In order to transfer funds to an account maintained with the NBP belonging to another customer,

the Bank may issue and submit to the PSD customer orders, debiting its account and crediting the said customer’s account maintained with the NBP.

Paragraph 16. Place of Submitting Payment Orders

Unless the Agreement provides otherwise, the Bank shall submit the payment orders it has issued to the PSD. It has issued

Paragraph 17. Manner and Form of Submitting Payment Orders in the PSD

1. Subject to sections 2 and 3, the Bank shall submit the payment orders it has issued to the PSD via the electronic data exchange system.

2. Where orders cannot be submitted in the manner stipulated in section 1 above, the Bank shall submit payment orders to the PSD: 1) via the Internet, or 2) on a protected floppy disk if the action stipulated under point 1 cannot be performed, or 3) on paper media if the actions stipulated under points 1 and 2 cannot be performed, or 4) by fax if the actions stipulated under points 1, 2 and 3 cannot be performed, subject to section 3.

3. Where customer orders cannot be submitted in the manner stipulated in section 1 above, the Bank

shall submit such orders: 1) via the Internet if the action stipulated under point 1 cannot be performed, 2) on a protected floppy disk if the actions stipulated under points 1 and 2 cannot be performed, 3) via the NCH.

Paragraph 18. Banking Module

1. The Bank shall use the banking module in order to draw up and submit payment orders, orders concerning saparating of funds for an NCH session referred to in Para. 8, sections 2 and 3, enquiries concerning pending orders referred to in Para. 34, section 1 and enquiries concerning account balance referred to in Para. 34, section 1 submitted to the PSD in packages via the electronic data exchange system or via the Internet, and also in order to receive and read messages transmitted via the said system or via the Internet from the PSD. The banking module may also be used by the Bank in order to create packages with payment orders, submitted to the PSD on a protected floppy disk. The NBP shall deliver the said module to the Bank free of charge by the date of the Agreement taking effect at the latest.

2. The principles of delivery and operation of the banking module are stipulated in Attachment 1 to this Appendix and the manual concerning the use of the bank module, developed by the NBP and delivered to the Bank by the date of the Agreement being signed at the latest.

3. The Bank undertakes to use the banking module put at its disposal solely for the purposes stipulated in the Agreement and the detailed banking module user’s manual, as well as to use it according to the provisions of the said documents.

4. The Bank may use the bank module for the purposes stipulated in section 1 above provided that the Bank meets the technical requirements stipulated in Attachment 2 to this Appendix.

Paragraph 19. Cryptographic Protection of Information in the Electronic Data Exchange System under the SORBNET-EURO System

1. The Bank shall use the cryptographic protection suite for the cryptographic protection of packages containing payment orders and other messages drawn up in the banking module and transmitted by the Bank to the PSD via the electronic data exchange system. The Bank shall also use the cryptographic protection suite for the cryptographic protection of packages containing payment orders submitted to the PSD via the Internet or on a protected floppy disk. The NBP shall deliver the said suite to the Bank free of charge by the date of the Agreement taking effect at the latest.

2. A signature, which is supported by the cryptographic protection suite, shall ensure the authenticity of the package sender, the integrity of the package and the nonrepudiation of its sending by one of the parties to the Agreement.

3. The parties to the Agreement undertake to recognise the signature referred to in section 2 above as equivalent to handwritten signatures of the persons authorised to sign payment orders on behalf of the Bank.

4. The principles of operation of the cryptographic protection suite are stipulated in Attachment 3 to this Appendix.

5. The parties to the Agreement represent that they deem the principles of operation of the cryptographic protection suite stipulated in Attachment 3 to this Appendix to be sufficient to ensure the protection of information with regard to the transmission of data between the said parties in the SORBNET-EURO system.

6. The Bank undertakes to comply with the principles of operation of the cryptographic protection suite stipulated in Attachment 3 to this Appendix.

6. The Bank undertakes to use the cryptographic protection suite delivered by the NBP solely in order to fulfill the responsibilities stipulated in the Agreement and to use the said suite pursuant to the provisions of the Agreement.

7. Verification of the information protection services referred to in section 2 above with regard to packages sent by the Bank shall be enabled by the protection procedure employed by the NBP, the purpose of which is to verify whether a package has been properly signed and to decrypt it.

8. Bank’s packages submitted to the PSD via the electronic data exchange system or via the Internet, which: 1) have been received by the NBP as unencrypted packages, or 2) could not be decrypted by the protection procedure employed by the NBP, or 3) have not been signed pursuant to Para. 1, point 29, or 4) have been signed pursuant to Para. 1, point 29, but the result of the signature verification by

NBP’s protection procedure has been negative, shall not be further processed by the NBP and shall be rejected without notifying the Bank due to the inability to automatically identify the sender in the computer bookkeeping system.

Paragraph 20. Principles of Drawing Up, Authenticating and Submitting Payment Orders via the Electronic Data Exchange System

1. When drawing up, authenticating and submitting payment orders via the electronic data exchange system, the Bank shall comply with the terms and conditions of the Agreement, as well as with the principles of drawing up and transmitting payment orders and other messages to the PSD via the electronic data exchange system or via the Internet, stipulated in Attachment 4 to this Appendix, and with the detailed banking module user’s manual.

