Document:

Exhibit 4.54

EXECUTION VERSION

DATED  15 FEBRUARY 2005

 

 

$90,000,000

LOAN AGREEMENT

for

OPEN JOINT STOCK COMPANY MOBILE TELESYSTEMS

with

BARCLAYS BANK PLC

as Banker

and

HER BRITANNIC MAJESTY’S SECRETARY OF
STATE

(acting by the EXPORT
CREDITS GUARANTEE DEPARTMENT)

as ECGD

 

 1

 

 

Index of Clauses
and Appendices

	
  Clause

  	
   

  	
  Heading

  	
   

  	
  Page

  Number

  
	
  1

  	
   

  	
  DEFINITIONS    

  	
   

  	
  2

  
	
  2

  	
   

  	
  THE BANKER   

  	
   

  	
  19

  
	
  3

  	
   

  	
  PURPOSE AND
  LIMITS OF FINANCE       

  	
   

  	
  20

  
	
  4

  	
   

  	
  REPAYMENT OF
  LOAN AND PAYMENT OF INTEREST     

  	
   

  	
  21

  
	
  5

  	
   

  	
  CONDITIONS
  PRECEDENT TO ADVANCES          

  	
   

  	
  26

  
	
  6

  	
   

  	
  CONTRACTS
  ELIGIBLE FOR FINANCING            

  	
   

  	
  30

  
	
  7

  	
   

  	
  APPROVAL
  PROCEDURE           

  	
   

  	
  31

  
	
  8

  	
   

  	
  REMIBURSEMENT
  CLAIMS       

  	
   

  	
  32

  
	
  9

  	
   

  	
  ADVANCES AND
  REIMBURSEMENT PROCEDURES         

  	
   

  	
  32

  
	
  10

  	
   

  	
  AMOUNTS DUE TO
  BE PAID TO THE BORROWER           

  	
   

  	
  34

  
	
  11

  	
   

  	
  DEFAULT          

  	
   

  	
  35

  
	
  12

  	
   

  	
  UNDERTAKINGS COVENANTS
  AND REPRESENTATIONS BY THE BORROWER     

  	
   

  	
  40

  
	
  13

  	
   

  	
  THE FUNDING AND
  BENEFIT OF THE AGREEMENT        

  	
   

  	
  49

  
	
  14

  	
   

  	
  TAXES  

  	
   

  	
  51

  
	
  15

  	
   

  	
  INCREASED COSTS       

  	
   

  	
  53

  
	
  16

  	
   

  	
  EXPENSES        

  	
   

  	
  55

  
	
  17

  	
   

  	
  COMMISSIONS 

  	
   

  	
  56

  
	
  18

  	
   

  	
  FINANCE CHARGE        

  	
   

  	
  56

  
	
  19

  	
   

  	
  SUMS ON DEPOSIT        

  	
   

  	
  57

  
	
  20

  	
   

  	
  LAW     

  	
   

  	
  58

  
	
  21

  	
   

  	
  ARBITRATION  

  	
   

  	
  58

  
	
  22

  	
   

  	
  JURISDICTION  

  	
   

  	
  59

  
	
  23

  	
   

  	
  ALTERATION TO
  APPROVED CONTRACTS         

  	
   

  	
  60

  
	
  24

  	
   

  	
  NOTICES AND
  DEMANDS          

  	
   

  	
  61

  
	
  25

  	
   

  	
  MISCELLANEOUS         

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Appendices

  	
   

  	
   

  
	
  A

  	
   

  	
  Application for
  Approval  

  	
   

  	
  65

  
	
  B

  	
   

  	
  Approval in
  Principle        

  	
   

  	
  68

  
	
  C

  	
   

  	
  Notice of
  Approval          

  	
   

  	
  70

  
	
  D

  	
   

  	
  Letter of
  Instruction         

  	
   

  	
  72

  
	
  E(1)

  	
   

  	
  Reimbursement
  Certificate (Eligible Goods and/or Eligible Services)      

  	
   

  	
  73

  
	
  E(2)

  	
   

  	
  Reimbursement
  Certificate (ECGD Finance Charge/Additional Finance Charge) 

  	
   

  	
  74

  
	
  F

  	
   

  	
  Specimen
  Supplier’s Receipt          

  	
   

  	
  76

  
	
  G

  	
   

  	
  Mandatory Cost
  Formula 

  	
   

  	
  78

  
	
  H

  	
   

  	
  ECGD Finance
  Charge/Additional Finance Charge Receipt     

  	
   

  	
  80

  

 

 i

 

THIS AGREEMENT is made the
         day of
                          
2005 BETWEEN

1                                         Barclays Bank PLC (“the Banker”) of
54 Lombard Street, London, EC3P 3AH

2                                         Her
Britannic Majesty’s Secretary of State acting by the Export Credits Guarantee
Department (“ECGD”)

3                                         Open
Joint Stock Company Mobile TeleSystems (“the Borrower”) established and
existing under the laws of the Russian Federation and having its registered
office at 4 Marksistskaya Street, 109147 Moscow, Russian Federation

WHEREAS

1                                        The Borrower wishes from time to time to enter into
contracts with Motorola Limited (“the Supplier”) of Midpoint, Alencon Link,
Basingstoke, RG21 7PL for the supply of plant and equipment and/or for the
rendering of services and

