Document:

Exhibit
4.37

Türkmenistanyň
Aragatnaşyk Ministrligi

LICENSE
#164

The Ministry of
Communication of Turkmenistan

According to the Law of Turkmenistan

“About Communication”

Permits activity in the field of communication to the

“Barash
Communication Tehnologies, Inc” USA

“Barash Communication Tehnologies, Inc” through
branch

in Turkmenistan

Legal branch address: Ashgabat,
the Hero of Turkmenistan

A.Niyazova str., 104

Kind of activity: “Rendering of cellular and paging services”

The conditions of
realization of the present kind of activity

which is an integral part of the present license are given in the

Appendix

 

	
  Period of validity of
  license

  	
   

  	
  from 01st of Baydak-month (February) 2005

  
	
   

  	
   

  	
  till 01st of Baydak-month (February) 2006

  
	
   

  	
   

  	
   

  
	
  Starting period the rendering of services:

  	
   

  	
  not later on 01st of Baydak -month (February) 2005

  
	
   

  	
   

  	
   

  
	
  Day of entry:

  	
   

  	
  31st of Turkmenbashy-month (January) 2005

  

 

	
  Minister of Communication

  	
   

  	
   

  
	
  of
  Turkmenistan

  	
   

  	
  R.A.Hodjakurbanov

  

 

 

 

Appendix
to the

License # 164

MINISTRY
OF COMMUNICATION

OF TURKMENISTAN

The
conditions of realization the activity in

accordance with the license #164

1.                  Licensee
is obliged:

1.1.         To
operate by rendering of cellular and paging services appropriate on quality to
the existing legislation in Turkmenistan and normative acts accepted by the
Ministry of Communication of Turkmenistan, to the requirements of international
standard, and also contract terms.

1.2.         To
observe during use of radio facilities the Radio Regulations of the
International Telecommunication Union and Law of Turkmenistan “About
communication” and law “About radio -frequency spectrum”.

1.3.         To
stop rendering of services, which constitute a menace to safety of the state or
contravene its laws, break the public peace.

1.4.         To
give the statistical reporting on communication to the Ministry of
Communication of Turkmenistan in accordance with the established by “Turkmenmillihasabat”
the National institute of state statistics and forecasting of Turkmenistan by
the order.

1.5.         To
carry out the activity in accordance with the existing legislation of
Turkmenistan and normative acts accepted by the Ministry of Communication of
Turkmenistan.

1.6.         To
observe the legislations of Turkmenistan, ecological, sanitary-and-epidemiological,
hygienic, fire-prevention norms and regulations, regulation “About licensing
activity in the field of communication“.

2.                  Licensee
gives to the Ministry of Communication of Turkmenistan the information on an
applicable fare for rendering services by licensee and also informs in case of
their

 

 

changes within two weeks.

3.                  All
questions of interaction with public networks are adjusted by the separate
contracts concluded with the local telecommunication enterprises.

4.                  The
splicing networks of the licensee with a public networks is authorized only in
the presence of the certificate of conformance for a splicing the equipment
with a public network confirmed by Ministry of Communication of Turkmenistan,
on basis of specifications which are given out by the local telecommunication
enterprises, or in some cases, by Ministry of Communication of Turkmenistan.

5.                  Licensee
carries out a creation of communication networks under the projects,
coordinated with the Ministry of Communication of Turkmenistan and provides its
operation in accordance with the rules and other normative acts of the
Ministry of Communication of Turkmenistan.

6.                  The
owners in accordance with established procedure in the Slate Inspection for
Supervision of the Radio Frequency Spectrum Use at the Ministry of
Communication of Turkmenistan should arrange all radio facilities of the
licensee.

7.                  The
rendering of communication services with use of radio-electronic means is
supposed only after the sanction of an Interdepartmental commission on
radiofrequencies at the Cabinet Council of Turkmenistan for use of working
frequencies.

8.                  Licensee
gives the information on a technical condition and conditions rendering of
communication services on demand of the Ministry of Communication.

9.                  Licensee
should not interfere to Ministry of Communication to inspect licensee’s
activity on conformity of the carried out activity, and also checking
engineering data of communications network and, if necessary is obliged to
provide access to its measuring equipment.

10.            The
license cannot be transferred to other person.

 

 

11.            In
case of transformation of the legal person having the license, changes of its
name or its location, legal person or its assignee are obliged in a week term
to hand an application in order to make alterations in the license with the
appendix of the voucher.

12.            The
Ministry of Communication reserves the right to itself to make changes and
addition to “The conditions of realization the activity” of the present license
in connection with change of the existing legislation of Turkmenistan.

13.            The
licensed territory is Turkmenistan: Ashgabat and all velayats (regions).

 

	
  Minister of Communication

  	
   

  	
   

  	
   

  	
   

  
	
  of Turkmenistan

  	
   

  	
   

  	
   

  	
  R.A. HodjakurbanovExhibit 4.46

 

EXECUTION
COPY

 

Dated
21 April 2006

 

US$1,330,000,000

FACILITY
AGREEMENT

for

MOBILE
TELESYSTEMS OPEN JOINT STOCK COMPANY

arranged
by

THE BANK OF TOKYO - MITSUBISHI UFJ,
LTD.

BAYERISCHE LANDESBANK 

HSBC BANK PLC 

ING BANK N.V. 

RAIFFEISEN ZENTRALBANK
OESTERREICH AG

SUMITOMO MITSUI BANKING CORPORATION
EUROPE LIMITED

as
Mandated Lead Arrangers

and

ING
BANK N.V., LONDON BRANCH

acting
as Agent

 

 

 

Paveletskaya sq. 2, bld. 2

Moscow 115054

Telephone (7-495) 797 9797

Facsimile (7-495) 797 9798

Ref Mark Kirsh/Elena Mikhailova

 

CONTENTS

	
  CLAUSE

  	
   

  	
   

  	
   

  	
  PAGE

  	
   

  
	
  SECTION 1 INTERPRETATION

  	
   

  	
  1

  	
   

  
	
  1

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  1

  	
   

  
	
  SECTION 2 THE FACILITY

  	
   

  	
  12

  	
   

  
	
  2

  	
   

  	
  THE FACILITIES

  	
   

  	
  12

  	
   

  
	
  3

  	
   

  	
  PURPOSE

  	
   

  	
  12

  	
   

  
	
  4

  	
   

  	
  CONDITIONS OF UTILISATION

  	
   

  	
  13

  	
   

  
	
  SECTION 3 UTILISATION

  	
   

  	
  14

  	
   

  
	
  5

  	
   

  	
  UTILISATION

  	
   

  	
  14

  	
   

  
	
  SECTION 4 REPAYMENT, PREPAYMENT AND CANCELLATION

  	
   

  	
  15

  	
   

  
	
  6

  	
   

  	
  REPAYMENT

  	
   

  	
  15

  	
   

  
	
  7

  	
   

  	
  PREPAYMENT AND CANCELLATION

  	
   

  	
  15

  	
   

  
	
  SECTION 5 COSTS OF UTILISATION

  	
   

  	
  19

  	
   

  
	
  8

  	
   

  	
  INTEREST

  	
   

  	
  19

  	
   

  
	
  9

  	
   

  	
  INTEREST PERIODS

  	
   

  	
  20

  	
   

  
	
  10

  	
   

  	
  CHANGES TO THE CALCULATION OF INTEREST

  	
   

  	
  20

  	
   

  
	
  11

  	
   

  	
  FEES

  	
   

  	
  21

  	
   

  
	
  SECTION 6 ADDITIONAL PAYMENT OBLIGATIONS

  	
   

  	
  23

  	
   

  
	
  12

  	
   

  	
  TAX GROSS-UP AND INDEMNITIES

  	
   

  	
  23

  	
   

  
	
  13

  	
   

  	
  INCREASED COSTS

  	
   

  	
  25

  	
   

  
	
  14

  	
   

  	
  OTHER INDEMNITIES

  	
   

  	
  26

  	
   

  
	
  15

  	
   

  	
  MITIGATION BY THE LENDERS

  	
   

  	
  27

  	
   

  
	
  16

  	
   

  	
  COSTS AND EXPENSES

  	
   

  	
  28

  	
   

  
	
  SECTION 7 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

  	
   

  	
  29

  	
   

  

 

 (i)
 

 

 

	
  17

  	
   

  	
  REPRESENTATIONS

  	
   

  	
  29

  	
   

  
	
  18

  	
   

  	
  INFORMATION UNDERTAKINGS

  	
   

  	
  32

  	
   

  
	
  19

  	
   

  	
  FINANCIAL COVENANTS

  	
   

  	
  35

  	
   

  
	
  20

  	
   

  	
  GENERAL UNDERTAKINGS

  	
   

  	
  36

  	
   

  
	
  21

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  41

  	
   

  
	
  SECTION 8 CHANGES TO PARTIES

  	
   

  	
  46

  	
   

  
	
  22

  	
   

  	
  CHANGES TO THE LENDERS

  	
   

  	
  46

  	
   

  
	
  23

  	
   

  	
  CHANGES TO THE BORROWER

  	
   

  	
  48

  	
   

  
	
  SECTION 9 THE FINANCE PARTIES

  	
   

  	
  49

  	
   

  
	
  24

  	
   

  	
  ROLE OF THE AGENT AND THE MANDATED LEAD ARRANGERS

  	
   

  	
  49

  	
   

  
	
  25

  	
   

  	
  CONDUCT OF BUSINESS BY THE FINANCE PARTIES

  	
   

  	
  53

  	
   

  
	
  26

  	
   

  	
  SHARING AMONG THE FINANCE PARTIES

  	
   

  	
  53

  	
   

  
	
  SECTION 10 ADMINISTRATION

  	
   

  	
  55

  	
   

  
	
  27

  	
   

  	
  PAYMENT MECHANICS

  	
   

  	
  55

  	
   

  
	
  28

  	
   

  	
  SET-OFF

  	
   

  	
  57

  	
   

  
	
  29

  	
   

  	
  NOTICES

  	
   

  	
  57

  	
   

  
	
  30

  	
   

  	
  CALCULATIONS AND CERTIFICATES

  	
   

  	
  58

  	
   

  
	
  31

  	
   

  	
  PARTIAL INVALIDITY

  	
   

  	
  59

  	
   

  
	
  32

  	
   

  	
  REMEDIES AND WAIVERS

  	
   

  	
  59

  	
   

  
	
  33

  	
   

  	
  AMENDMENTS AND WAIVERS

  	
   

  	
  59

  	
   

  
	
  34

  	
   

  	
  COUNTERPARTS

  	
   

  	
  60

  	
   

  
	
  SECTION 11 GOVERNING LAW AND ENFORCEMENT

  	
   

  	
  61

  	
   

  
	
  35

  	
   

  	
  GOVERNING LAW

  	
   

  	
  61

  	
   

  
	
  36

  	
   

  	
  ARBITRATION

  	
   

  	
  61

  	
   

  
	
  37

  	
   

  	
  JURISDICTION

  	
   

  	
  61

  	
   

  

 

 (ii)
 

 

 

	
  

  	
   

  	
  SCHEDULE 1 The Original Lenders

  	
   

  	
  63

  	
   

  
	
   

  	
   

  	
  SCHEDULE 2 Conditions precedent

  	
   

  	
  64

  	
   

  
	
   

  	
   

  	
  SCHEDULE 3 Utilisation Request

  	
   

  	
  66

  	
   

  
	
   

  	
   

  	
  SCHEDULE 4 Selection Notice

  	
   

  	
  67

  	
   

  
	
   

  	
   

  	
  SCHEDULE 5 Mandatory Cost formula

  	
   

  	
  68

  	
   

  
	
   

  	
   

  	
  SCHEDULE 6 Form of Transfer Certificate

  	
   

  	
  70

  	
   

  
	
   

  	
   

  	
  SCHEDULE 7 Form of
  Compliance Certificate

  	
   

  	
  72

  	
   

  

 

 (iii)

 

 

THIS
AGREEMENT is dated 21 April 2006 and made between:

(1)                              MOBILE TELESYSTEMS OPEN JOINT STOCK COMPANY, an open
joint stock company established and existing under the laws of the Russian
Federation and having its registered address at 4 Marksistskaya Street, 109147
Moscow, Russian Federation, as borrower (the “Borrower”);

(2)                              THE BANK OF TOKYO-MITSUBISHI UFJ LTD, BAYERISCHE LANDESBANK, HSBC BANK
PLC, ING BANK N.V., RAIFFEISEN
ZENTRALBANK OESTERREICH AG, SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED as
mandated lead arrangers (the “Mandated Lead
Arrangers”);

(3)                              THE FINANCIAL INSTITUTIONS listed in Schedule 1 as lenders (the “Original Lenders”); and

(4)                              ING BANK N.V., LONDON BRANCH as agent of the other Finance Parties
(the “Agent”).

IT IS
AGREED as follows:

SECTION 1

INTERPRETATION

1                                      DEFINITIONS AND INTERPRETATION

1.1                            Definitions

In this
Agreement:

“Additional Cost Rate” has the meaning given
to it in Schedule 5 (Mandatory Cost
formula).

“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.

“Agency Fee Letter” means the Fee Letter to be entered into
between the Borrower and the Agent on the same date as this Facility Agreement
in accordance with Clause 11.4.

“Authorisation” means an authorisation,
consent, approval, resolution, licence, exemption, filing, notarisation or
registration.

“Availability Period” means:

(a)                                in relation
to Facility 1, the period from and including the Signing Date to and including
the date which is 30 days after the Signing Date; and

(b)                               (subject to
the provisions of the Syndication Side Letter) in relation to Facility 2, the
period from and including the Signing Date to and including 31 December 2007.

“Available Commitment” means, in relation to
a Facility, a Lender’s Commitment under that Facility minus:

(a)                                the amount
of its participation in any outstanding Loans under that Facility; and

(b)                               in relation
to any proposed Utilisation, the amount of its participation in any Loans that
are due to be made under that Facility on or before the proposed Utilisation
Date.

“Available Facility” means, in relation to a
Facility, the aggregate for the time being of each Lender’s Available
Commitment in relation to that Facility.

 1
 

 

 

“Bitel” means Bitel LLC, a limited liability company
incorporated in Kirghizia.

“Bitel Litigation” means any of the claims, proceedings
(present or future) and causes of action involving the Borrower and/or any of
its Affiliates (including Bitel) relating to or arising out of the acquisition,
reorganisation or ownership of Bitel by the Borrower (whether directly or
through any of its Affiliates).

“Break Costs” means the amount (if any) by
which:

(a)                                the interest
(excluding the Margin) which a Lender should have received for the period from
the date of receipt of all or any part of its participation in a Loan or Unpaid
Sum to the last day of the current Interest Period in respect of that Loan or
Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the
last day of that Interest Period;

exceeds:

(b)                               the amount
which that Lender would be able to obtain by placing an amount equal to the
principal amount or Unpaid Sum received by it on deposit with a leading bank in
the London interbank market for a period starting on the Business Day following
receipt or recovery and ending on the last day of the current Interest Period.

“Business Day” means a day (other than a
Saturday or Sunday) on which banks are open for general business in Amsterdam,
London, Moscow and New York City.

“Commitment” means a Facility 1 Commitment
or a Facility 2 Commitment.

“Compliance Certificate” means a certificate
substantially in the form set out in Schedule 7 (Form of Compliance Certificate).

“Confidentiality Undertaking” means a confidentiality
undertaking substantially in a recommended form of the LMA or in any other form
agreed between the Borrower and the Agent.

“Default” means an Event of Default or any
event or circumstance specified in Clause 21 (Events
of Default) which would (with the expiry of a grace period, the
giving of notice, the making of any determination under the Finance Documents
or any combination of any of the foregoing) be an Event of Default.

“Egypt Licence” means the third licence (not issued as of the
date of this Agreement) to install, provide and operate a public land mobile
network in Egypt.

“Environment” means living organisms
including the ecological systems of which they form part and the following
media:

(a)                                air
(including air within natural or man-made structures, whether above or below
ground);

(b)                               water
(including territorial, coastal and inland waters, water under or within land
and water in drains and sewers); and

(c)                                land
(including land under water).

“Environmental Law” means all laws and
regulations of any relevant jurisdiction which:

(a)                                have as a
purpose or effect the protection of, and/or prevention of harm or damage to,
the Environment;

(b)                               provide
remedies or compensation for harm or damage to the Environment; or

(c)                                relate to
any waste, pollutant, contaminant or other substance (including any liquid,
solid, gas, ion, living organism or noise) that may be harmful to human health
or other life or the 

 2
 

 

Environment
or a nuisance to any person or that may make the use or ownership of any affected
land or property more costly or health and safety matters.

“Environmental Licence” means any
Authorisation required at any time under Environmental Law.

“Event of Default” means any event or
circumstance specified as such in Clause 21 (Events
of Default).

“Existing Facility” means the loan facility
made available pursuant to a syndicated Facility Agreement dated 26 July 2004,
as amended by an Amendment and Transfer Agreement dated 30 September 2004,
between the Borrower and, after amendment, inter alios,
ABN AMRO Bank N.V., HSBC Bank plc, ING Bank N.V., Raiffeisen Zentralbank
Oesterreich AG, Bank Austria Creditanstalt AG, Commerzbank Aktiengesellschaft
and Barclays Capital.

“Facilities” means Facility 1 and Facility 2
and “Facility” means either of
them.

“Facility Office” means the office or
offices notified by a Lender to the Agent in writing on or before the date it
becomes a Lender (or, following that date, by not less than five Business Days’
written notice) as the office or offices through which it will perform its
obligations under this Agreement.

“Facility 1” means the term loan facility
made available under this Agreement as described in paragraph (a) of
Clause 2.1 (The Facilities).

“Facility 1 Commitment” means:

(a)                                in relation
to an Original Lender, the amount set opposite its name under the heading “Facility
1 Commitment” in Schedule 1 (The Original
Lenders) and the amount of any other Facility 1 Commitment
transferred to it under this Agreement; and

(b)                               in relation
to any other Lender, the amount of any Facility 1 Commitment transferred to it
under this Agreement,

to the
extent not cancelled, reduced or transferred by it under this Agreement.

“Facility 1 Final
Maturity Date” means the Facility 1 Repayment Date.

“Facility 1 Loan” means a loan made or to be
made under Facility 1 or the principal amount outstanding for the time being of
that loan.

“Facility 1 Margin”
means 0.80 per cent. per annum.

“Facility 1 Repayment Date” means the date
falling three years and one day after the date of the final Utilisation of
Facility 1.

“Facility 2” means the term loan facility
made available under this Agreement as described in paragraph (b) of
Clause 2.1 (The Facilities).

“Facility 2 Commitment” means:

(a)                                in relation
to an Original Lender, the amount set opposite its name under the heading “Facility
2 Commitment” in Schedule 1 (The Original
Lenders) and the amount of any other Facility 2 Commitment
transferred to it under this Agreement; and

(b)                               in relation
to any other Lender, the amount of any Facility 2 Commitment transferred to it
under this Agreement,

to the extent not
cancelled, reduced or transferred by it under this Agreement.

 3
 

 

 

“Facility 2 Final
Maturity Date” means the date falling five years after the Signing
Date.

“Facility 2 Loan” means a loan made or to be
made under Facility 2 or the principal amount outstanding for the time being of
that loan.

“Facility 2 Margin” means:

(a)                                in respect
of the period starting from the Signing Date until the date falling 36 Months
after the Signing Date, 1.00 per cent. per annum; and

(b)                               in respect
of the period starting on and from the date falling one day after the date
falling 36 Months after the Signing Date until all amounts under this Agreement
have been paid or repaid, 1.15 per cent. per annum.

“Facility 2 Repayment Date” means the date
falling 24 Months after the Signing Date, the date falling 27 Months after the
Signing Date, the date falling 30 Months after the Signing Date, the date
falling 33 Months after the Signing Date, the date falling 36 Months after the
Signing Date, the date falling 39 Months after the Signing Date, the date
falling 42 Months after the Signing Date, the date falling 45 Months after the
Signing Date, the date falling 48 Months after the Signing Date, the date
falling 51 Months after the Signing Date, the date falling 54 Months after the
Signing Date, the date falling 57 Months after the Signing Date, the date
falling 60 Months after the Signing Date.