2. A message shall be deemed a payment order, properly submitted by the Bank to the PSD via the electronic data exchange system, provided that it meets the following requirements: 1) the message has been drawn up, authenticated and transmitted by the Bank in a package via

the electronic data exchange system pursuant to the terms and conditions of the Agreement; 2) the Bank has received a message confirming the receipt of the order by the PSD and the

positive verification in PSD as reffered in point 3 below, 3) the package containing the message has been verified as correct by the protection procedure

employed at the NBP.

3. The responsibility of the NBP for the processing of the Bank’s payment order submitted via the electronic data exchange system shall begin as of its proper submission to the PSD.

Paragraph 21. Principles of Drawing Up, Authenticating and Submitting Payment Orders via the Internet

1. Where payment orders drawn up in the banking module cannot be transmitted via the electronic data exchange system, the Bank may submit such orders to the PSD via the Internet.

2. With regard to the submission of payment orders to the PSD via the Internet, the provisions of Para. 20 and the “SORBNET NBP Portal User’s Manual” shall be duly applicable.

Paragraph 22. Principles of Drawing Up, Authenticating and Submitting Payment Orders on a Protected Floppy Disk

1. Where payment orders drawn up in the bank module cannot be transmitted via the electronic data exchange system or via the Internet, the Bank may submit directly to the PSD a protected floppy disk with a package containing the said payment orders.

2. With regard to the submission of payment orders to the PSD on protected floppy disks, the provisions of Para. 19, section 2, points 1 and 3, and section 3 and Para. 23, section 3 shall be duly applicable.

Paragraph 23. Principles of Drawing Up, Authenticating and Submitting Payment Orders on Paper Media

1. Where payment orders cannot be transmitted via the electronic data exchange system, via the Internet or on a protected floppy disk, the Bank may submit the said orders, with the exception of customer orders, on paper media, drawing them up according to the template and in the number of copies stipulated in Attachment 5 to this Appendix.

2. The Bank’s payment orders drawn up on paper media shall be signed – on the first copy of the order – by persons authorised to dispose of the funds in the Bank’s account and listed in the specimen signature card deposited with the PSD, in the same way as on the said card. Each copy of the order shall bear the Bank’s stamp, identical with the specimen or contents of the stamp on the specimen signature card deposited with the PSD, as appropriate.

3. The Bank’s payment orders drawn up on paper media shall be submitted directly to the PSD by persons with written authorisations from the Bank. The Bank’s payment orders submitted to the PSD by persons without a written authorisation (personal or to the bearer) shall not be accepted.

4. The PSD shall confirm the receipt of a given payment order by an annotation made by an authorised employee of the PSD on a copy of the order, stating the date and time when the order has been received by the PSD, subject to any irregularities determined on submitting the order, which cause it to be returned.

Paragraph 24. Principles of Drawing Up, Authenticating and Submitting Payment Orders by Fax

1. A payment order submitted by fax to the PSD shall be deemed properly submitted where the printout (fax) constituting its mechanical impression produced by a receiving fax machine at the

PSD contains all elements of the order stipulated in Attachment 6 to this Appendix as well as elements authenticating the order and the said elements are complete, valid and legible.

2. The receipt of a complete, legible and valid payment order by fax shall be confirmed by phone by the employee of the PSD receiving the said order and the Bank employee sending the payment order. As proof of the confirmation of the completeness, legibility and validity of a payment order submitted by fax, the employees sending and receiving the order shall give their names, which shall be entered together with the time of confirmation into the order received by the PSD.

3. In the case of a lack of confirmation referred to in section 2 above, the payment order shall be deemed not received by the PSD.

4. Payment orders submitted by fax shall be authenticated by the Bank with appropriate signatures and stamps put on the orders according to the specimen signature card deposited with the PSD, as well as with a key number assigned by the Bank according to the principles stipulated by the NBP in a separate arrangement.

5. The procedure of keying orders referred to in section 4 above may be used by the Bank solely for the purpose of submitting payment orders and any cancellations thereof to the PSD.

6. The Bank undertakes to protect the keying procedure in an appropriate manner, preventing unauthorised parties from gaining access to it.

Paragraph 25. Days and Hours of Submitting Payment Orders by the Bank

1. The Bank may submit payment orders to the PSD via the electronic data exchange system, via the

Internet or on a protected floppy disk on the operating day specified by the Bank in the order as the execution day, or on a date before the date specified by the Bank in the order as the execution day, but not earlier than 5 operating days before the said date, stating additionally the hours of execution for the said orders, which shall be treated as the earliest hours for their execution in the SORBNET system. Payment orders submitted by the Bank on the operating day specified by the Bank in the order as the execution day or on a date before the said day, which include the hours of order execution, shall be placed in the queue of pending orders for a given day and for the following day, respectively.

2. deleted

3. Payment orders received by the PSD after the hour stipulated in the Agreement as the final hour for sending and execution of orders shall be deemed received after the execution date, and as such shall be returned to the Bank.

4. deleted

5. The PSD shall advise the Bank in advance of early opening of the system, before 07:00 a. m. The advice shall indicate the day on which the system will be opened earlier, the hour at which a given operating day begins and what kinds of payment orders may be executed before 07:00 a.m. on this day.

6. All references to operating hours and operations in the Appendix should be understood as references to the ECB time.

Paragraph 26. Cancelling Payment Orders Issued by the Bank

1. The Bank may cancel a payment order it has issued and submitted to the PSD if the order is pending acceptance or if is pending execution, subject to section 2, or it has not been executed for other reasons.

