**Exhibit 4.48**

**CREDITAGREEMENT**

###### Dated 11 October 2004

between

OJSC Mobile TeleSystems, RussianFederation

as borrower

and

# HSBC Bank plc

and

ING BHF-BANK Aktiengesellschaft

# as arrangers and lendersHSBC Bank plc

as facility agent

ING BHF-BANK Aktiengesellschaft

as Hermes agent

----

 

Tableof Contents

Preamble

Clause
| 1.  | Definitions and Interpretations                                             | 4  |
|-----|-----------------------------------------------------------------------------|----|
| 2.  | Amount and  Purpose of the Credits                                          | 7  |
| 3.  | Disbursements  / Reimbursements                                             | 10 |
| 4.  | Conditions  Precedent to Disbursements / Reimbursements                     | 12 |
| 5.  | Interest  Periods, Interest, Increased Costs                                | 13 |
| 6.  | Fees                                                                        | 15 |
| 7.  | Calculation  of Periods                                                     | 16 |
| 8.  | Repayment  and Prepayment                                                   | 16 |
| 9.  | Payments                                                                    | 17 |
| 10. | Taxes,  Levies, Duties and Other Costs                                      | 18 |
| 11. | Guarantee of  the Federal Republic of Germany for tied Buyer’s Credits | 21 |
| 12. | Suspension  of Disbursement, Payments Immediately Due (Events of Default)   | 22 |
| 13. | Representations  and Warranties                                             | 23 |
| 14. | Financial  Statements, Information and Undertakings                         | 24 |
| 15. | Assignability                                                               | 27 |
| 16. | Statements  and Notices                                                     | 27 |
| 17. | Miscellaneous                                                               | 28 |
| 18. | Currency  Indemnity                                                         | 28 |
| 19. | Applicable  Law, Place of Performance and Jurisdiction                      | 28 |
| 20. | General  Provisions                                                         | 29 |

 

2

----

 

**Annexes to the Credit Agreement**

 
| 1a - 1e  | Certificates  for Disbursement and Reimbursement                                                                                                        |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2        | Confirmation  of Coming into Force of the Export Contract / Additional Export Contract                                                                  |
| 3a -  3b | Confirmation  of Mean-weighted Acceptance of Equipment and Software in relation to the  Export Contract / in relation to the Additional Export Contract |
| 4        | Specimen  Signature List of the Borrower                                                                                                                |
| 5        | Form for  Appointment of Agent for Service of Process to the Credit Agreement                                                                      |

 

3

----

 

This Agreement is made by and between OJSCMobile TeleSystems, Moscow, Russian Federation (the “Borrower”) and HSBC Bankplc, London, United Kingdom and ING BHF-BANK Aktiengesellschaft, Frankfurt amMain, Federal Republic of Germany (each a “Lender” and together the “Lenders”).

 

Preamble

 
| A.     | On 8 June 2004 the Borrower  concluded contract number 1909/04-MTC (the “Export Contract”) with  Siemens Aktiengesellschaft, Berlin-Munich, Federal Republic of Germany (the  “Exporter”) for the delivery of equipment and provision of software licenses  for a GSM 900/1800 cellular network.                                                      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
| B.     | The total contract value of the  deliveries to be made and services to be rendered under the Export Contract  amounts to USD 83,000,000 (the “Total Contract Value”).                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
| C.     | According to the Export Contract the  deliveries/services shall be made/rendered through the placement of  individual purchase orders issued between June 2004 to 31  December 2004. Installation and commissioning work will be carried out  by OOO Siemens, Moscow, and is not subject of financing hereunder.                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
| D.     | The Total Contract Value is to be paid,  according to the terms of the Export Contract, as follows:                                                                                                                                                                                                                                                                            |
|   | (1)                                                                                                                                                                                                                                                                                                                                                                            | 15% down payments |
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | (2)                                                                                                                                                                                                                                                                                                                                                                            | 85% (the “Partial Contract Value”)  provided that a tied buyer’s credit is available for financing thereof, pro  rata to deliveries made/services rendered within 15 days of such  deliveries/services. |
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
| E.     | The Borrower and the Exporter may also  agree to enter into a further contract for the supply of additional  telecommunications equipment (the “Additional Export Contract”), the  financing terms of which may provide for additional payments partially being  made under the terms of this Credit Agreement.                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
| F.     | The total additional contract value of  further deliveries to be made and services to be rendered under the  Additional Export Contract (if such Additional Export Contract is agreed) is  expected to amount up to USD 40,000,000 (the “Total Additional Contract  Value”).                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
| G.     | The terms of the Additional Export  Contract (if agreed) are expected to enable deliveries/services to be  made/rendered through a further series of purchase orders to be issued  between October 2004 to July 2005.                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                           |   |
| H.     | The Total Additional Contract Value (if  the Additional Export Contract is agreed) is expected to consist of 15%  downpayments and a portion of 85% as partial additional contract value (the  “Partial Additional Contract Value”) to be financed hereunder at the option  of the Borrower, subject to the agreement of Hermes (as defined below) and  the Lenders. |

 

Thisbeing premised, it is hereby agreed as follows:

 

1.                             Definitions andInterpretations

 
| Additional Export Contract | means an additional contract which  may be entered into between the Borrower and the Exporter as defined in Article E  of the Preamble |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                        |

4

----

 
| Additional Insurance Premium  | means  the premium as defined in Clause 11.3                                                                                                                                                                                                                   |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                                                                                                                           |
| Additional  Repayment Date    | means the  date(s) as defined in Clause 5.1 d)                                                                                                                                                                                                            |
|                          |                                                                                                                                                                                                                                                           |
| Affiliate

              | means, in relation to any person a  Subsidiary of that person, or a Holding Company of that person, or any other  Subsidiary of that Holding Company                                                                                                           |
|                          |                                                                                                                                                                                                                                                           |
| Agent for  Service of Process | means the person or entity as  defined in Clause 19.4                                                                                                                                                                                                          |
|                          |                                                                                                                                                                                                                                                           |
| Agreed  Currency              | means  the currency as defined in Clause 18                                                                                                                                                                                                                    |
|                          |                                                                                                                                                                                                                                                           |
| Banking Day                   | means a day (other than Saturday or  Sunday) on which banks are generally open for business in London and Frankfurt  am Main                                                                                                                                   |
|                          |                                                                                                                                                                                                                                                           |
| Borrower                      | means OJSC Mobile TeleSystems, 4  Marksistskaya Street, Moscow 109147, Russian Federation

Payment details: foreign currency account No. 40702840500001001817  with ING Bank (Eurasia) ZAO, Moscow 123022, Krasnaya Presnja Str., 31 SWIFT  code INGBRUMM |
|                          |                                                                                                                                                                                                                                                           |
| Credit A                      | means the principal amount as  specified in Clause 2.1 already disbursed and/or still to be disbursed as the  context requires and shall include each of Tranche 1 and Tranche 2                                                                               |
|                          |                                                                                                                                                                                                                                                           |
| Credit B                      | means the principal amount as  specified in Clause 2.1 already disbursed and/or still to be disbursed as the  context requires and shall include each of Tranche 3 and Tranche 4                                                                               |
|                          |                                                                                                                                                                                                                                                           |
| Credit or  Credits            | means the aggregate principal  amount as specified in Clause 2.1 already disbursed and/or still to be  disbursed as the context requires and “Credits” shall include the Tranches                                                                    |
|                          |                                                                                                                                                                                                                                                           |
| Credit  Agreement             | means this agreement                                                                                                                                                                                                                                           |
|                          |                                                                                                                                                                                                                                                           |
| Export  Contract              | means the contract between the  Borrower and the Exporter defined in Article A of the Preamble                                                                                                                                                            |
|                          |                                                                                                                                                                                                                                                           |
| Exporter

               | means Siemens Aktiengesellschaft, Hofmannstrasse 51,  81379 Munich,

Federal  Republic of Germany                                                                                                                                                              |
|                          |                                                                                                                                                                                                                                                           |
| Facility  Agent

        | means HSBC  Bank plc, 8 Canada Square, London E14 5HQ, United Kingdom                                                                                                                                                                                          |
|                          |                                                                                                                                                                                                                                                           |
| Hermes                        | means the German export credit  agency Euler Hermes Kreditversicherungs-AG, Hamburg, Federal Republic of  Germany                                                                                                                                              |
|                          |                                                                                                                                                                                                                                                           |
| Hermes Agent                  | means ING BHF-BANK  Aktiengesellschaft, Bockenheimer Landstrasse 10, 60323 Frankfurt am Main,  Federal Republic of Germany                                                                                                                                     |
|                          |                                                                                                                                                                                                                                                           |
| Holding  Company

       | means,  in relation to a person, any other person in respect of which it is a  Subsidiary                                                                                                                                                                      |
|                          |                                                                                                                                                                                                                                                           |

5

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| Insurance Agreement                | means  the agreement as per Clause 11.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Insurance  Premium                 | means  the premium as defined in Clause 11.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Interest  Payment Date             | means  the date as defined in Clause 5.2.e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Interest Period(s)                 | means  the period(s) as defined in Clause 5.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Judgement Currency                 | means  the currency as defined in Clause 18                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Lender(s)                          | means HSBC Bank plc, 8 Canada  Square, London E14 5HQ, United Kingdom

Payment details: SWIFT MRMDUS33,  account number 000-023868 held with HSBC Bank USA, New York, in favour  of HSBC Bank plc, London, SWIFT MIDLGB22 account number 36677449 in the name  of Project and Export Finance quoting ref 53M/FC1046

and

ING BHF-BANK  Aktiengesellschaft, Bockenheimer Landstrasse 10, 60323 Frankfurt am Main,  Federal Republic of Germany

Payment details: SWIFT BHFBDEFF,  account number 8033130377 held with Bank of New York, New York, SWIFT  IRVTUS3N |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| LIBOR                              | means  the interest rate as defined in Clause 5.2.a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Margin                             | means the margin as defined in  Clause 5.2.a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Partial  Contract Value            | means the part of the Total  Contract Value as defined in Article D of the Preamble                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Partial  Additional Contract Value | means the part of the Total  Additional Contract Value as defined in Article H of the Preamble                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Reference  Banks                   | means the London offices of HSBC  Bank plc and ING BHF-Bank Aktiengesellschaft                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Repayment  Date(s)                 | means the date(s) as defined  in Clause 5.1.d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Passport  Bank                     | means OOO  HSBC Bank (RR) 9, Dmitrovsky pereulok, Moscow 103031, Russian Federation or  such other bank as approved by the Facility Agent                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  

Special  Payment Procedure |  

means the special payment procedure  provided for under a certain disbursement facility agreement to be entered  into by and between the Borrower, the Facility Agent and the Passport Bank

                                                                                                                                                                                                                                                                                                                                                        |
| Subsidiary                         | means an entity from time to time  of which a person has direct or indirect control or owns directly or  indirectly more than 50% of the share capital or similar right of ownership                                                                                                                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Supplemental Insurance Agreement   | means  the supplemental agreement as per Clause 11.1

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Total Assets                       | means the book value of  the consolidated total assets of the Borrower as determined by reference to  the Borrower’s most recent annual                                                                                                                                                                                                                                                                                                                                                                                                                      |