2                                        The Borrower has entered into a contract dated 11 August 2004
(“Contract No. 1”) with the Supplier which it wishes to finance under the
Loan Facility as hereinafter defined and

3                                        The Banker has agreed on the terms and conditions of this
Agreement to advance to the Borrower the sum of $25,653,462.68 to assist the
financing of Contract No. 1 and the Finance Charge referred to in Clause
18.1.3 and an uncommitted additional facility of up to $64,346,537.32 to assist
the financing of the contracts referred to in Recital (1) and the
Additional Finance Charge and

4                                        ECGD has agreed to ensure that the Loan Facility as
hereinafter defined shall be made available to the Borrower in the
circumstances 

 1
 

 

 

                                               herein mentioned and the Banker has agreed to act as
ECGD’s agent hereunder in accordance with Clause 2 hereof

NOW THEREFORE it is
agreed as follows:

1                                       DEFINITIONS

1.1                             In this Agreement and the Appendices hereto unless the
context otherwise requires

	
  “Additional Facility”

  	
  means the additional uncommitted facility of up to
  $64,346,537.32 (to the extent not cancelled or reduced in accordance with the
  terms of this Agreement)

  
	
   

  	
   

  
	
  “Additional Finance Charge”

  	
  means the finance charge payable to ECGD in respect
  of an Approved Contract presented for financing under the Additional Facility

  
	
   

  	
   

  
	
  “Advance”

  	
  means a sum of money calculated and made available
  by way of loan by the Banker or by ECGD to the Borrower in accordance with
  Clause 9

  
	
   

  	
   

  
	
  “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

  
	
   

  	
   

  
	
  “Application for Approval”

  	
  means an application made in the form of Appendix A

  
	
   

  	
   

  
	
  “Approval in Principle”

  	
  means a notice in the form of Appendix B

  
	
   

  	
   

  
	
  “Approved Contract”

  	
  means a contract in respect of which a Notice of
  Approval has been issued

  
	
   

  	
   

  
	
  “Approved Contract Loan”

  	
  means the Loan which relates to an Approved Contract

  
	
   

  	
   

  

 2
 

 

 

	
  “Authorisation”

  	
  means an authorisation consent approval resolution
  licence exemption filing notarisation or registration

  
	
   

  	
   

  
	
  “Availability Period”

  	
  means the period from and including the date of this
  Agreement to and including the date as specified in Clause 3.5 (or such later
  date as may from time to time be notified by the Banker to the Borrower
  pursuant to that Clause)

  
	
   

  	
   

  
	
  “Banker’s Account”

  	
  means the following account:

  
	
   

  	
   

  
	
   

  	
  Pay:   Barclays Bank PLC, New York (BARCUS33),
  Chips UID 312842

  
	
   

  	
   

  
	
   

  	
  For:   Account of Barclays Bank PLC Wholesale,
  London (BARCGB5G)

  
	
   

  	
   

  
	
   

  	
  Account Number:   280238433

  
	
   

  	
   

  
	
   

  	
  Attention:   Geoff Miall

  
	
   

  	
   

  
	
   

  	
  Reference:   MTS/STEF London

  
	
   

  	
   

  
	
   

  	
  or such other account as the Banker may from time to
  time notify the Borrower and ECGD in writing

  
	
   

  	
   

  
	
  “Borrower’s Account”

  	
  means the following account:

  
	
   

  	
   

  
	
   

  	
  Mobile TeleSystems OJSC INN 7740000076

  
	
   

  	
  4 Marksistskay str. Moscow 109147 Russia

  
	
   

  	
   

  
	
   

  	
  Account Bank: Moscow Bank for Reconstruction and
  Development, Moscow, Russia

  
	
   

  	
   

  

 3
 

 

 

	
  

  	
  Acct. No: 40702840300000000652

  
	
   

  	
   

  
	
   

  	
  SWIFT Code: MBRD RU MM

  
	
   

  	
   

  
	
   

  	
  or such other account as the Borrower may from time
  to time notify the Banker in writing

  
	
   

  	
   

  
	
  “Borrower’s Signatory”

  	
  means any person who is a director or other officer
  of the Borrower whose name and specimens of whose signature have been supplied
  from time to time to the Banker by the Borrower as being those of a person
  authorised to sign Applications for Approval and the unqualified acceptances
  referred to in Clause 7.3.1 and Reimbursement Certificates referred to in
  Clause 8 provided that at the date of receipt of the relevant document by the
  Banker no written notice of the revocation of such authorisation has been
  received by the Banker

  
	
   

  	
   

  
	
  “Borrower’s 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 Clause
  12.1.23.1 (Financial
  statements)

  
	
   

  	
   

  
	
  “Break Costs”

  	
  means the amount (if any) by which

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  

 4
 

 

 

	
  

  	
  exceeds

  
	
   

  	
   

  
	
   

  	
  b              the
  amount which the Banker 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 except a Saturday or a Sunday on which
  dealing in dollar deposits is carried on in the London interbank market and
  (if payment is required to be made on such day) on which banks are open for
  domestic and foreign exchange business in London, Moscow and New York City

  
	
   

  	
   

  
	
  “Commitment”

  	
  means the obligation of the Banker to make Advances
  (other than Advances relating to the Additional Facility) under the terms of
  this Agreement

  
	
   

  	
   

  
	
  “Committed Facility Amount”

  	
  means $25,653,462.68 (to the extent not increased,
  cancelled or reduced in accordance with the terms of this Agreement)