2. After 4 p. m. ECB time , the Bank may cancel a payment order it has issued and submitted to the PSD, which is pending execution for a given day, only after it has notified another bank or the NDS of this fact, where as a result of the said order being executed their account maintained with the PSD was to be credited.

3. The cancellation referred to in section 1 above may be submitted to the PSD in the form of: 1) notification submitted via the electronic data exchange system in a manner corresponding to

that referred to in Para. 20, with regard to orders pending execution; 2) notification submitted by fax in a manner corresponding to that referred to in Para. 24, or 3) notification submitted on paper media in a manner corresponding to that referred to in Para.

23, section 3.

4. A cancellation of an order submitted on paper media or by fax shall include at least the name of the Bank, the order number, the amount specified in the order, the order title code and the execution date.

5. A cancellation of an order submitted on paper media or by fax shall be authenticated pursuant to the procedure stipulated in Para. 23, section 2 and Para. 24, sections 2 and 4, respectively.

7. The PSD shall not process a cancellation of an order which has been drawn up, authenticated or submitted in breach of the Agreement.

8. The Bank shall be advised of the execution of the cancellation referred to in section 1 above, and of the execution of a cancellation of an order issued by another issuer, which debits the Bank’s account and is pending acceptance or execution.

9. The PSD shall advise the Bank of the execution of the cancellation referred to in section 7 above or of the inability to execute a cancellation submitted by the Bank via the electronic data exchange system, by sending an appropriate message to the Bank via the electronic data exchange system, subject to Para. 28, section 7.

10. An authorised employee of the PSD shall immediately advise by phone the persons authorised by the Bank to receive such information of the inability to execute a cancellation submitted by fax or on paper media, and of the reasons thereof.

11. The notification referred to in section 9 above shall not be delivered to the Bank where the order to be cancelled has already been executed or rejected and an appropriate message has been transmitted to the Bank via the electronic data exchange system.

12. If the notification referred to in section 9 above could not be delivered on the operating day specified by the Bank in the order as the execution day, the notification concerning the inability to execute an order cancellation shall be delivered to the Bank by the PSD on the next operational day but not later than by 9.30 a. m ECB time.

13. The provisions of Para. 25 shall be duly applicable to the submission of order cancellations.

Paragraph 27. Setting Aside of Payment Orders Issued by the Bank

1. In emergency situations resulting in the improper operation of the electronic data exchange system, the Bank may set aside a payment order it has issued unless, pursuant to Para. 20, section 2, it has been deemed by the PSD as properly submitted by the Bank.

2. The request to set aside an order referred to in section 1 above may be submitted to the PSD as a notification by fax in a manner corresponding to that referred to in Para. 24, or as a notification submitted on paper media in a manner corresponding to that referred to in Para. 23, section 3.

3. A request to set aside an order submitted by fax or on paper media shall include at least the name of the Bank, the order number, the amount specified in the order, debited and credited account numbers, the order title code and the execution date.

4. A request to set aside an order submitted by fax or on paper media shall be authenticated pursuant to the procedure stipulated in Para. 24, sections 2 and 4 and Para. 23, section 2, respectively.

5. The PSD shall not process a request to set aside an order which has been drawn up, authenticated or submitted in breach of the Agreement.

6. The provisions of Para. 25 shall be duly applicable to the submission of requests to set aside orders.

TITLE 6. INITIATING THE EXECUTION OF THE BANK’S PAYMENT ORDER OR RETURNING IT TO THE BANK

Paragraph 28. Initiating the Execution of the Order

1. Subject to sections 3 and 4, the PSD, having received the Bank’s properly submitted payment orders, shall enter the payment orders into the SORBNET-EURO system and initiate their execution: 1) immediately, in the order corresponding to that of the package of orders received from the

Bank – in the case of orders submitted via the electronic data exchange system, via the Internet or on a protected floppy disk;

2) immediately, upon verification that the orders meet all formal and factual requirements, in the order corresponding to their numbering, not waiting for any missing orders with lower numbers – in the case of orders submitted by fax or on paper media.

2. When entering the Bank’s payment orders, properly submitted by the Bank by fax or on paper media, into the SORBNET-EURO system, the PSD shall register them in the computer bookkeeping system according to their contents, without introducing any corrections to their contents.

3. The PSD shall initiate the execution of payment orders referred to in 27, section 1, which state the time of their execution, on the operating day specified by the Bank in the order as the execution day and at the hour specified in the order by the Bank.

4. In the event of circumstances preventing the operation of the computer bookkeeping system, the

NBP undertakes to restore the operation of the said system, and particularly to restore the execution of orders and the creation of feedback messages to the Bank, within 2 hours 30 minutes at the latest, beginning with the time when the NBP determines the system as being inoperative.

Paragraph 29. Returning a Payment Order Issued by the Bank

1. The PSD shall return the Bank’s submitted payment order:

1) without initiating its execution, where it has been found out that: a) the payment order does not regard an operation for which the Bank – pursuant to Para.

16 – has had the right to issue an order; b) the payment order has been drawn up, authenticated or submitted by the Bank in breach

of the provisions of the Agreement, subject to Para. 21, section 9; c) any conditions necessary for the PSD to accept the order, stipulated in the Agreement,

have not been met – with regard to the orders referred to in Para. 17, section 4; 2) after initiating its execution, where the order has been rejected by the computer bookkeeping

system pursuant to sections 7 or 8.

