CONTRACT
ON TENANCY # 104

      of parcel
of land, being in state use

      
        
          
            
              
                	
                        Town
      of Gagarin

                      	
                        June,
      19, 2007

                      


              

            

          

        

      

      


      On basis
of auction results from 19.06.2007 and resolution of Chief of Administration of
Municipal formation “Gagarin district” Smolensk region in name of Chairman of
Property and Land relations committee of administration Kovshirova Tat’yana
Nikolaevna, operating on basis of Committee Standing, named hereinafter “Lessor”
and LTD “Riokom ”in name of general director Plavnik Roman Genrikhovich,
operating on basis of Regulation, named hereinafter Leaseholder, and named
hereinafter “ Sides, ”concluded this contract (hereinafter Contract) about
following:

      
        	
                 
      

              	
                1.

              	
                The
      subject of Contract.

              


      

      


      The Lessor gives on lease, and
Leaseholder tenants the parcel of land , situated within the settlement under
cadastre # 67:03:0010124:0243, the address is: Krasnoarmeyskaya str., town of
Gagarin, Smolensk region,(hereinafter Parcel) for construction of many-storied
dwelled house within the borders, determined in cadastre plan of Parcel,
applying to this Contract and is integral part of, by mutual area of 8000
sq.m.

       There are engineering
communications on the Parcel: electric cable by voltage of 10kV, 4kV, telephone
cable, water-pipe, heating system, which are planned to be removed beyond the
bounds of building site.

      


      
        	
                 
      

              	
                2.

              	
                Termination
      of the Contract

              


      

      


      2.1. The
term of rent is fixed from 19.06.2007 to 19.06.2009

      2.2. The
contract, concluded for term more than one year comes into force from the date
of it’s state registration in justice institution of state registration of
rights of possession of immovable property and bargains with it.

      


      
        	
                 
      

              	
                3.

              	
                Rental
      rate and conditions of payment.

              


      

      


      3.1.
Rental rate for the Parcel is determined according the calculations of rental
rate, corresponding with supplement #2, which is integral part of Contract and
comes to 420420 rub (four hundred twenty thousand and four hundred and twenty
rub)

      3.2.
Rental rate is paid in every quarter by equal parts not later than 25 of last
quarter by transfer on account #40101810200000010001 of ГКРЦ ГУ?of CB of RF of
Smolensk region, town of Smolensk under code 93011105012100000120, BIC(bank of
investment and credits) 046614001, recipient - ID/RC(registration
code)6723008323/67201001 Property and land relations committee of Municipal
formation “Gagarin district” administration, Smolensk district.

      3.3.
Rental rate is set after the moment of signing the act of receiving- assignation
of Parcel .

      


      
        	
                 
      

              	
                4.

              	
                The
      rights and obligation of sides.

              


      

      4.1. The
Lessor has right to:

      4.1.1. To
demand on prescheduled cancellation of  Contract if the Parcel is not
exploited under end-use and also while using the methods, causing damage of it,
delaying the payment of rent more than 6 months and violation of other
conditions of Contract.


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      4.1.2. On
free access to the territory of the Parcel to control the conditions of the
Contract. On prescheduled cancellation of the Contract in case of exploiting the
Parcel in the other end-use. With preliminary information of Leaseholder a month
prior to it.

      4.1.3. On
compensation of damages, caused deterioration of the Parcel and ecological
situation as a result of economical activity of Leaseholder and on other
foundations foreseen by legislation of Russian Federation.

      4.2. The
Lessor obliges:

      4.2.1. To
fulfill all the conditions of the Contract in the full range.

      4.2.2. To
pass the Parcel to the Leaseholder according the receiving-assignation act in
term of one month.

      4.2.3. To
inform the Leaseholder about changing the requisites, pointed in 3.2., for
transfer of rental rate in ten days in written form.

      4.3. The
Leaseholder has right to:

      4.3.1.
Use the Parcel under conditions of the Contract.

      4.3.2.
Under the termination of the Contract use the priority to conclude the new
Contract on tenancy on the agreement between the Sides under the letter, which
was sent to Lessor not later than three months prior to it.

      4.4. The
Leaseholder obliges:

      4.4.1. To
fulfill all the conditions of the Contract in full range.

      4.4.2. To
exploit the Parcel according the end-use and permitted usage.

      4.4.3. To
pay the rent at quantity and conditions, determined by Contract. To pass the
Parcel to the Lessor, according 4.1.1, during one month.

      4.4.4. To
provide the Lessor (his law representatives), the representatives of State land
control organs free access to the Parcel under their demand.

      4.4.5.
Not to permit actions which may cause deterioration of ecological situation on
the Parcel and nearby.

      4.4.6. To
inform the Lessor about changing of his requisites in ten days in written
form

      4.4.7. To
revise the rent payments for last year every year not later than March,
25.

      4.4.8. To
register the Contract in State Justice register institution  of rights
of ownership to immovable property and bargain with it during one month since
signing the Contract.

      4.4.9. On
termination of the contract the Leaseholder has to pass the Parcel to the Lessor
according the receiving-assignation act in good condition.

      4.5. The
Lessor and the Leaseholder have different rights and obligations, determined by
legislation of Russian Federation.

      


      
        	
                 
      

              	
                5.

              	
                Responsibility
      of sides.