6

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|                                  | consolidated balance sheet  delivered in accordance with Clause 14 a)                                                                                                                                                                                                                         |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                                                                                                                                                                                                                                                                                          |
| Total  Contract Value            | means the aggregate price agreed  upon in the Ex­port Contract for deliveries made and services rendered  thereunder as defined in Article B of the Preamble                                                                                                                        |
|                             |                                                                                                                                                                                                                                                                                          |
| Total Additional  Contract Value | means the aggregate price agreed  upon in the Additional Ex­port Contract for deliveries to be made and  services to be rendered thereunder as defined in Article F of the  Preamble                                                                                                |
|                             |                                                                                                                                                                                                                                                                                          |
| Tranche 1                        | means the part of Credit A as  defined in Clause 2.2.a) hereof                                                                                                                                                                                                                                |
|                             |                                                                                                                                                                                                                                                                                          |
| Tranche 2                        | means the part of Credit A as  defined in Clause 2.2.b) hereof                                                                                                                                                                                                                                |
|                             |                                                                                                                                                                                                                                                                                          |
| Tranche 3                        | means the part of Credit B as  defined in Clause 2.2.c) hereof                                                                                                                                                                                                                                |
|                             |                                                                                                                                                                                                                                                                                          |
| Tranche 4                        | means the part of Credit B as  defined in Clause 2.2.d) hereof                                                                                                                                                                                                                                |
|                             |                                                                                                                                                                                                                                                                                          |
| Tranches

                  | means, collectively, Tranche 1 and  Tranche 2 and, if applicable Tranche 3 and Tranche 4 as defined in Clause 2.2                                                                                                                                                                             |
|                             |                                                                                                                                                                                                                                                                                          |
| UMC

                       | means Ukrainian-German-Dutch-Danish  Joint Venture “Ukrainian Mobile Communications” in Ukraine                                                                                                                                                                                     |
|                             |                                                                                                                                                                                                                                                                                          |
| UMC  Litigation                  | means any of the claims,  proceedings (present of future) and causes of action involving the Borrower,  and/or any Affiliate thereof (including UMC) relating to or arising out of  the sale of UMC to the Borrower, or the acquisition, reorganization or  ownership of UMC by the Borrower. |
|                             |                                                                                                                                                                                                                                                                                          |
| USD                              | means the lawful currency of the  United States of America                                                                                                                                                                                                                                    |

 

2.                             Amount and Purpose ofthe Credits

 
| 2.1   | The Lenders grant to the Borrower a  credit in an aggregate amount of up to:                                                                                                                                                                                  |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                                                                                                                                          |
|            | USD 75,748,000.00

(in  words: United States Dollars seventy five million seven hundred forty eight  thousand)

(“Credit A”)

                                                                                                                 |
|            | With reference to the  Additional Export Contract, and subject to the agreement of Hermes, the  Lenders may elect in their absolute and free discretion to grant to the  Borrower upon its written request a further credit in an aggregate amount of  up to: |
|            |                                                                                                                                                                                                                                                          |

7

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|                 | USD 36,514,000.00

(in  words: United States Dollars thirty six million five hundred fourteen  thousand)

(“Credit B”)

 

It is hereby agreed and  understood by the Borrower and the Lenders that the Lenders, by entering into  this Credit Agreement, do not assume any commitment  to grant Credit B but that the granting of  such Credit B is at their sole discretion and will only materialise upon the  Lenders written approval.

 

Credit A and Credit B shall  hereinafter be referred to individually as a “Credit” or collectively as “Credits”.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.2   | Credits shall consist of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|            | a)        Tranche 1 in an amount of USD  70,550,000.00 (in words: United States Dollars seventy million five hundred  and fifty thousand) which shall be available for the financing of the Partial  Contract Value either (i) still due and payable to the Exporter  resulting from deliveries made/services rendered under the Export Contract, or  (ii) payable to the Borrower resulting from deliveries made / services  rendered under the Export Contract for which payment has been made, directly  by the Borrower to the Exporter; and

 

b)       Tranche 2 in an amount of USD  5,198,000.00 (in words: United States Dollars five million one hundred ninety  eight thousand) which shall be available for the financing of up to 85% of  the Insurance Premium for cover of the Lenders’ payment claims under the  Insurance Agreement as per Clause 11.1 paid or payable by the Lenders through  the Facility Agent to Hermes; and if so applicable

 

c)        Tranche 3 in an amount of up to USD  34,000,000.00 (in words: United States Dollars thirty four million) which  shall be available for the financing of the Partial Additional Contract Value  either (i) still due and payable to the Exporter resulting from  deliveries made/services rendered under the Additional Export Contract, or (ii) payable  to the Borrower resulting from deliveries made / services rendered under the  Additional Export Contract for which payment has been made directly by the  Borrower to the Exporter; and

 

d)       Tranche 4 in an  amount of USD 2,514,000.00 (in words: United States Dollars two million five  hundred fourteen thousand) which shall be available for the financing of up  to 85% of the Additional Insurance Premium for cover of the Lenders’ payment  claims under the Supplemental Insurance Agreement as per Clause 11.1 paid or  payable by the Lenders through the Facility Agent to Hermes; |
|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|            | unless otherwise stipulated  hereinafter, any reference in this Credit Agreement to the Credit shall  include the Tranches applicable to that Credit, and to Credits or to credit  amounts or to any other similar term shall include the Tranches.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

8

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| 2.3             | The amounts borrowed under this  Credit Agreement are exclusively available (i) provided that payment of  the Partial Contract Value for deliveries made/services rendered has been  effected by the Borrower to the Exporter prior to fulfilment of all  conditions precedent to disbursements / reimbursements under this Credit  Agreement or waiver thereof by the Lenders by means of payment from sources  other than this Credit Agreement, for reimbursement thereof to the Borrower; (ii) with  effect from the date of fulfilment of all conditions precedent to  disbursements / reimbursements under this Credit Agreement or waiver thereof  by the Lenders, for reimbursement to the Borrower in the amount of the  Partial Contract Value resulting from deliveries made/services rendered under  the Export Contract for which payment   has been made directly by the Borrower to the Exporter; (iii) with  effect from the date of fulfilment of all conditions precedent to  disbursements / reimbursements under this Credit Agreement or waiver thereof  by the Lenders, for the payment of sums due to the Exporter in the amount of  the Partial Contract Value resulting from deliveries made/services rendered  under the Export Contract; (iv) for reimbursement to the Borrower of up  to 85% of the Insurance Premium paid by the Borrower to the Lenders through  the Facility Agent; (v) in respect of the additional financing of Credit  B if so required by the Borrower, and subject to the agreement of Hermes and  the Lenders, for reimbursement to the Borrower in the amount of the Partial  Additional Contract Value resulting from further deliveries made/services  rendered under the Additional Export Contract for which payment has been made  directly by the Borrower to the Exporter; (vi) in respect of the  optional financing of Credit B if so required by the Borrower, and subject to  the agreement of Hermes and the Lenders, for the payment of sums due to the  Exporter in the amount of the Partial Additional Contract Value resulting  from deliveries made/services rendered under the Additional Export Contract;  and (vii) in respect of the additional financing of Credit B if so  required by the Borrower, and subject to the agreement of Hermes and the  Lenders, for reimbursement to the Borrower of up to 85% of the Additional  Insurance Premium paid by the Borrower to the Lenders through the Facility  Agent.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 2.4   | Upon and subject to the terms and  conditions of this Credit Agreement each of the Lenders shall participate in  each disbursement or reimbursement of the Credits in the proportion of its  maximum liability mentioned in this Clause 2.4 as percentage of the maximum  credit amounts mentioned in Clause 2.1 hereof.

 

HSBC  Bank plc                                                   Credit A

8  Canada Square                                                  50%, max. USD 37,874,000.00

London  E14 5HQ                                                (in words: United States Dollars thirty seven million

United  Kingdom                                                  eight hundred seventy four thousand)

Credit B (optional financing)  50%, max. USD 18,257,000.00  (in words: United States Dollars   eighteen million two hundred fifty seven thousand)

 

ING BHF-BANK Aktiengesellschaft                 Credit A

Bockenheimer Landstrasse 10                            50%, max. USD  37,874,000.00

60323  Frankfurt am Main                                  (in words:  United States Dollars thirty seven million

Federal  Republic of Germany                             eight hundred  seventy four thousand)

Credit B (optional financing)  50%, max. USD 18,257,000.00  (in words: United States Dollars   eighteen million two hundred fifty seven thousand)

  |
|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

9

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| 2.5 | The Credit  shall be made available under exclusion of any joint liability. Therefore,  each of the Lenders shall only be responsible for the fulfilment of its  obligation and shall not be liable for the fulfilment of the obligations of  the other Lender under this Credit Agreement. The failure of any of the  Lenders to provide funds according to its obligation under this Credit Agreement  shall neither release the other Lender nor the Borrower from any of their  respective obligations towards each other hereunder***.*** |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

3.                             Disbursements / Reimbursements

 
| 3.1   | Tranche 1 (and if applicable,  Tranche 3) shall be disbursed in credit portions directly to the Borrower or,  as the case may be, the Exporter to such account and to such financial  institution as specified by the Borrower or, as the case may be, the Exporter  to the Facility Agent.

 

The Borrower hereby irrevocably  agrees that - under Clause 3.2.b) below - only the Exporter shall have the  exclusive right to request payments under Tranche 1 (and if applicable,  Tranche 3) and that such direct payments to the Exporter will constitute  disbursements of Tranche 1 (and if applicable, Tranche 3) to the Borrower  under this Credit Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2   | a)        In the event that prior  to or after fulfilment of the conditions precedent to disbursements /  reimbursements under the Credit Agreement or the waiver thereof by the  Facility Agent acting on behalf of the Lenders, payments are made by the  Borrower to the Exporter in the amount or amounts of the respective Partial  Contract Value (or Partial Additional Contract Value) out of funds other than  out of this Credit Agreement in and towards satisfaction and fulfilment of  sums due to the Exporter resulting from the Export Contract, then  reimbursements under Tranche 1 (and if applicable, Tranche 3) will be made by  the Lenders through the Facility Agent against presentation by the Borrower  to the Facility Agent of a certificate as per Annex 1a or 1d hereto in an  amount or amounts equal to the aggregate principal amount or amounts of such  payments in the maximum amount of the respective Partial Contract Value (or  Partial Additional Contract Value) to the Borrower to such account as  specified by the Borrower to the Facility Agent.

 

The  Borrower and the Lenders acknowledge and agree to the Exporter’s intent to  provide the Facility Agent, upon any delivery having been made/service having  been rendered under the Export Contract for which the Borrower shall make  direct payment to the Exporter out of other funds than of this Credit  Agreement before being reimbursed in accordance with this Clause 3.2.a), with  copies of the respective delivery documents or invoice, as the case may be.  It is the common understanding of the parties hereto that the dispatch of  such copies to the Facility Agent shall be for information purposes only;  therefore shall neither the failure of the Exporter to send such copies prevent  the Lenders in any way from making reimbursements, nor shall the delivery of  such copies oblige the Lenders to make reimbursements under this Clause  3.2.a), in particular not in case of any of the conditions precedent for  disbursement / reimbursement not being fulfilled.

 

b)    With  effect from the date of fulfilment of all conditions precedent to  disbursements / reimbursements under this Credit Agreement or the waiver  thereof by the Facility Agent acting on behalf of the Lenders, Tranche 1 (and  if applicable, Tranche 3) shall be disbursed    directly to the Exporter on a pro rata basis against deliveries  made/services rendered in an amount equal to 85% of the value of such  deliveries/services only upon presentation by the Exporter to the Facility  Agent of a certificate as per Annex 1b hereof and of the following documents***:***    

  |

10

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|                 | In  case of equipment deliveries

-       a copy of the commercial  invoice issued by the Exporter;

-       a copy of the  international waybill relating to such equipment.

 

In case of licenses

-       a copy of the commercial  invoice issued by the Exporter;

-       a copy of the acceptance  certificate, signed by the Borrower and the Exporter.