2. With regard to orders submitted by fax or on paper media, a payment order shall in particular be deemed as drawn up in breach of the provisions of the Agreement, where: 1) the principal’s account number has been indicated erroneously; 2) the counterparty’s account number indicated is not maintained with the NBP; 3) the Bank has assigned to the order a number identical with the number of the Bank’s

payment order that has already been executed on the same operating day with regard to the Bank’s account, or is pending acceptance or execution;

4) the execution date indicated on the order is other than the date of submission of the Bank’s payment order to the PSD ;

5) a material element of the order is missing, or the requirements with regard to such elements have not been met, which are stipulated in Attachments 5 and 6 to this Appendix, respectively.

3. With regard to orders submitted on a protected floppy disk, a payment order shall in particular be deemed as drawn up in breach of the provisions of the Agreement, where: 1) the circumstances referred to in section 2, points 1–3 occur; 2) a material element of the order is missing or the requirements with regard to such elements

have not been met, which are stipulated in Attachment 10 to this Appendix; 3) viruses are present on the floppy disk.

4. With regard to orders submitted via the Internet, a payment order shall in particular be deemed as drawn up in breach of the provisions of the Agreement where: 1) the circumstances referred to in section 2, points 1–3 occur; 2) a material element of the order is missing or the requirements with regard to such elements

have not been met, which are stipulated in Attachment 10 to the Appendix.

5. A payment order shall in particular be deemed as not authenticated by the Bank pursuant to the provisions of the Agreement, where: 1) with regard to payment orders submitted by the Bank via the Internet or on a protected

floppy disk – the package containing the orders has not been signed pursuant to Para. 6, point 25 or the result of the signature verification with regard to the package containing the orders by the protection procedure employed by the NBP has been negative and the package has not been encrypted or the said protection procedure has been unable to decrypt the package;

2) with regard to payment orders submitted by the Bank by fax – the key number, signatures or stamps are missing on the document referred to in Para. 26, section 1, a discrepancy has been found between the signatures and stamps and the specimen signature card deposited with the PSD, or a discrepancy has been found regarding the key number that cannot be explained within one hour of the order being received by the NBP;

3) with regard to payment orders submitted by the Bank on paper media – signatures or stamps are missing on appropriate copies, or a discrepancy between the signatures on the orders and those on the specimen signature card deposited with the PSD has been found.

6. A payment order shall in particular be deemed submitted by the Bank in breach of the provisions of the Agreement, where the order has been submitted to a location other than that stipulated in

Para. 16, in a manner and form other than those stipulated in Paras. 17, 19, 20, 22, 23 and 24, as well as on hours and dates other than those stipulated in Para. 27.

7. A payment order shall be rejected by the computer bookkeeping system and returned to the Bank unexecuted if, after the execution of a payment order debiting the Bank’s account has been initiated, it is found out that the data included in the order do not meet the applicable requirements stipulated in the Agreement, or that the order has been set aside by the Bank in the manner stipulated in Para. 27.

8. The PSD shall also reject the Bank’s payment order pending execution on a given day pursuant to Para. 34, which cannot be executed due to: 1) insufficient balance in the Bank’s account for the execution of this order by the hour referred

to in Para. 25, section 3; 2) the inability to execute – until the time stipulated in point 1 – payment orders that are also

pending execution but are of high priority.

9. The return referred to in section 1 shall be deemed executed when the Bank has been advised of the order being returned and of the reasons thereof.

10. The Bank shall be advised of the order being returned in the following manner: 1) if the irregularities causing the order to be returned have been determined on order

submission, where the order has been submitted on a protected floppy disk, by fax or on paper media, an authorised employee of the NBP shall advise the employee of the Bank submitting orders, referred to in Para. 23, section 3 or Para. 24 section 2, of the order being returned and of the reason thereof;

2) if the irregularities causing the order to be returned have been determined after the order had been accepted by the PSD but before the execution of the order had been initiated – an authorised employee of the NBP shall immediately advise by phone the persons authorised by the Bank to receive information of the order being returned, or the PSD shall immediately advise the Bank by fax of the order being returned, subject to point 3;

3) if the irregularities causing the order to be returned have been determined in the computer bookkeeping system after the execution of the order had been initiated – a message advising of the order being rejected shall be immediately transmitted to the Bank via the electronic data exchange system.

11. In the event of the PSD being unable to advise the Bank of the order being rejected via the electronic data exchange system, an authorised employee of the PSD shall immediately advise by phone the persons authorised by the Bank to receive information of the order being rejected or transmit an appropriate notification to the Bank by fax.

12. If the Bank could not have been notified on the date when the NBP determined the circumstances causing the order to be returned, the notification concerning the return of the order shall be delivered on the next operational day but not later than by 9.30 a. m.

TITLE 7. EXECUTING PAYMENT ORDERS IN THE BANK’S ACCOUNT

Paragraph 30. Provisions Regarding the Execution of Payment Orders Debiting the Bank’s Account

1. The PSD shall execute a payment order that debits the Bank’s account if:

1) the order has been issued by an authorised entity, as set forth in Para. 4, section 1, and applies to the scope of operations authorised for a specific issuer as set forth in Para. 5, section 1, Para. 13 or Para. 15;

2) the order has been drawn up, authenticated and submitted to the PSD pursuant to the appropriate provisions hereof or of separate agreements;

3) no priority order or an order from the same issuer assigned a lower number is being executed or pending on the current day as set forth in Para. 4, section 1;

4) the conditions for the acceptance of the order; 5) the Bank has sufficient funds in its account.