“Fee Letters” means each of the letters
dated  21 April 2006 between the
Agent and the Borrower setting out the fees 
payable by reference to this Agreement.

“Final Maturity Date” means the Facility 1
Final Maturity Date or the Facility 2 Final Maturity Date.

“Finance Document” means this Agreement, any
Fee Letter, the Mandate Letter, the Syndication Side Letter and any other
document designated as such by the Agent and the Borrower.

“Finance Party” means the Agent, the
Mandated Lead Arrangers or a Lender.

“Financial Indebtedness” means any indebtedness for or in
respect of:

(a)                                moneys
borrowed;

(b)                               any amount
raised by acceptance under any acceptance credit facility or dematerialised
equivalent;

(c)                                any amount
raised pursuant to any note purchase facility or the issue of bonds, notes,
debentures, loan stock or any similar instrument;

(d)                               the amount
of any liability in respect of any lease or hire purchase contract which would,
in accordance with GAAP, be treated as a finance or capital lease;

(e)                                receivables
sold or discounted (other than any receivables to the extent they are sold on a
non-recourse basis);

(f)                                  any amount
raised under any other transaction (including any forward sale or purchase
agreement) having the commercial effect of a borrowing;

(g)                               any
derivative transaction entered into in connection with protection against or
benefit from fluctuation in any rate or price (and, when calculating the value
of any derivative transaction, only the marked to market value shall be taken
into account);

(h)                               shares which
are expressed to be redeemable at the option of the holder on or prior to the
Facility 2 Final Maturity Date (but excluding any accrued dividends);

 4
 

 

 

(i)                                   any
counter-indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a
bank or financial institution; and

(j)                                   the amount
of any liability in respect of any guarantee or indemnity for any of the items
referred to in paragraphs (a) to (i) above.

“GAAP” means generally accepted accounting principles, standards and practices in
the United States of America.

“Group” means the Borrower and its
Subsidiaries for the time being.

“Holding Company” means, in relation to a
person, any other person in respect of which it is a Subsidiary.

“HSBC Facility” means the loan facility of
$100,000,000 made available pursuant to a bilateral facility agreement dated 23
January 2006 between HSBC Bank plc and the Borrower.

“Information Memorandum” means the document
in the form approved by the Borrower concerning the Group which, at the
Borrower’s request and on its behalf, was prepared in relation to this
transaction and distributed by the Mandated Lead Arrangers to selected
financial institutions before the Signing Date.

“Interest Expense” has the meaning given to
it in Clause 19 (Financial Covenants).

“Interest Period” means, in relation to a
Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an
Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest).

“Lender” means:

(a)                                any Original
Lender; and

(b)                               any bank,
financial institution, trust, fund or other entity which has become a Party in
accordance with Clause 22 (Changes to the
Lenders),

which
in each case has not ceased to be a Party in accordance with the terms of this
Agreement.

“LIBOR” means, in relation to any Loan:

(a)                                the
applicable Screen Rate; or

(b)                               (if no
Screen Rate is available for Dollars or the Interest Period of that Loan) the
arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Agent at its request quoted by the Reference Banks to leading
banks in the London interbank market,

as of
11:00 a.m. on the Quotation Day for the offering of deposits in Dollars
for a period comparable to the Interest Period for that Loan.

“LMA” means the Loan Market Association.

“Loan” means a Facility 1 Loan or Facility 2
Loan.

“Majority Lenders” means:

(a)                                if there are
no Loans then outstanding, a Lender or Lenders whose Commitments aggregate more
than 662/3% of the Total Commitments (or, if the
Total Commitments have been reduced to zero, aggregated more than 662/3% of the Total Commitments immediately
prior to the reduction); or

 5
 

 

 

(b)                               at any other
time, a Lender or Lenders whose participations in the Loans then outstanding
aggregate more than 662/3% of all the Loans then outstanding.

“Mandate Letter” means the letter agreement
dated 24 March 2006 and accepted and agreed to by the Borrower on 27 March 2006
between the Mandated Lead Arrangers and the Borrower.

“Mandatory Cost” means the percentage rate
per annum calculated by the Agent in accordance with Schedule 5 (Mandatory Cost formula).

“Material Adverse Effect” means a material
adverse effect on or material adverse change in:

(a)                                the
financial condition, operations, assets, prospects or business of the Borrower
or the consolidated financial condition, operations, assets, prospects or
business of the Group;

(b)                               the ability
of the Borrower to perform and comply with its obligations under any Finance
Document; or

(c)                                the
validity, legality or enforceability of any Finance Document, or the rights or
remedies of any Finance Party thereunder,

provided
that for the purpose of paragraph (a) above any losses incurred by any
member of the Group after the date of this Agreement as a consequence of an
adverse determination of any or all of the Bitel Litigation, such losses not
exceeding US$330,000,000 or its equivalent in any other currency (including
legal fees and associated expenses) in aggregate shall be disregarded.

“Month” means a period starting on one day
in a calendar month and ending on the numerically corresponding day in the next
calendar month, except that:

(a)                                if the
numerically corresponding day is not a Business Day, that period shall end on
the next Business Day in that calendar month in which that period is to end if
there is one, or if there is not, on the immediately preceding Business Day;
and

(b)                               if there is
no numerically corresponding day in the calendar month in which that period is
to end, that period shall end on the last Business Day in that calendar month.

The
above rules will only apply to the last Month of any period.

“MTF Facility” means the facility made
available to Mobile Telesystems Finance S.A. pursuant to a Facility Agreement
dated 16 November 2005 between Mobile Telesystems Finance S.A. and ING
Bank N.V.

“OIBDA” has the meaning given to it in
Clause 19 (Financial Covenants).

“Original Financial Statements” means the
audited consolidated financial statements of the Group for the financial year
ended 31 December 2005.

“Participating Member State” means any member
state of the European Communities that adopts or has adopted the euro as its
lawful currency in accordance with legislation of the European Community
relating to Economic and Monetary Union.

“Party” means a party to this Agreement.

“Permitted Security” means:

(a)                                any Security
on any assets of any corporation existing at the time such corporation is
merged or consolidated with or into the Borrower or any Subsidiary of the
Borrower or becomes a Subsidiary of the Borrower and not created in
contemplation of such event, provided that no such Security shall extend to any
other assets;

 6
 

 

 

(b)                               any Security
existing on any assets prior to the acquisition thereof by the Borrower or any
Subsidiary of the Borrower and not created in contemplation of such
acquisition, provided that no such Security shall extend to any other assets;

(c)                                any Security
on any assets securing Financial Indebtedness of the Borrower or Financial
Indebtedness of any Subsidiary of the Borrower incurred or assumed for the
purpose of financing all or part of the cost of acquiring, repairing or
refurbishing such assets, provided that (i) no such Security shall extend
to any other assets; (ii) the aggregate principal amount of all Financial
Indebtedness secured by such Security on such assets shall not exceed the lower
of (x) the purchase price of such assets and (y) the fair market
value of such assets at the time of acquisition, repair or refurbishing; and (iii) such
Security attaches to such assets concurrently with the repair or refurbishing
thereof or within 90 days after the acquisition thereof, as the case may be;

(d)                               any Security
arising by operation of law, including any Security (i) arising in the
ordinary course of business with respect to amounts not yet delinquent or being
contested by the Borrower or a Subsidiary of the Borrower in good faith in
appropriate proceedings or (ii) for taxes, assessments, government charges
or claims, including without limitation those in favour of Russian governmental
fiscal authorities;

(e)                                any Security
on the assets of any Subsidiary of the Borrower securing intercompany Financial
Indebtedness of such Subsidiary owing to the Borrower or another Subsidiary of
the Borrower;

(f)                                  any netting
or set-off arrangement entered into by a member of the Group with a bank or any
other financial institution in the normal course of its banking arrangements
for the purpose of netting or setting off its debit and credit facilities with
that bank or financial institution;

(g)                               easements,
rights-of-way, restrictions and any other similar charges or encumbrances
incurred in the ordinary course of business and not interfering in any material
respect with the business of the Borrower or the business of any Subsidiary of
the Borrower, including any encumbrance or restriction with respect to an
equity interest of any joint venture pursuant to a joint venture agreement;

(h)                               any
extension, renewal or replacement of any Security described in clauses (a) to
(g) above, provided that (i) such extension, renewal or replacement
shall be no more restrictive in any material respect than the original
Security; (ii) the amount of Financial Indebtedness secured by such
Security is not increased; and (iii) if the assets securing the Financial
Indebtedness subject to such Security are changed in connection with such
refinancing, extension or replacement, the fair market value of the property or
assets is not increased; and

(i)                                   any other
Security (excluding any Security described in (a)-(h) above) provided
that, immediately after giving effect to such Security, the aggregate amount of
all secured Financial Indebtedness of the Group does not exceed 10% of the
Borrower’s Total Assets.

“Qualifying Lender” has the meaning given to
it in Clause 12 (Tax gross-up and
indemnities).

“Quotation Day” means, in relation to any
period for which an interest rate is to be determined, two Business Days before
the first day of that period unless market practice differs in the London
interbank market, in which case the Quotation Day will be determined by the
Agent in accordance with market practice in the London interbank market (and if
quotations for that currency and period 

 7
 

 

would
normally be given by leading banks in the London interbank market on more than
one day, the Quotation Day will be the last of those days).

“RAS” means generally accepted accounting
principles, standards and practices in the Russian Federation.

“Reference Banks” means in relation to LIBOR
and Mandatory Cost the principal London offices of the Mandated Lead Arrangers
(other than Raiffeisen Zentralbank Oesterreich AG) or such other banks as may
be designated by the Agent as agreed with the Borrower.

“Relevant Period” has the meaning given to
it in Clause 19 (Financial Covenants).

“Repayment Date” means a Facility 1
Repayment Date or a Facility 2 Repayment Date.

“Repeating Representations” means each of
the representations set out in Clauses 17.1 (Status),
17.2 (Binding obligations), 17.3
(Non-conflict with other obligations),
17.4 (Power and authority), 17.6
(Governing law and enforcement),
17.11 (No default), 17.14 (Pari Passu Ranking), 17.15 (No proceedings pending or threatened),
17.16 (Environmental laws and licences)
and 17.17 (Telecommunications law and
licences).

“Roubles” or “RUR” means the lawful currency of the Russian Federation for
the time being.

“Russian
Insolvency Law” means the Federal Law of the Russian Federation No. 127-FZ
of 26 October 2002 “On Insolvency (Bankruptcy)”.

“Screen Rate” means the British Bankers
Association Interest Settlement Rate for Dollars for the relevant period displayed
on the appropriate page of the Telerate screen. If the agreed page is
replaced or service ceases to be available, the Agent may specify another page or
service displaying the appropriate rate after consultation with the Borrower
and the Lenders.

“Security” means a mortgage, charge, lien,
pledge or other security interest securing any obligations of any person or any
other agreement or arrangement having a similar effect.

“Selection Notice” means a notice substantially in the form
set out in Schedule 4 (Selection Notice)
given in accordance with Clause 9 (Interest Periods).

“Significant Subsidiary” means:

(a)                                UMC (unless,
pursuant to the UMC Litigation, any or all of the Borrower’s shares in UMC are
transferred to a person that is not a member of the Group, with the result that
UMC ceases to be a member of the Group);

(b)                               any
Subsidiary of the Borrower to which (i) the Borrower or UMC sells, leases
or otherwise transfers its GSM 900 or 1800 licences or (ii) any such
licence is re-issued; and

(c)                                any Subsidiary
of the Borrower (i) whose total assets (or, where such Subsidiary prepares
consolidated accounts, whose total consolidated assets) have a book value (as
determined by reference to the most recent management accounts of that
Subsidiary prepared in accordance with GAAP) equal to or exceeding 10% of the
Borrower’s Total Assets or (ii) whose gross annual revenues (or, where
such Subsidiary prepares consolidated accounts, whose gross annual consolidated
revenues) (as determined by reference to the most recent management accounts of
that Subsidiary prepared in accordance with GAAP) are equal to or exceed 10% of
the Borrower’s gross annual consolidated revenues in the year for which the
Borrower’s most recent consolidated financial statements were prepared.

“Signing Date” means the date of this
Agreement.

 8
 

 

“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.

“Syndication Date” means (unless otherwise
agreed by the Borrower and the Mandated Lead Arrangers) the day specified by
the Mandated Lead Arrangers as the day on which primary syndication of the
Facilities is completed.

“Syndication Side Letter” means the letter
agreement dated on or about the Signing Date between the Borrower and, inter alios, the Mandated Lead Arrangers in relation to the
syndication of the Facilities.

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

“Telecommunications Authorisation” means any
Authorisation from any governmental or other regulatory authority necessary in
order for each of the Borrower and its Significant  Subsidiaries to maintain, operate and conduct
its business as it is being conducted in accordance with Telecommunications
Laws.

“Telecommunications Laws” means (a) all laws and regulations which relate to
telecommunications and/or the business of providing mobile telephone services
and (b) all rules, guidelines, policies and regulations made thereunder,
that are applicable to each of the Borrower and its Significant Subsidiaries
and/or the business carried on by it.

“Telecommunications Licence” means any Authorisation required
at any time under Telecommunications Laws.

“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 consolidated balance sheet delivered in
accordance with paragraph (a) of Clause 18.1 (Financial statements) or, prior to the first delivery, to
the Original Financial Statements.

“Total Commitments” means the aggregate of
the Total Facility 1 Commitments and the Total Facility 2 Commitments, being
$1,330,000,000 at the Signing Date.

“Total Debt” has the meaning given to it in
Clause 19 (Financial Covenants).

“Total Facility 1 Commitments” means the
aggregate of the Facility 1 Commitments, being $630,000,000 at the Signing
Date.

“Total Facility 2 Commitments” means the
aggregate of the Facility 2 Commitments, being $700,000,000 at the Signing
Date.

“Transfer Certificate” means a certificate
substantially in the form set out in Schedule 6 (Form of Transfer Certificate) or any other form agreed
between the Agent and the Borrower.

“Transfer Date” means, in relation to a
transfer, the later of:

(a)                                the proposed
Transfer Date specified in the Transfer Certificate; and

(b)                               the date on
which the Agent executes the Transfer Certificate.

“UMC” means Closed Joint Stock Company “Ukrainian Mobile Communications” in
Ukraine.

“UMC Litigation” means any of the claims,
proceedings (present or future) and causes of action involving the Borrower
and/or any of its Affiliates (including UMC) relating to or arising out of the 

 9
 

 

sale of
UMC to the Borrower or the acquisition, reorganization or ownership of UMC by
the Borrower.

“Unpaid Sum” means any sum due and payable
but unpaid by the Borrower under the Finance Documents.

“US Dollars”, “Dollars”, “USD”
and “$” denote the lawful currency
of the United States of America.

“Utilisation” means a utilisation of a
Facility.

“Utilisation Date” means the date of a
Utilisation, being the date on which the relevant Loan is to be made.

“Utilisation Request” means a notice
substantially in the form set out in Schedule 3 (Utilisation  Request).

“VAT” means value added tax and any other
tax of a similar nature.

1.2                            Construction

(a)                               Unless a
contrary indication appears, any reference in this Agreement to:

(i)                                   the “Agent”, any “Mandated Lead Arranger”, any “Finance  Party”,
any “Lender”, the “Borrower” and any “Party” shall be construed so as to include
its successors in title, permitted assigns and permitted transferees;

(ii)                                “assets” includes present and future
properties, revenues and rights of every description;

(iii)                             “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management
polices of a person, whether through the ownership of voting securities, by
contract or credit arrangement, as trustee or executor, or otherwise;

(iv)                            a “Finance
Document” or any other agreement
or instrument is a reference to that Finance Document or other agreement or
instrument as amended or novated;

(v)                               “indebtedness” includes any obligation
(whether incurred as principal or as surety) for the payment or repayment of
money, whether present or future, actual or contingent;

(vi)                            a “person”
includes any person, firm, company, corporation, government, state or agency of
a state or any association, trust or partnership (whether or not having
separate legal personality) or two or more of the foregoing;

(vii)                         a “regulation”
includes any regulation, rule, official directive, request or guideline
(whether or not having the force of law) of any governmental, intergovernmental
or supranational body, agency, department or regulatory, self-regulatory or
other authority or organisation;

(viii)                      a provision of law is a reference to that
provision as amended or re-enacted; and

(ix)                              a time of day
is a reference to London time.

(b)                              Section,
Clause and Schedule headings are for ease of reference only.

(c)                               Unless a
contrary indication appears, a term used in any other Finance Document or in
any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement.

(d)                              A Default
(other than an Event of Default) is “continuing”
if it has not been remedied or waived and an Event of Default is “continuing” if it has not been waived.

 10
 

 

 

1.3                            Third Party Rights

A
person who is not a Party has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce or to enjoy the benefit of any term of this
Agreement.

 

 11

 

SECTION 2
The Facility

2                                     THE FACILITIES

2.1                         The Facilities

Subject to the terms of this
Agreement, the Lenders make available to the Borrower: 

(a)                               a term loan facility in Dollars to be
designated “Facility 1” in an
aggregate amount equal to the Total Facility 1 Commitments; and 

(b)                               a term loan facility in Dollars to be
designated “Facility 2” in an
aggregate amount equal to the Total Facility 2 Commitments.

2.2                               Finance
Parties’ rights and obligations

(a)                              The obligations of each Finance Party under the
Finance Documents are several. Failure by a Finance Party to perform its
obligations under the Finance Documents does not affect the obligations of any
other Party under the Finance Documents. No Finance Party is responsible for
the obligations of any other Finance Party under the Finance Documents.

(b)                              The rights of each Finance Party under or in
connection with the Finance Documents are separate and independent rights and
any debt arising under the Finance Documents to a Finance Party from the
Borrower shall be a separate and independent debt.

(c)                              A Finance Party may, except as otherwise stated
in the Finance Documents, separately enforce its rights under the Finance
Documents.

3                                     PURPOSE

3.1                         Purpose

(a)                              The Borrower shall apply all amounts borrowed
by it under the Facilities towards its general corporate purposes, including
making acquisitions and repaying or prepaying the indebtedness as further
described in paragraph (b) of this Clause.

(b)                              The Borrower shall apply amounts borrowed by it
under the Facilities to:

(i)                                   prepay $60,000,000 under the HSBC Facility;

(ii)                                repay all amounts outstanding under the
Existing Facility; and

(iii)                             enable MOBILE TELESYSTEMS FINANCE S.A. to repay
all amounts outstanding under the MTF Facility,

by
the dates set out in Schedule 2 (Conditions precedent).

3.2                         Monitoring

No Finance Party is bound to monitor
or verify the application of any amount borrowed pursuant to this Agreement.

 12
 

 

 

4                                     CONDITIONS OF UTILISATION

4.1                         Initial conditions precedent

The Borrower may not deliver the
first Utilisation Request unless the Agent has received all of the documents
and other evidence listed in paragraphs 1 to 4 of Schedule 2 (Conditions precedent) in form and
substance satisfactory to the Agent. The Agent shall notify the Borrower and
the Lenders promptly (within one Business Day) upon being so satisfied.

4.2                         Further conditions precedent

(a)                               The Lenders will only be obliged to comply with
Clause 5.4 (Lenders’ participation)
if on the date of the Utilisation Request and on the proposed Utilisation Date:

(i)                                  no Default is continuing or would result from
the proposed Loan; and

(ii)                               the Repeating Representations to be made by the
Borrower are true in all material respects.

(b)                               The Borrower may only deliver a Utilisation
Request for Utilisation of Facility 2 in accordance with the terms of the
Syndication Side Letter.  The Agent shall
notify the Borrower and the Lenders promptly (within one Business Day) that the
conditions precedent required under paragraph 5 of Schedule 2 (Other documents and evidence prior to the first Utilisation request for
Utilisation of Facility 2) have been satisfied in accordance with
the Syndication Side Letter.

 13
 

 

SECTION 3

UTILISATION

5                                     UTILISATION

5.1                         Delivery of a Utilisation Request

The Borrower may utilise a Facility
by delivery to the Agent of a duly completed Utilisation Request not later than
10:00 a.m. on the day falling 3 Business Days before the proposed Utilisation
Date (or, in relation to the first Utilisation Request, not later than 10:00
a.m. on the day falling 2 Business Days before the proposed Utilisation Date).