 

The Facility Agent shall accept and  make disbursements against the aforementioned documents as they are being  presented to it without any obligation of examination thereof; in particular  the Facility Agent shall not be obliged to verify whether or not any  documents delivered to it under this Clause 3.2.b) are in compliance with the  Uniform Customs and Practices for Documentary Credits, 1993 Revision, ICC  Publication No. 500.

               |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.3   | Disbursements / reimbursements  under Tranche 1 (and if applicable, Tranche 3) as per Clause 3.2 shall be  made in minimum amounts of USD 1,000,000.00 provided, however, that, in the  event that 85% of the value of any documents presented to the Facility Agent  during a calendar month for disbursements under Tranche 1 (and if applicable,  Tranche 3) or the amount mentioned in a reimbursement certificate as per  Annex 1a or 1d, as the case may be, is less than the aforementioned minimum  amount, disbursements or reimbursements under Tranche 1 (and if applicable,  Tranche 3) will be made at the end of the relevant calendar month in one  amount equal to 85% of the aggregate value of all documents or equal to the  aggregate value of all certificates, as the case may be, received by the  Lenders during that month in relation to which disbursement or reimbursement  under Tranche 1 (and if applicable, Tranche 3) has not previously been made. |
|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.4   | Disbursement under Tranche 2 (and  if applicable, Tranche 4) for the financing of up to 85% of the Insurance  Premium (or as the case may be, the Additional Insurance Premium) shall in  either event,  whether the Insurance  Premium has become due and payable prior to or after the fulfilment of all  conditions precedent to disbursements / reimbursements under this Credit  Agreement or the waiver thereof by the Facility Agent, acting on behalf of  the Lenders, and provided that the Borrower has paid the total amount of the  Insurance Premium (or the Additional Insurance Premium) to the Facility Agent  as per Clause 11.2 hereof, be made without any request or action by the  Borrower upon fulfilment of the conditions precedent to disbursements /  reimbursements or waiver thereof by the Lenders through the Facility Agent to  the Borrower to such account as will be specified by the Borrower to the  Facility Agent.                       |

 
| 3.5    | Each disbursement or reimbursement  of the Credits under this Credit Agreement shall be made at the latest on the  5th Banking Day after all conditions precedent  applicable to such disbursement or reimbursement pursuant to Clause 4 hereof  have been fulfilled or waived, as the case may be, and provided that the  Lenders through the Facility Agent have not exercised any of their rights  under Clause 12 hereof.

  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.6    | Unless otherwise  instructed by Hermes, the Lenders may (but are not obliged to do so) refuse  to disburse the Credits or any portion thereof after the due date of the first  repayment instalment laid down in Clause 8 hereof. The Credits will then be  reduced by the corresponding amount.                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.7    | The Borrower may - in case of  disbursements according to Clause 3.2.b) - only waive disbursement of the  Credits, in full or in part, with the prior written consent of the Lenders  and the Exporter.                                                                                                                                                                                                                                    |

 

11

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4.                             Conditions Precedentto Disbursements / Reimbursements

 
| 4.1    | In relation to Credit A
  The first disbursement or reimbursement under Credit A of this Credit Agreement  shall be conditional upon the Facility Agent having received the following  documents free of expense in form and substance satisfactory to the Lenders: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                |
|   | a)                                                                                                                                                                                                                                                                  | a legal opinion to be issued by  Freshfields Bruckhaus Deringer, Moscow, Russian Federation as Lenders’  counsel confirming the validity and enforceability of this Credit Agreement; |
|   |                                                                                                                                                                                                                                                                |   |
|   | b)                                                                                                                                                                                                                                                                  | a written confirmation in  accordance with Annex 2 hereof certifying that the Export Contract has come  into force; |
|   |                                                                                                                                                                                                                                                                |   |
|   | c)                                                                                                                                                                                                                                                                  |  a specimen signatures list as per Annex 4  hereof with the specimen signatures of such persons authorised by the  Borrower to act on its behalf in connection with this Credit Agreement and  such other documents which, pursuant to mandatory provisions under German or  English law, are required by the Lenders and/or the Facility Agent to open  and to maintain a credit account on behalf of the Borrower such documents to  be specified by the Lenders and/ or the Facility Agent without any undue  delay in writing; |
|   |                                                                                                                                                                                                                                                                |   |
|   | d)                                                                                                                                                                                                                                                                  | a copy of the Export Contract; |
|   |                                                                                                                                                                                                                                                                |   |
|   | e)                                                                                                                                                                                                                                                                  | an undertaking by the Exporter in  favour of the Lenders with regard to certain risks and obligations not  covered by the Insurance Agreement as per Clause 11.1 hereof; |
|   |                                                                                                                                                                                                                                                                |   |
|   | f)                                                                                                                                                                                                                                                                  | a certificate as per Annex 1a, 1b,  1c, 1d or 1e , as the case may be; and |
|   |                                                                                                                                                                                                                                                                |   |
|   | g)                                                                                                                                                                                                                                                                  |  confirmation issued by the Passport Bank  certifying its nomination by the Borrower as Passport Bank. |
|   |                                                                                                                                                                                                                                                                |   |
|   | h)                                                                                                                                                                                                                                                                  | evidence that the down payment  referred to in Article D of the Preamble has been made to the Exporter  by the Borrower. |
|   |                                                                                                                                                                                                                                                                |   |
|   | In relation  to Credit B (if applicable)                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                |
|   | The first disbursement or  reimbursement under Credit B of this Credit Agreement shall be conditional  upon the Facility Agent having received the following documents free of  expense in form and substance satisfactory to the Lenders:                          |
|   |                                                                                                                                                                                                                                                                |   |
|   | a)                                                                                                                                                                                                                                                                  | a written confirmation issued by  Freshfields Bruckhaus Deringer, Moscow, as Lenders’ counsel confirming that  the original legal opinion rendered under Clause 4.1.a) above is applicable  mutatis mutandis to this Credit Agreement as increased by Credit B, such  confirmation stating inter alia that all necessary permits, authorisations  and registrations in the Russian Federation have been obtained; |

 
|   |                                                                                                                                                                            |                                                                                                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | b)                                                                                                                                                                              | a copy of the Additional Export  Contract;                                                                                                                                             |
|   |                                                                                                                                                                            |                                                                                                                                                                                   |
|   | c)                                                                                                                                                                              | a written confirmation in accordance  with Annex 2 hereof certifying that the Additional Export Contract has come  into force; and                                                     |
|   |                                                                                                                                                                            |                                                                                                                                                                                   |
|   | d)                                                                                                                                                                              | an  undertaking by the Exporter in favour of the Lenders with regard to certain  risks and obligations not covered by the Supplemental Insurance Agreement as  per Clause 11.1 hereof. |
|   |                                                                                                                                                                            |                                                                                                                                                                                   |
|   | Furthermore, the first disbursement  or reimbursement under Credit A or, if applicable Credit B, is conditional  upon receipt by the Lenders of the following payments:

  |

12

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|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | payment of  the fee as per Clause 6.2 hereof in the case of Credit A and, payment of  additional fees pursuant to Clause 6.4  hereof in the case of Credit B; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                               |
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | payment of 100% of the Insurance  Premium and, as the case may be, 100% of the Additional Insurance Premium.                                                       |
|        | a)  

 

b)  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.3    | Moreover,  the first disbursement under this Credit Agreement by way of direct  disbursement to the Exporter as per Clause 3.2.b) is subject to such  disbursement procedure being in full and strict compliance with the Russian  laws (in particular but not limited to the Law on Currency Regulation and  Currency Control dated 10 December 2003); such compliance to be  evidenced to the Lenders in form and substance satisfactory to the Lenders.                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.4    | Each  reimbursement under Tranche 1 or Tranche 3 as per Clause 3.2. a) hereof is  furthermore subject to evidence satisfactory to the Lenders that payments  were made by the Borrower for deliveries made/services rendered under the  Export Contract or the Additional Export Contract, as the case may be, and have  been received by the Exporter in amounts corresponding to those mentioned in  the relevant reimbursement certificate in form and substance as per Annex 1a  or 1d, as the case may be, hereto.        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.5    | Each  disbursement or reimbursement under this Credit Agreement is subject to the  condition that the Insurance Agreement and, as the case may be, the  Supplemental Insurance Agreement, as per Clause 11.1 is in full force and  effect and covers the Lenders’ claims under this Credit Agreement.                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.6    | The Lenders  through the Facility Agent shall be entitled to waive any one or more of the  aforementioned conditions precedent to disbursements / reimbursements as the  Lenders at their sole discretion deem fit, whereupon — unless otherwise  notified in writing by the Facility Agent to the Borrower - any such  condition precedent shall be deemed to constitute a condition subsequent  which the Borrower undertakes to satisfy within such period of time which the  Facility Agent may reasonably determine. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.7    | The Facility  Agent will notify the Borrower and the Exporter without delay in writing of  the fulfilment of the conditions precedent to first disbursement or  reimbursement and, if applicable,   conditions subsequent.

                                                                                                                                                                                                                                                                                         |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                    |  |

5.                             InterestPeriods, Interest, Increased Costs

 
| 5.1    | For the purpose  of periodical calculation of interest and its pay­ment by the Borrower as  determined hereinafter, each interest period (the “Interest Period”) shall be  of a duration of 6 months, provided that: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                |   |
|   | a)                                                                                                                                                                                                                                  | the first  Interest Period in respect of the first disburse­ment or reimbursement shall  commence on the date of that disburse­ment or reimbursement and end 6 months  after the date of that disburse­ment or reimbursement; |
|   |                                                                                                                                                                                                                                |   |
|   | b)                                                                                                                                                                                                                                  | the first  Interest Period in respect of any subsequent disbursement or reimbursement  shall commence on the date of that disbursement or reimbursement and end upon  expiry of the then current Interest Period relating to the respective Credit  A or Credit B, as the case may be***;*** |
|   |                                                                                                                                                                                                                                |   |
|   | c)                                                                                                                                                                                                                                  | each  subsequent Interest Period shall commence on the expiry of the preceding  Interest Period; |
|   |                                                                                                                                                                                                                                |   |
|   | d)                                                                                                                                                                                                                                  | any Interest  Period which would otherwise extend be­yond the due date of any repayment  instalment pursu­ant to Clause 8.1 of this Credit Agreement (any such  repayment date hereinafter re­ferred to as a “Repayment Date” or “Additional  Repayment Date”, if applicable) shall be shortened to the extent necessary to  end upon such Repayment Date or Additional |

13

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|   |   | Repayment  Date, as the case may be;                                                                                                                                                                                                                                                                             |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                             |
|   | e)     | any Interest  Period which would otherwise end on a day which is not a Banking Day shall  end on the next Banking Day unless the result of such extension would be to  carry such Interest Period over into another calendar month, in which event  such Interest Period shall end on the preceding Banking Day. |

 
| 5.2    | a)                       Subject to Clause 5.2 d) below, for as long as any principal  amounts repayable under this Credit Agreement remain outstanding, the  Borrower shall pay to the Lenders through the Facility Agent for each  Interest Period on each credit amount outstanding interest at a rate per  annum to be the aggregate of (i) a margin of 0.425% p.a. (in words zero  point four two five per cent per annum) (the “Margin”) and (ii) the  London Interbank Offered Rate (“LIBOR”) relating to such Interest Period  (rounded upwards - if necessary - to a full month).

 

                                 LIBOR shall mean, in relation to such Interest Period, the rate  per annum determined by the Facility Agent to be equal to the arithmetic mean  (rounded upwards, if necessary, to five decimal places) of the London  interbank offered rates for deposits of USD for a period equal to such period  at or about 11.00 a.m. (London time) on the second Banking Day for such  period as are displayed on the relevant page on the Reuter Monitor Money  Rates Services (or such other page as may replace such page on such  service for the purpose of displaying London interbank offered rates of  leading banks for deposits of USD) or, if on such date the offered rates for  the relevant period of fewer banks than two leading banks are so displayed,  as quoted to the Facility Agent by each of the Reference Banks at the request  of the Facility Agent and calculated on the above mentioned basis.

 

b)                      The Facility Agent shall promptly advise the Borrower by letter or  means of tele­communication of the rate of interest determined from time to  time as per Clause 5.2.a) hereof and of the amount of interest to be paid at  the end of the respective Interest Period, provided that no failure by the  Facility Agent to so advise the Borrower shall relieve the Borrower from its  payment obligations here­under.

 

c)                       The rate of interest as stipulated in Clause 5.2.a) shall always  apply without any further request, communication or whatsoever as far and as  long as no rate of interest is appli­cable in accordance with Clause 5.2.d)  hereof.