2. The funds stipulated in section 1, point 5 shall include the amount of funds which: 1) constitutes Bank’s account balance at the moment the execution of the payment order is

initiated, less the amount of funds which have been:

a) blocked by the PSD in the account due to the seizure of receivables by an enforcement body, or

b) blocked by the Bank as set forth in Para. 8, section 2, with respect to NBP’s, NDS’s or Bank’s payment orders,

subject to points 2 and 3; 2) has been set forth in point 1 point a, less the amount of funds blocked in the account equal to

Bank’s net liabilities, should the liabilities be due to orders submitted by the NCH (with respect to NBP’s, NDS’s or Bank’s payment orders executed during the NCH clearing session), subject to point 4;

3) set forth in point 1, taking into account the net balance resulting from the compensation of orders that debit and credit the Bank’s account pending on the current day, selected for execution as part of the optimisation procedure referred to in Para. 31, section 7 (with respect to orders pending execution on the current day, as part of the optimisation procedure run outside the NCH clearing sessions);

4) set forth in point 2, taking into account the net balance due to the compensation of orders that debit and credit the Bank’s account, pending on the current day, selected for execution as part of the optimisation procedure referred to in Para. 31, section 7 (with respect to orders pending execution on the current day, as part of the optimisation procedure run during the NCH clearing sessions).

2a. After 5:15 p.m. which is the liquidity deadline SORBNET-EURO Bank shall be allowed to make outgoing payments in euro only to the extent that, at such time, those payments can be made out of credit balance on the Bank’s RTGS account after the exclusion of any balances that are attributable to the provision of collateralised intraday credit.

3. The balance of the account stipulated in section 2, point 1 shall be determined on an ongoing basis by recording the amounts of orders resulting in an increase or decrease of the amount of funds in the account using the computer bookkeeping system.

4. In the execution of the payment order on the Bank’s account the PSD shall use: a) the Bank Identification Code (BIC) – as regards cross-border interbank payments, b) International Banking Account Number (IBAN) of the credited party – as regards cross-

border customer payments, c) the credited party’s account number for domestic payments,

as included in the payment order exclusively.

Paragraph 31. Payment Orders Pending Execution on the Current Day

1. If, upon initiating operations debiting Bank’s account, such as NBP’s own order, NDS’s payment order or Bank’s payment order, it is determined that: 1) the Bank has insufficient funds in its account to execute the order, or 2) another NBP’s own order with a lower number is pending, debiting the Bank’s account (with

respect to NBP’s payment orders), or 3) the following are pending (debiting Bank’s account): NBP’s own order or another NDS’s

payment order with a lower number (with respect to NDS’s payment orders), or 4) the following are pending (debiting Bank’s account): NBP’s own order, NDS’s payment

order or another Bank’s order with a lower number (with respect to Bank’s payment orders), then

the payment order shall be moved to the current-day pending order queue.

2. As soon as a payment order that debits Bank’s account is moved to the current-day pending order queue, the PSD shall notify the Bank of the fact, using the electronic data exchange system.

3. A pending NBP’s payment order shall suspend the execution of Bank’s, NDS’s and NBP’s payment orders with higher numbers, debiting the Bank’s account, i.e. it shall cause these orders to be moved to the current-day pending order queue as set forth in section 1, or shall cause these orders to be rejected as set forth in Para. 29; however, it shall not suspend the execution of NCH’s payment orders or NBP’s payment orders with lower numbers.

4. A pending NDS’s payment order debiting the Bank’s account shall suspend the execution of Bank’s payment orders and NDS’s payment orders with higher numbers, debiting Bank’s account, i.e. it shall cause these orders to be moved to the current-day pending order queue as set forth in section 1, or shall cause these orders to be rejected as set forth in Para. 29; however, it shall not suspend the execution of NCH’s payment orders, NBP’s payment orders or NDS’s payment orders with lower numbers.

5. Bank’s pending payment order shall suspend the execution of Bank’s newly submitted payment orders with numbers which are not lower, debiting the Bank’s account, i.e. it shall cause these orders to be moved to the current-day pending order queue as set forth in section 1, or shall cause these orders to be rejected as set forth in Para. 29; however, it shall not suspend the execution of Bank’s other payment orders with lower numbers, or of the orders issued by the NCH, the NBP or the NDS.

6. Immediately upon the execution of a payment order submitted using the electronic data exchange system, an attempt shall be made automatically to execute pending orders queued for the current day.

7. A procedure is launched automatically in the SORBNET-EURO system (at least once in 30 minutes) to optimise order queue processing, based on a mechanism which provides multilateral compensation of liabilities and claims resulting from a maximum number of orders selected from the queue, taking into account the execution priorities set forth in Para. 4, section 1 and Para. 31, sections 3, 4 and 5, provided that there are sufficient funds in the accounts of Banks to which the selected payment orders apply to execute the compensation.

8. As of the moment the Bank obtains sufficient funds in its account, the order of executing the pending orders queued for the current day is as follows: payment orders issued by the NBP are executed first in accordance with the sequence of numbers, followed by NDS’s payment orders, followed by Bank’s payment orders.

9. Bank’s payment order pending execution on the current day can be executed by the PSD, provided that the Bank has accumulated sufficient funds in its account, not later than by the hour

set forth in Para. 25, section 3, to execute the order on that day, and unless the circumstances set forth in section 1, point 4 apply.