5.2                         Completion of a Utilisation Request

(a)                              Each Utilisation Request is irrevocable and
will not be regarded as having been duly completed unless:

(i)                                   it identifies the Facility to be utilised;

(ii)                                the proposed Utilisation Date is a Business Day
within the Availability Period applicable to that Facility;

(iii)                             the currency and amount of the Utilisation
comply with Clause 5.3 (Currency and amount);
and

(iv)                              it specifies the account and bank to which the
proceeds of the Utilisation are to be credited.

(b)                              Only one Loan may be requested in each
Utilisation Request.

5.3                         Currency and amount

(a)                              The currency specified in a Utilisation Request
must be Dollars.

(b)                              The amount of the proposed Loan must be:

(i)                                   a minimum of $50,000,000 or, if less, the
Available Facility; or

(ii)                                in any event such that it is less than or equal
to the Available Facility.

5.4                         Lenders’ participation

(a)                              If the conditions set out in this Agreement
have been met, each Lender shall make its participation in each Loan available
by the Utilisation Date through its Facility Office.

(b)                              The amount of each Lender's participation in
each Loan will be equal to the proportion borne by its Available Commitment to
the Available Facility immediately prior to making the Loan.

(c)                              The Agent shall notify each Lender of the
amount of each Loan and the amount of its participation in that Loan not later
than 3:00 p.m. on the day falling 3 Business Days before the relevant
Utilisation Date (or, in relation to the first Loan, not later than 11:00 a.m.
on the day falling 2 Business Days before the first Utilisation Date).

(d)                              The obligation of the Lenders to make the
Facilities available to the Borrower under this Agreement is subject to the
terms of the Syndication Side Letter.

 

 14
 

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

6                                     REPAYMENT

6.1                         Repayment of Facility 1 Loans

(a)                              The Borrower shall repay the Facility 1 Loans
in full on the Facility 1 Repayment Date. 

(b)                              The Borrower may not reborrow any part of Facility
1 which is repaid.

6.2                         Repayment of Facility 2 Loans

(a)                              The Borrower shall repay the Facility 2 Loans
in 13 equal instalments, by paying on each Facility 2 Repayment Date an amount
equal to one thirteenth of the amount of the Facility 2 Loans outstanding at
the close of business on the last day of the Availability Period for Facility
2. 

(b)                              The Borrower may not reborrow any part of
Facility 2 which is repaid.

7                                     PREPAYMENT AND CANCELLATION

7.1                         Illegality

If it becomes unlawful in any
applicable jurisdiction for a Lender to perform any of its obligations as
contemplated by this Agreement or to fund or maintain its participation in any
Loan:

(a)                               that Lender shall promptly notify the Agent
upon becoming aware of that event;

(b)                               upon the Agent notifying the Borrower, the
Commitment of that Lender will be immediately cancelled; and 

(c)                               the Borrower shall repay that Lender's
participation in the Loans on the later of the last day of the Interest Period
for each Loan occurring, and the date falling 20 days after the Agent has
notified the Borrower (but in any event no longer than any grace period
permitted by law) or, if earlier, the date specified by the Lender in the
notice delivered to the Agent (being no earlier than the last day of any
applicable grace period permitted by law).

7.2                         Voluntary cancellation

The Borrower may, if it gives the
Agent not less than 10 Business Days’ (or such shorter period as the Majority
Lenders may agree) prior written notice, cancel the whole or any part (being a
minimum amount of $25,000,000) of an Available Facility. Any cancellation under
this Clause 7.3 shall reduce the Commitments of the Lenders rateably under that
Facility.

7.3                         Voluntary prepayment of Loans

(a)                              The Borrower may, if it gives the Agent not
less than 10 Business Days’ (or such shorter period as the Majority Lenders may
agree) prior written notice, prepay the whole or any part of any Loan (but, if
in part, being an amount that reduces the Loan by a minimum amount of
$25,000,000).

(b)                              A Loan in respect of a Facility may only be
prepaid after the last day of the Availability Period for that Facility (or, if
earlier, the day on which the relevant Available Facility is zero). 

(c)                              Each prepayment shall be applied in
satisfaction of the Borrower’s obligations under Clause 6 (Repayment) in the inverse order of
maturity of the Loans (or, at the option of the Borrower, pro rata to the remaining principal
instalments thereof).

 15
 

 

 

7.4                         Mandatory Prepayment – Change of
Control

(a)                              In this Clause 7.4, “Change of Control” means any of the following events or
circumstances: any person or group of persons acting in concert or under an
express or implied agreement or understanding, directly or through one or more
intermediaries, shall (x) acquire ultimate beneficial or legal ownership of, or
control over, more than 50% of the issued shares of the Borrower; (y) acquire
ownership of or control over more than 50% of the voting interests in the share
capital of the Borrower; or (z) obtain the power (whether or not exercised) to
elect not less than half of the directors of the Borrower; (provided, however,
that any acquisition by Sistema JSFC or any of its Subsidiaries that results in
the 50% threshold in paragraphs (x) and (y) above being exceeded, or in the
power referred to in paragraph (z) above being obtained, will not be a Change
of Control). 

(b)                              If there is a Change of Control:

(i)                                   the Borrower shall promptly notify each Lender
(through the Agent) upon becoming aware of that event;

(ii)                                the Borrower may not make a Utilisation; and

(iii)                             if any Lender (in its sole discretion) so
requires, it may, within 5 Business Days of its receipt of the Borrower’s
notification under sub-clause (i) above, direct the Agent to send a notice to
the Borrower requiring the Borrower to repay that Lender’s participations in
the Loans (together with accrued interest) in full on the day (the “Early Repayment Date”) falling 30 days
after the date of the Borrower’s notification under sub-clause (i) above.
Before the Early Repayment Date, the Lender and the Borrower shall consult with
each other for a period of 5 Business Days with respect to the transfer of that
Lender’s rights and obligations under this Agreement to another reputable
international bank or financial institution nominated by the Borrower (but which
is not an Affiliate of the Borrower) in accordance with Clause 22.5 (Procedure for transfer). If no such
transfer has been effected on or before the Early Repayment Date, then (x) the
Borrower shall repay that Lender’s participations in the Loans (together with
accrued interest) in full on the Early Repayment Date and (y) the Commitments
of that Lender shall be reduced to zero on that date.

7.5                         Right of repayment and cancellation
in relation to a single Lender

If:

(a)                               any sum payable to any Lender by the Borrower
is required to be increased under paragraph (c) of Clause 12.2 (Tax gross-up); or

(b)                               any Lender claims indemnification from the
Borrower under Clause 12.3 (Tax indemnity)
or Clause 13 (Increased Costs),

the Borrower may, whilst the
circumstance giving rise to the requirement or indemnification continues, give
the Agent notice of cancellation of the Commitments of that Lender and its
intention to procure the repayment of that Lender's participation in the Loans
on the last day of the Interest Period ending after the date of such notice
(or, if earlier, on such other date as specified by the Borrower in that
notice) (the “Cancellation Date”).
Before the Cancellation Date, the Lender and the Borrower shall consult with
each other for a period of 5 Business Days with respect to the transfer of that
Lender’s rights and obligations under this Agreement to another reputable
international bank or financial institution nominated by the Borrower (but
which is not an Affiliate of the Borrower) in accordance with Clause 22.5 (Procedure for transfer). If no such
transfer has been effected on or before the Cancellation Date, then (x) the
Borrower shall repay

 16
 

 

that Lender’s participations in the
Loans (together with accrued interest) in full on the Cancellation Date and (y)
the Commitments of that Lender shall be reduced to zero on that date.

7.6                         Replacement
of a Lender

(a)                              If at any time a Lender
becomes a Non Consenting Lender then the Borrower may, on ten Business Days’
prior written notice to the Agent and that Non Consenting Lender, replace that
Non Consenting Lender by causing it to (and that Non Consenting Lender shall)
transfer pursuant to this Clause 7.6 all of its rights and obligations under
this agreement to a Lender or other person being a reputable bank or financial
institution active in the international syndicated loan market selected by the
Borrower and acceptable to the Agent (acting reasonably) for a purchase price
equal to the outstanding principal amount of such Non Consenting Lender's participation
in the outstanding Loans and all accrued interest and fees and other amounts
payable under this Agreement.

(b)                              The Borrower shall have no right to replace
a Mandated Lead Arranger or the Agent and none of the foregoing nor any Lender
shall have any obligation to the Borrower to find a replacement Lender.  The Borrower shall not make any payment or
assume any obligation (whether by way of fees, expenses or otherwise) to or on
behalf of the replacement Lender as an inducement for the replacement Lender to
become a Lender.

(c)                              No Lender replaced under this Clause 7.6 may
be required to pay or surrender to that replacement Lender or other entity any
fees received by it.

(d)                              For the purposes of this Clause 7.6 a “Non Consenting Lender” is a Lender who does not agree to a
consent or amendment where:

(i)                                   the Borrower or the
Agent has requested the Lenders to consent to a departure from or waiver of any
provision of the Finance Documents or to agree to any amendment thereto;

(ii)                                the consent or amendment in question
requires the agreement of all Lenders;

(iii)                             a period of not less than 14 days has
elapsed from the date the consent or amendment was requested;

(iv)                              Majority Lenders have agreed to such consent
or amendment; and 

(v)                                 the Borrower has
notified the Lender (through the Agent) it will treat it as a Non Consenting
Lender.

7.7                         Restrictions

(a)                              Any notice of cancellation or prepayment given
by any Party under this Clause 7 shall be irrevocable and, unless a contrary
indication appears in this Agreement, shall specify the date or dates upon
which the relevant cancellation or prepayment is to be made and the amount of
that cancellation or prepayment.

(b)                              Any prepayment under this Agreement shall be
made together with accrued interest on the amount prepaid and, subject to any
Break Costs, without premium or penalty.

(c)                              The Borrower may not reborrow any part of a
Facility which is prepaid.

(d)                              The Borrower shall not repay or prepay all or
any part of the Loans or cancel all or any part of the Commitments except at
the times and in the manner expressly provided for in this Agreement.

(e)                              No amount of the Total Commitments cancelled
under this Agreement may be subsequently reinstated. 

 17
 

 

(f)                                  If the Agent receives a notice under this
Clause 7 it shall promptly forward a copy of that notice to either the Borrower
or the affected Lender, as appropriate. 

 18
 

 

SECTION 5

COSTS OF UTILISATION

8                                     INTEREST

8.1                         Calculation of interest

The rate of interest on each Loan for
each Interest Period is the percentage rate per annum which is the aggregate of
the applicable:

(a)                               Margin;

(b)                               LIBOR; and

(c)                               Mandatory Cost, if any.

8.2                         Payment of interest

The Borrower shall pay accrued
interest on each Loan on the last day of each Interest Period (and, if the
Interest Period is longer than 6 Months, on the date falling at six monthly
intervals after the first day of the Interest Period).

8.3                         Default interest

(a)                              If the Borrower fails to pay any amount payable
by it under a Finance Document on its due date, interest shall accrue on the
overdue amount from the due date up to the date of actual payment (both before
and after judgment) at a rate which, subject to paragraph (b) below, is the sum
of 2 per cent. and the rate which would have been payable if the overdue amount
had, during the period of non-payment, constituted a Loan in the currency of
the overdue amount for successive Interest Periods, each of a duration selected
by the Agent (acting reasonably). Any interest accruing under this Clause 8.3
shall be immediately payable by the Borrower on demand by the Agent. 

(b)                              If any overdue amount consists of all or part
of a Loan which became due on a day which was not the last day of an Interest
Period relating to that Loan: 

(i)                                   the first Interest Period for that overdue
amount shall have a duration equal to the unexpired portion of the current
Interest Period relating to that Loan; and 

(ii)                                the rate of interest applying to the overdue
amount during that first Interest Period shall be the sum of 2 per cent. and
the rate which would have applied if the overdue amount had not become due.

(c)                              Default interest (if unpaid) arising on an
overdue amount will be compounded with the overdue amount at the end of each
Interest Period applicable to that overdue amount but will remain immediately
due and payable.

8.4                         Notification of rates of interest

The Agent shall promptly notify the
Lenders and the Borrower of the determination of a rate of interest under this
Agreement. 

 19
 

 

 

9                                     INTEREST PERIODS

9.1                         Duration of Interest Periods

(a)                              Prior to the Syndication
Date each Interest Period shall have a duration of one Month (or such other
duration as is necessary to ensure that such Interest Period shall end on the
Syndication Date).

(b)                              The first Interest Period for the first Loan
made under a Facility shall begin on the Utilisation Date for that Loan and end
on the last day of the Interest Period applicable to that first Loan.  At the end of the first Interest Period for
each Loan under a Facility, such Loan shall be consolidated with all other
Loans (if any) then outstanding under that Facility such that all Loans under
that Facility shall then be treated as a single Loan.

(c)                              Subject to Clause 9.1(a)
and Clause 9.1(b), the Borrower may select an Interest Period for the Loan in
the Utilisation Request or (if the Loan has already been borrowed) in a
Selection Notice.  The Borrower may select an Interest Period with a duration
of one, two, three or six Months or any other period agreed
between the Borrower and the Agent (acting on the instructions of all the
Lenders).

(d)                              Each Selection Notice for
the Loan is irrevocable and must be delivered to the Agent by the Borrower not
later than 11:00 a.m. one Business Day before the Quotation Day.

(e)                              If the Borrower fails to
deliver a Selection Notice to the Agent in accordance with paragraph (c) above,
the relevant Interest Period will be six Months.

(f)                                  An
Interest Period shall not extend beyond a Repayment Date or Final Maturity Date
for the relevant Facility, and
if an Interest Period would otherwise overrun a Repayment Date or Final
Maturity Date for the relevant Facility, such Interest Period shall be
shortened so that it ends on that Repayment Date or Final Maturity Date.

(g)                              Each
Interest Period shall start on the Utilisation Date or (if the Loan is already
made) on the last day of its preceding Interest Period.

9.2                         Non-Business Days

If an Interest Period would otherwise
end on a day which is not a Business Day, that Interest Period will instead end
on the next Business Day in that calendar month (if there is one) or the preceding
Business Day (if there is not).

10                             CHANGES TO THE CALCULATION OF INTEREST

10.1                 Absence of quotations

Subject to Clause 10.2 (Market disruption), if LIBOR is to be
determined by reference to the Reference Banks but a Reference Bank does not
supply a quotation by 11:00 a.m. on the Quotation Day, the applicable LIBOR
shall be determined on the basis of the quotations of the remaining Reference
Banks.

10.2                 Market disruption

(a)                              If a Market Disruption Event occurs in relation
to a Loan for any Interest Period, then the rate of interest on each Lender's
share of that Loan for the Interest Period shall be the rate per annum which is
the sum of:

(i)                                   the Margin;

 20
 

 

 

(ii)                                the rate notified to the Agent by that Lender
as soon as practicable and in any event before interest is due to be paid in
respect of that Interest Period, to be that which expresses as a percentage
rate per annum the cost to that Lender of funding its participation in that
Loan from whatever source it may reasonably select; and

(iii)                             the Mandatory Cost, if any, applicable to that
Lender's participation in the Loan.

(b)                              In this Agreement “Market Disruption Event” means:

(i)                                   at or about noon on the Quotation Day for the
relevant Interest Period the Screen Rate is not available and none or only one
of the Reference Banks supplies a rate to the Agent to determine LIBOR for
Dollars for the relevant Interest Period; or

(ii)                                before close of business in London on the
Quotation Day for the relevant Interest Period, the Agent receives
notifications from a Lender or Lenders (whose participations in a Loan exceed
35 per cent. of that Loan) that the cost to it of obtaining matching deposits
in the London interbank market would be in excess of LIBOR.

10.3                 Alternative basis of interest or
funding

(a)                              If a Market Disruption Event occurs and the
Agent or the Borrower so requires, the Agent and the Borrower shall enter into
negotiations (for a period of not more than 30 days) with a view to agreeing a
substitute basis for determining the rate of interest.

(b)                              Any alternative basis agreed pursuant to
paragraph (a) above shall, with the prior consent of all the Lenders and the
Borrower, be binding on all Parties.

10.4                 Break Costs

(a)                              The Borrower shall, within three Business Days
of demand by a Finance Party, pay to that Finance Party its Break Costs
attributable to all or any part of a Loan or Unpaid Sum being paid by the
Borrower on a day other than the last day of an Interest Period for that Loan
or Unpaid Sum.

(b)                              Each Lender shall, as soon as reasonably
practicable after a demand by the Agent, provide a certificate confirming the
amount of its Break Costs for any Interest Period in which they accrue.

11                              FEES

11.1                  Commitment fee

(a)                              The Borrower shall pay to the Agent (for the
account of each Lender) a commitment fee in respect of Facility 2, calculated
on a daily basis, at the rate of 0.40 per cent. per annum of the undrawn,
uncancelled Total Facility 2 Commitments.

(b)                              The commitment fee will accrue from 1 June
2006, is payable in arrears on the last day of each successive period of three
Months, on the last day of the Availability Period for Facility 2 and, if
cancelled in full, on the cancelled amount of the relevant Lender's Facility 2
Commitment at the time the cancellation is effective.

11.2                  Arrangement and documentation fee

The Borrower shall pay to the Agent
an arrangement and documentation fee in the amount and at the times agreed in a
Fee Letter.

 21
 

 

 

11.3                  Underwriting fee

The Borrower shall pay to the Agent
for the account of the Mandated Lead Arrangers an underwriting fee in the
amount and at the times agreed in a Fee Letter.

11.4                  Agency fee

The Borrower shall pay to the Agent
(for its own account) an agency fee in the amount and at the times agreed in
the Agency Fee Letter.

 

 22

 

SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

12                               TAX GROSS-UP AND INDEMNITIES

12.1                     Definitions

(a)                               In this
Agreement:

“Protected Party” means a Finance Party
which is or will be subject to any liability, or required to make any payment,
for or on account of Tax in relation to a sum received or receivable (or any
sum deemed for the purposes of Tax to be received or receivable) under a
Finance Document.

“Qualifying Lender” means a Lender which is
situated for tax purposes in the Russian Federation or in a Tax Treaty
Jurisdiction.

“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 under a Finance Document.

“Tax Payment” means an increased payment
made by the Borrower to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under
Clause 12.3 (Tax indemnity).

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

(b)                              Unless a
contrary indication appears, in this Clause 12 a reference to “determines” or “determined” means a determination made in the absolute
discretion of the person making the determination.

12.2                     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 Agent
accordingly. Similarly, a Lender shall notify the Agent on becoming so aware in
respect of a payment payable to that Lender. If the Agent receives such
notification from the Borrower or a Lender, it shall respectively notify the
Lender and 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 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 this 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).

 23
 

 

 

(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 the minimum amount required by law.

(f)                                 Within 30
days of making either a Tax Deduction or any payment required in connection
with that Tax Deduction, the Borrower shall deliver to the Agent for the
Finance Party 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.

12.3                     Tax
indemnity

(a)                               The Borrower
shall (within three Business Days of demand by the Agent) pay to a Protected
Party 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 a Finance Document.

(b)                              Paragraph (a) above
shall not apply:

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

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

(B)                             under the
law of the jurisdiction in which that Finance Party’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
Finance Party; or

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

(A)                           is compensated for by an increased
payment under Clause 12.2 (Tax gross-up);
or

(B)                             would have
been compensated for by an increased payment under Clause 12.2 (Tax gross-up) but was not so compensated
solely because one of the exclusions in paragraph (d) of Clause 12.2
(Tax gross-up) applied.

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

(d)                              A Protected
Party shall, on receiving a payment from the Borrower under this
Clause 12.3, notify the Agent.

12.4                     Tax Credit

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

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

(b)                               that Finance
Party has obtained, utilised and retained that Tax Credit,

 24
 

 

 

the
Finance Party shall pay promptly an amount to the Borrower which that Finance
Party determines will leave the Finance Party (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.