 

d)                      For all amounts outstanding under this Credit Agreement the  Lenders shall, upon the Borrower’s request, offer a fixed interest rate (the  Lenders using their best efforts to ensure that such rate is commercially  reasonable) for the whole remaining amount and lifetime of the Credits  provided that:

  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (i) | the last  disbursement or reimbursement under the Credit Agreement has been effected,  in the case of either Credit A or Credit B, |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (ii) | the exact  Repayment Dates for the repayment instal­ments of the Credits stand firm in  the case of either Credit A or Credit B, |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (iii) | the  Borrower’s request has been received by the Facility Agent at the latest 15  Banking Days prior to the next Repayment Date and, |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (iv) | corresponding  funds in like amounts and for a duration equivalent to the term of the  Credits under this Agreement  are  available to the Lenders. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |                                  Such fixed interest rate takes binding effect for the period  starting with the next Repayment Date and ending on the last Repayment Date  for the Credits, in the case of either Credit A or Credit B, provided that  the Facility Agent has received the Borrower’s agreement to the fixed rate  offered by the Lenders through the Facility Agent within the validity period  of such offer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   | e)                       Interest on any credit amounts outstanding shall accrue from day  to day and be calculated on                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

 

14

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|        | a per  annum basis from the date of each disbursement or reimbursement until the  date on which the respective repayment instalment is unconditionally credited  on the account specified in or to be indicated by the Facility Agent in  accordance with Clause 9.1 hereof. Interest on any credit amounts outstanding  shall be paid by the Borrower in arrears on   each Interest Payment Date (each “Interest Payment Date” being,  (i) in the case of an interest rate applicable as per Clause 5.2 a), the  last day of any and each Interest Period; and (ii) in case of  a fixed interest rate applicable as per  Clause 5.2 d) hereof each Repayment Date).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 5.3    | Subject  to Clause 5.5 (Exceptions), if by reason of any change occurring after the  date of this Credit Agreement in any law, regulation, treaty or official  directive (whether or not having the force of law) or the interpretation or  application thereof (including but not limited to any reserve, deposit or  similar requirements) and for compliance by the Lenders and/or the Facility  Agent with any legally binding requirement of any central bank or other  governmental or monetary authority arising after the date of this Credit  Agreement any of the Lenders incur any Increased Costs (as defined  hereinafter), then, in any such case, the Borrower shall pay to the Facility  Agent for account of the Lenders within thirty days of a demand by the  Facility Agent such amounts of the Increased Costs as the Lenders through the  Facility Agent shall specify to be necessary to compensate the Lenders for  such increase or such reduction.

 

In this Agreement “Increased Costs” means:

 

(i)             a reduction in  the rate of return from the Credits or on a Lender’s overall capital;

(ii)            an additional or  increased cost; or

(iii)           a reduction of  any amount due and payable under the Credits,

 

which  is incurred or suffered by a Lender to the extent that it is attributable to  that Lender having entered into this Credit Agreement or funding or  performing its obligations under it.

  |
| 5.4.   | A Lender intending to make a claim pursuant to  Clause  5.3 (Increased Costs) shall notify the Facility Agent of the  event giving rise to the claim, following which the Facility Agent shall  promptly notify the Borrower.

 

Each Lender shall, as soon as practicable after a  demand by the Facility Agent, provide a certificate confirming the amount of  its Increased Costs and the circumstances giving rise to the claim.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 5.5    | **Clause  5.3 (Increased  Costs) does not apply to the extent any Increased Cost is:**

 

(i)  compensated  for under another Clause or would have been but for an exception to

      that Clause;

 

 (ii)  a tax, levy, duty, charge or fee  of whatever nature  on the overall net  income of a

       Lender or attributable to any  deduction or withholding for or on account of any tax,

       Levy, duty, charge or fee of whatever  nature required by law to be made by the

       Borrower (provided that nothing in  this sub-clause 5.5 (ii) reduces the Borrower’s

       Liability to make any payment on  account of any tax, levy, duty, charge or fee

       required pursuant to Clause 10); or

 

 (iii) attributable to a Lender being  grossly negligent or wilfully failing to comply with

                   any law or regulation or  official administration order or court decision.                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

6.                             Fees

 
| 6.1 | From the  date of this Credit Agreement until disbursement of Credit A in full, the  Borrower shall pay to the Lenders through the Facility Agent a commitment fee  at a rate of 0.20% p.a. (in words: zero point two per cent per annum)  calculated on a daily basis on such portion of the maximum |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

15

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|        | amount of  Credit A not yet disbursed at any time. The commitment fee is payable pro  rata in arrears (i) prior to the first disbursement or reimbursement on  June 30 and December 30 of each year; and (ii) with effect  from the first disbursement or reimbursement on each Interest Payment Date.                                                                                                                                                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 6.2    | The Borrower  will pay to the Lenders (in their capacity as mandated lead arrangers)  through the Facility Agent an arrangement fee of 0.25% flat (in words: zero  point two five per cent flat) calculated on the maximum amount of Credit A  mentioned in Clause 2.1 hereof.

The  arrangement fee is due prior to the first disbursement or reimbursement under  the Credit Agreement, at the latest however, within 30 days after the date of  this Credit Agreement.              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 6.3    | From the  date of this Credit Agreement until all monies owing by the Borrower are  fully repaid to the Lenders, the Borrower shall pay to the Facility Agent an  agency fee of USD 10,000 per annum on the date of signature of this Credit  Agreement and annually thereafter on the anniversary date of this Credit  Agreement.                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 6.4    | Clauses 6.1  and 6.2 shall apply mutatis mutantis in case of Credit B being made available  by the Lenders to the Borrower whereas calculation of the additional  commitment fee shall start on the date on which the Lenders will have  approved the granting of Credit B to the Borrower in writing; the additional  arrangement fee shall be paid within 30 days after the date of such approval  , at the latest, however, prior to disbursement or reimbursement under Credit  B. |

 

7.                             Calculation of Periods

 
|  | For the  purpose of calculating interest, commitment fee and other pay­ment  obligations based on periods of time, a year will be calculated on the basis  of the actual number of days elapsed and a year of 360 days. |
|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

8.                             Repayment and Prepayment

 
| 8.1 | Credit A
 

The credit  amounts disbursed under Credit A are to be repaid in 17 equal and consecutive  semi-annual repayment instalments; the first of which will be due on the  earlier of (i) the date falling 6 months after the date of the  mean-weighted acceptance of equipment and software to be evidenced by a  certificate in accordance with Annex 3a hereof; and (ii) 30 September 2005.  Credit amounts disbursed after the first Repayment Date under Credit A shall  be repaid in equal amounts on the remaining Repayment Dates; the repayment  instalments which then have not yet become due will be increased accordingly  and the Facility Agent shall promptly, upon its drawing up thereof  however, at the latest 10 Business Days  prior to the next Repayment Date, deliver an updated repayment schedule to  the Borrower showing the amounts of repayment instalments due on each  subsequent Repayment Date, provided that no failure by the Facility Agent to  so advise the Borrower shall relieve the Borrower from its payment  obligations under this Credit Agreement.

 
Credit B
 

If  applicable, the credit amounts disbursed under Credit B will be repaid in 17  equal and consecutive semi-annual repayment instalments; the first of which  will, depending on the respective Hermes approval, either be due on the  earlier of (i) the date falling 6 months after the date of the  mean-weighted acceptance of equipment and software relating to the deliveries  made/services rendered under the Additional Export Contract, to be evidenced  by a certificate in accordance with Annex 3b hereof, or (ii) a certain  latest date still to be agreed upon prior to the first disbursement under  Credit B, subject to Hermes approval, in each such case as advised to the  Borrower by the Facility Agent. Credit amounts disbursed after the first  Additional Repayment Date under Credit B shall be repaid in equal amounts on  the remaining Additional Repayment Dates; the repayment instalments which  then have not yet become due will be increased |
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|  | accordingly and the Facility  Agent shall promptly, upon its drawing up thereof, however, at the latest 10  Business Days prior to the next Repayment Date, deliver an updated repayment  schedule to the Borrower showing the amounts of repayment due on each  subsequent Additional Repayment Date, provided that no failure by the  Facility Agent to so advise the Borrower shall relieve the Borrower from its  payment obligations under this Credit Agreement. |
|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 
| 8.2    | Where the  interest rate defined in Clause 5.2 a) applies, the Borrower shall be  entitled upon 30 days’ prior notice to the Facility Agent to prepay on any  Interest Payment Date, in full or in part, any credit amounts outstanding  together with interest accrued thereon and any other amounts then due under  the Credit Agreement. Any such notice of the Borrower shall be irrevocable  and binding and obliges the Borrower to repay the credit amounts in  accordance with its notice of prepayment.

In case of  partial prepayments, any partial amount repaid may be applied by the Facility  Agent in the inverse order of their maturities.

Any amount  prepaid in accordance with this Clause 8.2 may not be reborrowed.                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 8.3    | Where the  interest rate in Clause 5.2 d) applies, prepayment of any amounts not yet due  according to this Credit Agreement is not permitted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 8.4    | Prior to the  first Repayment Date the Facility Agent shall furnish the Borrower with a  repayment schedule which sets out the Repayment Dates and the amount of  repayment instalments to be paid on each such Repayment Date or Additional  Repayment Date, if applicable, provided that no failure by the Facility Agent  to so advise the Borrower shall relieve the Borrower from its obligations  hereunder. In case of the granting of Credit B and if a repayment schedule in  relation to Credit A has already been delivered at such time, the Lenders  shall furnish the Borrower with a revised repayment schedule or an additional  repayment schedule, as the case may be. All other stipulations of the  preceding sentence shall apply mutatis mutandis to such revised or additional  schedule.

  |

9.          Payments

 
| 9.1    | All payments to be made by the Borrower to the  Lenders through the Facility Agent under this Credit Agreement shall be made  in USD without any deduction not later than 10.00 a.m. London time on  the respective due date at the Facility Agent’s free disposal to the account  of the Facility Agent held with HSBC Bank USA, New York, SWIFT MRMDUS33  account number 000-023868, in favour of HSBC Bank plc London, SWIFT  MIDLGB22, account number 36677449 in the name of Project and Export Finance,  quoting reference 53M/FC1046 or such other account with such other financial  institution as notified by the Facility Agent to the Borrower. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.2    | The Borrower  shall not be entitled to exercise any right of reten­tion or to set off any  counterclaims against claims arising from this Credit Agreement against any  Lender unless such counterclaims exist against the Lender that the Borrower  exercises the right of retention or set off against, and such counterclaims  have been accepted by that Lender in writing, or have otherwise been adopted  or consistently relied upon.                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.3    | If  the Facility Agent receives a payment insufficient to discharge all the  amounts then due and payable by the Borrower under this Credit Agreement, the  Facility Agent on behalf of the Lenders shall, notwithstanding any converse  instruction given by the Borrower, apply incoming payments in the following  order:                                                                                                                                                                                                                                                                                                                                          |
|   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | firstly, in  or towards any costs and expenses due and payable hereunder; |
|   | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | secondly, in  or towards payment of any fees due and payable hereunder; |
|   | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | thirdly, in  or towards payment of any default interest and/ or indemnification then due  and payable as provided for in Clauses 9.4 and 9.5; |
|   | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | fourthly, in  or towards payment of any contractual interest due and payable hereunder; |
|   | (v)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | fifthly, in  or towards repayment of any principal amount due and payable hereunder; |
|   | (vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | sixthly, in  or towards payment of any other amount (including any indemnification other  than |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

 

17

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|        | such  as under Clause 9.5) due and payable hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.4    | The Lenders  through the Facility Agent shall be entitled to demand on repayment  instalments overdue default interest at a rate which is the sum of 2% p.a.  (in words: two per cent per annum) and the rate which would have been payable  if such overdue amount had, during the period of non payment, constituted a  Credit for successive periods of any duration as the Lenders (acting  reasonably) through the Facility Agent may determine from time to time, each  calculated from the due date until receipt of payment according to Clause 9.1  hereof.               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.5    | The Lenders  through the Facility Agent shall be entitled to demand on amounts overdue  other than repayment instalments, a lump sum indemnification which is the sum  of 2% p.a. (in words: two per cent per annum) and the rate which would have  been payable if such overdue amount had, during the period of non payment,  constituted a Credit for successive periods of any duration as the Lenders  (acting reasonably) through the Facility Agent may determine from time to  time calculated from the due date until receipt of payment according to  Clause 9.1 hereof. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.6    | All payments  owed by the Borrower as per Clauses 9.4 and 9.5 shall be made immediately  upon the Facility Agent’s first demand.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.7    | If a due  date on which a payment of the Borrower must have been received at the free  disposal of the Facility Agent is not a Bank­ing Day, the next succeeding  Banking Day shall be the due date, unless such Banking Day falls into a new  calendar month in which event the due date shall be the preceding Banking  Day. The obligations of the Borrower to pay interest and fees shall accrue  accordingly.                                                                                                                                                            |

 

10.                       Taxes,Levies, Duties and Other Costs

 

10.1                          Definitions

 

a)                                      In this Credit Agreement

 

“ProtectedParty” means a Lender which is or will be subject to any liability, or requiredto make any payment, for or on account of Tax in relation to a sum received orreceivable (or any sum deemed for the purposes of Tax to be received orreceivable) under this Credit Agreement.