Paragraph 32. Notifying the Bank of Payment Orders Pending in the Order Queue

1. The Bank shall be able to obtain information regarding pending payment orders queued for the current day, related to Bank’s account, by submitting a queued pending order query to the PSD.

2. Para. 20, sections 2 and 3, and Para. 25 shall duly apply to the Bank’s submission of queries regarding queued pending orders and their processing by the NBP.

3. Subject to Para. 28, section 7 and Para. 45, section 4, immediately upon the receipt of a correctly submitted query as specified in section 1, the PSD shall draw up a response containing detailed information on currently queued orders debiting and crediting Bank’s account, and provide it to the Bank.

4. Any such response as set forth in section 3 shall be provided in the form of a message generated by the PSD and transferred to the Bank using the electronic data exchange system.

5. The Bank can submit queries regarding queued pending orders referred to in section 1 using the electronic data exchange system to the PSD multiple times during an operating day, but not more frequently than once every 10 minutes.

6. In the event the Bank is unable to submit a queued pending order query to the PSD using the electronic data exchange system, or the PSD is unable to submit a response to the queued pending order query to the Bank using the electronic data exchange system, the Bank shall have the right to inquire about the queued pending orders related to Bank’s account by telephone three times in an operating day, and to obtain updated information from the PSD in the scope specified in section 3.

7. Information on queued pending orders, in the scope specified in section 3, can also be provided in person to an authorised Bank employee during their direct contact with the PSD, upon verifying the employee’s identity and authorisation. In such cases, the quantitative limit set forth in section 6 shall not apply.

TITLE 8. INFORMING THE BANK OF THE BALANCE AND TURNOVER IN THE BANK’S ACCOUNT

Paragraph 33. Informing the Bank of the Execution of Payment Orders in the Bank’s Account

1. Subject to Para. 28, sections 7 and 2, upon the execution of a payment order that debits or credits Bank’s account, the PSD shall inform the Bank of such execution by forwarding to the Bank a message containing a notification of the payment order being executed via the electronic data exchange system.

2. In the event the PSD is unable to provide information specified in section 1 in the manner set forth in section 1, the PSD shall inform the Bank of the execution of orders crediting the Bank’s account by forwarding a message containing a notification of the payment order being executed via the Internet.

Paragraph 34. Informing the Bank of the Balance and Turnover in the Bank’s Account during the Operating Day

1. The Bank shall be able to obtain information on the balance and turnover in its account maintained with the PSD by submitting an account balance query to the PSD.

2. Para. 20, sections 2 and 3, and Para. 25 shall duly apply to Bank’s submission of account balance queries and their processing by the NBP.

3. Subject to Para. 28, section 7 and Para. 45, section 4, immediately upon receiving a correctly submitted query as set forth in section 1, the PSD shall draw up and provide to the Bank a response to the account balance query, including without limitation: 1) the number of Bank’s account to which the response applies, 2) start-of-day balance of Bank’s account, 3) current balance of Bank’s account, i.e. the balance determined while generating the response, 4) the amount of funds blocked in the account due to the seizure of receivables by an

enforcement body, 5) the amount of funds blocked by the Bank in order to ensure sufficient funds in its account to

pay the liabilities due to the exchange of payment orders via the NCH (in the event responses are generated outside NCH clearing sessions),

6) the amount of Bank’s net liability during a particular NCH clearing session (in the event the response is generated during an NCH clearing session),

7) current debit in the Bank’s account, determined while generating the response, 8) current credit in the Bank’s account, determined while generating the response, 9) a list of operations posted to the account during a given operating day by the time the

response is generated.

4. Any such response referred to in section 3 shall be provided in the form of a message generated by the PSD and transferred to the Bank using the electronic data exchange system.

5. The Bank can submit the queries regarding its account balance as set forth in section 1 using the electronic data exchange system to the PSD multiple times during an operating day, but not more frequently than once every 10 minutes.

6. In the event the Bank is unable to submit an account balance query to the PSD using the electronic data exchange system, or the PSD is unable to provide the Bank with a response to the account balance query using the electronic data exchange system, the Bank may obtain appropriate information in the form of a message generated by the PSD and forwarded to the Bank via the Internet.

7. In the event the Bank is unable to submit an account balance query to the PSD using the electronic data exchange system, or the PSD is unable to provide the Bank with a response to the account balance query using the electronic data exchange system or via the Internet, the Bank shall have the right to inquire about balance and turnover in the Bank’s account by telephone three times in an operating day, and to obtain updated information from the PSD.

8. Information regarding balance and turnover in the Bank’s account can also be provided in person to an authorised Bank employee during their direct contact with the PSD, upon verifying the employee’s identity and authorisation. In such cases, the quantitative limit set forth in section 7 shall not apply.

Paragraph 35. Statement of the Bank’s Account

1. At the end of each operating day, the NBP shall generate a statement of the Bank’s account, including all operations performed in the account during the operating day.

2. The NBP shall not generate a statement of the account on operating days during which no operations have been executed.

3. The statement of the Bank’s account shall include without limitation the following details: 1) name of the Bank, 2) number of the statement, 3) date of the statement, 4) full number of the Bank’s account with the PSD, 5) start-of-day account balance, 6) debit in the account, 7) credit in the account, 8) end-of-day account balance, 9) amount of funds blocked in the account due to the seizure of receivables by an enforcement

body, 10) data regarding each operation executed in the account, including:

a) number of payment order assigned by its issuer, b) payment order title code, c) additional information, if included in the executed order, d) the clearing number of the Bank’s Head Office, or 26 for the NCH and 39 for the NDS,

or the number of the NBP department or organisational unit, respectively, if the counterparty posting in the PSD applies to NBP’s own account,

e) the amount of the payment order.