  
	
   

  	
   

  
	
  “Default”

  	
  means an Event of Default or any event or
  circumstance specified in Clause 11.1 which would (with the expiry of a grace
  period, the giving of notice, the making of any determination hereunder or
  any combination of any of the foregoing) be an Event of Default

  
	
   

  	
   

  

 5
 

 

 

	
  “Default Demand”

  	
  means a demand in writing for the amount specified
  in Clause 11.5 sent by the Banker to the Borrower pursuant to Clause 11.3

  
	
   

  	
   

  
	
  “Default Interest Rate”

  	
  means the rate which is 1% (one per cent) per annum
  above the Interest Rate

  
	
   

  	
   

  
	
  “Default Notice”

  	
  means a notice in writing of the occurrence of an
  Event of Default sent by the Banker to the Borrower pursuant to Clause 11.2

  
	
   

  	
   

  
	
  “Event of Default”

  	
  means any event or circumstance specified as such in
  Clause 11.1

  
	
   

  	
   

  
	
  “Early Repayment”

  	
  means any whole or partial prepayment or
  acceleration of the Loan whether pursuant to Clause 4.9 or Clause 11.5 or
  otherwise

  
	
   

  	
   

  
	
  “ECGD Finance Charge/Additional Finance Charge
  Receipt”

  	
  means a receipt in the form of Appendix H signed on
  behalf of ECGD for sums received pursuant to Clause 18.1.2 (in respect of
  Contract No.1) or Clause 18.2 (in respect of Supply Contracts placed under
  the Additional Facility) as the case may be

  
	
   

  	
   

  
	
  “Eligible Bank”

  	
  means any bank or other lending institution which is
  approved by ECGD for the purposes of acquiring rights and benefits hereunder

  
	
   

  	
   

  
	
  “Eligible Goods”

  	
  means UK Goods EU Goods US Goods, Third Country
  Goods as may be approved by the Banker (with the prior written consent of
  ECGD) for financing under this Agreement

  
	
   

  	
   

  

 6
 

 

 

	
  “Eligible Services”

  	
  means UK Services, EU Services, US Services and
  Third Country Services as may be approved by the Banker (with the prior
  written consent of ECGD) for financing under this Agreement

  
	
   

  	
   

  
	
  “Eligible Value”

  	
  means the amount specified as such in an Approval in
  Principle

  
	
   

  	
   

  
	
  “EU”

  	
  means the states taken together that are from time to time members of the European Union

  
	
   

  	
   

  
	
  “EU Goods”

  	
  means goods produced or manufactured in the EU
  (excluding the UK)

  
	
   

  	
   

  
	
  “EU Services”

  	
  means services rendered by persons ordinarily
  resident or ordinarily carrying on business in the EU (excluding the UK)

  
	
   

  	
   

  
	
  “Finance Party”

  	
  means the Banker or ECGD save that ECGD is not a
  Finance Party for the purposes of Clause 14

  
	
   

  	
   

  
	
  “Final Date for Drawings”

  	
  means the date specified in Clause 3.5 or such later
  date as may from time to time be notified by the Banker to the Borrower
  pursuant to that Clause

  
	
   

  	
   

  
	
  “Finance Charge”

  	
  means the sum of $2,180,544.33 payable to ECGD in
  respect of Contract No. 1

  
	
   

  	
   

  
	
  “Financed Percentage”

  	
  means in relation to any contract the percentage of
  the Eligible Value thereof specified in the Approval in Principle relating
  thereto

  
	
   

  	
   

  

 7
 

 

 

	
  “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              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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  

 8
 

 

 

	
  “Holding Company”

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

  
	
   

  	
   

  
	
  “Interest Due Date”

  	
  means either the 15th day of January or the 15th day of July in each year or both such
  days in each year (as the context may require)

  
	
   

  	
   

  
	
  “Interest Period”

  	
  means the period from and including an Interest Due
  Date to but excluding the next succeeding Interest Due Date EXCEPT THAT the
  Interest Period in relation to an Advance shall be the period from and
  including the date such Advance is made up to the next Interest Due Date or
  if such an Advance is made within a period of 15 days prior to an Interest
  Due Date to the next succeeding Interest Due Date

  
	
   

  	
   

  
	
  “Interest Rate”

  	
  means in respect of each Approved Contract the rate
  per annum equal to the sum of LIBOR,
  the Margin and the Mandatory
  Cost (if any) EXCEPT THAT if by reason of circumstances affecting the
  London interbank market it is not possible to ascertain LIBOR for the
  relevant Interest Period or other selected period the Interest Rate shall
  mean the rate per annum equal to the sum of the Margin, the Mandatory Cost (if any) and the actual cost (including any
  extra costs incurred from a switch of funding) to the Banker and/or ECGD of
  making Advances and/or maintaining the Loan for that Interest Period or that
  other selected period from whatever other source the Banker, ECGD and the Borrower may agree.
  Such cost shall be notified by
  the Banker to the Borrower as soon as practicable

  
	
   

  	
   

  

 9
 

 

 

	
  “Kuban GSM”

  	
  means CJSC Kuban GSM a joint-stock company organised
  under the laws of the Russian Federation that is a Subsidiary of the Borrower

  
	
   

  	
   

  
	
  “LIBOR”

  	
  means

  
	
   

  	
   

  
	