 

“QualifyingLender” means a Lender which is situated for tax purposes in (i) theRussian Federation, (ii) in a Tax Treaty Jurisdiction or (iii) in theUnited Kingdom or the Federal Republic of Germany.

 

“Tax” meansany tax, levy, duty or other charge or withholding of a similar nature(including any penalty or interest payable in connection with any failure topay or any delay in paying any of the same).

 

“Tax Credit”means a credit against, relief or remission for, or repayment of any Tax.

 

“Tax Deduction”means a deduction or withholding for or on account of Tax from a payment underthis Credit Agreement.

 

“Tax Payment”means an increased payment made by the Borrower to a Lender underClause 10.2 or a payment under Clause 10.3.

 

“Tax TreatyJurisdiction” means a jurisdiction which has in force a double tax treaty withthe Russian Federation (or with the Union of Soviet Socialist Republics to whichthe Russian Federation has succeeded) which provides for full exemption fromRussian withholding tax on interest derived from a source within the RussianFederation payable to a resident of such jurisdiction.

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b)                                     Unlessa contrary indication appears, in this Clause 10 a reference to “determines”or “determined” means a determination made in the absolute discretion of theperson making the determination.

 
| 10.2         | Tax Gross up

 

a)                                     The Borrower shall make all payments to be made by it without any  Tax Deduction, unless a Tax Deduction is required by law.

 

b)                                    The Borrower shall promptly upon becoming aware that it must make  a Tax Deduction (or that there is any change in the rate or the basis of a  Tax Deduction) notify the Facility Agent accordingly. Similarly, a Lender  shall notify the Facility Agent on becoming so aware in respect of a payment  payable to that Lender. If the Facility Agent receives such notification from  a Lender, it shall notify the Borrower.

 

c)                                     Subject to paragraph d) below, if a Tax Deduction is required by  law to be made by the Borrower, the amount of the payment due from the  Borrower to the Lenders shall be increased to an amount which (after making  any Tax Deduction) leaves an amount equal to the payment which would have  been due if no Tax Deduction had been required.

 

d)                                    The Borrower is not required to make an increased payment to a  Lender under paragraph c) above if, on the date on which the payment falls  due, the Borrower could have made such a payment to that Lender without a Tax  Deduction if that Lender was a Qualifying Lender, but on that date that  Lender is not, or has ceased to be, a Qualifying Lender (other than as a  result of any change after the date it became a Lender under the Credit  Agreement in (or in the interpretation, administration, or application of)  any law or treaty, or any published practice or concession of any relevant  taxing authority).

 

e)                                     If the Borrower is required to make a Tax Deduction, it shall make  that Tax Deduction and any payment required in connection with that Tax  Deduction within the time allowed and in such amount as required by law.

 

f)                                       The Borrower shall pay to the relevant taxation or other  authorities within the period for payment permitted by applicable law the  full amount of the deduction or withholding (including but without prejudice  to the generality of the foregoing, the full amount of any deduction or  withholding from any additional amount paid pursuant to this sub-clause).

 

g)                                    Promptly upon making either a Tax Deduction or any payment  required in connection with that Tax Deduction, the Borrower shall deliver to  the Facility Agent for a Lender entitled to the payment an original receipt  (or certified copy thereof) demonstrating that the Tax Deduction has been  made or (as applicable) any appropriate payment paid to the relevant taxing  authority.

  |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.3

  | Tax  Indemnity

 

a)            The  Borrower shall (within three Business Days of demand by the Facility Agent)  pay to a Protected Party through the Facility Agent an amount equal to the  loss, liability or cost which that Protected Party determines has been  suffered for or on account of Tax by that  Protected Party in respect of this Credit  Agreement.

 

b)            Paragraph  (a) above shall not apply:

 

(i)            with respect to any Tax assessed  on a Lender:

 

(A)          under  the law of the jurisdiction in which that Lender is incorporated or, if  different, the jurisdiction (or jurisdictions) in which that Lender is  treated as resident for tax purposes; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|        |  

(B)          under  the law of the jurisdiction in which that Lender’s facility office is located  in respect of amounts received or receivable in that jurisdiction,

 

if  that Tax is imposed on or calculated by reference to the net income received  or receivable (but not any sum deemed to be received or receivable) by that  Lender; or

 

(ii)           to  the extent a loss, liability or cost:

 

(C)          is  compensated for by an increased payment under Clause 10.2; or

 

(D)          would  have been compensated for by an increased payment under Clause 10.2 but was  not so compensated solely because one of the exclusions in paragraph d) of  Clause 10.2 applied.

 

c)            A  Protected Party making, or intending to make, a claim under paragraph  (a) above shall  promptly notify  the Facility Agent of the event which will give, or has given, rise to the  claim, following which the Facility Agent shall notify the Borrower.

 

d)            A  Protected Party shall, on receiving a payment from the Borrower under this  Clause 10.3, notify the Facility Agent. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.4   | Tax Credit

 

If the  Borrower makes a Tax Payment and the relevant Lender determines that:

 

(a)           A Tax Credit is attributable to  that Tax Payment; and

  (b)           the Lender has obtained,  utilised and retained that Tax Credit,

 

the Lender shall pay through the Facility Agent  promptly an amount to the Borrower which that Lender determines will leave  the Lender (after that payment) in the same after-tax position as it would  have been in had the Tax Payment not been made by the Borrower.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | However, if  the relevant Lender should be obliged by any law, regulation or court or any  other official decision to repay any Tax Credit obtained by such Lender and  paid to the Borrower pursuant to the preceding paragraph, or if any such Tax  Credit should otherwise be officially revoked, the Borrower shall promptly  upon demand of such Lender and against reasonable evidence of such repayment  obligation or revocation, as the case may be, refund the respective Lender  through the Facility Agent of such amount.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.5   | Without  prejudice to the Borrower’s obligations/the Lenders’ rights accord­ing to  Clause 10.2 and 10.3, in the event of withholding taxes being imposed in the  Russian Federation on payments due under this Credit Agreement that are  eligible for exemption and provided that the Borrower and/or the Lenders can  claim such exemption with the result that they are released from any  obligation to pay such taxes, the Borrower hereby undertakes to apply with  the competent authorities in the Russian Federation to be exempted and  released from such taxes and to provide the Facility Agent with a tax  exemption certificate or any other evidence of such tax exemption, all in  form and substance as reasonably may be required by the Lenders through the  Facility Agent. In turn, in order to enjoy the benefits of an applicable  convention on avoidance of double taxation each Lender undertakes to the  extent reasonably feasible to it to submit to the Borrower a certificate of  its residence in the form and in the manner required by Russian Law, provided  that any expenses incurred by a Lender in doing so shall be borne by the  Borrower. The form of the certificate as well as its main items shall be  advised by the Borrower to the Facility Agent reasonably in advance.                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.6   | Without  prejudice to the Lenders’ rights under this Credit Agreement, in particular  under this Clause 10, the Borrower shall pay to the Lenders through the  Facility Agent upon demand (i) any 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

20

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|  | stamp  duties, registration fees and similar taxes and charges in connection with  this Credit Agreement and (ii) all legal fees (including VAT) and  out-of-pocket expenses incurred by the Lenders and/or the Facility Agent in  connection with the negotiation, preparation, documentation and execution of  this Credit Agreement provided that all such fees and expenses shall not  exceed USD 15,000.00 (plus VAT and disbursements, plus costs for required  translation of any of the finance documents related to this Credit Agreement  into the Russian language) and (iii) any costs, including lawyer’s fees  and taxes arising thereon, in connection with the preservation and  enforcement of the Lenders’ rights under this Credit Agreement.

  |
|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

11.                       Guarantee ofthe Federal Republic of Germany for tied Buyer’s Credits

 
| 11.1 | The Hermes  Agent on behalf of the Lenders has applied for insurance cover of the Lenders’  claims arising from this Credit Agreement by the Federal Republic of Germany,  represented by Hermes by means of an insurance agreement (the “Insurance  Agreement”). Credit A will be made available on the basis of such Insurance  Agreement and the terms and conditions governing it. In the event that  additional insurance cover is provided by Hermes for the purposes of  financing being made available for Credit B hereunder, then Credit B will be  made available on the basis of such supplemental insurance (“Supplemental  Insurance Agreement”) and the terms and conditions governing it. Lenders are  entitled to give information on the Credit Agreement and the transactions  contemplated thereby to the competent authorities of the Federal Republic of  Germany and the European Union and to allow such authorities perusal of all  records that may be connected with this Credit Agreement and to furnish them  with copies thereof.

  |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.2 | The Borrower  undertakes to reimburse and indemnify the Lenders through the Facility Agent  in full for and against the aggregate amount of premiums and charges (the “In­surance  Premium”) payable by the Lenders through the Facility Agent to Hermes under  the Insurance Agreement for insurance cover of their payment claims arising  from Credit A of this Credit Agreement.

 

The  Insurance Premium shall be paid by the Borrower immediately upon written  demand by the Facility Agent in accordance with Annex 1c or Annex 1e, as the  case may be, provided that the insurance premium is payable (and is either  already due or will become due shortly) by the Lenders to Hermes under the  Insurance Agreement***.***

                                                                                                                                                                                                                                                                                                                              |
| 11.3 | In the event  that additional financing in the form of Credit B is made available to the  Borrower, the Borrower undertakes to reimburse and indemnify the Lenders  through the Facility Agent in full for and against the additional amount of  premiums and charges (the “Additional Insurance Premium”) payable by the  Lenders through the Facility Agent to Hermes under the Supplemental Insurance  Agreement for additional insurance cover of their payment claims arising from  Credit B of this Credit Agreement. The second paragraph of Clause 11.2 shall  apply mutatis mutandis hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

 
| 11.4 | Prior to the  first Repayment Date under this Credit Agreement or - in case of  disbursements or reimbursements after such date - upon disbursement in full  of the Credits, the Facility Agent will recalculate the amount of Insurance  Premium (or as applicable, the amount of Additional Insurance Premium)  payable to Hermes and will provide the Borrower with reasonable evidence of  the correctness of such recalculation if the Insurance Premium (or as  applicable, the Additional Insurance Premium) payable for cover with respect  to this Credit Agreement does not equal the aggre­gate amounts which the  Borrower has paid to the Facility Agent as per Clause 11.2 or, as the case  may be, Clause 11.3 hereof towards reimbursement against such Insurance  Premium (or as applicable the Additional Insurance Premium).