12.5                     Stamp
taxes

The
Borrower shall pay and, within three Business Days of demand, indemnify each
Finance Party against any cost, loss or liability that Finance Party incurs in
relation to all stamp duty, registration and other similar Taxes payable in
respect of any Finance Document.

12.6                     Value
added tax

(a)                               All
consideration expressed to be payable under a Finance Document by any Party to
a Finance Party shall be deemed to be exclusive of any VAT. If VAT is
chargeable on such consideration, that Party shall pay to the Finance Party (or
directly to the appropriate tax authority, if so required by law) (in addition
to and at the same time as paying the consideration) an amount equal to the
amount of the VAT.

(b)                              Where a
Finance Document requires any Party to reimburse a Finance Party for any costs
or expenses, that Party shall also at the same time pay and indemnify the
Finance Party against all VAT incurred by the Finance Party in respect of the
costs or expenses to the extent that the Finance Party reasonably determines
that neither it nor any other member of the group of which it is a member for
VAT purposes is entitled to credit or repayment from the relevant tax authority
in respect of the VAT.

12.7                     Tax forms

(a)                               At least 10
Business Days prior to the date of the first scheduled payment of interest
under this Agreement, and within 20 Business Days from the beginning of each
calendar year falling after the Signing Date, each Qualifying Lender shall
provide to the Borrower a document issued by the relevant government authority
in its jurisdiction of residence confirming that it is a resident of that
jurisdiction. That document shall be apostilled by each Qualifying Lender if
requested by the Borrower (pursuant to a requirement of the Russian tax
authorities). The Borrower shall pay to each Qualifying Lender an amount equal
to the costs that the Qualifying Lender has incurred in apostilling any such
document.

(b)                              At the
request of the Borrower (acting reasonably), each Lender shall use its
reasonable efforts to provide any other documentation or information to the
Borrower that may be reasonably necessary for the Borrower to establish a
complete exemption from Russian withholding tax in relation to payments of
interest under this Agreement.

13                               INCREASED COSTS

13.1                     Increased
costs

(a)                               Subject to
Clause 13.3 (Exceptions) the
Borrower shall, within three Business Days of a demand by the Agent, pay for
the account of a Finance Party the amount of any Increased Costs incurred by
that Finance Party or its Holding Company as a result of (i) the
introduction of or any change in (or in the interpretation, administration or
application of) any law or regulation or (ii) compliance with any law or
regulation made after the Signing Date.

(b)                              In this
Agreement “Increased Costs” means:

 25
 

 

 

(i)                                   a reduction
in the rate of return from the Facility or on a Finance Party’s (or its
Affiliate’s) overall capital;

(ii)                                an
additional or increased cost; or

(iii)                             a reduction
of any amount due and payable under any Finance Document,

which
is incurred or suffered by a Finance Party or its Holding Company to the extent
that it is attributable to that Finance Party having entered into its
Commitment or funding or performing its obligations under any Finance Document.

13.2                     Increased
cost claims

(a)                               A Finance
Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Agent of
the event giving rise to the claim, following which the Agent shall promptly
notify the Borrower.

(b)                              Each Finance
Party shall, as soon as practicable after a demand by the Agent, provide a
certificate confirming the amount of its Increased Costs.

13.3                     Exceptions

(a)                               Clause 13.1
(Increased costs) does not apply
to the extent any Increased Cost is:

(i)                                   attributable
to a Tax Deduction required by law to be made by the Borrower;

(ii)                                compensated
for by Clause 12.3 (Tax indemnity)
(or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated
solely because any of the exclusions in paragraph (b) of Clause 12.3 (Tax indemnity) applied);

(iii)                             compensated
for by the payment of the Mandatory Cost; or

(iv)                            attributable to the wilful breach by the
relevant Finance Party or its Affiliates of any law or regulation.

(b)                              In this
Clause 13.3, a reference to a “Tax Deduction”
has the same meaning given to the term in Clause 12.1 (Definitions).

14                               OTHER INDEMNITIES

14.1                     Currency
indemnity

(a)                               If any sum
due from the Borrower under the Finance Documents (a “Sum”), or any order, judgment or award
given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum is
payable into another currency (the “Second
Currency”) for the purpose of:

(i)                                   making or
filing a claim or proof against the Borrower;

(ii)                                obtaining or
enforcing an order, judgment or award in relation to any litigation or
arbitration proceedings,

the
Borrower shall as an independent obligation, within three Business Days of
demand, indemnify each Finance Party to whom that Sum is due against any cost,
loss or liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from
the First Currency into the Second Currency and (B) the rate or rates of
exchange available to that person at the time of its receipt of that Sum.

 26
 

 

 

(b)                              The Borrower
waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is
expressed to be payable.

14.2                     Other
indemnities

The
Borrower shall, within three Business Days of demand, indemnify each Finance
Party against any cost, loss or liability incurred by that Finance Party as a
result of:

(a)                                the
occurrence of any Event of Default;

(b)                               a failure by
the Borrower to pay any amount due under a Finance Document on its due date,
including without limitation, any cost, loss or liability arising as a result
of Clause 26 (Sharing among the Finance
Parties);

(c)                                funding, or making
arrangements to fund, its participation in a Loan requested by the Borrower in
a Utilisation Request but not made by reason of the operation of any one or
more of the provisions of this Agreement (other than by reason of default or
negligence by that Finance Party alone); or

(d)                               a Loan (or
part of a Loan) not being prepaid in accordance with a notice of prepayment
given by the Borrower.

14.3                     Indemnity
to the Agent

The
Borrower shall promptly indemnify the Agent against any cost, loss or liability
incurred by the Agent (acting reasonably) as a result of:

(a)                                investigating
any event which it reasonably believes is a Default; or

(b)                               acting or
relying on any notice, request or instruction which it reasonably believes to
be genuine, correct and appropriately authorised.

15                               MITIGATION BY THE LENDERS

15.1                     Mitigation

(a)                               Each Finance
Party shall, in consultation with the Borrower, take all reasonable steps to
mitigate any circumstances which arise and which would result in any amount
becoming payable under or pursuant to, or cancelled pursuant to, any of Clause
7.1 (Illegality), Clause 12 (Tax gross-up and indemnities) or Clause
13.1 (Increased costs) including
(but not limited to) transferring its rights and obligations under the Finance
Documents to another Affiliate or Facility Office.

(b)                              Paragraph (a) above
does not in any way limit the obligations of the Borrower under the Finance
Documents.

15.2                     Limitation
of liability

(a)                               The Borrower
shall indemnify each Finance Party for all costs and expenses reasonably
incurred by that Finance Party as a result of steps taken by it under Clause
15.1 (Mitigation).

(b)                              A Finance
Party is not obliged to take any steps under Clause 15.1 (Mitigation) if, in the opinion of that
Finance Party (acting reasonably), to do so might be prejudicial to it.

 27
 

 

 

16                               COSTS AND EXPENSES

16.1                     Transaction
expenses

The
Borrower shall promptly on demand pay the Agent and the Mandated Lead Arrangers
the amount of all reasonable out-of-pocket costs and legal expenses (subject to
the terms of the Mandate Letter) incurred by any of them in connection with the
negotiation, preparation and execution of:

(a)                                this
Agreement and any other documents referred to in this Agreement; and

(b)                               any other
Finance Documents executed after the date of this Agreement.

16.2                     Amendment
costs

If (a) the
Borrower requests an amendment, waiver or consent or (b) an amendment is
required pursuant to Clause 27.9 (Change of
currency), the Borrower shall, within three Business Days of demand,
reimburse the Agent for the amount of all costs and expenses (including legal
fees) reasonably incurred by the Agent in responding to, evaluating,
negotiating or complying with that request or requirement.

16.3                     Enforcement
costs

The
Borrower shall, within three Business Days of demand, pay to each Finance Party
the amount of all costs and expenses (including legal fees) incurred by that
Finance Party in connection with the enforcement of, or the preservation of any
rights under, any Finance Document.

 28
 

 

 

SECTION 7

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

17                               REPRESENTATIONS

The
Borrower makes the representations and warranties set out in this Clause 17 to
each Finance Party on the date of this Agreement.

17.1                     Status

(a)                               It is an
open joint stock company, duly established, registered and validly existing
under the laws of the Russian Federation.

(b)                              It and each
of its Significant Subsidiaries has the power to own its assets and carry on
its business as it is being conducted.

17.2                     Binding
obligations

The
obligations expressed to be assumed by it in each Finance Document are legal,
valid, binding and enforceable obligations, subject to insolvency and other
laws affecting creditors’ rights generally and principles of equity.

17.3                     Non-conflict
with other obligations

The
entry into and performance by it of, and the transactions contemplated by, the
Finance Documents do not and will not conflict with:

(a)                                any law or
regulation applicable to it;

(b)                               its or any
of its Subsidiaries’ constitutional documents; or

(c)                                any
agreement or instrument binding upon it or any of its Subsidiaries or any of
its or any of its Subsidiaries’ assets.

17.4                     Power
and authority

It has
the power to enter into, perform and deliver, and has taken all necessary
action to authorise its entry into, performance and delivery of, the Finance
Documents and the transactions contemplated by those Finance Documents.

17.5                     Validity
and admissibility in evidence

All
Authorisations required:

(a)                                to enable it
lawfully to enter into, exercise its rights and comply with its obligations in
the Finance Documents;

(b)                               for it and
its Significant Subsidiaries to carry on its and their business; and

(c)                                to make the
Finance Documents admissible in evidence in the general jurisdiction courts or
commercial courts (arbitrazhniye sudi)
of the Russian Federation in an original action or action to enforce a foreign
arbitral award, provided that authenticated and notarised Russian texts are
made available to such courts at that time and any other procedures and
formalities regarding presentation of documents to a Russian court are complied
with,

 29
 

 

 

have
been obtained or effected and are in full force and effect (except, in relation
to paragraph (b) above, where the failure to obtain such Authorisations
(excluding any Telecommunications Authorisations) is not reasonably likely to
have a Material Adverse Effect).

17.6                     Governing
law and enforcement

(a)                               The choice
of English law as the governing law of the Finance Documents will be recognised
and enforced in the Russian Federation.

(b)                              Any
arbitration award obtained in England in relation to a Finance Document will be
recognised and enforced in the Russian Federation in accordance with the 1958
New York Convention on Recognition and Enforcement of Foreign Arbitral Awards.

17.7                     No
bankruptcy proceedings

Neither
the Borrower nor any of its Significant Subsidiaries has taken any corporate
action nor have any other steps been taken or legal proceedings been started
or, to the best of its knowledge and belief (after due inquiry), threatened
against it or any of its Significant Subsidiaries for (a) its liquidation
or bankruptcy or the appointment of a liquidation commission (likvidatsionnaya komissiya) or a similar
officer of it or any of its Significant Subsidiaries; (b) the institution
of supervision (nablyudeniye), financial
rehabilitation (finansovoe ozdorovlenie),
external management (vneshniy upravlayucshiy)
or the appointment of a bankruptcy manager (konkursniy
upravlayuschiy) or similar officer of it or any of its Significant
Subsidiaries; (c) the convening of a meeting of creditors for the purposes
of considering an amicable settlement (as defined in the Russian Insolvency
Law); or (d) any analogous act in respect of it or any of its Significant
Subsidiaries in any jurisdiction.

17.8                     Deduction
of Tax

It is
not required under the law of the Russian Federation to make any deduction for
or on account of Tax from any payment it may make under any Finance Document to
a Qualifying Lender provided that it has received the documentation specified
in paragraph (a) of Clause 12.7 (Tax forms).

17.9                     No
filing or stamp taxes

Under
the law of the Russian Federation it is not necessary that the Finance
Documents be filed, recorded or enrolled with any court or other authority in
the Russian Federation or that any stamp, registration or similar tax be paid
on or in relation to the Finance Documents or the transactions contemplated by
the Finance Documents, except for court registration fees in connection with
any enforcement proceedings in such court.

17.10              Payment
of Taxes

Neither
it nor any of its Significant Subsidiaries has overdue tax liabilities, other
than tax liabilities (a) whose amount, applicability or validity is being
contested in good faith by appropriate proceedings and for which adequate
reserves or other appropriate provision has been made or (b) whose amount,
together with all such other unpaid or undischarged taxes, does not in
aggregate exceed $25,000,000 (or its equivalent in any other currency or
currencies).

17.11               No
default

(a)                               No Default
or Event of Default is continuing or might reasonably be expected to result
from the making of any Utilisation.

 30
 

 

 

(b)                              No event or
circumstance is outstanding which constitutes a default under any other
agreement or instrument which is binding on it or any of its Subsidiaries or to
which its (or any of its Subsidiaries’) assets are subject which is reasonably
likely to have a Material Adverse Effect.

17.12              No
misleading information

(a)                               Any factual
information provided by or on behalf of any member of the Group for the
purposes of the Information Memorandum was true and accurate in all material
respects as at the date it was provided or as at the date (if any) at which it
is stated.

(b)                              The
financial projections contained in the Information Memorandum have been
prepared on the basis of recent historical information and on the basis of
reasonable assumptions.

(c)                               Nothing has
occurred or been omitted from the Information Memorandum and no information has
been given or withheld that results in the information contained in the Information
Memorandum being untrue or misleading in any material respect.

17.13              Financial
statements

(a)                               Its Original
Financial Statements were prepared in accordance with GAAP consistently
applied.

(b)                              Its Original
Financial Statements fairly represent its, and its consolidated, financial
condition and operations as at the end of and for the relevant financial year.

(c)                               There has
been no material adverse change in its business or financial condition (or the
business or consolidated financial condition of the Group) since the date of
its unaudited consolidated financial statements for the financial year ended 31
December 2005.

(d)                              There will
be no material difference between the unaudited consolidated financial
statements of the Group for the financial year ended 31 December 2005 and
the Original Financial Statements.

17.14              Pari passu ranking

Its
payment obligations under the Finance Documents rank at least pari passu with the claims of all its
other unsecured and unsubordinated creditors, except for obligations mandatorily
preferred by law applying to companies generally.

17.15              No
proceedings pending or threatened

Other
than the UMC Litigation, no litigation, arbitration or administrative
proceedings of or before any court, arbitral body or agency (including but not
limited to, investigative proceedings) have, to the best of its knowledge and
belief (after due inquiry), been started or threatened against it or any of its
Significant Subsidiaries which, if adversely determined would be reasonably
likely to have a Material Adverse Effect.

17.16              Environmental
laws and licences

Except
as disclosed in writing to the Agent before the date hereof, it and each of its
Significant Subsidiaries has:

(a)                                complied
with all Environmental Laws to which it may be subject;

(b)                               obtained all
Environmental Licences required in connection with its business; and

(c)                                complied
with the terms of those Environmental Licences,

in each
case where failure to do so would be reasonably likely to have a Material
Adverse Effect.

 31
 

 

17.17              Telecommunications
laws and licences

(a)                               Each of the
Borrower and its Significant Subsidiaries has:

(i)                                   complied in
all material respects with all Telecommunications Laws to which it may be
subject;

(ii)                                obtained all
material Telecommunications Authorisations necessary to conduct its business;
and

(iii)                             complied in
all material respects with the terms of those Telecommunication Authorisations,

in each
case other than where failure to do so would not reasonably be expected to have
a Material Adverse Effect.

(b)                              There has been
no act, omission or event which might reasonably be expected to give rise to
the material amendment, revocation, suspension, cancellation, withdrawal or
termination of any provision of any Telecommunications Authorisation. To the
best of its knowledge and belief (after due inquiry), no Telecommunications
Authorisation is the subject of any pending or threatened proceedings which, if
adversely determined, would reasonably be expected to have a Material Adverse
Effect.

17.18              Compliance
with laws

Each of
the Borrower and its Significant Subsidiaries is conducting its business and
operations in compliance with all laws and regulations and all directives of
any government agency having legal force applicable or relevant to it,
excluding any such non-compliance which would not reasonably be expected to
have a Material Adverse Effect.

17.19              No immunity

(a)                               The
execution by the Borrower of the Finance Documents constitutes, and its
exercise of its rights and performance of its obligations thereunder will
constitute, private and commercial activities done and performed for private
and commercial purposes (rather than public and governmental purposes).

(b)                              In any
proceedings taken in the Russian Federation in relation to the Finance
Documents, the Borrower will not be entitled to claim for itself or any of its
assets immunity from suit, execution, attachment or other legal process.

17.20              Repetition

The
Repeating Representations are deemed to be made by the Borrower by reference to
the facts and circumstances then existing on the date of each Utilisation
Request and the first day of each Interest Period (provided that whenever the
representation in paragraph (c) of Clause 17.3 is deemed to be made on a
date other than the Signing Date or a Utilisation Date, the statement “except
where the same would not be reasonably likely to have a Material Adverse Effect”
shall qualify the representation in said paragraph (c)).

18                               INFORMATION UNDERTAKINGS

The
undertakings in this Clause 18 remain in force from the date of this Agreement
for so long as any amount is outstanding under the Finance Documents or any
Commitment is in force.

 32

 

18.1                     Financial
statements

The
Borrower shall supply to the Agent in sufficient copies for all the Lenders:

(a)                                as soon as
the same become available, but in any event within 180 days after the end of
each of its financial years, its audited consolidated and non-consolidated
financial statements for that financial year; and

(b)                               as soon as
the same become available, but in any event within (i) 60 days after the
end of each of its first, second and third financial quarters and (ii) 90
days after the end of its fourth financial quarter, its unaudited consolidated
and non-consolidated financial statements for that financial quarter.

18.2                     Compliance
Certificate

(a)                               The Borrower
shall supply to the Agent with each set of financial statements delivered
pursuant to Clause 18.1 (Financial
statements), a Compliance Certificate setting out (in reasonable
detail) computations as to compliance with Clause 19 (Financial Covenants) as at the date as at
which those financial statements were drawn up. Each Compliance Certificate
shall be signed by an authorised officer of the Borrower.

(b)                              Where a
Compliance Certificate is required to be delivered with the financial
statements delivered pursuant to paragraph (a) of Clause 18.1 (Financial statements), it shall be
accompanied by a report from the Borrower’s auditors using a form acceptable to
those auditors.

18.3                     Requirements
as to financial statements

(a)                               Each set of
financial statements delivered by the Borrower pursuant to Clause 18.1 (Financial statements) shall be certified
by an authorised officer of the Borrower as fairly representing its (or, as the
case may be, its consolidated) financial condition and operations as at the end
of and for the period in relation to which those financial statements were
drawn up.

(b)                              The Borrower
shall procure that each set of consolidated financial statements delivered
pursuant to Clause 18.1 (Financial
statements) is prepared using GAAP accounting practices and financial reference periods consistent with
those applied in the preparation of the Original Financial Statements unless,
in relation to any set of financial statements, it notifies the Agent that
there has been a change in GAAP, the accounting practices or reference periods
and its auditors deliver to the Agent:

(i)                                   a
description of any change necessary for those financial statements to reflect
the GAAP, accounting practices and reference periods upon which the Original
Financial Statements were prepared; and

(ii)                                sufficient
information, in form and substance as may be reasonably required by the Agent,
to enable the Lenders to determine whether Clause 19 (Financial covenants) has been complied
with and make an accurate comparison between the financial position indicated
in those financial statements and that the Original Financial Statements.

(c)                               Any
reference in this Agreement to those financial statements shall be construed as
a reference to those financial statements as adjusted to reflect the basis upon
which the Original Financial Statements were prepared.

(d)                              The Borrower
shall procure that each set of non-consolidated financial statements delivered
pursuant to Clause 18.1 (Financial
statements) is prepared using RAS accounting practices and financial
reference periods.

 33
 

 

 

18.4                     Information:
miscellaneous

The
Borrower shall supply to the Agent (in sufficient copies for all the Lenders,
if the Agent so requests):

(a)                                all
documents dispatched by the Borrower to its shareholders (or any class of them)
or its creditors generally promptly after they are dispatched;

(b)                               promptly
upon becoming aware of them, the details of any litigation, arbitration or
administrative proceedings which are current, threatened or pending against any
member of the Group, and which would, if adversely determined, be reasonably
likely to have a Material Adverse Effect;

(c)                                promptly,
such information as may be reasonably requested by the Agent (including
relevant figures from management accounts) to ascertain whether any Subsidiary
of the Borrower falls within paragraph (e) of the definition of “Significant
Subsidiary”; and

(d)                               promptly,
such further information regarding the financial condition, business and
operations of any member of the Group as any Finance Party (through the Agent)
may reasonably request.