   

  	
  a              for
  the purpose of calculating the Interest Rate chargeable in relation to any
  Advance or Loan for any Interest Period the rate per annum at which deposits
  in dollars equivalent to such Advance or Loan for that Interest Period
  appears on the Reuters Screen LIBOR01 page for that Interest Period at
  11 am London time on the date two Business Days before the commencement of
  that Interest Period EXCEPT THAT if on such day the Reuters Screen LIBOR01
  page is not functioning or a rate is not available for that Interest
  Period LIBOR shall mean the rate of interest equal to the arithmetic mean of
  the rates (rounded upwards to four decimal places) at which deposits in
  dollars equivalent to the Advance or Loan are offered to the Reference Banks
  for the relevant Interest Period by prime banks in the London Interbank
  Market at 11 am London time on the date two Business Days before the
  commencement of that Interest Period or

  
	
   

  	
   

  
	
   

  	
  b              for
  the purpose of calculating the Interest Rate chargeable under Clause 4.5 or
  11.6 the rate of interest at which deposits in dollars equivalent to the
  amount due to the Banker and/or ECGD for such period as the Banker (with the
  prior written consent of ECGD) shall have selected appears on the Reuters
  Screen LIBOR01 page at 11 am London time on the first day of that period
  EXCEPT THAT if on such day the Reuters Screen LIBOR01 page is not
  functioning or a rate is not available for such period LIBOR shall mean the
  rate of interest 

  

 10
 

 

 

	
  

  	
  equal to the arithmetic mean of the rates (rounded
  upwards to four decimal places) at which deposits in dollars equivalent to
  the amount due to the Banker and/or ECGD are offered to the Reference Banks
  for such period as the Banker (with the prior written consent of ECGD) shall
  have selected by prime banks in the London Interbank Market at or about 11 am
  London time on the day on which quotations would ordinarily be given between
  prime banks in the London Interbank Market for deposits in dollars for
  delivery on the first day of that period

  
	
   

  	
   

  
	
  “Loan”

  	
  means at any time in relation to the Banker or ECGD
  the amount of principal owing to the Banker or ECGD hereunder at that time

  
	
   

  	
   

  
	
  “Loan Facility”

  	
  means the sum of $25,653,462.68 and the Additional
  Facility

  
	
   

  	
   

  
	
  “Loan Value”

  	
  means the aggregate of the Loans of the Banker and
  ECGD

  
	
   

  	
   

  
	
  “Mandatory Cost”

  	
  means the percentage rate per annum calculated by
  the Banker in accordance with Appendix G

  
	
   

  	
   

  
	
  “Margin”

  	
  means the sum of 15 basis points per annum and any
  increase to the Margin pursuant to Clause 15.4

  
	
   

  	
   

  
	
  “Material Adverse Effect”

  	
  means a material adverse effect on or a material
  adverse change in

  
	
   

  	
   

  
	
   

  	
  a              the
  financial condition operations assets prospects or business of the Borrower
  or the consolidated 

  

 11
 

 

 

	
  

  	
  financial condition operations assets prospects or
  business of the Group

  
	
   

  	
   

  
	
   

  	
  b              the
  ability of the Borrower to perform and comply with its obligations under this
  Agreement or

  
	
   

  	
   

  
	
   

  	
  c              the
  validity legality or enforceability of this Agreement or the rights or
  remedies of any Finance Party hereunder

  
	
   

  	
   

  
	
  “Notice of Approval”

  	
  means a notice in the form of Appendix C

  
	
   

  	
   

  
	
  “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

  
	
   

  	
   

  
	
   

  	
  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 

  

 12
 

 

 

	
  

  	
  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

  
	
   

  	
   

  

 13
 

 

 

	
  

  	
  h              any
  extension renewal or replacement of any Security described in paragraphs
  (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 paragraphs (a) to
  (h) (inclusive) 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”

  	
  means a Finance Party which is situated for tax
  purposes in the Russian Federation or in a Tax Treaty Jurisdiction

  
	
   

  	
   

  
	
  “Reference Banks”

  	
  means the
  principal London offices of Barclays Bank PLC, ABN AMRO BANK N.V., HSBC
  Bank plc, ING Bank N.V.,
  Raiffeisen Zentralbank Oesterreich AG or the principal London offices of such other banks as may be
  agreed between the Banker (with the prior written consent of ECGD) and the
  Borrower from time to time

  
	
   

  	
   

  
	
  “Reimbursement Certificate”

  	
  means a certificate in the form of Appendix
  E(1) or Appendix E(2) as appropriate or such other form as may be
  agreed between the Banker (with the prior written consent of ECGD) and the
  Borrower submitted in accordance with Clause 8

  
	
   

  	
   

  

 14
 

 

 

	
  “Reimbursement Claim”

  	
  means a claim made by the Borrower on the Banker in
  accordance with Clause 8

  
	
   

  	
   

  
	
  “Security”

  	
  means a mortgage charge lien pledge or other
  interest securing any obligations of any person or any other agreement or
  arrangement having a similar effect

  
	
   

  	
   

  
	
  “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              Telecom
  XXI

  
	
   

  	
   

  
	
   

  	
  c              Kuban
  GSM

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  e              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 

  

 15
 

 

 

	
  

  	
  year for which the Borrower’s most recent consolidated
  financial statements were prepared

  
	
   

  	
   

  
	
  “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
  per cent of the share capital or similar right of ownership

  
	
   

  	
   

  
	
