Based on the clause 3.5 of the chapter Supervision of the Rules and Regulations of Tallinn Stock Exchange (hereinafter: TSE), TSE has right to add a watch notation to a security and to the trading information displayed on the Web site to draw the market participants' attention to significant circumstances related to a security or an issuer. In connection with the various activities of AS Q Vara (hereinafter: Q Vara) that have changed the collateral of their bonds (the only guarantee of the bond issue that has remained is the surety of its parent company SLProductions OÜ), TSE submitted an inquiry to Q Vara for the collateral agreement that was concluded with Sampo Pank as the agent during the bond issue and for the agreement and all other documents that express the transfer of the shares of Q Vara that belonged to its parent company SLProductions OÜ to the securities account of AS Gild Fund Management. Whereas, it appeared from one of the received agreements that the transfer of certain assets would take place based on "separate agreements" with AS Gild Fund Management, TSE submitted an additional inquiry to Q Vara on October 26, 2008 with the request to file also those agreements. According to the representative of Q Vara, Alo Lillepea, the agreements still had certain forming deficiencies due to which they were not signed yet but he ensured that the agreements will be signed within ten days and immediately submitted to TSE. Despite of repeated requests, Q Vara has not submitted those agreements to TSE. Thus, Q Vara has repeatedly breached the requirements of the Rules and Regulations to file required information and documents to TSE. According to currently submitted agreement, TSE has reason to believe that one of the investors' has advantages over the others but since Q Vara has not filed the agreements despite of repeated requests, TSE does not have possibility to make grounded conclusions. TSE has also submitted its observation remarks to the Financial Authority. In addition, long term overdues and recurring renegations by Q Vara have given TSE a reason to assume that the current situation may be implying that the issuer is having a continuous solvency problem - a circumstance that the investors should unquestionably be informed of. Failing to respond to TSE's inquiry from November 19, 2008 and issued precept to publish a relevant announcement, and also the following reminders - the issuer has infringed the Rules and Regulations to publish announcement about material news. According to Supervision article 3.5.4.4. TSE has the right to add a watch notation to the issuer if the issuer or its actions continuously or to a significant extent fail to comply with TSE Rules; if the issuer's circumstances can according to Supervision article 3.5.4.7 in any other way significantly damage the interests of the investors; and according to Supervision article 3.5.4.2. if the issuer is having continuous solvency problems. By TSE's estimations a change in the company's guarantees, certain transactions with the parent company's assets and liabilities and other actions affecting the existence and structure of abovementioned assets may impact the company's assets, liabilities and future perspectives and therefore damaging of investors' interests cannot be ruled out, especially taking into account that significant shortcomings have occurred while disclosing and publishing relevant information. In addition TSE refers to issuer's long term failure to fulfil their financial obligations and related pledges and failure to disclose relevant information that may imply at issuer's continuous solvency problems. Supervision article 3.5.5 determines that a watch notation is added to an issuer by the Management Board of TSE according to Supervision article 3.5.4.4 and by the Managing Director on all other abovementioned grounds. For optimality the adding of the watch notation by a single institution (Management Board) in the occurrence of different grounds is justified. Following Supervision articles 3.5.1, 3.5.4.2., 3.5.4.4., 3.5.4.7 and 3.5.5, the management board of TSE added the watch notation to AS Q Vara bonds as of December 4, 2008 on the grounds stipulated in Supervision articles 3.5.4.2, 3.5.4.4. and 3.5.4.7. Tallinn Stock Exchange Market Services +372 640 8800