4. The statement of Bank’s account shall be provided to the Bank by the PSD in the form of a message via the electronic data exchange system immediately after the operating day to which it applies ends, subject to Para. 28, section 7.

5. In the event the electronic data exchange system cannot be used, the PSD shall provide the statement to the Bank via the Internet, by the date set forth in section 4, subject to Para. 28, section 7.

6. In the event the NBP is unable to transfer the statement of Bank’s account using the electronic data exchange system or via the Internet by the date set forth in section 4, on the following day the PSD shall : 1) provide the statement to the Bank as set forth in sections 4 and 5, or 2) provide the statement to the individuals listed in the specimen signature card, or to other

individuals authorised by the Bank, or 3) send the statement to the Bank by post, or 4) send the information included in the Bank account statement, subject to charge and at Bank’s

written request, by fax, not later than by 9:30 a.m.

7. In the event the Bank does not receive its account statement via the electronic data exchange system or the Internet, or the statement cannot be read, the PSD shall provide the statement to the Bank, each time at Bank’s written request, in the manner specified by the Bank in the request and according to the procedure described in section 6.

8. Subject to section 9, the PSD shall not provide the Bank with any appendices to the statement of Bank’s account.

9. At Bank’s written request signed by the individuals with authorised access to the funds on the account, as listed in the specimen signature card submitted to the PSD, the PSD may generate a copy of the statement of Bank’s account or payment order executed in Bank’s account and provide it to the Bank, subject to a charge (in accordance with the table of fees).

10. The provisions of sections 1 to 9 shall duly apply to statements of Bank’s other accounts maintained with the PSD.

Paragraph 36. Notifying the Bank of its Account Balances with the PSD at the End of the Calendar Year

1. The PSD shall notify the Bank of the balances of its accounts maintained with the PSD at the end of the calendar year, within 5 working days of each year-end.

2. The notification referred to in section 1 shall include, without limitation, the following: 1) name of the Bank, 2) numbers of each of Bank’s accounts maintained with the PSD, 3) balances of Bank’s accounts, 4) the status of Bank’s other liabilities to the NBP, resulting from the ledgers maintained at the

PSD, 5) information whether it is necessary to report any balance discrepancy within 14 days of

receipt of the notification.

TITLE 9. REPORTING ACCOUNT BALANCE DISCREPANCIES AND AMENDING ERRORS BY THE BANK

Paragraph 37. Bank’s Monitoring of its Account and Messages Sent and Received during the Operating Day

1. The Bank shall monitor the balance and turnover in its account on an ongoing basis during each operating day on the basis of messages received from the PSD as set forth in Para.8, section 8, Paras. 29, 31, 33 and Para. 34, sections 4 and 6, or the information set forth in Para. 34, sections 7 and 8.

2. The Bank shall monitor the status of NBP’s processing of messages sent by the Bank via the electronic data exchange system on an ongoing basis during each operating day, on the basis of the messages set forth in Para. 8, section 8, Para. 28, Para. 29, Para. 31, Para. 32, section 4, Para. 33, and Para. 34, sections 4 and 6, and the information related to in Para. 32, sections 6 and 7, and Para. 34, sections 7 and 8. In the event a message is sent via the electronic data exchange system and no reply message is received from the NBP within 30 minutes with respect to the status of the processing of the original message, the Bank shall immediately clarify the lack of appropriate information with the NBP.

3. In the event the Bank does not receive the message set forth in Paras. 29, 31 or 33, at Bank’s request submitted by telephone as part of the clarification procedure related to in section 2, the PSD shall resend the message to the Bank using the electronic data exchange system or via the Internet.

Paragraph 38. Reporting of Discrepancies with Respect to Operations and Balance in the Account by the Bank

1. The Bank represents to report any discrepancies with respect to operations in Bank’s account to the PSD on the same operating day, and the PSD undertakes to immediately investigate each complaint and to take appropriate actions to clarify the discrepancy.

2. The Bank shall report any discrepancy with respect to the balance of the account maintained with the PSD to the PSD immediately upon its detection, and in no event later than within 14 operational days of receiving the account statement. The balance shall be deemed acknowledged if the Bank does not dispute its amount within the above period.

3. The NBP shall not be liable for the consequences of Bank’s failure to report the balance discrepancy within the period forth in section 2.

4. The provisions of sections 2 and 3 shall duly apply to the notifications set forth in Para. 39, section 1.

Paragraph 39. Amending Errors in the Bank’s Account

1. The PSD shall amend any error in the Bank’s account, if such error has been made at NBP’s fault, or requires NBP’s own account to be debited.

2. The PSD shall amend the error at Bank’s request if the Bank has reported the discrepancy, or at its own initiative if the error has been detected by the NBP.

3. At PSD’s request, the Bank shall provide documentation with respect to the arisen discrepancy. The PSD shall investigate the submitted complaint and amend the error promptly, no later than within 7 days of receipt of the notification regarding the operation or balance discrepancy, or it shall notify the Bank in writing of a lack of justification for the complaint.