  “Supplier’s Receipt”

  	
  means a receipt in the form of Appendix F signed by
  the Supplier’s Signatory for sums paid to the Supplier by the Borrower in the
  manner provided for in Clause 8

  
	
   

  	
   

  
	
  “Supplier’s Signatory”

  	
  means any person who is a director or other officer
  of the Supplier whose name and specimens of whose signature have been
  supplied from time to time to the Banker by the Supplier as being those of a
  person authorised to sign Supplier’s Receipts referred to in Clause 8 on
  behalf of that Supplier provided that at the date of receipt of the relevant
  Reimbursement Claim by the Banker no written notice of the revocation of such
  authorisation has been received by the Banker

  
	
   

  	
   

  
	
  “Supply Contract”

  	
  means a contract between the Borrower and the
  Supplier for the supply of plant and equipment and/or for the rendering of
  services

  
	
   

  	
   

  
	
  “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)

  
	
   

  	
   

  
	
  “Tax Credit”

  	
  means a credit against relief or remission for or
  repayment of any Tax

  
	
   

  	
   

  

 16
 

 

 

	
  “Tax Deduction”

  	
  means a deduction or withholding for or on account
  of Tax from a payment under this Agreement

  
	
   

  	
   

  
	
  “Tax Payment”

  	
  means an increased payment made by the Borrower to a
  Finance Party under Clause 14.3 or a payment under Clause 14.2

  
	
   

  	
   

  
	
  “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

  
	
   

  	
   

  
	
  “Telecom XXI”

  	
  means Telecom XXI an open joint stock company that
  is a wholly-owned Subsidiary of the Borrower

  
	
   

  	
   

  
	
  “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.

  
	
   

  	
   

  
	
  “Third Country Goods”

  	
  means goods produced or manufactured in a place other than the EU or the US

  
	
   

  	
   

  

 17
 

 

 

	
  “Third Country Services”

  	
  means services rendered by persons ordinarily
  resident or ordinarily carrying on business in a place other than the EU
  or the US

  
	
   

  	
   

  
	
  “UK”

  	
  means the United Kingdom of Great Britain and
  Northern Ireland and includes the Channel Islands and the Isle of Man

  
	
   

  	
   

  
	
  “UK Goods”

  	
  means goods
  produced or manufactured in the UK

  
	
   

  	
   

  
	
  “UK Services”

  	
  means services rendered by persons ordinarily
  resident or ordinarily carrying on business in the UK

  
	
   

  	
   

  
	
  “UMC”

  	
  means CJSC “Ukrainian Mobile Communications”

  
	
   

  	
   

  
	
  “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 sale of UMC to the Borrower or the acquisition
  reorganisation or ownership of UMC by the Borrower

  
	
   

  	
   

  
	
  “Unpaid Sum”

  	
  means for the purposes of calculating Break Costs
  any sum due and payable but unpaid by the Borrower under this Agreement

  
	
   

  	
   

  
	
  “US”

  	
  means the United States of America

  
	
   

  	
   

  
	
  “US Goods”

  	
  means goods produced or manufactured in the US

  
	
   

  	
   

  
	
  “US Services”

  	
  means services rendered by persons ordinarily
  resident or ordinarily carrying on business in the US

  
	
   

  	
   

  

 18
 

 

 

	
  “$” and “dollars”

  	
  mean the lawful currency of the United States of
  America

  
	
   

  	
   

  

1.2                               All references to interest shall be to interest
accruing from day to day and calculated on the basis of actual days elapsed and
a year of 360 days

1.3                               Where the context of this Agreement so allows words
importing the singular include the plural and vice versa

1.4
                            Unless otherwise indicated reference to a specified
Clause Recital or Appendix shall be construed as a reference to that specified
Clause of Recital to or Appendix to this Agreement

1.5
                            Clause and Appendix headings are for ease of reference
only and do not form part of this Agreement

1.6                               Unless otherwise indicated reference to “the Banker”, “ECGD”,
“the Borrower” and any “Party” shall be construed so as to include its
successors in title, permitted assigns and permitted transferees

1.7          Any reference in this Agreement to a
provision of law is a reference to that provision as amended or re-enacted

2                                         THE
BANKER

Every reference herein to the Banker
shall be construed as a reference to Barclays Bank PLC as principal and
liability to make Advances and rights remedies and powers hereunder in relation
to any Advances so made shall be those of Barclays Bank PLC as such principal

2.1
                            the foregoing shall not apply and references to the
Banker shall be construed as references to Barclays Bank PLC as agent for ECGD

 19
 

 

 

2.1.1       where presentation of
a Reimbursement Claim is made after the termination of the Commitment and ECGD
shall be liable to make the relevant Advance or

2.1.2       where ECGD makes any
Advance or

2.1.3       where ECGD by
assignment under Clause 13.4 becomes entitled to the rights remedies and powers
conferred hereby in relation to any Advance or interest thereon or other moneys
attributable thereto

2.2
                            If Clause 2.1.1, 2.1.2 or 2.1.3 applies the rights
remedies and powers hereunder shall be those of ECGD but may be exercised by
the Banker as agent for ECGD

2.3
                            The Banker hereby warrants that it has full power to
enter into this Agreement and to perform all its obligations hereunder