 

If the  aggregate amount reimbursed by the Borrower is more than the re­spective  Insurance Premium (or if applicable, the Additional Insurance Premium), the  Lenders through the Facility Agent will forthwith refund the excess amount to  the Borrower. If the aggregate amount paid by the Borrower towards  reimbursement against the respective Insurance Premium (or if applicable, the  Additional Insurance Premium) was less than the Insurance Premium (or if  applicable, the Additional Insurance Premium) payable by the Lenders, the  Borrower undertakes upon request of |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

21

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|  | the Facility  Agent within 30 calendar days to pay to the Facility Agent the balance in  favour of the Lenders. |
|--|-----------------------------------------------------------------------------------------------------------------|

 

12.                       Suspensionof Disbursement, Payments Immediately Due (Events of Default)

 
| 12.1 | The  Lenders acting through the Facility Agent shall be entitled to suspend each  and/or any future disbursement of the Credits in whole or in part, and/or to  terminate this Credit Agreement, and/or to demand immediate repayment of all  credit amounts outstand­ing, as well as the payment of all interest and fees  accrued thereon, any charges and other claims incidental thereto, if:

 

a)        the  Borrower fails to fulfil any payment obligation whether in respect of  principal, interest or any other amount under this Credit Agreement when due  and payable unless

 

(i) its failure to pay is caused by administrative or technical  error; and

(ii) payment is made within three Banking Days  of the due date;

 

or

 

b)       the  Borrower breaches or fails to fulfil any other obligation under this Credit  Agreement and in case of any such breach or failure capable of being  remedied, such failure or breach is not remedied within 10 Banking Days after  the Facility Agent has notified the Borrower in writing of such failure or  breach;

 

or

 

c)        any  representation, warranty or statement in this Credit Agreement or any other  document (including the legal opinion rendered as per Clause 4 hereof) is or  proves to be or to have been incorrect or untrue in any material respect when  made or deemed to be made at any time during the term of this Credit  Agreement and in case that such incorrectness is capable of being remedied -  whereas the determination of such capability shall be upon the sole discretion  of the Lenders - such incorrectness is not cured within 15 Banking Days after  the Facility Agent has notified the Borrower in writing of such  incorrectness;

 

or

 

d)       the  Borrower shall fail to pay when due or within any applicable period of grace  any indebtedness owed to any of the Lenders or to any other creditor,  provided, however, that in relation to any such indebtedness owed by the  Borrower to any creditor other than any of the Lenders (including any of  their Affiliates) such failure by the Borrower shall not constitute an event  of default under this sub-clause if (i) the overdue amounts in relation  to the Borrower in aggregate do not exceed USD 10,000,000.00 or the  equivalent thereof in any other currency, or (ii) in the event of any  such failure by the Borrower exceeding the aforementioned amount any such  default is remedied (including by waiver or amendment) within 15 calendar  days after the due date of the respective payment obligation or after lapse  of any applicable period of grace unless the respective creditor accelerates  the relevant indebtedness before;

 

or

 

e)        at  any time it shall become unlawful for the Borrower to perform any or all of  its obligations under this Credit Agreement (including, without limitation,  any governmental or other consent, licence or authorisation required to make  this Credit Agreement legal, valid, binding and enforceable, or required at  any time to enable the Borrower to perform its obligations under this Credit  Agreement, ceasing to be in full force and effect);

 

or

 

f)        any  material provision of this Credit Agreement is or becomes invalid or  unenforceable;

  |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

22

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|        |  

or

 

g)       the  Borrower shall enter into voluntary suspension of payments, bankruptcy,  liquidation or dissolution, or shall become insolvent, or a receiver or  liquidator shall be appointed on all or any material part of the under­taking  or assets of the Borrower or proceedings are commenced by or against the  Borrower under any law or regulation providing for any reorganisation,  arrangement, readjustment of debts, dissolution or liquidation or any act  shall be done or event shall occur which under the laws of the relevant  jurisdiction has a substantially similar effect to any of the fore­going act  or event, provided that an event of default will not occur under this  sub-clause g) in respect of any petition or application being initiated or  commenced by any person other than the Borrower if the petition or  application is - in the sole discretion of the Lenders - frivolous or  vexatious and is withdrawn or rejected within 30 calendar days from the date  of such application and before a court order for the commencement of any such  procedure has been made;

 

or

 

h)       the Borrower admits its inability to meet its payment  obligations to any of the Lenders or to any other creditor or to convert the  funds necessary to effect such payments into the currency payable under  agreements with parties domiciled out­side of its country or to transfer such  payments, or the Borrower admits - towards any of the Lenders - its  unwillingness with regard to any of the aforementioned actions;

 

or

 

i)         any  material adverse change shall occur in the financial condition or operations,  assets, prospects, business or the legal status of the Borrower such that it  is reasonably likely that the Borrower may not, or will be unable to perform  or ob­serve its obligations under this Credit Agreement,

 

provided,  however, that in case of the occurrence of any of the events as stipulated in  sub-clauses a), b), c) and d) of this Clause 12.1, for so long as such events  are continuing the Lenders through the Facility Agent shall be entitled to  suspend disbursements / reimbursements under this Credit Agree­ment prior to  the expiry of the grace period for remedy of the relevant events of default. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.2   | Insofar as  any statements made by the Facility Agent according to Clause 12.1 are sent  by airmail (with a copy by fax), these state­ments shall be deemed to have  been received not later than on the 10th Banking Day after their dispatch. If  such statements are made by means of telecommunication, the day following  their dispatch shall be deemed as the date of receipt.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

 

13.                       Representations and Warranties

The Borrower hereby represents and warrantsto the Lenders that

a)                            the Borrower is a corporation duly incorporated under the laws ofthe Russian Federation, validly existing and in good standing;

b)                           the Borrower has the power to own its assets and carry on itsbusiness as it is being conducted;

c)                            the Borrower is not entitled to claim immunity from suit, execution,attachment or other legal process in any proceedings taken in the RussianFederation in relation to this Credit Agreement;

d)                           the Borrower has full power and legal right to execute, deliver andto perform this Credit Agreement;

23

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e)                            the execution, delivery and performance of this Credit Agreementwill not violate any provisions of, and have duly and validly been authorisedunder, the laws, regulations, orders and decrees of the Russia Federation orany other competent Russian authority and all consents, licences, approvals,authorisations and instrumentalities of, and registrations and/or declarationswith any authority within the Russian Federation required in connection withthe valid execution, delivery, performance or enforceability of this CreditAgreement (including without limitation the obtaining and transfer in USD ofall amounts due under this Credit Agreement) have been obtained and made andare in full force and effect;

f)                              each action necessary under the statutes of the Borrower or underany other agreement or instrument binding on the Borrower to authorise theexecution, delivery and/or performance of this Credit Agreement has been dulytaken and the execution, delivery and performance of this Credit Agreement willnot conflict with, or constitute a breach of the statutes of the Borrower orany such agreement or instrument binding upon the Borrower;

g)                           the Borrower is not in default under any agreement or instrumentconstituting present or future payment obligations as debtor or guarantor;

h)                           other than the UMC Litigation no litigation, administration orinsolvency proceedings are pending or, to the knowledge of the Borrower arethreatened, which adversely determined, would reasonably be expected to have amaterial adverse effect on the assets or financial condition of the Borrower oron its right or ability to perform its obligations hereunder or would affectthe legality, validity or enforceability of this Credit Agreement; and

i)                               all its payment obligations in connection with this Credit Agreementrank at least pari passu in point of preference and security with all otherunsecured and subordinated existing and future indebtedness owed to anycreditor other than the Lenders, except for any preference being due tomandatory law.

The representations and warranties set outin this Clause 13 shall be deemed to be repeated by the Borrower, without anynotification or other action by the Borrower, on the first day of each InterestPeriod mutatis mutandis in relation to the facts and circumstances thenexisting.

14.        Financial Statements, Information andUndertakings

Until such date as all obligations incurredunder this Credit Agreement have been fulfilled in full, the Borrower shall:

a)                            furnish the Facility Agent within 6 months from the end of itsfinancial year with audited annual financial statements (including profit andloss accounts and ex­planatory notes) prepared in accordance with US GAAP (USGenerally Accepted Accounting Principles, Standards and Practices) and providethe Facility Agent with such additional financial information as the FacilityAgent may from time to time reasonably request. In the event that completionand adoption of the financial statements should be delayed, the Borrower shallfurnish the Facility Agent with provisional balance sheet figures within 6months after the end of its financial year;

b)                           inform the Facility Agent without delay of the occurrence of any ofthe events mentioned in Clause 12 hereof;

c)        only with the prior written consent of the Lenders agree upon anymodification and/or amendment to the Export Contract or, as the case may be,the Additional Export Contract, which represents a material change to theExport Contract or Additional Export Contract, including but not limited tochanges in the price/currency, terms of payment, country of origin, deliveryand/or installation periods etc.;

24

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d)                           obtain and keep in full force all authorisations, licenses,approvals and permits (governmental or otherwise) which are required for thevalidity and enforceability of this Credit Agreement;

e)                            comply with all applicable laws, rules, regulations and ordersincluding all environmental laws and all applicable restrictions imposed by allgovernmental authorities (including but not limited to the central bank of theRussian Federation) and do all such acts and things which are requiredthereunder, if failure so to comply will or in the reasonable opinion of theLenders may, materially impair the ability of the Borrower to perform itsobligations, whether in respect of any payment of principal, interest, fees,costs or expenses or otherwise, under this Credit Agreement in strictcompliance with its terms;

f)                              procure that no substantial change is made to the general nature orscope of its business from that carried out on the date of this CreditAgreement and forthwith inform the Facility Agent of any circumstances whichmight result in such change provided that the Borrower may amalgamate, merge,demerge or consolidate with any Affiliate as part of any corporate restructuringunless any such action would result in a material adverse change which fallswithin the scope of application of Clause 12.1.i) hereof;

g)                           immediately upon the Borrower’s knowledge or awareness thereofinform the Facility Agent of any forthcoming amalgamation, demerger, merger,consolidation or corporate reconstruction of the Borrower;

h)                           ensure that neither in a single transaction nor in a series oftransactions, whether related or not, all or any substantial part of its assetsare sold, transferred, granted or leased or otherwise disposed of unless suchsale, transfer, grant, lease or disposal is;      (i)            madein the ordinary course of trading of the disposing entity;

(ii)                                  of assets in the exchange for other assets comparable or superior asto type, value and quality;

(iii)                               made by the Borrower to any Affiliate of the Borrower unless anysuch transaction would result in a material adverse change which falls withinthe scope of application of Clause 12.1.i) hereof;

(iv)                              for cash or cash equivalents for cash or cash equivalents;

(v)                                 where the book value of such asset (when aggregated with the bookvalue of each other asset disposed of under this sub-clause (v)) (in each caseas calculated in accordance with US GAAP) does not exceed 25% of the Borrower’sTotal Assets in any financial year of the Borrower and provided that at alltimes the disposal of such assets will be made for full consideration and willnot lead to any material adverse change which would fall within the scope ofClause 12.1 i). At the request of the Facility Agent (any such request to bemade no more than once per calendar quarter, unless an Event of Default iscontinuing), the Borrower shall provide a certificate to the Agent setting outin reasonable detail the book value of any assets disposed of under thissub-clause (v) (calculated in accordance with US GAAP); or

(vi)                              involving the transfer of any or all of the Borrower’s shares in UMCpursuant to the UMC Litigation to a person that is not the Borrower or any ofits Subsidiaries.******

When calculating the Borrower’s Total Assets undersub-clause (v) above, if the annual consolidated balance sheet of theBorrower for the immediately preceding financial year of the Borrower is notavailable, the Borrower’s Total Assets shall be calculated by reference to thedraft audit report then available for that financial year and any otherevidence reasonably requested by, 

25

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and reasonably satisfactory to, the Facility Agent.

i)                               do all such things as are necessary to maintain its corporateexistence and ensure that it has the right and is duly qualified to conduct itsbusiness;

j)                               not create or agree to create any mortgage, charge, pledge, lien orother security interest on the whole or any part of its assets to secure anyindebtedness owed to any creditor other than the Lenders (for the avoidance ofdoubt, any suretyship or guarantee shall not be deemed a security for thepurposes of this paragraph), unless the Credits shall at the same time besecured equally and rateably therewith to the Lenders’ satisfaction other thanPermitted Lien (as defined hereinafter)

“PermittedLien” means:

(i)          anylien on any property or assets of any person existing at the time such personis merged or consolidated with or into the Borrower and not created incontemplation of such event, provided that no such lien shall extend to anyother property or assets;

(ii)       anylien existing on any property or assets prior to the acquisition thereof by theBorrower and not created in contemplation of such acquisition, provided that nosuch lien shall extend to any other property or assets;

(iii)           any lien on any property or assetssecuring indebtedness of the Borrower incurred or assumed for the purpose offinancing all or part of the cost of acquiring or constructing or refurbishingsuch property or assets, provided that (a) no such lien shall extend toany other property or assets, (b) the aggregate principal amount of allindebtedness secured by liens under this sub-Clause (iii) on such propertyor assets shall not exceed the lower of (x) the purchase price of suchproperty or assets and (y) the fair market value of such property orassets at the time of acquisition or constructing;

(iv)          anynetting or set-off arrangement entered into in the ordinary course of itsbanking arrangements for the purpose of netting debit and credit balances;

(v)         any lien arising by operation of laweither (a) in the ordinary course of business; or (b) in respect oftaxes, assessments, government charges or claims, including without limitationthose in favour of Russian governmental fiscal authorities;

(vi)          any lien on the property or assetsof the Borrower securing inter-company indebtedness;

(vii)       any extension, renewal orreplacement of any lien described in sub-Clauses (i) to (v) above,provided that (a) such extension, renewal or replacement shall be no morerestrictive in any material respect than the original lien, (b) the amountof indebtedness secured by such lien is not increased and (c) if theproperty, income or assets securing the indebtedness subject to such lien arechanged in connection with such refinancing, extension or replacement, the fairmarket value of the property, income or assets is not increased;

(viii)    any other lien, provided that, immediatelyafter giving effect to such lien, the Borrower’s secured indebtedness in theaggregate do not exceed 10% of the book value of the aggregate amount of theBorrower’s total assets, determined by reference to its most recent quarterlyor, as the case may be, audited  annualunconsolidated balance sheet;

26

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(ix)        easements,rights-of-way, and any other similar charges and legally binding restrictionsor encumbrances incurred in the ordinary course of business and not interferingin any material respect with the business of the Borrower or the Business ofany Subsidiary of the Borrower, including any encumbrance with respect to anequity interest of any joint venture agreement;

k)                            ensure that its payment obligations under this Credit Agreement rankat least pari passu with all its other present and future unsecured paymentobligations.