18.5                     Notification
of Default

(a)                               The Borrower
shall notify the Agent of any Default (and the steps, if any, being taken to
remedy it) promptly upon becoming aware of its occurrence.

(b)                              Promptly
upon a request by the Agent, the Borrower shall supply to the Agent a
certificate signed by two of its directors or senior officers on its behalf
certifying that no Default is continuing (or if a Default is continuing,
specifying the Default and the steps, if any, being taken to remedy it).

18.6                     Know
your customer checks

(a)                               If:

(i)                                   the
introduction of or any change in (or in the interpretation, administration or
application of) any law or regulation made after the date of this Agreement;

(ii)                                any change
in the status of the Borrower after the date of this Agreement; or

(iii)                             a proposed
assignment or transfer by a Lender of any of its rights and obligations under
this Agreement to a party that is not a Lender prior to such assignment or
transfer,

obliges
the Agent or any Lender (or, in the case of paragraph (iii) above, any
prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is
not already available to it, the Borrower shall promptly upon the request of
the Agent or any Lender supply, or procure the supply of, such documentation
and other evidence as is reasonably requested by the Agent (for itself or on
behalf of any Lender) or any Lender (for itself or, in the case of the event
described in paragraph (iii) above, on behalf of any prospective new
Lender) in order for the Agent, such Lender or, in the case of the event
described in paragraph (iii) above, any prospective new Lender to carry
out and be satisfied it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.

(b)                              Each Lender
shall promptly upon the request of the Agent supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent
(for itself) in order for the Agent to carry out and be satisfied it has
complied with all necessary “know your customer” or 

 34
 

 

other
similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.

19                               FINANCIAL COVENANTS

The
financial undertakings in this Clause 19 shall remain in force from the Signing
Date for so long as any amount is outstanding under the Finance Documents or
any Commitment is in force.

19.1                     Financial
condition

The
Borrower shall ensure that:

(a)                                The ratio of
Total Debt as at the end of any Relevant Period to OIBDA in respect of such
Relevant Period will not exceed 3:1; and

(b)                               the ratio of
OIBDA to Interest Expense in respect of any Relevant Period will not be less
than 5:1.

19.2                     Financial
covenant calculations

Total
Debt, OIBDA and Interest Expense shall be calculated and interpreted on a
consolidated basis in accordance with the GAAP applicable to the Original
Financial Statements of the Borrower and shall be expressed in Dollars.

19.3                     Definitions

In this
Clause 19.3:

“Total Debt” means, as at any particular
time, the aggregate outstanding principal, capital or nominal amount (and any
fixed or minimum premium payable on prepayment or redemption) of the Financial
Indebtedness of members of the Group (other than any indebtedness referred to
in paragraph (g) of the definition of Financial Indebtedness and any
guarantee or indemnity in respect of that indebtedness).

For
this purpose, any amount outstanding or repayable in a currency other than
Dollars shall on that day be taken into account in its Dollars equivalent at
the rate of exchange that would have been used had an audited consolidated
balance sheet of the Group been prepared as at that day in accordance with the
GAAP applicable to the Original Financial Statements of the Borrower.

“OIBDA” means, in relation to any Relevant
Period, the total consolidated net income of the Group for that Relevant
Period:

(a)                                before
taking into account the charge or credit to the profit and loss account in
respect of:

(i)                                  minority
interests;

(ii)                               income tax;

(iii)                            non-operating income less non-operating
expenses;

(iv)                           the Group’s share in the net income (or
loss) of any associated companies or undertakings;

(v)                              Interest
Expense;

(vi)                           interest income and

(vii)                        currency exchange and translation
(gains)/losses

 35
 

 

 

(b)                               after adding
back all amounts provided for depreciation and amortisation for that Relevant
Period,

multiplied by two,

as
determined (except as needed to reflect the terms of this Clause 19) from the
financial statements of the Group and Compliance Certificates delivered under
Clause 18.1 (Financial statements)
and Clause 18.2 (Compliance Certificate).

“Interest Expense” means, in relation to any
Relevant Period, the aggregate amount of interest and any other finance charges
(whether or not paid, payable or capitalised) accrued by the Group in that
Relevant Period in respect of Total Debt including:

(a)                                the interest
element of leasing and hire purchase payments;

(b)                               commitment
fees, commissions, arrangement fees and guarantee fees; and

(c)                                amounts in
the nature of interest payable in respect of any shares other than equity share
capital,

adjusted
(but without double counting) by:

(i)                                   adding back
the net amount payable (or deducting the net amount receivable) by members of
the Group in respect of that Relevant Period under any interest or (so far as
they relate to interest) currency hedging arrangements; and

(ii)                                deducting
interest income of the Group in respect of that Relevant Period to the extent
freely payable in cash,

multiplied by two,

as
determined (except as needed to reflect the terms of this Clause 19) from the
financial statements of the Group and Compliance Certificates delivered under
Clause 18.1 (Financial statements)
and Clause 18.2 (Compliance Certificate).

“Relevant Period” means each period of 6
consecutive Months ending on the last day of each financial year and financial
quarter of the Borrower.

20                               GENERAL UNDERTAKINGS

The
undertakings in this Clause 20 remain in force from the date of this Agreement
for so long as any amount is outstanding under the Finance Documents or any
Commitment is in force.

20.1                     Authorisations

The
Borrower shall promptly:

(i)                                   obtain,
comply with and do all that is necessary to maintain in full force and effect;
and

(ii)                                supply
certified copies to the Agent of,

any
Authorisation required under any law or regulation of its jurisdiction of
incorporation to enable it to perform its obligations under the Finance
Documents and to ensure the legality, validity, enforceability or admissibility
in evidence in its jurisdiction of incorporation of any Finance Document.

 36
 

 

 

20.2                     Compliance
with laws

The
Borrower shall comply in all respects with all laws to which it may be subject,
if failure so to comply would materially impair its ability to perform its
obligations under the Finance Documents.

20.3                     Maintenance
of existence

The
Borrower shall maintain its corporate existence.

20.4                     Negative
pledge

(a)                               The Borrower
shall not (and the Borrower shall ensure that no other member of the Group will)
create or permit to subsist any Security over any of its assets.

(b)                              The Borrower
shall not (and the Borrower shall ensure that no other member of the Group
will):

(i)                                   sell,
transfer or otherwise dispose of any of its assets on terms whereby they are or
may  be leased to or re-acquired by the
Borrower or any other member of the Group;

(ii)                                sell,
transfer or otherwise dispose of any of its receivables on recourse terms;

(iii)                             enter into
any arrangement under which money or the benefit of a bank or other account may
be applied, set-off or made subject to a combination of accounts; or

(iv)                            enter into any other preferential
arrangement having a similar effect,

in
circumstances where the arrangement or transaction is entered into primarily as
a method of raising Financial Indebtedness or of financing the acquisition of
an asset.

(c)                               Paragraphs (a) and
(b) above do not apply to Permitted Security.

20.5                     Disposals

(a)                               The Borrower
shall not (and shall ensure that no other member of the Group will) enter into
a single transaction or a series of transactions (whether related or not and
whether voluntary or involuntary) to sell, lease, transfer or otherwise dispose
of any asset.

(b)                              Paragraph (a) above
does not apply to any sale, lease, transfer or other disposal:

(i)                                   made in the
ordinary course of trading of the disposing entity;

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

(iii)                             made from
one member of the Group (other than the Borrower) to another member of the Group;

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

(v)                               where the
book value of such asset (when aggregated with the book value of each other
asset disposed of under this sub-clause (v)) (in each case as calculated in
accordance with GAAP) does not exceed (x) 10% of the Borrower’s Total
Assets in any financial year of the Borrower and (y) 25% of the Borrower’s
Total Assets during the period starting on the Signing Date and ending on the
date that all amounts outstanding under this Agreement have been paid in full.
At the request of the Agent (any such request to be made no more than once per
calendar quarter, unless a Default is continuing), the Borrower shall provide a
certificate to the Agent setting out in reasonable detail the book value of any
assets disposed of under this sub-clause (v) (calculated in accordance
with GAAP); or

 37
 

 

 

(vi)                            involving the transfer of any or all of
the Borrower’s shares in UMC pursuant to the UMC Litigation to a person that is
not a member of the Group (provided that this sub-clause (vi) shall not in
any way prejudice the rights of the Finance Parties under Clause 21.18 (UMC Litigation)).

When
calculating the Borrower’s Total Assets under sub-clause (v) above, if the
annual consolidated balance sheet of the Borrower for the immediately
preceeding financial year of the Borrower is not available, the Borrower’s
Total Assets shall be calculated by reference to the draft audit report then
available for that financial year and any other evidence reasonably requested
by, and reasonably satisfactory to, the Agent.

20.6                     Merger

(a)                               The Borrower
shall not enter into or become subject to any consolidation or reorganisation,
whether by way of merger (sliyaniye
obschestva), company accession (prisoedinyeniye
obschestva), company division (razdelenie  obschestva), company separation (vydelyeniye  obschestva),
company transformation (preobrazovaniye
obschestva), company liquidation
(likvidatisya obschestva) or any other
company reorganisation (reorgnizatsiya
obschestva) (as these terms are
construed by applicable Russian law) or otherwise, or any analogous transaction
in any jurisdiction, other than a consolidation or merger with one of its
Subsidiaries where the Borrower is the surviving entity.

(b)                              The Borrower
shall ensure that no Significant Subsidiary will enter into or become subject
to any consolidation or reorganisation, whether by way of merger (sliyaniye obschestva), company accession (prisoedinyeniye obschestva), company
division (razdeleyeniey obschestva),
company separation (vydelyeniye obschestva),
company transformation (preobrazovaniye
obschestva), company liquidation
(likvidatsiya obschestva) or any
other company reorganisation (reorganizatsiya
obschestva) (as these terms are construed by applicable Russian law)
or otherwise, or any analogous transaction in any jurisdiction if such
reorganisation or transaction would, in the opinion of the Agent (acting
reasonably), have a Material Adverse Effect.

20.7                     Change
of business

The
Borrower shall procure that no substantial change is made to the general nature
of the business of the Borrower or the Group from that carried on at the
Signing Date.

20.8                     Conduct
of business

The
Borrower shall, and shall procure that each of its Significant Subsidiaries
will, conduct its business in all material respects in accordance with:

(a)                                all
Telecommunications Laws to which it is or may become subject;

(b)                               all
requirements of the telecommunications regulators of the Russian Federation,
Ukraine and any other jurisdiction where it conducts its business; and

(c)                                the terms of
all relevant Telecommunications Authorisations.

20.9                     Asset
maintenance

The
Borrower shall, and shall procure that each of its Significant Subsidiaries
will, have and maintain good and marketable title to or valid leases or licences
of, or rights of use relating to, all assets necessary to maintain, develop and
operate and otherwise conduct its business as then being conducted by it and in
each case where failure to do so might reasonably be expected to have a
Material Adverse Effect.

 38
 

 

 

20.10              Insurance

The
Borrower shall (and shall ensure that each other member of the Group will)
maintain insurances on and in relation to its business and assets with
reputable underwriters or insurance companies against those risks, and to the
extent, usually insured against by prudent companies located in the same or a
similar location and carrying on a similar business.

20.11               Transactions
with Related Parties

(a)                               The Borrower
shall not (and the Borrower shall ensure that no other member of the Group
will), directly or indirectly, enter into or permit to exist any intercompany
loan with, or for the benefit of, any Related Party, unless:

(i)                                   the terms of
such intercompany loan are no less favourable to such member of the Group than
those that could be obtained in a comparable arm’s-length transaction or series
of related transactions with a person that is not a Related Party; or

(ii)                                such
intercompany loan is made pursuant to a contract or contracts existing on the
Signing Date (excluding any amendments or modifications thereto after the
Signing Date),

provided
that the aggregate outstanding amount of all such intercompany loans described
in sub-clauses (i) and (ii) above does not, at any time, exceed
$100,000,000.

(b)                              Paragraph (a) above
does not apply to:

(i)                                   compensation
or employee benefit arrangements with any officer or director of any member of
the Group arising out of any employment contract entered into in the ordinary
course of business; or

(ii)                                transactions
between members of the Group.

(c)                               For the
purposes of this Clause 20.11 only, a “Related
Party” means, with respect to any specified person:

(i)                                   any other
person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person; or

(ii)                                any other
person who is a director or executive officer of (a) such specified person
or (b) any person described in (i) above.

For
purposes of the definition of “Related Party”
only, “control” (including, with
correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as used with
respect to any person, shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of
such person, whether through the ownership of voting securities, by agreement
or otherwise; provided that beneficial ownership of 10 per cent. or more of any
class, or any series of any class, of equity securities of a person, whether or
not voting, shall be deemed to be control.

20.12              Restriction on acquisitions

The
Borrower shall not establish or acquire any Subsidiary, acquire any
Telecommunications Licence or invest in any other entity without the consent of
the Majority Lenders (such consent not to be unreasonably withheld), provided
that this Clause 20.12 shall not apply to any such acquisition or
investment where such acquisition or investment relates to a Subsidiary or
entity whose principal business is telecommunications or the provision of data
services or related or ancillary businesses; and either:

 39
 

 

 

(a)                                the
consideration paid by the Borrower in relation to such acquisition or
investment, when aggregated with the consideration paid by the Borrower in
relation to each other acquisition or investment in the same financial year
permitted under this paragraph, does not exceed (i) 20 per cent. of the
Borrower’s Total Assets in the financial year of the Borrower ending 31 December 2006;
and (ii) 20 per cent. (or such higher amount not exceeding 25 per cent. as
the Majority Lenders may agree (acting reasonably)) of the Borrower’s Total
Assets in any other financial year of the Borrower; or

(b)                               the
acquisition is of the Egypt Licence or any person holding the Egypt Licence
(but no other asset).

20.13              Prompt
payment of Taxes

The
Borrower shall (and shall ensure that each Significant Subsidiary will) duly
pay all Taxes payable by it, other than (a) those taxes which are being
contested in good faith and by appropriate proceedings and in respect of which
adequate reserves or other appropriate provisions have been made; or (b) whose
amount does not exceed $25,000,000 (or its equivalent in any other currencies).

20.14              Pari passu

The
Borrower shall, and shall procure that each member of the Group will, procure
that its obligations under the Finance Documents rank at least pari passu with all its other unsecured,
unsubordinated obligations save where such other obligations are mandatorily
preferred by law.

20.15              Loans
and guarantees

(a)                               The Borrower
shall not (and the Borrower shall ensure that no member of the Group will):

(i)                                   make any
loan, or provide any form of credit or financial accommodation, to any person
(including, without limitation, its employees, shareholders, another member of
the Group and any Affiliate); or

(ii)                                give or
issue any guarantee, indemnity, bond or letter of credit to or for the benefit
of, or in respect of liabilities or obligations of, any other person or
voluntarily assume any liability (whether actual or contingent) of any other
person (including, in each case and without limitation, its employees,
shareholders, another member of the Group and any Affiliate).

(b)                              The
restrictions in paragraph (a) above do not apply to (i) loans,
credits, financial accommodation, guarantees, indemnities, bonds and letters of
credit expressly permitted by the Finance Documents or for normal trade credit
on arm’s length terms and in the ordinary course of business or granted by a
member of the Group to another member of the Group, provided that the aggregate
amount of such loans, credits, financial accommodation, guarantees,
indemnities, bonds and letters of credit does not at any time exceed 10 per
cent. of the Borrower’s Total Assets; (ii) guarantees by the Borrower in
relation to the obligations of any other member of the Group; or (iii) the
arrangements permitted under Clause 20.11 (Transactions
with Related Parties).

20.16              Purpose

The
Borrower shall apply the proceeds of the Facilities in accordance with Clause
3.1 (Purpose).

 40
 

 

 

20.17              Existing
Facility

Subject
to the terms of the Syndication Side Letter, the Borrower shall repay in full
the Existing Facility not later than the earlier of the date of the first
Utilisation of Facility 2 and the day falling 30 days from the Syndication
Date.

21                               EVENTS OF DEFAULT

Each of
the events or circumstances set out in Clause 21 is an Event of Default.

21.1                     Non-payment

The
Borrower does not pay on the due date any amount payable pursuant to a Finance
Document at the place at and in the currency in which it is expressed to be
payable unless:

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

(b)                               payment is
made within three Business Days of its due date.

21.2                     Financial
covenants

Any
requirement of Clause 19 (Financial
Covenants) is not satisfied.

21.3                     Other
obligations

(a)                               The Borrower
does not comply with any provision of the Finance Documents (other than those
referred to in Clause 21.1 (Non-payment)
and Clause 21.2 (Financial Covenants)).

(b)                              No Event of
Default under paragraph (a) above will occur if the failure to comply is
capable of remedy and is remedied within 10 Business Days of the Agent giving
notice to the Borrower or the Borrower becoming aware of the failure to comply.

21.4                     Misrepresentation

Any
representation or statement made or deemed to be made by the Borrower in the
Finance Documents or any other document delivered by or on behalf of the
Borrower under or in connection with any Finance Document is or proves to have
been incorrect or misleading in any material respect when made or deemed to be
made, and such representation or statement shall not have been rendered correct
and not misleading within 10 Business Days of the Agent giving notice to the
Borrower or the Borrower becoming aware of the same.

21.5                     Cross
default

(a)                               Any single
item of Financial Indebtedness of any member of the Group in an amount
exceeding $10,000,000 (or its equivalent in any other currency or currencies)
is not paid when due nor within any originally applicable grace period.

(b)                              Any single
item of Financial Indebtedness of any member of the Group in an amount
exceeding $10,000,000 (or its equivalent in any other currency or currencies)
is declared to be or otherwise becomes due and payable prior to its specified
maturity as a result of an event of default (however described).

(c)                               Any single
commitment for any Financial Indebtedness of any member of the Group in an
amount exceeding $10,000,000 (or its equivalent in any other currency or
currencies) is cancelled or suspended by a creditor of any member of the Group
as a result of an event of default (however described).

 41
 

 

 

(d)                              Any creditor
of any member of the Group becomes entitled to declare any single item of
Financial Indebtedness of any member of the Group in an amount exceeding
$10,000,000 (or its equivalent in any other currency or currencies) due and
payable prior to its specified maturity as a result of an event of default
(however described).

(e)                               Any of the
events described in paragraphs (a) to (d) above occurs in relation to
any Financial Indebtedness or commitment for Financial Indebtedness of any
amount (including, for the avoidance of doubt, any amount that is less than
$10,000,000 (or its equivalent in any other currency or currencies)), and the
aggregate amount of all such Financial Indebtedness and commitments for
Financial Indebtedness is in excess of $35,000,000 (or its equivalent in any
other currency or currencies).

21.6                     Insolvency

(a)                               The Borrower
or a Significant Subsidiary is unable or admits its inability to pay its debts
as they fall due, suspends making payments on its debts generally or, by reason
of actual or anticipated financial difficulties, commences negotiations with
one or more of its creditors with a view to rescheduling its indebtedness
generally.

(b)                              The value of
the assets of the Borrower or a Significant Subsidiary is less than its
liabilities (taking into account contingent and prospective liabilities).

(c)                               A moratorium
is declared in respect of the indebtedness of the Borrower or a Significant
Subsidiary.

