SAF Tehnika                                                   12.10.2005.



JSC SAF Tehnika draft resolutions of AGM of shareholders



Joint Stock company „SAF Tehnika” Draft Resolutions of Annual Shareholder 

Meeting October 26, 2005



1. Item of agenda 

The reports of the Board of Directors and the Supervisory Council 

Decision to approve the report of the Board of Directors and report of the 

Supervisory Council.



2. Item of agenda

The annual report

Decision to approve the annual report.



3. Item of agenda

The transfer the reserves to the retained earnings

Decision to transfer the reserve fund  1 023 402  LVL (one million twenty 

three thousand four hundred and  two Latvian lats) to the retained earnings. 



6. Item of agenda 

Profit distribution from the previous year of activity

Decision to distribute profit of the previous year amounting 1 374 083 LVL 

(one million three hundred seventy four thousand and eighty three Latvian lats) 

as follows:



1) Decision to pay part of the previous years profit 297 018 LVL (two hundred 

ninety seven thousand and eighteen Latvian lats) in dividends to the 

shareholders setting the amount of dividends 0.10 LVL (ten santims) per share 

setting the date of calculation November 25, 2005 and the date of payment 

December 1, 2005; 



2) Decision to use part of previous years profit 60 000 LVL (sixty thousand 

Latvian lats) to increase the share capital of the company and issuing 60'000 

(sixty thousand) dematerialized title employee shares without voting rights with 

the par value of LVL 1.00 (one lat) each, setting the date of issuing new shares, 

December 1, 2005. 



2.1) Decision to approve the Terms of Increase of Share Capital .



2.2) Decision to determine that the Company's share capital following the 

registration of new issue of  employee shares with the Commercial Register shall 

be LVL 3'030'180 (three million thirty thousand one hundred eighty lats). The share 

capital of the Company shall consist of 2’970’180 (two million nine hundred seventy 

thousand one hundred eighty) dematerialized regular presenter shares with voting 

rights and 60'000 (sixty thousand) dematerialized employee title shares without 

voting rights and to approve an amendment to the Charter of the Company according 

to the Appendix and new wording of the Company's Charter.



3) Decision to leave part of previous years profit 1 017 065 LVL (one million 

seventeen thousand and sixty five Latvian lats) as retained earnings. The total 

retained earnings of the company shall be 2 040 467 LVL (two million forty thousand 

four hundred and sixty seven Latvian lats).



5. Item of agenda

The election of the auditor

Decision to elect one of these candidates proposed by the board - 

SIA ”PricewaterhouseCoopers, SIA ”Ernst&Young”, SIA ”Deloitte&Touche, as the auditor 

of the Company for the next financial year. To authorize the Board of Directors to set 

the auditors fee. 



7. Item of agenda

Other

1) To authorize with power to delegate authority Chairman of the Board of the 

Company Normunds Bergs to sign an Application to the Commercial Register Authority to

 register the resolutions and amendments of articles of association passed by the 

meeting of Shareholders in the Commercial Register, to ascertain an excerpt from the 

Minutes of this meeting, and to sign repeated application and / or complaint to the 

Commercial Register Authority in the case of Application for the Registry being declined.



2) To authorize legal adviser of the company Valdis Bergs to submit all the required 

documentation and supply the required explanations, if demanded, to register the 

resolutions passed by the meeting of Shareholders in the Commercial Register, and to 

take out the documents from the Commercial Register Authority.



Didzis Liepkalns

Vice-Chairman of the Management Board



Riga, October 12, 2005.