15.                       Assignability

The Borrowermay not assign all or any of its rights and claims under this Credit Agreement.

Unless (i) theassignment is to an Affiliate of a Lender or to another Lender or (ii) anEvent of Default has occurred, any assignment occurring after the date of thisCredit Agreement by any Lender shall require the consent of the Borrower,provided that (x) such consent shall not be unreasonably withheld ordelayed; and (y) unless the Borrower has notified the Facility Agent tothe contrary within 5 Banking Days of receiving notice of the intendedassignment, the Borrower will be deemed to have given consent to thatassignment .

Any Lender mayalso disclose to any person to whom it assigns or intends to assign its rightsand obligations hereunder such information about the Borrower and the CreditAgreement, as such Lender shall consider necessary.

16.                       Statementsand Notices

 
| 16.1 | Any  notices or other communications in connection with this Credit Agreement are  to be made by letter or by written means of telecommunication, and to be sent  to the following addresses: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

 
| Borrower:             | OJSC Mobile TeleSystems                                    |
|-----------------------|------------------------------------------------------------|
|                  | 4 Marksistskaya Street                                     |
|                  | Moscow 109147                                              |
|                  | Russian Federation                                         |
|                  |                                                       |
|                  | Telefax: + 7 095 911 6531                                  |
|                  |                                                       |
| Facility Agent:       | HSBC Bank plc                                              |
| (for and on behalf of | Level 17, Project and Export Finance                       |
| the Lenders)          | 8 Canada Square                                            |
|                  | London E14 5HQ                                             |
|                  | United Kingdom                                             |
|                  |                                                       |
|                  | Telefax:+44 207 992 4428 (Attention of: Mr Alan  Marshall) |

 
| 16.2   | The Borrower  shall provide the Facility Agent with specimen signatures in form and  substance as per Annex 4 of those persons who are authorised to act on its  behalf.                                                                                                                                                                                                  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                      |
| 16.3   | Any  alteration in the above-mentioned companies’ names, addresses and power of  representation shall be binding upon the other contracting party only upon  receipt by such other party of written notification or documents evidencing  such alteration.                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                      |
| 16.4   | All  correspondence between the parties hereto shall be conducted and carried out  in the English lan­guage. Should the wording of any document be in a language  other than English such document  shall  be accompanied by a translation certified to be true and accurate that is  either authorised by the person who produced it or by a sworn translator. |

 

27

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17.                     Miscellaneous

 
| 17.1   | This Credit  Agreement is independent from the Export Contract and, as the case may be,  the Additional Export Contract. The Borrower is not allowed to raise and  hereby waives any defences or objections emanat­ing from the Export Contract  and, if appropriate the Additional Export Contract, and from its legal  relationship with the Exporter. In particular, the Borrower’s obligation to  repay the Credits as well as all other payment obligations under this Credit  Agreement are independent from the legality, validity and enforceability of  the Export Contract and, as the case may be, the Additional Export Contract  or from any non-performance, bad performance and/or default by the Exporter  under the Export Contract and, as the case may be, the Additional Export  Contract. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 17.2   | In  satisfaction of the Lenders’ respective obligations under the Money  Laundering Act, to record the economical beneficiary of borrowing hereunder,  the Borrower hereby confirms that the borrowing of the Credits is made on its  own behalf and for its own account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

 

18.                       Currency Indemnity

 

In theevent that for the purpose of obtaining judgement in any court of any countryor enforcement of any judgement by the Lenders it becomes necessary to convertan amount of the currency due hereunder (the “Agreed Currency”), into an amountof another currency (the “Judgement Currency”), then the amount due hereunder,expressed in the Judgement Currency, shall be determined on the basis of the rateof exchange at which the Facility Agent for account of the Lenders is able topurchase the relevant amount of the Judgement Currency on the Banking Dayimmediately before the day on which the judgement is given or on such earlierdate as may be required by the procedural law of the court in which thejudgement is sought (the “Agreed Conversion Date”).

 

In the eventof a change in such rate of exchange between the Agreed Conversion Date and thedate of actual payment, the Borrower shall pay such additional amounts of theJudgement Currency (or the Lenders through the Facility Agent shall remit tothe Borrower amounts of such currency) as may be appropriate to ensure that theamounts of the Judgement Currency paid by the Borrower, when converted at the rateof exchange as defined above prevailing at the date of actual payment, shallproduce in total the amount of the Agreed Currency due hereunder together withany premium or costs of exchange payable in connection with the purchase orconversion into the Agreed Currency.

 

Any suchadditional amounts due shall be due as a separate debt and shall not beaffected by a judgement being obtained for any other sums due under  or in respect of this Credit Agreement.

 

19.                       Applicable Law, Place of Performance and Jurisdiction

 
| 19.1   | This Credit  Agreement, as well as all the rights and obli­gations arising there­from,  shall be governed by and construed in accor­dance with the laws of the  Federal Republic of Germany.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 19.2   | Save as  otherwise stipulated herein, place of performance is Frankfurt am Main,  Federal Republic of Germany.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 19.3   | Any legal  action or proceeding with regard to this Credit Agreement shall be brought in  the District Court (Landgericht) at Frankfurt am Main, Federal Republic of  Germany, the Lenders reserving to themselves the right to bring any such  legal action or proceeding in any other court of law having or accepting  jurisdiction as the Lenders may elect.

 

Without  prejudice to and notwithstanding the above, the parties agree that subject to  the option in favour of the Lenders, any dispute controversy or claim arising  out of this Credit Agreement or related to its fulfilment, breach,  termination, or invalidity shall be settled by three arbitrators under the  arbitration rules of the UNCITRAL (United Nations Commission on  International Trade Law) |

28

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|        | Model Law on International Commercial Arbitration.  The arbitrators shall be appointed in accordance with those rules and be  qualified to practise as a judge in the Federal Republic of Germany. Place of  arbitration shall be at Frankfurt am Main, Federal Republic of Germany. The  parties herewith irrevocably express their consent to have the hearing  conducted in the English language.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 19.4   | For  any service which may become necessary in connection with proceedings before  the courts at Frankfurt/Main, Federal Republic of Germany, the Borrower  hereby undertakes to irrevocably designate, appoint and empower, such  appointment to be in form and substance as per Annex 5 to this Credit  Agreement, Frankfurter Beteiligungs-Treuhand GmbH, Bockenheimer Landstrasse  10, 60323 Frankfurt am Main, Federal Republic of Germany, as its agent for  service of process (the “Agent for Service of Process”) authorised to  receive, for and on behalf of itself, service of process.

 

In the event  that the legal capacity of the Agent for Service of Process to act as  provided in this Clause 19.4 should cease for any reason whatsoever, the  Borrower hereby undertakes in consultation with the Facility Agent to  forthwith designate, appoint and empower another person who is acceptable to  the Lenders to act as the Borrower’s Agent for Service of Process. |

 

20.        GeneralProvisions

 
| 20.1 | This Credit Agreement shall not be capable of being  waived, modified or varied otherwise than by an express waiver, modification  or variation in writing. Any delay or failure on the part of the Lenders  and/or the Facility Agent in exercis­ing any of their rights under this  Credit Agreement shall not be regarded as a waiver of these rights or as  acquiescence in any conduct contravening the terms of this Credit Agreement.  Exer­cise of single rights only, or merely partial exercise of any rights  shall not preclude the claiming in the future of any rights not yet or only  partially exercised. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 
| 20.2       | In the event of any provisions laid down in this  Credit Agreement being or becoming wholly or partially ineffective in law,  the other provi­sions of this Credit Agreement shall remain in force. Any  insuffi­ciency thus created shall be filled by a corresponding provision  consistent with the spirit and purpose of this Credit Agreement.

  |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                                                                                                  |
|  20.3 | This  Agreement shall be executed in the English language.                                                                                                                                                                                                                                                                                                            |

 

 
|                                                                                         | OJSC Mobile TeleSystems                                           |
|----------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                                         |                                                              |
|                                                                                         |                                                              |
| Moscow,  ..................................................                                  | ................................................................. |
| (place,  date)                                                                               | (legally  binding signature(s))                                   |
|                                                                                         |                                                              |
|                                                                                         |                                                              |
|                                                                                         |                                                              |
|                                                                                         | HSBC Bank  plc                                                    |
|                                                                                         |                                                              |
|                                                                                         |                                                              |
| London,   .................................... | ................................................................. |
| (place,  date)                                                                               | (legally  binding signature(s))                                   |
|                                                                                         |                                                              |
|                                                                                         |                                                              |
|                                                                                         |                                                              |
|                                                                                         | ING BHF-BANK  Aktiengesellschaft                                  |
|                                                                                         |                                                              |
|                                                                                         |                                                              |
| Frankfurt am  Main, .......................                             | ................................................................  |
| (place,  date)                                                                               | (legally binding  signature(s))                                   |

 

29

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Annex1a

HSBC Bank plc

Level 17, Project and Export Finance

8 Canada Square

London E14 5HQ

United Kingdom

 

For the attention of: Mr Alan Marshall

 

Certificate for Reimbursement

 

CreditAgreement dated 1 October 2004 in the amount of USD 75,748,000 [asincreased by USD.......................*]

 

We herebyconfirm to you that we have paid to the Exporter an amount of USD............................ representing the last 85% of the total value ofdeliveries made/services rendered* by the Exporter under the Export Contract /Additional Export Contract* during the period from.............................(date) to ......................(date).

 

According toClause 3.2.a) of the Credit Agreement, the amount of USD.................... isthus to be paid to us to our account no. .................. with ...................

 

..................................................................

(place)(date)

 

OJSCMobile TeleSystems

 

......................................................................

(legallybinding signature(s) of the Borrower)

 

 

We, theundersigned, herewith confirm having made/rendered* the above captioneddeliveries/services* and having received the above-mentioned amount(s). We alsoconfirm having received the 15% down payment associated with the abovecaptioned deliveries/services**.*

 

..............................................................

(place)(date)

 

 

SiemensAktiengesellschaft

 

 

 

......................................................................

(legallybinding signature(s) of the Exporter)

 

----

 

**** Please delete as appropriate***

30

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Annex1b

HSBC Bank plc

Level 17, Project and Export Finance

8 Canada Square

London E14 5HQ

United Kingdom

 

For the attention of: Mr Alan Marshall

 

Certificate for Disbursement

 

CreditAgreement dated 1 October 2004 in the amount of USD 75,748,000 [asincreased by USD ....................*]

 

We herebyconfirm to you that during the period from ............................(date)to ......................(date) we have made deliveries/rendered services* of............................ under the Export Contract / Additional ExportContract* in the total value of USD ......................... and we havepresented to you documents in conformity with Clause 3.2.b) of the CreditAgreement.

 

At present,the amount due to us under the Export Contract / Additional Export Contract* onthe basis of the aforementioned deliveries/services amounts to 85% of thedeliveries/services*.*

 

We confirmhaving received the 15% down payment associated with the aforementioneddeliveries/services**.*

 

According toClause 3.2.b) of the Credit Agreement, the amount of USD ................... isthus to be paid to us. Please effect payment to us to our account no................. with ........................ .