21.7                     Insolvency
proceedings

Any
corporate action or legal proceedings are taken in relation to:

(a)                                the
bankruptcy, winding-up, insolvency, dissolution, administration, reorganisation
or liquidation of the Borrower or a Significant Subsidiary, including, but not
limited to, institution of supervision (nablyudenie),
financial rehabilitation (finansovoe
ozdorovlenie), external management (vneshneye
upravlenie) or bankruptcy management (konkursnoye upravlenie) (and such legal proceedings continue
for at least 14 days);

(b)                               the
suspension of payments or a moratorium of any indebtedness of the Borrower or a
Significant Subsidiary (and such suspension continues for at least 14 days);

(c)                                the
presentation or filing of a petition (or similar document) in respect of the
Borrower or a Significant Subsidiary in any court, state arbitration court (arbitrazhnyi sud) or before any other
authority in respect of the bankruptcy, winding-up, insolvency, dissolution,
administration, reorganisation or liquidation of the Borrower or a Significant
Subsidiary (and such petition has not been discharged within 14 days);

(d)                               the
appointment of a liquidator (likvidator)
or a liquidation commission (likvidatsionnaya
komissiya), temporary manager (vremenniy
upravlaushiy), administrative manager (administrativniy upravlaushiy), external manager (vneshniy upravlaushiy), bankruptcy manager
(konkursniy upravlaushiy),
receiver, administrator, administrative receiver, compulsory manager or other
similar officer in respect of the Borrower or a Significant Subsidiary or any
of its assets (and such appointment continues for at least 14 days); or

(e)                                the
enforcement of any Security over any asset or assets of the Borrower or a
Significant Subsidiary (unless such enforcement is stayed within 14 days),

or any
analogous procedure or step is taken in any jurisdiction.

 42
 

 

 

21.8                     Creditors’
process

Any
expropriation, attachment, sequestration, distress or execution affects any
asset or assets of the Borrower or a Significant Subsidiary with a value in
excess of $10,000,000 (or its equivalent in any other currency or currencies)
and is not discharged or stayed within 30 days.

21.9                     Judgment

The
rendering against the Borrower or any Subsidiary of the Borrower of a judgment,
decree or order for the payment of money in an amount in excess of $10,000,000
(or its equivalent in any other currency or currencies) and the continuance of
any such judgment, decree or order unsatisfied and in effect for any period of
60 consecutive days without a stay of execution.

21.10              Loss of
Licence

(a)                                  Any action
results in the suspension for more than 30 days or the loss, revocation or
termination of any of:

(i)                                   the Borrower’s
GSM 900 or 1800 licences for the Moscow licence area, the St.Petersburg licence
area and the Krasnodar licence area; or

(ii)                                UMC’s GSM
900 or 1800 licences for the Ukraine licence area,

except
where, within 30 days of any such event, the relevant licence is re-issued on
substantially the same terms to any member of the Group and during the period
falling before such re-issuance there is no material interruption to, or other
material adverse effect on, the operations permitted by such license as a
direct result of such prior loss, revocation or termination.

(b)                              Any of the
Borrower’s or UMC’s GSM 900 or 1800
licences are amended (or any conditions are imposed with respect to any such
licence) in a manner that, in the reasonable opinion of the Majority Lenders,
has or is reasonably likely to have a Material Adverse Effect.

(c)                               Any of the
Borrower’s or UMC’s assigned spectrum
allocations are reassigned to other users (other than a Significant Subsidiary
of the Borrower), cancelled or otherwise lost, and such event, in the
reasonable opinion of the Majority Lenders, has or is reasonably likely to have
a Material Adverse Effect.

(d)                              The Borrower
sells, leases or otherwise transfers any of its GSM 900 or 1800 licences for
the Moscow, St.Petersburg or Krasnodar licence areas.

(e)                               Any of the
Borrower’s GSM 900 or 1800 licences (other than its GSM 900 and 1800 licences
for the Moscow, St.Petersburg or Krasnodar licence areas) is sold, leased or
transferred to any person that is not (directly or indirectly) a wholly-owned
Subsidiary of the Borrower.

(f)

(i)                                   Any of the
GSM 900 or 1800 licences of UMC is sold, leased or transferred to any person
that is not (directly or indirectly) a wholly-owned Subsidiary of the Borrower.

(ii)                                Sub-clause (i) above
does not apply to the transfer of the GSM 900 or 1800 licences of UMC pursuant
to the UMC Litigation (provided that this sub-clause (ii) shall not in any
way prejudice the rights of the Finance Parties under Clause 21.18 (UMC Litigation)).

21.11               Cessation
of Business

The
Borrower or any Significant Subsidiary suspends, ceases or threatens to suspend
or cease to carry on all or a substantial part of its business.

 43
 

 

 

21.12              Expropriation

(a)                               By or under
the authority of any government:

(i)                                   any seizure,
compulsory acquisition, expropriation, nationalisation or renationalisation is
made after the Signing Date of all or any material part of the assets or shares
of (or other ownership interest in) any member of the Group;

(ii)                                the
management of any member of the Group is wholly or partially displaced or the
authority of any member of the Group in the conduct of its business is wholly
or partially curtailed; or

(iii)                             any member
of the Group is otherwise deprived of, or prevented from exercising ownership
or control of, its material business or assets.

(b)                              Paragraph (a) above
does not apply to:

(i)                                   the transfer
of any or all of the Borrower’s shares in UMC pursuant to the UMC Litigation to
a person that is not a member of the Group (provided that this paragraph (b)(i) shall
not in any way prejudice the rights of the Finance Parties under Clause 21.18 (UMC Litigation)) or

(ii)                                the transfer
of any or all of:

(a)                               the assets
(including licences) held by Bitel; and/or

(b)                              the shares
in Bitel

pursuant
to the Bitel Litigation, to a person that is not a member of the Group.

21.13              Russian
Foreign Exchange Restrictions

Any
foreign exchange law is enacted or introduced in the Russian Federation which
has the effect of prohibiting, restricting or delaying any payment by the
Borrower or any member of the Group under the Finance Documents.

21.14              Moratorium

Any
moratorium is declared on the payment of any external indebtedness of the
Russian Federation or of Russian residents generally.

21.15              The
Russian Federation

The
political or economic situation in the Russian Federation deteriorates or an
act of war or hostilities, invasion, armed conflict or act of a foreign enemy,
revolution, insurrection or insurgency occurs in, or involves, the Russian
Federation and such event, in the reasonable opinion of the Majority Lenders,
has or is reasonably likely to have a Material Adverse Effect.

21.16              Unlawfulness

It is
or becomes unlawful for the Borrower to perform any of its obligations under the
Finance Documents.

21.17              Repudiation

The
Borrower repudiates a Finance Document or evinces an intention to repudiate a
Finance Document.

 44
 

 

 

21.18              UMC
Litigation

The UMC
Litigation is adversely determined and, in the reasonable opinion of the
Majority Lenders, such adverse determination has or is reasonably likely to
have a Material Adverse Effect.

21.19              Material
adverse change

The
Majority Lenders determine that a Material Adverse Effect exists, has occurred
or is reasonably likely to occur.

21.20              Acceleration

On and
at any time after the occurrence of an Event of Default which is continuing the
Agent may, and shall if so directed by the Majority Lenders, by notice to the
Borrower:

(a)                                cancel the
Total Commitments whereupon they shall immediately be cancelled;

(b)                               declare that all or part of the Loans, together
with accrued interest, and all other amounts accrued or outstanding under the
Finance Documents be immediately due and payable, whereupon they shall become
immediately due and payable; and

(c)                                declare that all or part of the Loans be payable
on demand, whereupon they shall immediately become payable on demand by the
Agent on the instructions of the Majority Lenders.

 

 45

 

SECTION 8

CHANGES TO PARTIES

22                               CHANGES TO THE LENDERS

22.1                     Assignments
and transfers by the Lenders

(a)                               Subject to
this Clause 22, a Lender (the “Existing
Lender”) may:

(i)                                   assign any
of its rights; or

(ii)                                transfer by
novation any of its rights and obligations,

to
another bank or financial institution or to a trust, fund or other entity which
is regularly engaged in or established for the purpose of making, purchasing or
investing in loans, securities or other financial assets (the “New Lender”).

(b)                              Unless (i) the
assignment or transfer is to an Affiliate of the Existing Lender or to another
Lender or (ii) an Event of Default has occurred, any assignment or
transfer occurring after the Syndication Date may be made only after notice of
the proposed assignment or transfer has been given to the Borrower.

22.2                     Conditions
of assignment or transfer

(a)                               An
assignment will only be effective on:

(i)                                   receipt by
the Agent of written confirmation from the New Lender (in form and substance
satisfactory to the Agent) that the New Lender will assume the same obligations
to the other Finance Parties as it would have been under if it was an Original
Lender; and

(ii)                                performance
by the Agent of all “know your customer” or other checks relating to any person
that it is required to carry out in relation to such assignment to a New
Lender, the completion of which the Agent shall promptly notify to the Existing
Lender and the New Lender.

(b)                              A transfer
will only be effective if the procedure set out in Clause 22.5 (Procedure for transfer) is complied with.

(c)                               Any
assignment or transfer by an Existing Lender to a New Lender shall only be
effective if it transfers or assigns the Existing Lender’s share of each
Facility pro rata.

(d)                              If:

(i)                                   a Lender
assigns or transfers any of its rights or obligations under the Finance
Documents or changes its Facility Office; and

(ii)                                as a result
of circumstances existing at the date the assignment, transfer or change
occurs, the Borrower would be obliged to make a payment to the New Lender or
Lender acting through its new Facility Office under Clause 12 (Tax gross-up and indemnities) or Clause
13.1 (Increased Costs),

then
the New Lender or Lender acting through its new Facility Office is only
entitled to receive payment under those Clauses to the same extent as the
Existing Lender or Lender acting through its previous Facility Office would
have been if the assignment, transfer or change had not occurred.

 46
 

 

 

22.3                     Assignment
or transfer fee

The New
Lender shall, on the date upon which an assignment or transfer takes effect,
pay to the Agent (for its own account) a fee of $1,000.

22.4                     Limitation
of responsibility of Existing Lenders

(a)                               Unless
expressly agreed to the contrary, an Existing Lender makes no representation or
warranty and assumes no responsibility to a New Lender for:

(i)                                   the
legality, validity, effectiveness, adequacy or enforceability of the Finance
Documents or any other documents;

(ii)                                the
financial condition of the Borrower;

(iii)                             the
performance and observance by the Borrower of its obligations under the Finance
Documents or any other documents; or

(iv)                            the accuracy of any statements (whether
written or oral) made in or in connection with any Finance Document or any
other document,

and any
representations or warranties implied by law are excluded.

(b)                              Each New
Lender confirms to the Existing Lender and the other Finance Parties that it:

(i)                                   has made
(and shall continue to make) its own independent investigation and assessment
of the financial condition and affairs of the Borrower and its related entities
in connection with its participation in this Agreement and has not relied
exclusively on any information provided to it by the Existing Lender in
connection with any Finance Document; and

(ii)                                will
continue to make its own independent appraisal of the creditworthiness of the
Borrower and its related entities whilst any amount is or may be outstanding
under the Finance Documents or any Commitment is in force.

(c)                               Nothing in
any Finance Document obliges an Existing Lender to:

(i)                                   accept a re-transfer
from a New Lender of any of the rights and obligations assigned or transferred
under this Clause 22; or

(ii)                                support any
losses directly or indirectly incurred by the New Lender by reason of the
non-performance by the Borrower of its obligations under the Finance Documents
or otherwise.

22.5                     Procedure
for transfer

(a)                               Subject to
the conditions set out in Clause 22.2 (Conditions
of assignment or transfer) a transfer is effected in accordance with
paragraph (c) below when the Agent executes an otherwise duly completed
Transfer Certificate delivered to it by the Existing Lender and the New Lender.
The Agent shall, subject to paragraph (b) below, as soon as reasonably
practicable after receipt by it of a duly completed Transfer Certificate
appearing on its face to comply with the terms of this Agreement and delivered
in accordance with the terms of this Agreement, execute that Transfer
Certificate.

(b)                              The Agent
shall only be obliged to execute a Transfer Certificate delivered to it by the
Existing Lender and the New Lender once it is satisfied it has complied with
all necessary “know your customer” or other similar checks under all applicable
laws and regulations in relation to the transfer to such New Lender.

(c)                               On the
Transfer Date:

 47
 

 

 

(i)                                   to the extent
that in the Transfer Certificate the Existing Lender seeks to transfer by
novation its rights and obligations under the Finance Documents the Borrower
and the Existing Lender shall be released from further obligations towards one
another under the Finance Documents and their respective rights against one
another under the Finance Documents shall be cancelled (being the “Discharged Rights and Obligations”);

(ii)                                the Borrower
and the New Lender shall assume obligations towards one another and/or acquire
rights against one another which differ from the Discharged Rights and
Obligations only insofar as the Borrower and the New Lender have assumed and/or
acquired the same in place of the Borrower and the Existing Lender;

(iii)                             the Agent,
the Mandated Lead Arrangers, the New Lender and other Lenders shall acquire the
same rights and assume the same obligations between themselves as they would
have acquired and assumed had the New Lender been an Original Lender with the
rights and/or obligations acquired or assumed by it as a result of the transfer
and to that extent the Agent, the Mandated Lead Arrangers and the Existing
Lender shall each be released from further obligations to each other under the
Finance Documents; and

(iv)                            the New Lender shall become a Party as a “Lender”.

22.6                     Disclosure
of information

Any
Lender may disclose to any of its Affiliates and any other person:

(a)                                to (or
through) whom that Lender assigns or transfers (or may potentially assign or
transfer) all or any of its rights and obligations under this Agreement;

(b)                               with (or
through) whom that Lender enters into (or may potentially enter into) any
sub-participation in relation to, or any other transaction under which payments
are to be made by reference to, this Agreement or the Borrower; or

(c)                                to whom, and
to the extent that, information is required to be disclosed by any applicable
law or regulation,

any
information about the Borrower, the Group and the Finance Documents as that
Lender shall consider appropriate if, in relation to paragraphs (a) and (b) above,
the person to whom the information is to be given has entered into a
Confidentiality Undertaking. This Clause supersedes any previous agreement
relating to the confidentiality of this information.

23                               CHANGES TO THE BORROWER

The
Borrower may not assign any of its rights or transfer any of its rights or
obligations under the Finance Documents.

 48
 

 

SECTION 9

THE FINANCE PARTIES

24                               ROLE OF THE AGENT AND THE MANDATED LEAD
ARRANGERS

24.1                     Appointment
of the Agent

(a)                               Each other
Finance Party appoints the Agent to act as its agent under and in connection
with the Finance Documents.

(b)                              Each other
Finance Party authorises the Agent to exercise the rights, powers, authorities
and discretions specifically given to it under or in connection with the Finance
Documents together with any other incidental rights, powers, authorities and
discretions.

24.2                     Duties
of the Agent

(a)                               The Agent
shall promptly forward to a Party the original or a copy of any document which
is delivered to the Agent for that Party by any other Party.

(b)                              Except where
a Finance Document specifically provides otherwise, the Agent is not obliged to
review or check the adequacy, accuracy or completeness of any document it
forwards to another Party.

(c)                               If the Agent
receives notice from a Party referring to this Agreement, describing a Default
and stating that the circumstance described is a Default, it shall promptly
notify the Finance Parties.

(d)                              If the Agent
is aware of the non-payment of any principal, interest, commitment fee or other
fee payable to a Finance Party (other than the Agent or the Mandated Lead
Arrangers) under this Agreement it shall promptly notify the other Finance
Parties.

(e)                               The Agent’s
duties under the Finance Documents are solely mechanical and administrative in
nature.

24.3                     Role of
the Mandated Lead Arrangers

Except
as specifically provided in the Finance Documents, the Mandated Lead Arrangers
have no obligations of any kind to any other Party under or in connection with
any Finance Document.

24.4                     No
fiduciary duties

(a)                               Nothing in
this Agreement constitutes the Agent or the Mandated Lead Arrangers as a
trustee or fiduciary of any other person.

(b)                              Neither the
Agent nor any Mandated Lead Arranger shall be bound to account to any Lender
for any sum or the profit element of any sum received by it for its own
account.

24.5                     Business
with the Group

The
Agent and the Mandated Lead Arrangers may accept deposits from, lend money to
and generally engage in any kind of banking or other business with any member
of the Group.

24.6                     Rights
and discretions of the Agent

(a)                               The Agent
may rely on:

 49
 

 

 

(i)                                   any
representation, notice or document believed by it to be genuine, correct and
appropriately authorised; and

(ii)                                any
statement made by a director, authorised signatory or employee of any person
regarding any matters which may reasonably be assumed to be within his
knowledge or within his power to verify.

(b)                              The Agent
may assume, unless it has received notice to the contrary in its capacity as
agent for the Lenders, that:

(i)                                   no Default
has occurred (unless it has actual knowledge of a Default arising under Clause
21.1 (Non-payment)); and

(ii)                                any right,
power, authority or discretion vested in any Party or the Majority Lenders has
not been exercised.

(c)                               The Agent
may engage, pay for and rely on the advice or services of any lawyers,
accountants, surveyors or other experts.

(d)                              The Agent
may act in relation to the Finance Documents through its personnel and agents.

(e)                               The Agent
may disclose to any other Party any information it reasonably believes it has
received as agent under this Agreement.

(f)                                 Notwithstanding
any other provision of any Finance Document to the contrary, neither the Agent
nor any Mandated Lead Arranger is obliged to do or omit to do anything if it
would or might in its reasonable opinion constitute a breach of any law or
regulation or a breach of a fiduciary duty or duty of confidentiality.

24.7                     Majority
Lenders’ instructions

(a)                               Unless a
contrary indication appears in a Finance Document, the Agent shall (i) exercise
any right, power, authority or discretion vested in it as Agent in accordance
with any instructions given to it by the Majority Lenders (or, if so instructed
by the Majority Lenders, refrain from exercising any right, power, authority or
discretion vested in it as Agent) and (ii) not be liable for any act (or
omission) if it acts (or refrains from taking any action) in accordance with an
instruction of the Majority Lenders.

(b)                              Unless a
contrary indication appears in a Finance Document, any instructions given by
the Majority Lenders will be binding on all the Finance Parties.

(c)                               The Agent
may refrain from acting in accordance with the instructions of the Majority
Lenders (or, if appropriate, the Lenders) until it has received such security
as it may require for any cost, loss or liability (together with any associated
VAT) which it may incur in complying with the instructions.

(d)                              In the
absence of instructions from the Majority Lenders (or, if appropriate, the
Lenders), the Agent may act (or refrain from taking action) as it considers to
be in the best interest of the Lenders.

(e)                               The Agent is
not authorised to act on behalf of a Lender (without first obtaining that
Lender’s consent) in any legal or arbitration proceedings relating to any
Finance Document.

24.8                     Responsibility
for documentation

Neither
the Agent nor any Mandated Lead Arranger:

(a)                                is
responsible for the adequacy, accuracy and/or completeness of any information
(whether oral or written) supplied by the Agent, the Mandated Lead Arrangers,
the 

 50
 

 

 

Borrower
or any other person given in or in connection with any Finance Document or the
Information Memorandum; or

(b)                               is
responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or
document entered into, made or executed in anticipation of or in connection
with any Finance Document.

24.9                     Exclusion
of liability

(a)                               Without
limiting paragraph (b) below, the Agent will not be liable for any action
taken by it under or in connection with any Finance Document, unless directly
caused by its gross negligence or wilful misconduct.

(b)                              No Party
(other than the Agent) may take any proceedings against any officer, employee
or agent of the Agent in respect of any claim it might have against the Agent
or in respect of any act or omission of any kind by that officer, employee or
agent in relation to any Finance Document and any officer, employee or agent of
the Agent may rely on this Clause.

(c)                               The Agent
will not be liable for any delay (or any related consequences) in crediting an
account with an amount required under the Finance Documents to be paid by it if
it has taken all necessary steps as soon as reasonably practicable to comply
with the regulations or operating procedures of any recognised clearing or
settlement system used by it for that purpose.

(d)                              Nothing in
this Agreement shall oblige the Agent or the Mandated Lead Arrangers to carry
out any “know your customer” or other checks in relation to any person on
behalf of any Lender and each Lender confirms to the Agent and the Mandated
Lead Arrangers that it is solely responsible for any such checks it is required
to carry out and that it may not rely on any statement in relation to such
checks made by the Agent or the Mandated Lead Arrangers.

24.10              Lenders’
indemnity to the Agent

Each
Lender shall (in proportion to its share of the Total Commitments or, if the
Total Commitments are then zero, to its share of the Total Commitments
immediately prior to their reduction to zero) indemnify the Agent, within three
Business Days of demand, against any cost, loss or liability incurred by the
Agent (otherwise than by reason of the Agent’s gross negligence or wilful
misconduct) in acting as Agent under the Finance Documents (unless the Agent
has been reimbursed by the Borrower pursuant to a Finance Document).