3                                       PURPOSE
AND LIMITS OF FINANCE

3.1                               To
assist the Borrower in making payments to the Supplier in respect of Eligible
Goods to be supplied and/or Eligible Services to be rendered in accordance with
Contract No.1 and in meeting the Finance Charge the
Banker agrees subject to the terms and conditions herein contained to make
Advances up to the Committed Facility Amount
of which not more than

3.1.1                     $23,800,000 shall be advanced in respect of Eligible
Goods and Eligible Services; and

3.1.2                     $1,853,462.68 shall be advanced in respect of the
Finance Charge

 20
 

 

 

3.2                               If the Banker has advanced $25,653,462.68 to the
Borrower under this agreement then the Borrower may request additional drawings
under the Additional Facility up to $64,346,537.32 for the purposes of
financing additional Supply Contracts and the Additional Finance Charge due in
respect thereof. The Borrower shall not consider the Banker to be under any
obligation to lend funds under the Additional Facility. Any drawing agreed
thereunder shall be at the sole discretion of the Banker

3.3                               Each Advance shall be deemed to be made to the
Borrower at the time the amount thereof is made available by the Banker or by
ECGD pursuant to Clause 9.2 or 9.3 or 9.6

3.4
                             Advances made
shall be disbursed in dollars direct to the Borrower from time to time by the
Banker to reimburse the Borrower for sums paid by the Borrower to the Supplier
and ECGD

3.5                               No Advance shall be made after the close of business
in New York City on 31st day of July 2007 unless and then only to
the extent that the Banker (with the prior written consent of ECGD) shall
otherwise notify the Borrower in writing

3.6                               The Borrower hereby irrevocably and
unconditionally (1) authorises the Banker to issue notices pursuant to
Clause 3.5 to extend the Final Date for Drawings on such occasions as the
Banker may think fit (including without limitation for the purpose of
accommodating delays in performance of an Approved Contract) and (2) agrees
that any such notice may be given and will be effective notwithstanding that
the Final Date for Drawings which exists immediately prior to the date on which
that notice is served may have already occurred

4                                       REPAYMENT
OF LOAN AND PAYMENT OF INTEREST

4.1
                            Subject to Clause 4.3 the Borrower agrees to repay on
consecutive Interest Due Dates the amount to be advanced in respect of each
Approved 

 21
 

 

 

                Contract in the semi-annual
instalments specified in the relevant Approval in Principle

4.2
                            In relation to each Approved Contract the first such
instalment shall become due and payable on the Interest Due Date next following
a period of 3 months from whichever of the following dates is applicable to
that Approved Contract

4.2.1                      where
each item of the plant or equipment to be supplied is usable on delivery the
date by which it is estimated in the Application for Approval that 50% by value
of the Eligible Goods will have been delivered

4.2.2                      where
the Approved Contract is in respect of services only the date by which it is
estimated in the Application for Approval that 50% by value of the Eligible
Services will have been rendered

4.2.3                      where
the plant or equipment to be supplied is usable only on delivery of all of the
same the date on which it is estimated in the Application for Approval that the
final delivery of plant or equipment will be made

4.2.4                      where
the Supplier is responsible for the installation of the plant or equipment to
be supplied the date on which it is estimated in the Application for Approval
that the installation will be completed or the date 12 months after the
estimated date for the final delivery of plant or equipment, whichever is the earlier

4.3
                            If on the earlier of the day on which the Borrower
confirms to the Banker that there are no further Reimbursement Claims to be
made in respect of an Approved Contract and the date given in Clause 3.5 or
such later date as may be notified by the Banker pursuant to that Clause the
sum of the relevant Approved Contract Loan and the aggregate amount of any
instalments paid in accordance with Clauses 4.1 and 4.2 in respect of that 

 22
 

 

 

Approved
Contract is less than the amount of the Financed Percentage of that Approved
Contract an amount (“the shortfall”) equal to the difference between the said
sum and the amount represented by the said Financed Percentage shall be
deducted from as many of the instalments specified in the relevant Approval in
Principle and taken in the reverse order of the due dates for payment thereof
as are necessary to extinguish the shortfall

4.4                               The Borrower further agrees to pay interest on each
Approved Contract Loan at the Interest Rate. Such interest shall be due and
payable semi-annually on the Interest Due Dates EXCEPT THAT the interest which
accrues on any Advance made within a period of 15 days prior to an Interest Due
Date shall not be payable on that due date but shall be due on the next
succeeding Interest Due Date

4.5                               If
any amount of

4.5.1                     any instalment payable in
accordance with Clauses 4.1 and 4.2 and/or

4.5.2                     interest payable in accordance
with Clause 4.4

 is not paid on
the due date for payment thereof the Borrower shall pay interest on such amount
at the Default Interest Rate. Such interest shall accrue from day to day from
the due date for payment of such amount to the date of receipt by the Banker of
such amount and shall be due and payable without further notice or demand of
any kind

4.6
                            The liability of the Borrower to pay in full any sum
due under this Agreement on the due date for payment thereof is in no way
conditional upon performance of any Approved Contract by the Supplier nor shall
such liability be affected in any way by reason of any claim which the Borrower
may have or may consider that it has against the Supplier

 23
 

 

 

4.7
                            Save where this Agreement expressly provides otherwise
all payments to be made by the Borrower shall be made to the Banker for its own
account and/or that of ECGD in
accordance with their respective entitlements and shall be payable on the due
date in New York City in freely transferable dollars that are available for immediate
use by the parties entitled thereto or are “same-day funds” in the New York
Clearing House Interbank Payment System (or in such other immediately available
funds as may at the time of payment be customary in New York for the same-day
settlement of international banking transactions in dollars) to the Banker’s
Account