 

.............................               .................................

(place)                                (date)

 

SiemensAktiengesellschaft

 

......................................................................

(legallybinding signature(s) of the Exporter)

 

 

 

* ***Please delete as appropriate***

31

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Annex 1c

 

To

OJSC Mobile TeleSystems

4 Marksistskaya Street

Moscow 109147

Russian Federation

....................................

 

Certificatefor Disbursement

for the Insurance Premium

Credit Agreement dated 1 October 2004 in the amount of USD75,748,000 [as increased by USD ....................*]

 

Dear Sirs,

As per the attached copy of the invoice of Hermes dated....................... the Insurance Premium / Additional Insurance Premium* inthe amount of USD .................... was/will become due and payable toHermes on .............................. .According to Clause 11.2 / 11.3* ofthe Credit Agreement, the amount of USD ........................... is payableto us/ In order to achieve fulfilment of the condition precedent as per Article 4.2.b)and your obligations as per Article 11.2 please pay to us the InsurancePremium / Additional Insurance Premium* calculated by the Facility Agent toamount to USD................. which will become due and payable to Hermes shortly*.

Please remit the aforementioned amount to SWIFT MRMDUS33, accountnumber 000-023868 held with HSBC Bank USA, New York, in favour of HSBCBank plc, London, SWIFT MIDLGB22 account number 36677449 in the name of Projectand Export Finance quoting ref 53M/FC1046. Reimbursement to you will be madepursuant to Clause 3.4 of the Credit Agreement.

London, ...........................                                                                      .....................................................                                                                                                                 HSBCBank plc

** **

*** Please delete asappropriate**

32

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Annex 1d

HSBC Bank plc

Level 17, Project and Export Finance

8 Canada Square

London E14 5HQ

United Kingdom

 

For theattention of: Mr Alan Marshall

 

Certificate for Reimbursement

in caseof application of the Special Payment Procedure

 

 

Credit Agreement dated 1 October 2004 in the amount of USD75,748,000 [as increased by USD ........................*]

We hereby confirm to you that the Exporter made deliveries/renderedservices* under the Export Contract / Additional Export Contract* during theperiod from ............................(date) to ......................(date)in the total amount of USD ................. and that we have instructed the PassportBank to effect payment of USD ............... to the Exporter representing the last 85%of the total value of such deliveries made/services rendered*.

According to Clause 3.2.a) of the Credit Agreement, the amount ofUSD.................... is thus to be paid to us to our account no.................... with the Passport Bank.

..................................................................

(place)(date)

OJSC Mobile TeleSystems

......................................................................

(legally binding signature(s) of the Borrower)

**** Please delete as appropriate***

*** ***

33

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Annex 1e

To

OJSC Mobile TeleSystems

4 Marksistskaya Street

Moscow 109147

Russian Federation

....................................

 

Certificatefor Disbursement for the Insurance Premiumin case of application of the Special Payment Procedure

 

Credit Agreement dated [............] in the amount of USD45,612,500.00

Dear Sirs,

As per the attached copy of the invoice of Hermes dated....................... the Insurance Premium in the amount of USD..................... was/will become due and payable to Hermes on............................... .

According to Clause 11.2 of the Credit Agreement, the amount of USD............................ is payable to us/In order to achieve fulfilment ofthe condition precedent as per Article 4.2.b) and your obligations as per Article 11.2please pay to us, through the Passport Bank, the Insurance Premium calculatedby the Facility Agent to amount to USD.................. which will become due and payableto Hermes shortly*.

Please instruct the Passport Bank to remit the aforementioned amount tous in accordance with the terms and conditions of the certain disbursementagreement entered into between you, us and the Passport Bank, and whichprovides for the Special Payment Procedure. Reimbursement to you will be madepursuant to Clause 3.4 of the Credit Agreement.

London, ...........................                                                                      .....................................................                                                                                                                 HSBCBank plc

#### *** ***

#### **** Please delete as appropriate***

34

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#### Annex2

HSBC Bank plc

Level 17, Project and Export Finance

8 Canada Square

London E14 5HQ

United Kingdom

For theattention of: Mr Alan Marshall

Confirmation of Coming into Force of the ExportContract* / Additional Export Contract*

Credit Agreement dated 1 October 2004 in the amount of USD75,748,000 [as increased by USD ....................*]

Wehereby confirm to you that the Export Contract between OJSC Mobile TeleSystemsin the Russian Federation and Siemens Aktiengesellschaft dated 8 June 2004for USD 83,000,000 has come into force on ................................. . */ We hereby confirm to you that the Additional Export Contract between OJSCMobile TeleSystems in the Russian Federation and Siemens Aktiengesellschaftdated [................] for USD [..............] has come into force on ................................... *

...........................                 ...........................                                          ..............................                    .............................(place)                                (date)                                                           (place)                                      (date)
| Siemens Aktiengesellschaft |   | OJSC Mobile TeleSystems   |
|----------------------------|--------|---------------------------|
|                       |   | in the Russian Federation |

 

.....................................................................                                            ...................................................................(legally binding signature(s) of the Exporter)                                   (legally binding signature(s) ofthe Borrower)

 

**** Please delete as appropriate***

35

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Annex 3a

HSBC Bank plc

Level 17, Project and Export Finance

8 Canada Square

London E14 5HQ

United Kingdom

 

For theattention of: Mr Alan Marshall

Confirmationof Mean-weighted Acceptance of Equipment and Softwarein relation to the Export Contract

Credit Agreement dated 1 October 2004 in the amount of USD75,748,000.

We herebyconfirm to you that in respect of the Export Contract as mentioned in thePreamble of the above-mentioned Credit Agreement the mean-weighted acceptanceof equipment and software and for operation in relation to the severaloperation units (starting point) took place on ............................ .

...........................                 ...........................(place)                                (date)

 

...................................

 

.....................................................................

(legally binding signature(s) of the Exporter)

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Annex 3b

HSBC Bank plc

Level 17, Project and Export Finance

8 Canada Square

London E14 5HQ

United Kingdom

For theattention of: Mr Alan Marshall

Confirmationof Mean-weighted Acceptance of Equipment and Softwarein relation to the Additional Export Contract

Credit Agreement dated 1 October 2004 in the amount of USD75,748,000 as increased by USD ......................

We herebyconfirm to you that in respect of the Additional Export Contract as mentionedin the Preamble of the above-mentioned Credit Agreement the mean-weightedacceptance of equipment and software in relation to the additional operationunits (starting point) took place on ............................ .

...........................                 ...........................(place)                                (date)

 

 

...................................

 

.....................................................................(legally binding signature(s) of the Exporter)

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Annex 4

HSBC Bank plcLevel 17, Project and Export Finance8 Canada SquareLondon E14 5HQ

United Kingdom

For theattention of: Mr Alan Marshall

Specimen Signature List

 

 

Credit Agreement dated 1 October 2004 in the amount of USD75,748,000.

 

Dear Sirs,

Pursuant to the provisions of the above CreditAgreement we are required to provide you with certified specimen signatures ofthose persons authorised to act on our behalf in connection with the saidCredit Agreement.

Accordingly, we herewith confirm to you that the personslisted hereafter are authorised to act on our behalf in connection with thesaid Credit Agreement.

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A. Persons (if any) authorised to sign singly:
| **Person** | ** ** | **First Name** | ** ** | **Surname** | ** ** | **Position** | ** ** | **Date of Birth** | ** ** | **Place of  Birth** | ** ** | **Nationality** | ** ** |
|------------|------------|----------------|------------|-------------|------------|--------------|------------|-------------------|------------|---------------------|------------|-----------------|------------|
| 1          |       |           |       |        |       |         |       |              |       |                |       |            |       |
| 2          |       |           |       |        |       |         |       |              |       |                |       |            |       |
| 3          |       |           |       |        |       |         |       |              |       |                |       |            |       |

 
| **Person** | ** ** | **Address** | ** ** | **Sort and  Number  of Identity Card** | ** ** | **Identity Card  Issuing Authority** | ** ** | **Specimen  Signature** | ** ** |
|------------|------------|-------------|------------|----------------------------------------|------------|--------------------------------------|------------|-------------------------|------------|
| 1          |       |        |       |                                   |       |                                 |       |                    |       |
| 2          |       |        |       |                                   |       |                                 |       |                    |       |
| 3          |       |        |       |                                   |       |                                 |       |                    |       |

 

B. Persons authorised to sign jointly with any personfrom Group A or B:
| **Person** | ** ** | **First Name** | ** ** | **Surname** | ** ** | **Position** | ** ** | **Date of Birth** | ** ** | **Place of  Birth** | ** ** | **Nationality** | ** ** |
|------------|------------|----------------|------------|-------------|------------|--------------|------------|-------------------|------------|---------------------|------------|-----------------|------------|
| 1          |       |           |       |        |       |         |       |              |       |                |       |            |       |
| 2          |       |           |       |        |       |         |       |              |       |                |       |            |       |
| 3          |       |           |       |        |       |         |       |              |       |                |       |            |       |

 
| **Person** | ** ** | **Address** | ** ** | **Sort and  Number  of Identity Card** | ** ** | **Identity Card  Issuing Authority** | ** ** | **Specimen  Signature** | ** ** |
|------------|------------|-------------|------------|----------------------------------------|------------|--------------------------------------|------------|-------------------------|------------|
| 1          |       |        |       |                                   |       |                                 |       |                    |       |
| 2          |       |        |       |                                   |       |                                 |       |                    |       |
| 3          |       |        |       |                                   |       |                                 |       |                    |       |

 

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I,..........................................................(please specifytitle), hereby certify that the specimen signatures listed above are theauthentic signatures of persons authorised to act on the Borrower’s behalf inconnection with the Credit Agreement in the amount of USD........................

.............................               ................................                                     .........................................................(place)                                (date)                                                           (legallybinding signature of                                                                                                                 ............................................)

I/We,........................................................(OOO HSBC Bank (RR),Moscow), hereby certify the authenticity of the above signature of.................................... .

.................................           ..................................                                   .......................................(OOO HSBC Bank (RR), Moscow)(place)                                (date)

...........................................................(legally binding signature(s)*, with name(s) andposition(s))*

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## Annex 5

[on the letterhead of the Borrower]

Frankfurter Beteiligungs - Treuhand GmbH

Bockenheimer Landstrasse 10

D-60323Frankfurt am Main

Federal Republic of Germany

Credit Agreement dated 1 October 2004 in the amount of USD75,748,000.

Dear Sirs,

On ................................ OJSC Mobile TeleSystems , 4Marksistskaya Street, Moscow 109147 Russian Federation entered into a CreditAgreement with HSBC Bank plc, 8 Canada Square, London E14 5HQ, United Kingdomand ING BHF-BANK Aktiengesellschaft, Bockenheimer Landstraße 10, Frankfurt amMain, Federal Republic of Germany. The provisions of the Credit Agreementprovide for that we shall appoint an agent of process for the purpose ofaccepting service of process in the Federal Republic of Germany. We herebyappoint you as our authorised agent of process for that purpose, limited solelyto service of process in connection with actions which might arise under theCredit Agreement. We hereby irrevocably authorise you to accept all services ofprocess in connection with those actions in our name and to receive allcorrespondence, documents and declarations related thereto.

Upon receipt of any process served on you or of anycorrespondence, document and declaration related thereto, you are herebyinstructed to notify us at the above mentioned address unless we notify you inwriting of another address. If it is deemed necessary by you to do so in thebest of our interest, you are hereby authorised to notify us in your discretionby telex, telefax or telephone of the contents of the process served on you andof correspondence, documents or declarations received by you.

Your liability as our authorised agent of process willbe restricted to cases of wilful misconduct and gross negligence. Therelationship between you and our company is governed by the laws of the FederalRepublic of Germany.

Exclusive place of jurisdiction shall be Frankfurt amMain, Federal Republic of Germany.

Yours sincerely,

____________________________________(legally binding signature(s) of the Borrower)

Accepted:

Frankfurter Beteiligungs —Treuhand GmbH

_________________________(legally binding signature(s)

 

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