              


      

      5.1. The
sides account for violation of the conditions of the Contract, determined by
legislation of Russian Federation.

      5.2. For
violation of rent payment term, according the Contract, the Leaseholder charges
a fine to the Lessor, according the calculation – 1% of unpaid rent rate for
every calendar  day of delay. The fees are transferred according 3.2.
of Contract.


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      5.3.
Responsibility of Sides for violation of Contract obligations, caused by
force-majeur are regulated by legislation of Russian Federation.

      5.4.
Under the violation of Leaseholder of state registration terms of the Contract,
it considered to be cancelled from the day of delay, pointed in
4.4.8.

      5.5. For
untimely passing of the Parcel after the termination of the Contract according
the receiving-assignation act, the Leaseholder charges a fine at the rate of 1%
of the rent rate for the last year of a tenancy.

      


      
        	
                 
      

              	
                6.

              	
                The
      cancellation of the Contract

              


      

      6.1. The
Contract can be cancelled under the Lessor’s demand under the court decision on
basis and in order, determined by civil legislation and in cases, pointed in
4.1.1.

      


      
        	
                 
      

              	
                7.

              	
                Consideration
      and regulation of disputes.

              


      

      7.1. All
the disputes between the sides are settled according the legislation of Russian
Federation.

      


      
        	
                 
      

              	
                8.

              	
                Special
      conditions of the Contract

              


      

      


      8.1. The
contract on sub tenancy is to be registered in justice institution of state
registration of rights of possession of immovable property and bargains with it
and is to be sent to the Lessor to the following calculation.

      8.2. The
term of contract on sub tenancy cannot exceed the term of the
Contract.

      8.3. At
prescheduled cancellation of the Contract the contract on sub tenancy is ceased
to be effective.

      8.4. The
expenses, connected with state registration of the Contract lays on the
Leaseholder.

      8.5. The
contract is worked out in three copies, having equal validity, each Side have
one of them, one copy deeds in  justice institution of state
registration of rights of possession of immovable property and bargains with it,
one copy deeds to organ, pointed in 4.2.4.

      


      
        	
                 
      

              	
                9.

              	
                Requisites
      of Sides

              


      

      


      The
Lessor : Property and Land relations Committee

      215010,
#8, Sovetskaya str., town of Gagarin, Smolensk district.

      


      Leaseholder

      


      
        	
                 
      

              	
                10.

              	
                Signatures
      of Sides.

              


      

      


      
        
          	
                  The
      Lessor: Kovshirova T.N.

                	
                  (legal
      seal)__________signature

                
	
                  June,
      19, 2007

                	 
      


        

      

       

      
        
           


        

        
           


          
            

          

        

        
           


        

      

      


      
        
          	
                  The
      Leaseholder: Plavnik R.G.

                	
                  (legal
      seal)___________signature

                
	 
      	 
      
	
                  June,
      19, 2006.

                	 
      


        

      

      


      Supplement
to the Contract:

      Cadastre
map (plan) of the Parcel

      Calculation
of rental rate.

      


      Supplement
#2.

      


      The Act
of establishment of rental rate on the parcel, displayed on Auction, situated in
Krasnoarmeyskaya str., town of Gagarin.

      


      
        	
                 
      

              	
                1.

              	
                Permission
      for use of Parcel of land:

              


      

      For
constructing of many-storied dwelling house

      
        	
                 
      

              	
                2.

              	
                Cadastre
      # of Parcel : 67:03:001 01 24:0243

              


      

      
        	
                 
      

              	
                3.

              	
                Calculation
      of rental rate on the Parcel:

              


      

      The area
of Parcel , sq.m. – 8000

      The
annual rental rate according the account of market value of the Parcel – 400400
rub

      The
annual rental rate of the Parcel, rub – 400400 rub

      


      4.Starting
annual rental rate of the Parcel is :400400 (four hundred thousand four hundred)
Rub

      
        	
                 
      

              	
                4.

              	
                The
      step of auction is 5% from starting annual rental rate – 20020 (twenty
      hundred twenty)rub.

              


      

      


      Chairman
of Property and land relations committee of Municipal formation “Gagarin
district”

      


      Signature/
legal seal/ T.N. Kovshirova

       

      
        
          

        

      

      


      
        
          	
                  (PUNCH)

                
	
                  ???—
      Russian Federation

                
	
                  Federal
      registers Department in Smolensk region

                
	
                  67/02

                
	
                  At
      Gagarin Department

                
	
                  The
      state registration was given

                
	
                  Contract
      on tenancy

                
	
                  May,
      30, 2003

                
	
                  Registration
      number ???      legal seal

                
	
                  Registrar___________

                
	
                  Signature___________

                
	 
      
	
                  (PUNCH)

                


        

      


      
        
           


        

        
           


          
            

          

        

        
           


        

      

      


      
        
          
            
              
                	
                        Paginated,
      tied and ratified by  seal and signature

                      
	
                        Pages

                      
	
                        Chairman
      of ИиЗО?
      Committee

                      
	
                        T.N.
      Kovshirova

                      
	 
      
	 
      
	 
      
	
                        Supplement
      #1

                      
	 
      
	
                        Plan
      (draft, scheme) of the Parcel confines

                      
	 
      
	
                        Scale
      1:10000

                      
	
                        Head of territorial inter-district department #2 (signature) Mikhalev

                      
	
                               

                      	
                                

                      	
                        Legal seal