4.8
                            All amounts received by the Banker for the account of
ECGD shall be paid to ECGD by the Banker as soon as is practicable following
receipt in the manner in which ECGD shall from time to time instruct the Banker
in writing

4.9
                            The Borrower may on giving written notice to the
Banker not less than 15 Business Days (or such shorter period as the Banker may
agree in writing) prior to an Interest Due Date prepay on that Interest Due
Date in addition to any other sums then due the whole or any part of any
Approved Contract Loan in accordance with and subject to the following
conditions:-

4.9.1                      no
Event of Default shall have occurred and remain unremedied

4.9.2                      partial
prepayments hereunder made subsequent to the Final Date for Drawings should be
applied in or towards satisfaction of the instalments remaining to be paid in
accordance with Clauses 4.1 and 4.2 in respect of the relevant Approved
Contract in the reverse order of the due dates for payment thereof

4.9.3                      once
notice of prepayment under this Clause 4.9 is given to the Banker the Borrower
shall be irrevocably bound to make such prepayment

 24
 

 

 

4.9.4 amounts so prepaid shall not be re-advanced

4.10
                     If the Borrower makes any payment of moneys intended
to be used in accordance with the provisions of Clause 4.9 the Banker shall
hold such prepayment until the next Interest Due Date after receipt thereof
when such prepayment shall be applied in the manner described in Clause 4.9

4.11                        The Borrower shall, within 3
Business Days of demand by the Banker, pay to the Banker its Break Costs
attributable to all or any part of an Advance or Unpaid Sum being paid by the
Borrower on a day other than the last day of an Interest Period for that
Advance or Unpaid Sum. Any such demand by the Banker shall be accompanied by a
certificate confirming the amount of its Break Costs for any Interest Period in
which they accrue and setting out reasonable details thereof

4.12                        Save
in the case of manifest error a certificate issued by the Banker pursuant to
Clause 4.11 shall be conclusive evidence of the amount due from the Borrower to
the Banker pursuant to that Clause

4.13
                     All payments made by the Borrower hereunder shall be
made free and clear of and without deduction for any set-off or counter-claim

4.14                        The Borrower may on giving written notice to the
Banker not less than 15 Business Days (or such shorter period as the Banker may
agree) cancel the whole or any part of the Commitments. Any notice of cancellation
shall be irrevocable and no part of the Loan Facility which has been cancelled
shall be capable of being drawn

4.15                        The Borrower shall not repay or prepay all or any part
of the Loan or cancel all or any part of the Commitments except at the times
and in the manner expressly provided for in this Agreement

 25
 

 

 

4.16                        Any Early
Repayment shall be made together with accrued interest on the amount prepaid
and without premium or penalty

4.17                        Any payment to be made by the Borrower which would
otherwise fall due on a day which is not a Business Day shall instead fall due
on the next Business Day

5                                       CONDITIONS
PRECEDENT TO ADVANCES

5.1                                No
Advance shall be made until the Banker has despatched to the Borrower notice in
writing that the following conditions have been fulfilled to the satisfaction
of the Banker (which satisfaction shall only be notified to the Borrower by the
Banker with the prior consent in writing of ECGD). Such conditions must have
been fulfilled within 90 days of the signature of this Agreement or within such
other longer period as the Banker (with the prior consent in writing of ECGD)
may otherwise agree. Any such agreement by the Banker may be conditional upon
the Borrower accepting revised terms for this Agreement.

5.2                                The
conditions set out in Clauses 5.1 and 5.5 are for the benefit of the Banker and
ECGD and the Banker may in its sole and absolute discretion (but subject always
to its obtaining the prior written consent of ECGD) waive any or all of those
conditions in whole or in part and decide when and if each of those conditions
has been fulfilled to its satisfaction

 26
 

 

 

5.3                             The Borrower shall have:

5.3.1                      taken all
necessary corporate actions to authorise the entry into and the performance of
its obligations under this Agreement

5.3.2                      obtained all
consents licences permits and authorisations and fulfilled all conditions of
all governmental and other authorities necessary to enable the Borrower to
enter into this Agreement and to make payment of all sums in dollars in New
York which become due from the Borrower to the Banker under this Agreement

5.3.3                      satisfied
the Banker that no authorisations or consents of any governmental or other
authority in the Russian Federation are necessary for ECGD to make any Advance
or for any assignment of rights and benefits contemplated by Clause 13 to be
made during the period of this Agreement

5.3.4                      supplied
to the Banker evidence of the authority and specimens of the signature of the
Borrower’s Signatory

5.3.5                      paid
to the Banker the commission referred to in Clause 17

5.3.6                     made
to ECGD the payment due in respect of Contract No. 1 as required by Clause
18.1.1

5.4                               Baker & McKenzie-CIS Limited of Sadovaya
Plaza 11th Floor 7 Dolgorukovskaya Street Moscow 127006
Russian Federation shall have given an opinion as to matters of Russian law in
form and substance satisfactory to ECGD confirming:-

5.4.1       that the individuals
who have signed                                           this
Agreement on behalf of the Borrower were duly authorised so to sign

 27
 

 

 

