RESTRICTIONS IN RESPECT OF SETTING UP THE BUREAU*

FIRST

1. So submit an acknowledgement from the Commercial Banking Organ in which it confirms the incoming of amounts in hard currency not less than (50 000) fifty thousand US Dollars annually in order to cover the expenses of establishing and running of the Bureau. -

2. So submit a Bank Guarantee with an amount of (32 250) thirty two thousand and two hundred fifty US Dollars in favour of the Registrar of the Companies in conformity with the Instructions of the Foreign Exchange against a guarantee for paying the financial obligations and penalties which might be payable to the concerned Iraqi Authorities in respect of the Bureau during its presence.

3. Each Bureau shall have a suitable Headquarters and convenient to the nature and volume of its activity, and it can not be used for other than this purpose, provided that it shall notify Registrar of the Companies about its full address and Telephone Number and any changes that might take place.

4. The Bureau shall keep its capacity in case in concludes a contract, terns and conditions of which do not qualify it to set up a Branch ... along with a confirmation that the Bureau shall not conduct any commercial business or activities of Agency and Intermediation.

5. The Bureau shall have to be liquidated in case its existence has become no longer necessary.  And the liquidation assignment shall have to be undertaken by an authorized person with an appropriate Power of Attorney.

A Bureau = A Representative or a Liaison Office.

SECOND

Allowing the foreign companies and Economic Organizations operating in the country to bring extra amounts from outside Iraq in foreign currency which are convertible through the intermediation of one of the governmental banks or, in cash, after declaration thereof on the Foreign Exchange Form No.(8) at the Border Point and to be disposed of it by the following manner :-

a) Allowing for the foreign companies to open a Current Account with foreign currency at the governmental banking Organs in order to deposit the incoming amounts therein, and using this Account for meeting their obligations in foreign currency inside Iraq, and these companies are entitled to retransfer the remaining balance of the foreign currency (which was not used) abroad.

b) The Company has the right to encash any amounts from its opened Account in foreign 1 currency to an Account to be opened forthis Company in Iraqi Dinar at the banking Offices in the declared rates at the banks, and this amount shall be used to pay the local costs in Iraqi Dinar, and it is not allowed to retransfer the balance of this Account to the foreign currency but it should be used exclusively for covering its local expenses.