24.11               Resignation
of the Agent

(a)                               The Agent
may resign and appoint one of its Affiliates acting through an office in the
United Kingdom as successor by giving notice to the other Finance Parties and
the Borrower.

(b)                              Alternatively
the Agent may resign by giving notice to the other Finance Parties and the
Borrower, in which case the Majority Lenders (after consultation with the
Borrower) may appoint a successor Agent.

(c)                               If the
Majority Lenders have not appointed a successor Agent in accordance with
paragraph (b) above within 30 days after notice of resignation was given,
the Agent (after consultation with the Borrower) may appoint a successor Agent
(acting through an office in the United Kingdom).

(d)                              The retiring
Agent shall, at its own cost, make available to its successor such documents
and records and provide such assistance as its successor may reasonably request
for the purposes of performing its functions as Agent under the Finance
Documents.

(e)                               The Agent’s
resignation notice shall only take effect upon the appointment of a successor.

 51
 

 

 

(f)                                 Upon the
appointment of a successor, the retiring Agent shall be discharged from any
further obligation in respect of the Finance Documents but shall remain
entitled to the benefit of this Clause 24. Its successor and each of the other
Parties shall have the same rights and obligations amongst themselves as they
would have had if such successor had been an original Party.

(g)                              After
consultation with the Borrower, the Majority Lenders may, by notice to the
Agent, require it to resign in accordance with paragraph (b) above. In
this event, the Agent shall resign in accordance with paragraph (b) above.

24.12              Confidentiality

(a)                               In acting as
agent for the Finance Parties, the Agent shall be regarded as acting through
its agency division which shall be treated as a separate entity from any other
of its divisions or departments.

(b)                              If
information is received by another division or department of the Agent, it may
be treated as confidential to that division or department and the Agent shall
not be deemed to have notice of it.

24.13              Relationship
with the Lenders

(a)                               The Agent
may treat each Lender as a Lender, entitled to payments under this Agreement
and acting through its Facility Office unless it has received not less than
five Business Days prior notice from that Lender to the contrary in accordance
with the terms of this Agreement.

(b)                              Each Lender
shall supply the Agent with any information required by the Agent in order to
calculate the Mandatory Cost in accordance with Schedule 5 (Mandatory Cost  formula).

24.14              Credit
appraisal by the Lenders

Without
affecting the responsibility of the Borrower for information supplied by it or
on its behalf in connection with any Finance Document, each Lender confirms to
the Agent and the Mandated Lead Arrangers that it has been, and will continue
to be, solely responsible for making its own independent appraisal and
investigation of all risks arising under or in connection with any Finance
Document including but not limited to:

(a)                                the
financial condition, status and nature of each member of the Group;

(b)                               the
legality, validity, effectiveness, adequacy or enforceability of any Finance
Document and any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document;

(c)                                whether that
Lender has recourse, and the nature and extent of that recourse, against any
Party or any of its respective assets under or in connection with any Finance
Document, the transactions contemplated by the Finance Documents or any other
agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document; and

(d)                               the
adequacy, accuracy and/or completeness of the Information Memorandum and any
other information provided by the Agent, any Party or by any other person under
or in connection with any Finance Document, the transactions contemplated by
the Finance Documents or any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any
Finance Document.

 52
 

 

 

24.15              Reference
Banks

If a
Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it
is an Affiliate) ceases to be a Lender, the Agent shall (in consultation with
the Borrower) appoint another Lender or an Affiliate of a Lender to replace
that Reference Bank.

24.16              Deduction
from amounts payable by the Agent

If any
Party owes an amount to the Agent under the Finance Documents the Agent may,
after giving notice to that Party, deduct an amount not exceeding that amount
from any payment to that Party which the Agent would otherwise be obliged to
make under the Finance Documents and apply the amount deducted in or towards
satisfaction of the amount owed. For the purposes of the Finance Documents that
Party shall be regarded as having received any amount so deducted.

25                               CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No
provision of this Agreement will:

(a)                                interfere
with the right of any Finance Party to arrange its affairs (tax or otherwise)
in whatever manner it thinks fit;

(b)                               oblige any
Finance Party to investigate or claim any credit, relief, remission or
repayment available to it or the extent, order and manner of any claim; or

(c)                                oblige any
Finance Party to disclose any information relating to its affairs (tax or
otherwise) or any computations in respect of Tax.

26                               SHARING AMONG THE FINANCE PARTIES

26.1                     Payments
to Finance Parties

If a
Finance Party (a “Recovering Finance Party”)
receives or recovers any amount from the Borrower other than in accordance with
Clause 27 (Payment Mechanics) and
applies that amount to a payment due under the Finance Documents then:

(a)                                the
Recovering Finance Party shall, within three Business Days, notify details of
the receipt or recovery to the Agent;

(b)                               the Agent
shall determine whether the receipt or recovery is in excess of the amount the
Recovering Finance Party would have been paid had the receipt or recovery been
received or made by the Agent and distributed in accordance with Clause 27 (Payment Mechanics), without taking account
of any Tax which would be imposed on the Agent in relation to the receipt,
recovery or distribution; and

(c)                                the Recovering
Finance Party shall, within three Business Days of demand by the Agent, pay to
the Agent an amount (the “Sharing Payment”)
equal to such receipt or recovery less any amount which the Agent determines
may be retained by the Recovering Finance Party as its share of any payment to
be made, in accordance with Clause 27.5 (Partial
payments).

26.2                     Redistribution
of payments

The
Agent shall treat the Sharing Payment as if it had been paid by the Borrower
and distribute it between the Finance Parties (other than the Recovering
Finance Party) in accordance with Clause 27.5 (Partial
payments).

 53
 

 

 

26.3                     Recovering
Finance Party’s rights

(a)                               On a
distribution by the Agent under Clause 26.2 (Redistribution
of payments), the Recovering Finance Party will be subrogated to the
rights of the Finance Parties which have shared in the redistribution.

(b)                              If and to
the extent that the Recovering Finance Party is not able to rely on its rights
under paragraph (a) above, the Borrower shall be liable to the Recovering
Finance Party for a debt equal to the Sharing Payment which is immediately due
and payable.

26.4                     Reversal
of redistribution

If any
part of the Sharing Payment received or recovered by a Recovering Finance Party
becomes repayable and is repaid by that Recovering Finance Party, then:

(a)                                each Finance
Party which has received a share of the relevant Sharing Payment pursuant to
Clause 26.2 (Redistribution of payments)
shall, upon request of the Agent, pay to the Agent for account of that
Recovering Finance Party an amount equal to the appropriate part of its share
of the Sharing Payment (together with an amount as is necessary to reimburse
that Recovering Finance Party for its proportion of any interest on the Sharing
Payment which that Recovering Finance Party is required to pay); and

(b)                               that
Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the Borrower will be liable to the
reimbursing Finance Party for the amount so reimbursed.

26.5                     Exceptions

(a)                               This Clause
26 shall not apply to the extent that the Recovering Finance Party would not,
after making any payment pursuant to this Clause, have a valid and enforceable
claim against the Borrower.

(b)                              A Recovering
Finance Party is not obliged to share with any other Finance Party any amount
which the Recovering Finance Party has received or recovered as a result of
taking legal or arbitration proceedings, if:

(i)                                   it notified
that other Finance Party of the legal or arbitration proceedings; and

(ii)                                that other
Finance Party had an opportunity to participate in those legal or arbitration
proceedings but did not do so as soon as reasonably practicable having received
notice and did not take separate legal or arbitration proceedings.

 54

 

SECTION 10

ADMINISTRATION

27                               PAYMENT MECHANICS

27.1                     Payments
to the Agent

(a)                               On each date
on which the Borrower or a Lender is required to make a payment under a Finance
Document, the Borrower or Lender shall make the same available to the Agent
(unless a contrary indication appears in a Finance Document) for value on the
due date at the time and in such funds specified by the Agent as being
customary at the time for settlement of transactions in the relevant currency
in the place of payment.

(b)                              Payment shall
be made to such account in the principal financial centre of the country of
that currency (or, in relation to euro, in the principal financial centre in a
Participating Member State or London) with such bank as the Agent specifies.

27.2                     Distributions
by the Agent

Each
payment received by the Agent under the Finance Documents for another Party
shall, subject to Clause 27.3 (Distributions
to  the  Borrower) and Clause 27.4 (Clawback), be made available by the Agent
as soon as practicable after receipt to the Party entitled to receive payment
in accordance with this Agreement (in the case of a Lender, for the account of
its Facility Office), to such account as that Party may notify to the Agent by
not less than five Business Days’ notice with a bank in the principal financial
centre of the country of that currency.

27.3                     Distributions
to the Borrower

The
Agent may (with the Borrower’s consent or in accordance with Clause 28 (Set-off)) apply any amount received by it
for the Borrower in or towards payment (on the date and in the currency and
funds of receipt) of any amount due from the Borrower under the Finance
Documents or in or towards purchase of any amount of any currency to be so
applied.

27.4                     Clawback

(a)                               Where a sum
is to be paid to the Agent under the Finance Documents for another Party, the
Agent is not obliged to pay that sum to that other Party (or to enter into or
perform any related exchange contract) until it has been able to establish to
its satisfaction that it has actually received that sum.

(b)                              If the Agent
pays an amount to another Party and it proves to be the case that the Agent had
not actually received that amount, then the Party to whom that amount (or the
proceeds of any related exchange contract) was paid by the Agent shall on
demand refund the same to the Agent together with interest on that amount from
the date of payment to the date of receipt by the Agent, calculated by the
Agent to reflect its cost of funds.

27.5                     Partial
payments

(a)                               If the Agent
receives a payment that is insufficient to discharge all the amounts then due
and payable by the Borrower under the Finance Documents, the Agent shall apply
that payment towards the obligations of the Borrower under the Finance
Documents in the following order:

(i)                                   first, in or
towards payment pro rata of any unpaid fees, costs and expenses of the Agent or
the Mandated Lead Arrangers under the Finance Documents;

 55
 

 

(ii)                                secondly, in
or towards payment pro rata of any accrued interest, fee or commission due but
unpaid under this Agreement;

(iii)                             thirdly, in
or towards payment pro rata of any principal due but unpaid under this
Agreement; and

(iv)                            fourthly, in or towards payment pro rata
of any other sum due but unpaid under the Finance Documents.

(b)                              The Agent
shall, if so directed by the Majority Lenders, vary the order set out in
paragraphs (a)(ii) to (iv) above.

(c)                               Paragraphs (a) and
(b) above will override any appropriation made by the Borrower.

27.6                     No
set-off by the Borrower

All
payments to be made by the Borrower under the Finance Documents shall be
calculated and be made without (and free and clear of any deduction for)
set-off or counterclaim.

27.7                     Business
Days

(a)                               Any payment
which is due to be made on a day that is not a Business Day shall be made on
the next Business Day in the same calendar month (if there is one) or the
preceding Business Day (if there is not).

(b)                              During any
extension of the due date for payment of any principal or Unpaid Sum under this
Agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date.

27.8                     Currency
of account

(a)                               Subject to
paragraphs (b) to (e) below, Dollars is the currency of account and
payment for any sum due from the Borrower under any Finance Document.

(b)                              A repayment
of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the
currency in which that Loan or Unpaid Sum is denominated on its due date.

(c)                               Each payment
of interest shall be made in the currency in which the sum in respect of which
the interest is payable was denominated when that interest accrued.

(d)                              Each payment
in respect of costs, expenses or Taxes shall be made in the currency in which
the costs, expenses or Taxes are incurred.

(e)                               Any amount
expressed to be payable in a currency other than Dollars shall be paid in that
other currency.

27.9                     Change
of currency

(a)                               Unless
otherwise prohibited by law, if more than one currency or currency unit are at
the same time recognised by the central bank of any country as the lawful
currency of that country, then:

(i)                                   any
reference in the Finance Documents to, and any obligations arising under the
Finance Documents in, the currency of that country shall be translated into, or
paid in, the currency or currency unit of that country designated by the Agent
(after consultation with the Borrower); and

 56
 

 

 

(ii)                                any
translation from one currency or currency unit to another shall be at the
official rate of exchange recognised by the central bank for the conversion of
that currency or currency unit into the other, rounded up or down by the Agent (acting
reasonably).

(b)                              If a change
in any currency of a country occurs, this Agreement will, to the extent the
Agent (acting reasonably and after consultation with the Borrower) specifies to
be necessary, be amended to comply with any generally accepted conventions and
market practice in the London interbank market and otherwise to reflect the
change in currency.

28                               SET-OFF

A
Finance Party may set off any matured obligation due from the Borrower under
the Finance Documents (to the extent beneficially owned by that Finance Party)
against any matured obligation owed by that Finance Party to the Borrower,
regardless of the place of payment, booking branch or currency of either
obligation. If the obligations are in different currencies, the Finance Party
may convert either obligation at a market rate of exchange in its usual course
of business for the purpose of the set-off.

29                               NOTICES

29.1                     Communications
in writing

Any
communication to be made under or in connection with the Finance Documents
shall be made in writing and, unless otherwise stated, may be made by fax or
letter.

29.2                     Addresses

The
address and fax number (and the department or officer, if any, for whose
attention the communication is to be made) of each Party for any communication
or document to be made or delivered under or in connection with the Finance
Documents is:

(a)                                in the case
of the Borrower, that identified with its name below;

(b)                               in the case
of each Lender, that notified in writing to the Agent on or prior to the date
on which it becomes a Party; and

(c)                                in the case
of the Agent, that identified with its name below,

or any
substitute address, fax number or department or officer as the Party may notify
to the Agent (or the Agent may notify to the other Parties, if a change is made
by the Agent) by not less than five Business Days’ notice.

29.3                     Delivery

(a)                               Any
communication or document made or delivered by one person to another under or
in connection with the Finance Documents will only be effective:

(i)                                   if by way of
fax, when received in legible form; or

(ii)                                if by way of
letter, when it has been left at the relevant address or five Business Days
after being deposited in the post postage prepaid in an envelope addressed to
it at that address,

and, if
a particular department or officer is specified as part of its address details
provided under Clause 29.2 (Addresses),
if addressed to that department or officer.

 57
 

 

(b)                              Any
communication or document to be made or delivered to the Agent will be
effective only when actually received by the Agent and then only if it is
expressly marked for the attention of the department or officer identified with
its signature below (or any substitute department or officer as it shall
specify for this purpose).

(c)                               All notices
from or to the Borrower shall be sent through the Agent.

29.4                     Notification
of address and fax number

Promptly
upon receipt of notification of an address and fax number or change of address
or fax number pursuant to Clause 29.2 (Addresses)
or changing its own address or fax number, the Agent shall notify the other
Parties.

29.5                     Electronic
communication

(a)                               Any
communication to be made between the Agent and a Lender under or in connection
with the Finance Documents may be made by electronic mail or other electronic
means, if the Agent and the relevant Lender:

(i)                                   agree that,
unless and until notified to the contrary, this is to be an accepted form of
communication;

(ii)                                notify each
other in writing of their electronic mail address and/or any other information
required to enable the sending and receipt of information by that means; and

(iii)                             notify each
other of any change to their address or any other such information supplied by
them.

(b)                              Any
electronic communication made between the Agent and a Lender will be effective
only when actually received in readable form and in the case of any electronic
communication made by a Lender to the Agent only if it is addressed in such a
manner as the Agent shall specify for this purpose.

29.6                     English
language

(a)                               Any notice
given under or in connection with any Finance Document must be in English.

(b)                              All other
documents provided under or in connection with any Finance Document must be:

(i)                                   in English;
or

(ii)                                if not in
English, and if so required by the Agent, accompanied by a certified English
translation and, in this case, the English translation will prevail unless the
document is a constitutional, statutory or other official document.

30                               CALCULATIONS AND CERTIFICATES

30.1                     Accounts

In any
litigation or arbitration proceedings arising out of or in connection with a
Finance Document, the entries made in the accounts maintained by a Finance
Party are prima facie evidence of the matters to which they relate.

 58
 

 

30.2                     Certificates
and Determinations

Any
certification or determination by a Finance Party of a rate or amount under any
Finance Document is, in the absence of manifest error, conclusive evidence of
the matters to which it relates.

30.3                     Day
count convention

Any
interest, commission or fee accruing under a Finance Document will accrue from
day to day and is calculated on the basis of the actual number of days elapsed
and a year of  360 days or, in any case
where the practice in the London interbank market differs, in accordance with
that market practice.

31                               PARTIAL INVALIDITY

If, at
any time, any provision of the Finance Documents is or becomes illegal, invalid
or unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

32                               REMEDIES AND WAIVERS

No
failure to exercise, nor any delay in exercising, on the part of any Finance
Party, any right or remedy under the Finance Documents shall operate as a
waiver, nor shall any single or partial exercise of any right or remedy prevent
any further or other exercise or the exercise of any other right or remedy. The
rights and remedies provided in this Agreement are cumulative and not exclusive
of any rights or remedies provided by law.

33                               AMENDMENTS AND WAIVERS

33.1                     Required
consents

(a)                               Subject to
Clause 33.2 (Exceptions) any term
of the Finance Documents may be amended or waived only with the consent of the
Majority Lenders and the Borrower and any such amendment or waiver will be
binding on all Parties.

(b)                              The Agent
may effect, on behalf of any Finance Party, any amendment or waiver permitted
by this Clause.

33.2                     Exceptions

(a)                               An amendment
or waiver that has the effect of changing or which relates to:

(i)                                   the
definition of “Majority Lenders”
in Clause 1.1 (Definitions);

(ii)                                an extension
to the date of payment of any amount under the Finance Documents;

(iii)                             a reduction
in the Margin or a reduction in the amount of any payment of principal,
interest, fees or commission payable;

(iv)                            an increase in or an extension of any
Commitment;

(v)                               a change to
the Borrower;

(vi)                            any provision which expressly requires
the consent of all the Lenders; or

 59
 

 

 

(vii)                         Clause 2.2 (Finance Parties’ rights and obligations), Clause 22 (Changes to the Lenders), Clause 26 (Sharing among the Finance Parties) or this
Clause 33,

shall not be made
without the prior consent of all the Lenders.

(b)                              An amendment
or waiver which relates to the rights or obligations of the Agent or the Mandated
Lead Arrangers may not be effected without the consent of the Agent or the
Mandated Lead Arrangers.

34                               COUNTERPARTS

Each
Finance Document may be executed in any number of counterparts, and this has
the same effect as if the signatures on the counterparts were on a single copy
of the Finance Document.

 60
 

 

 

SECTION 11

GOVERNING LAW AND ENFORCEMENT

35                               GOVERNING LAW

This
Agreement is governed by English law.

36                               ARBITRATION

36.1                     Arbitration

Subject
to Clause 36.4 (Agent’s option),
any dispute arising out of or in connection with this Agreement (including a
dispute regarding the existence, validity or termination of this Agreement) (a “Dispute”) shall be referred to and finally resolved by
arbitration under the Arbitration Rules (the “Rules”) of the LCIA.

36.2                     Procedure
for arbitration

(a)                               The arbitral
tribunal shall consist of three arbitrators. The claimant(s), irrespective of
number, shall nominate jointly one arbitrator; the respondent(s), irrespective
of number, shall nominate jointly the second arbitrator; and a third
arbitrator, who shall serve as Chairman (who shall be a lawyer currently
qualified in England and Wales and be admitted to the Bar of England and
Wales), shall be appointed by the LCIA within 15 days of the appointment of the
second arbitrator.

(b)                              In the event
the claimant(s) or the respondent(s) shall fail to nominate an
arbitrator within the time limits specified in the Rules, such arbitrator shall
be appointed by the LCIA within 15 days of such failure. In the event that both
the claimant(s) and the respondent(s) fail to nominate an arbitrator
within the time limits specified in the Rules, all three arbitrators shall be
appointed by the LCIA within 15 days of such failure who shall designate one of
them as chairman.

(c)                               If all the
parties to an arbitration so agree, there shall be a sole arbitrator appointed
by the LCIA within 15 days of such agreement.

(d)                              The seat of
arbitration shall be London, England and the language of the arbitration shall
be English.