4. The PSD shall amend each error in Bank’s account made at NBP’s fault, causing a decrease in the amount of funds in that account, by issuing an NBP payment order to be executed prior to any other orders, subject to the orders submitted by the NCH.

5. In the event the Bank cannot be notified by the PSD using the electronic data exchange system or via the Internet that an amendment to Bank’s account has been made pursuant to Para. 37, an authorised PSD employee shall promptly notify of the amendment individuals authorised by the Bank to receive such information, by phone.

6. An amendment of an error in Bank’s account (at its request or not) can be made by the PSD prior to the expiration of claims resulting from the account agreement.

7. With the exception of section4, the amendment of an error in an executed order can be made only by the entity, whose account at the NBP has been credited as a result of executing the incorrect order. Sentence 1 applies solely to the amendment that does not require debiting NBP’s own account.

8. The Bank represents to amend the error referred to in section 7 by issuing a payment order debiting its account and crediting the account of the issuer of the incorrect order, if Bank’s account has been credited by mistake.

TITLE 10. MISCELLANEOUS

Paragraph 40. Defining Operational Hours for Authorised Personnel and Means of Communication in the Bank

The Bank s undertakes to provide the following: 1) permanent manning of at least one workstation by the individuals set forth in Para. 46, section 1,

point 6 between 7:00 a.m. and 8.00 p.m., during each operating day, full-time, or at other hours on the operating days stipulated in Para. 27, section 5, points 2 and 3, to allow uninterrupted telephone contact between the PSD and those individuals;

2) continuous operation of the fax machine set forth in Para. 46, section 2 and the Internet workstation set forth in Para. 3 of Attachment 2 hereto at the hours set forth in point 1.

Paragraph 41. The Bank’s Use of Order Title Codes in Payment Orders

1. The Bank agrees to use the payment order title codes, corresponding to the settled transactions, in payment orders submitted to the NBP, pursuant to the “List of payment order title codes” defined separately by the PSD.

2. The PSD shall update the “List of payment order title codes” on an ongoing basis, and to provide the list to the Bank as soon as changes are made.

Paragraph 42. Defining of the Structure of Packages and Types and Structure of Messages Transferred between the Bank and the PSD using

the electronic data exchange system, via the Internet and on protected floppy disks

The parties hereto shall define the structure of packages and types and structure of messages transferred between the Bank and the PSD using the electronic data exchange system, via the Internet and on protected floppy disks stipulated herein, as set forth in Appendix 10 hereto.

Paragraph 43. Storage of packages

1. The parties hereto agree to store packages containing payment orders for a period of 5 years, and to store information packages for a period of 2 years, unless other laws provide for a longer storage period.

2. The storage period set forth in section 1 shall elapse from the beginning of the year following the year to which the package applies.

3. Packages shall be stored in sets, grouped by operating day.

4. Sent and received packages signed pursuant to Para. 1, point 29 shall be stored in an unencrypted format.

Paragraph 44. Procedure for Phone Notification to the Bank by the PSD

1. In order to provide the following by phone: 1) information regarding the inability to cancel a payment order as set forth in Para. 22, section

9, 2) information regarding the return of a payment order as set forth in Para. 29, section 10, point

2, 3) information regarding the rejection of a payment order as set forth in Para. 31, section 11, 4) information regarding the amendment of an error in the Bank’s account as set forth in Para.

39, section 5, an authorised PSD employee shall contact the individuals authorised by the Bank to obtain such information, included in the lists set forth in Para. 2, section 1, point 8, at the phone numbers included therein.

2. In order to obtain Bank’s account balance and turnover information set forth in Para. 34, section 7, or the information regarding pending queued orders set forth in Para. 32, section 6 by phone, the individual authorised by the Bank to obtain such information and included in the lists stipulated in Para. 2, section 1, point 9 and point 8e, respectively, shall contact an authorised NBP employee at phone numbers provided by the PSD.

3. The authorised PSD employee and the individuals authorised by the Bank to obtain information shall introduce each other by name. Furthermore: 1) while providing the information set forth in section 1, the authorised PSD employee shall

provide an agreed password, defined separately by the NBP 2) the individual authorised by the Bank to obtain information regarding the balance and

turnover in the account shall provide the agreed password, defined separately by the NBP.

4. The parties hereto shall ensure appropriate protection for the written list of passwords stipulated in section 3, points 1 and 2, respectively, that prevents unauthorised personnel from access to such passwords.

5. The NBP shall communicate full names and phone numbers of PSD employees authorised to provide information with respect to the balance and turnover in Bank’s account to Bank’s employees.

6. NBP shall not be responsible for unintentional disclosure of the information set forth in section 1, constituting bank secret, in the provision of such information by phone pursuant to the procedure set forth in sections 1, 2 and 3.

Paragraph 45. Co-operation Between the Parties to the Agreement in an Emergency

1. The parties hereto agree to co-operate with each other in case of emergencies which disrupt or prevent the use of regular procedures set forth herein and in the detailed orders stipulated in Para. 1, section 29 and Para. 2, section 4 of Appendix 3 hereto.

2. The parties hereto agree to promptly notify the other party of any emergency requiring the use of any substitute procedures by the party.

3. The Bank agrees to use substitute methods to submit payment orders to the PSD as set forth herein or agreed upon individually by the PSD.

4. The NBP reserves the right to temporarily restrict or suspend message support in an emergency which results in decreased performance with respect to the execution of payment orders in the

SORBNET-EURO system. In the event of an emergency, critical payments shall be executed as a priority.