36.3                     Recourse
to courts

Save as
provided in Clause 36.4 (Agent’s option),
the parties exclude the jurisdiction of the courts under Sections 45 and 69 of
the Arbitration Act 1996.

36.4                     Agent’s
option

Before
an arbitrator has been appointed by a Finance Party to determine a Dispute, the
Agent may (and, if so instructed by the Majority Lenders, shall) by notice in
writing to the Borrower require that all Disputes or a specific Dispute be
heard by a court of law. If the Agent gives such notice, the Dispute to which
such notice refers shall be determined in accordance with Clause 37 (Jurisdiction).

37                               JURISDICTION

37.1                     Jurisdiction
of English courts

(a)                               The courts
of England have exclusive jurisdiction to settle all Disputes.

 61
 

 

 

(b)                              The Parties
agree that the courts of England are the most appropriate and convenient courts
to settle Disputes and accordingly no Party will argue to the contrary.

(c)                               This
Clause 37.1 is for the benefit of the Finance Parties only. As a result,
no Finance Party shall be prevented from taking proceedings relating to a Dispute
in any other courts with jurisdiction. To the extent allowed by law, the
Finance Parties may take concurrent proceedings in any number of jurisdictions.

37.2                     Service
of process

Without
prejudice to any other mode of service allowed under any relevant law, the
Borrower:

(a)                                irrevocably
appoints Law Debenture Corporation, located at the date hereof at 5th Floor, 100 Wood Street, London EC2V 7EX,
England, as its agent for service of process in relation to any proceedings
commenced in accordance with this Agreement; and

(b)                               agrees that
failure by a process agent to notify the Borrower of the process will not
invalidate the proceedings concerned.

37.3                     Waiver
of immunity

The
Borrower irrevocably agrees that, should any party take any proceedings
anywhere (whether for an injunction, specific performance, damages or
otherwise), no immunity (to the extent that it may at any time exist, whether
on the grounds of sovereignty or otherwise) from those proceedings, from
attachment (whether in aid of execution, before judgment or otherwise) of its
assets or from execution of judgment shall be claimed by it or on behalf of it
or with respect to its assets, any such immunity being irrevocably waived. The
Borrower irrevocably agrees that it and its assets are, and shall be, subject
to such proceedings, attachment or execution in respect of its obligations
under the Finance Documents.

This Agreement has been entered
into on the date stated at the beginning of this Agreement.

 62
 

 

 

SCHEDULE 1

The Original Lenders

	
  Name of Original Lender

  	
   

  	
   

  	
   

  	
  Facility 1

  Commitment

  	
   

  	
  Facility 2

  Commitment

  	
   

  
	
   

  	
   

  	
  (US$)

  	
   

  	
  (US$)

  	
   

  
	
  BTMU (Europe)
  Limited

  	
   

  	
  105,000,000

  	
   

  	
  116,666,666.66

  	
   

  
	
  Bayerische
  Landesbank

  	
   

  	
  105,000,000

  	
   

  	
  116,666,666.66

  	
   

  
	
  HSBC Bank plc

  	
   

  	
  105,000,000

  	
   

  	
  116,666,666.66

  	
   

  
	
  ING Bank N.V.,
  Dublin Branch

  	
   

  	
  105,000,000

  	
   

  	
  116,666,666.70

  	
   

  
	
  Raiffeisen
  Zentralbank Oesterreich AG

  	
   

  	
  93,000,000

  	
   

  	
  103,666,666.66

  	
   

  
	
  ZAO
  Raiffeisenbank Austria

  	
   

  	
  12,000,000

  	
   

  	
  13,000,000.00

  	
   

  
	
  Sumitomo Mitsui
  Banking Corporation Europe Limited

  	
   

  	
  105,000,000

  	
   

  	
  116,666,666.66

  	
   

  
	
  TOTAL:

  	
   

  	
  630,000,000

  	
   

  	
  700,000,000.00

  	
   

  

 

 

 63

 

SCHEDULE 2

Conditions precedent

1                                      Finance Documents

Executed
originals of:

(a)                                this
Agreement;

(b)                               each Fee
Letter;

(c)                                the Mandate
Letter; and

(d)                               the
Syndication Side Letter.

2                                      The Borrower

(a)                               Notarised
copies of the Borrower’s duly registered constitutional documents (including
any amendments thereto), certificates of registration thereof and the Borrower’s
registration certificate(s) issued by the competent registration
authority.

(b)                              Certified
copies of all corporate resolutions necessary to authorise the Borrower to
execute and perform the Finance Documents and any documents referred to therein
and the transactions contemplated thereunder (including but not limited to any
major transaction approvals or interested party transaction approvals, if applicable).

(c)                               Evidence of
the authority of the relevant signatories of the Borrower (including, but not
limited to, its Chief Accountant) to execute each Finance Document to which it
is a party and any documents referred to therein and the transactions contemplated
thereunder.

(d)                              An original
certificate executed on behalf of the Borrower:

(i)                                   certifying
the sample signature and office of each person that signed the relevant Finance
Document and any documents referred to therein and the transactions contemplated
thereunder on behalf of the Borrower and certifying that such signatories hold
the positions in which capacity they executed such documents; and

(ii)                                certifying
that each copy document relating to it specified in this Schedule 2 is correct,
complete and in full force and effect as at a date no earlier than the date of
this Agreement.

3                                      Legal opinions

(a)                               A legal
opinion of Linklaters as to matters of English law.

(b)                              A legal
opinion of Linklaters CIS as to matters of Russian law.

(c)                               A
certificate issued by the in-house legal counsel of the Borrower.

4                                      Other documents and evidence

(a)                               Evidence
that the process agent referred to in Clause 37.2 (Service of process) has accepted its appointment.

(b)                              A copy of
any other Authorisation or other document, opinion or assurance which the Agent
considers to be necessary or desirable (if it has notified the Borrower
accordingly) in connection 

 64
 

 

with
the entry into and performance of the transactions contemplated by any Finance
Document or for the validity and enforceability of any Finance Document.

(c)                               The
unaudited consolidated financial statements of the Group for the financial year
ended 31 December 2005.

(d)                              Certified
copy of the balance sheet, prepared under RAS, as of the latest reporting date
(by reference to the date of each Finance Document and the date of each
corporate resolution referred to in paragraph 2(b) above) for the
Borrower.

(e)                               Evidence
that the fees, costs and expenses then due from the Borrower pursuant to Clause
11 (Fees) and 16 (Costs and expenses) have been paid or will
be paid by the first Utilisation Date.

(f)                                 A copy of
the deal passport of the Borrower
(in the form established by Instruction No. 117-I of the Central
Bank of the Russian Federation dated 15 June 2004 or other applicable
currency control laws and regulations, as the case may be) accepted and duly
certified by a Russian authorised bank and copies of all other documents
submitted by the Borrower to the Russian authorised bank in accordance with
applicable Russian currency control regulations, as the Agent may reasonably
require (or evidence that all documents required to obtain such deal passport have been duly submitted to
ING Bank (Eurasia) ZAO by or on behalf of the Borrower).

(g)                              An
irrevocable notice of repayment from the Borrower stating that it will repay
$100,000,000 (together with all accrued interest and other amounts then owing)
under the Existing Facility not later than on 26 April 2006.

(h)                              Evidence
satisfactory to the Agent in its reasonable discretion that the Borrower has
given instructions to its bank to prepay from the Borrower’s account all
amounts outstanding under the HSBC Facility, and that the HSBC Facility will be
cancelled in full, not later than on 27 April 2006.

(i)                                  Evidence
satisfactory to the Agent in its reasonable discretion that:

(i)                                   MOBILE
TELESYSTEMS FINANCE S.A. has given instructions to its bank to repay from the
account of MOBILE TELESYSTEMS FINANCE S.A. the amount of $75,000,000 (together
with all accrued interest and other amounts then owing) under the MTF Facility
no later than on 28 April 2006;

(ii)                                MOBILE
TELESYSTEMS FINANCE S.A. has given instructions to its bank to repay from the
account of MOBILE TELESYSTEMS FINANCE S.A all amounts outstanding (after the
repayment under sub-paragraph (i) above) under the MTF Facility no later
than on 17 May 2006; and

(iii)                             the MTF
Facility will be cancelled in full no later than on 17 May 2006.

(j)                                  Such other
documents or evidence which the Agent may reasonably require.

5                                      Other documents and evidence prior to the first Utilisation Request for
Utilisation of Facility 2

(a)                               Subject to
the terms of the Syndication Side Letter, evidence satisfactory to the Agent in
its reasonable discretion that the Borrower has given instructions to its bank
to repay from the Borrower’s account all amounts outstanding (after the
prepayment under paragraph 4 (g) above) under the Existing Facility, and
that the Existing Facility will be cancelled in full, not later than on the
earlier of the first Utilisation Date of Facility 2 or the date falling 30 days
after the Syndication Date.

(b)                              Such other
documents or evidence which the Agent may reasonably require.

 65
 

 

 

SCHEDULE 3

Utilisation Request

From:                  Mobile TeleSystems Open Joint Stock
Company

To:          ING Bank N.V., London Branch as Agent

Dated:

Dear
Sirs

Mobile TeleSystems Open Joint
Stock Company — US$1,330,000,000 Facility Agreement

dated 21 April 2006 (the “Agreement”)

1                                      We refer to
the Agreement. This is a Utilisation Request. Terms defined in the Agreement
have the same meaning in this Utilisation Request unless given a different
meaning in this Utilisation Request.

2                                      We wish to
borrow a Loan on the following terms:

	
  Proposed Utilisation Date:

  	
  [                   ]
  or, if that is not a Business Day, the next Business Day)

  
	
   

  	
   

  
	
  Facility to be
  utilised

  	
  [Facility 1]/[Facility 2]1

  
	
   

  	
   

  
	
  Amount:

  	
  [                   ]
  or, if less, the Available Facility

  
	
   

  	
   

  
	
  First Interest
  Period

  	
  [1/2/3/6 Months]

  

 

3                                      We confirm
that each condition specified in Clause 4.2 (Further
conditions precedent) is satisfied on the date of this Utilisation
Request.

4                                      The proceeds
of this Loan should be credited to [specify R-1-type special bank
account of the Borrower, which must be an account with an authorised bank of
the Russian Federation].

5                                      This Utilisation
Request is irrevocable.

Mobile
TeleSystems Open Joint Stock Company

	
  By: __________________

  	
   

  	
  By: __________________

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title: Chief Accountant

  

 

1                     Delete
as appropriate

 66
 

 

 

SCHEDULE 4

Selection Notice

From:                                              Mobile
TeleSystems 

Open Joint-stock Company

To:                                                           ING Bank
N.V., London Branch (as Agent)

Dated:

Dear
Sirs

Mobile TeleSystems Open Joint
Stock Company - US$1,330,000,000 Facility Agreement

dated 21 April 2006 (the “Agreement”)

1                                      We refer to
the Agreement. This is a Selection Notice. Terms defined in the Agreement have
the same meaning in this Selection Notice unless given a different meaning in
this Selection Notice.

2                                      We refer to
the following [Loan[s] with an] Interest Period ending on [__________]*:

3                                      We request
that the next Interest Period for the [above] Loan is [__________].

4                                      This
Selection Notice is irrevocable.

Yours faithfully

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

for and on behalf of

Mobile TeleSystems 

Open Joint-stock Company

 

	
  By:

  	
  By:

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title: Chief Accountant

  

 

 67
 

 

 

SCHEDULE 5 Mandatory Cost formula

1                                      The
Mandatory Cost is an addition to the interest rate to compensate Lenders for
the cost of compliance with (a) the requirements of the Bank of England
and/or the Financial Services Authority (or, in either case, any other
authority which replaces all or any of its functions) or (b) the
requirements of the European Central Bank.

2                                      On the first
day of each Interest Period (or as soon as possible thereafter) the Agent shall
calculate, as a percentage rate, a rate (the “Additional
Cost Rate”) for each Lender, in accordance with the paragraphs set
out below. The Mandatory Cost will be calculated by the Agent as a weighted
average of the Lenders’ Additional Cost Rates (weighted in proportion to the
percentage participation of each Lender in the relevant Loan) and will be
expressed as a percentage rate per annum.

3                                      The
Additional Cost Rate for any Lender lending from a Facility Office in a
Participating Member State will be the percentage notified by that Lender to
the Agent. This percentage will be certified by that Lender in its notice to
the Agent to be its reasonable determination of the cost (expressed as a
percentage of that Lender’s participation in all Loans made from that Facility
Office) of complying with the minimum reserve requirements of the European
Central Bank in respect of loans made from that Facility Office.

4                                      The
Additional Cost Rate for any Lender lending from a Facility Office in the
United Kingdom will be calculated by the Agent as follows:

	
  

  	
  Ex0.01

  	
   

  	
  per cent. per annum.

  
	
   

  	
  300

  	
   

  	
   

  

 

Where:

E                                               is designed
to compensate Lenders for amounts payable under the Fees Rules and is
calculated by the Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and
expressed in pounds per £1,000,000.

5                                      For the
purposes of this Schedule:

(a)                                “Fees Rules” means the rules on
periodic fees contained in the FSA Supervision Manual or such other law or
regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits;

(b)                               “Fee Tariffs” means the fee tariffs
specified in the Fees Rules under the activity group A.1 Deposit acceptors
(ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but
taking into account any applicable discount rate); and

(c)                                “Tariff Base” has the meaning given to it
in, and will be calculated in accordance with, the Fees Rules.

6                                      The
resulting figure shall be rounded to four decimal places.

7                                      If requested
by the Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Agent, the rate
of charge payable by that Reference Bank to the Financial Services Authority
pursuant to the Fees Rules in respect of the relevant financial year of
the Financial Services Authority (calculated for this purpose by that Reference
Bank as being the average of the Fee Tariffs applicable to that Reference Bank
for that financial year) and expressed in pounds per £1,000,000 of the Tariff
Base of that Reference Bank.

 68
 

 

 

8                                      Each Lender
shall supply any information required by the Agent for the purpose of
calculating its Additional Cost Rate. In particular, but without limitation,
each Lender shall supply the following information on or prior to the date on
which it becomes a Lender:

(a)                                the
jurisdiction of its Facility Office; and

(b)                               any other
information that the Agent may reasonably require for such purpose.

Each
Lender shall promptly notify the Agent of any change to the information
provided by it pursuant to this paragraph.

9                                      The rates of
charge of each Reference Bank for the purpose of E above shall be determined by
the Agent based upon the information supplied to it pursuant to paragraphs 7
and 8 above.

10                               The Agent
shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender or Reference
Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all
respects.

11                                The Agent
shall distribute the additional amounts received as a result of the Mandatory
Cost to the Lenders on the basis of the Additional Cost Rate for each Lender
based on the information provided by each Lender and each Reference Bank
pursuant to paragraphs 3, 7 and 8 above.

12                               Any
determination by the Agent pursuant to this Schedule in relation to a formula,
the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender
shall, in the absence of manifest error, be conclusive and binding on all
Parties.

13                               The Agent
may from time to time, after consultation with the Borrower and the Lenders,
determine and notify to all Parties any amendments which are required to be
made to this Schedule in order to comply with any change in law, regulation or
any requirements from time to time imposed by the Bank of England, the
Financial Services Authority or the European Central Bank (or, in any case, any
other authority which replaces all or any of its functions) and any such
determination shall, in the absence of manifest error, be conclusive and
binding on all Parties.

 69
 

 

 

SCHEDULE 6

Form of Transfer Certificate

To:          ING Bank N.V., London Branch as Agent

From:      [                   ]
(the “Existing Lender”) and [                   ]
(the “New Lender”)

Dated:

Mobile TeleSystems Open Joint
Stock Company — US$1,330,000,000 Facility Agreement

dated 21 April 2006 (the “Agreement”)

1                                      We refer to
the Agreement. This is a Transfer Certificate. Terms defined in the Agreement
have the same meaning in this Transfer Certificate unless given a different
meaning in this Transfer Certificate.

2                                      We refer to
Clause 22.5 (Procedure for transfer):

(a)                                The Existing
Lender and the New Lender agree to the Existing Lender transferring to the New
Lender by novation all or part of the Existing Lender’s Commitment, rights and
obligations referred to in the Schedule in accordance with Clause 22.5 (Procedure for transfer).

(b)                               The proposed
Transfer Date is [                   ].

(c)                                The Facility
Office and address, fax number and attention details for notices of the New
Lender for the purposes of Clause 29.2 (Addresses)
are set out in the Schedule.

3                                      The New
Lender expressly acknowledges the limitations on the Existing Lender’s
obligations set out in paragraph (c) of Clause 22.4 (Limitation of responsibility of Existing Lenders).

4                                      This
Transfer Certificate may be executed in any number of counterparts and this has
the same effect as if the signatures on the counterparts were on a single copy
of this Transfer Certificate.

5                                      This
Transfer Certificate is governed by English law.

 70
 

 

 

THE
SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and
attention details for notices and account details for payments.]

	
  [Existing Lender]

  	
  [New Lender ]

  
	
  By:

  	
  By:

  

This
Transfer Certificate is accepted by the Agent and the Transfer Date is
confirmed as [                   ].

ING
Bank N.V., London Branch

By:

 71
 

 

SCHEDULE 7

Form of Compliance Certificate

	
  To:

  	
  ING Bank N.V., London Branch as Agent

  
	
  From:

  	
  Mobile TeleSystems Open Joint Stock Company

  

Dated:

Dear
Sirs

Mobile TeleSystems Open Joint
Stock Company — US$1,330,000,000 Facility Agreement

dated 21 April 2006 (the “Agreement”)

We
refer to the Agreement. This is a Compliance Certificate. Terms defined in the
Agreement have the same meaning in this Compliance Certificate unless given a different
meaning in this Compliance Certificate.

1                                      [We confirm
that no Default is continuing.]*

2                                      We confirm
that the ratio of Total Debt as at the end of the Relevant Period ending on
[•] to OIBDA in respect of such Relevant Period, was [•].

3                                      We confirm
that the ratio of OIBDA to Interest Expense for 
the Relevant Period ending on [•], was [•].

 

	
  Signed:

  	
   

  

[Chief Financial Officer] of

Mobile TeleSystems Open Joint Stock Company

 

*                      If this statement cannot be made,
the certificate should identify any Default that is continuing and the steps,
if any, being taken to remedy it.

 72
 

 

The Borrower

Mobile TeleSystems Open Joint
Stock Company

Address:                                   4
Marksistskaya Street, 

109147 Moscow, Russian Federation

Fax No:               +7 495 223 2168

Attention:                           Marina Zabolotneva

Treasury Director

 

	
  By: __________________

  	
   

  	
  By: __________________

  
	
  Name: Marina
  Zabolotneva

  	
   

  	
  Name: Rauziya Kolomiets

  
	
  Title: Treasury
  Director

  	
   

  	
  Title: Chief Accountant

  

 

The Mandated Lead Arrangers

The
Bank of Tokyo-Mitsubishi UFJ, Ltd.

By:
__________________

Name:

Title:

Bayerische
Landesbank

By:
__________________

Name:

Title:

 73
 

 

HSBC
Bank plc

By:
__________________

Name:

Title:

ING Bank N.V.

By: __________________

Name:

Title:

Raiffeisen Zentralbank Oesterreich AG

By: __________________

Name:

Title:

Sumitomo
Mitsui Banking Corporation Europe Limited

By:
__________________

Name:

Title:

 74
 

 

The Original Lenders

BTMU (Europe) Limited

By: __________________

Name:

Title:

Bayerische Landesbank

By: __________________

Name:

Title:

HSBC Bank plc

By: __________________

Name:

Title:

ING Bank N.V., Dublin Branch

By: __________________

Name:

Title:

 75
 

 

Raiffeisen Zentralbank Oesterreich AG

By: __________________

Name:

Title:

ZAO Raiffeisenbank Austria

By: __________________

Name:

Title:

Sumitomo Mitsui Banking Corporation Europe
Limited

By: __________________

Name:

Title:

 76
 

 

The Agent

ING
Bank N.V., London Branch

Address: 
60 London Wall

London EC2M 5TQ

Fax:
+44 207 767 7324

Attention: Sally Hayward/Craig Baker

Agency Operations

By:
__________________

Name:

Title

 77

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