5.4.2       that as so signed this
Agreement imposes legally valid and binding obligations enforceable in the
Russian Federation in accordance with its terms on the Borrower on whose behalf
it has been signed which the Borrower is fully qualified and empowered to
undertake in conformity with the law of the Russian Federation

5.4.3       that all consents
licences permits and authorisations have been obtained and all other conditions
of all governmental and other authorities in the Russian Federation have been
fulfilled to enable the Borrower to enter into this Agreement and to make
payment in dollars in New York of all sums which may become due from the
Borrower under this Agreement

5.4.4       that no authorisations
or consents of any governmental or other authority in the Russian Federation
are necessary for ECGD to make any Advance or for any assignment of rights and
benefits contemplated by Clause 13 to be made during the period of this
Agreement

5.5
                            In addition to the conditions specified in Clauses 5.3
and 5.4 before a Notice of Approval is issued in respect of any contract and
before any Advances shall be made hereunder in respect thereof

5.5.1                     the Borrower shall have

5.5.1.1              provided the Banker with an irrevocable letter of
instruction in the form set out in Appendix D

5.5.1.2              obtained all consents licences permits and authorisations
and fulfilled all conditions of all governmental and other authorities in the
Russian Federation in respect of the purchase and import of the goods to be
supplied and the services to be rendered to the Borrower in accordance with the

 28
 

 

 

terms
of the Supply Contract and the payment therefor in dollars in New York

5.5.1.3              made to ECGD the payment due in respect of Contract
No.1 as required by Clause 18.1.2 or (for contracts other than Contract No.1)
the Additional Finance Charge

5.5.2       the Supplier shall have (within 90 days
of the date of the relevant Approval in Principle issued in respect of its
contract or within such other period as the Banker (with the prior consent in
writing of ECGD) may otherwise agree)

5.5.2.1                                 confirmed to the Banker
in writing that the contract provides for cash payments on each delivery and on
the performance of each item of service (if any) as envisaged by Clause 6.7

5.5.2.2                                   provided the Banker
with evidence of the authority and specimens of the signature of the Supplier’s
Signatory

5.5.2.3                                 provided the Banker
with written confirmation that all necessary approvals including any export
licences in respect of all the UK Goods and/or UK Services and other goods
and/or services to be supplied and/or rendered in accordance with the relevant Supply
Contract have been obtained and have not been withdrawn and together with such
confirmation the Supplier shall have provided a certified true copy of the
relevant export licences

5.5.2.4                                   confirmed to the
Banker in writing that it has provided all of the information, representations,
warranties and undertakings required by the relevant UK government authorities

 29
 

 

 

5.5.3                                ECGD shall have

5.5.3.1 confirmed to the Banker in writing that it has
received from the Supplier (in a form to be agreed by ECGD and the Supplier)
all undertakings customarily required by ECGD in transactions of this nature

5.5.3.2 confirmed to the Banker by the submission of
an ECGD Finance Charge/Additional Finance Charge Receipt in the form of
Appendix H that it has received from the Borrower the Finance Charge or (for
contracts other than Contract No.1) the Additional Finance Charge

5.5.4                                no Event of Default
shall have occurred and remain unremedied
or would occur as a result of the Advance being made

5.5.5                                all
representations and warranties made by the Borrower in this Agreement are true
and correct in all material respects

6                                       CONTRACTS
ELIGIBLE FOR FINANCING

All contracts to be financed
hereunder shall

6.1                               be made between the Borrower and the Supplier

6.2                               be for the supply of Eligible Goods and/or Eligible
Services (if any) with a contract value of at least $20,000

6.3                               be denominated and payable in dollars

6.4                               have been entered into not later than 24 months from
the date of signature of this Agreement

 30
 

 

 

6.5                               be those in respect of which Approvals in Principle
have been issued not later than 26 months from the date of signature of this
Agreement

6.6                               be those in respect of which the conditions specified
herein in relation to that Approved Contract have been fulfilled not later than
90 days after the expiration of the period specified in Clause 6.4 or such
later date as the Banker may (with the prior written consent of ECGD) notify
the Borrower in writing

6.7
                            provide for periodic payments in cash by the Borrower
to the Supplier calculated by reference to the invoice value of Eligible Goods
delivered to the Borrower and/or Eligible Services (if any) rendered on or
before each delivery or performance of each item of service (as the case may
be)

6.8
                            contain no provision which requires the goods to be
supplied to be shipped in ships registered in any particular country or which
discriminates against ships registered in the UK

7                                       APPROVAL
PROCEDURE

7.1                             In respect of each contract that the Borrower wishes
to be financed hereunder the Borrower shall send to the Banker an Application
for Approval signed by the Borrower’s Signatory

7.2
                            If the Banker agrees that such contract shall be so
financed they will send to the Borrower and the Supplier an Approval in
Principle

7.3
                            A Notice of Approval shall then be sent by the Banker
to the Borrower and the Supplier after

7.3.1                      the
Banker has received the Borrower’s unqualified acceptance in writing signed by
a Borrower’s Signatory of the terms of the relevant Approval in Principle and

 31
 

 

 

7.3.2                      the
conditions specified in Clause 5.5 have been fulfilled to the satisfaction of
the Banker

7.4
                            Following the issuance of a Notice of Approval in
relation to a new Supply Contract (which for the avoidance of doubt shall
exclude Contract No. 1):

7.4.1                     the Committed Facility Amount shall automatically be
increased by the Financed Percentage of (i) the amount of such Supply
Contract and (ii) the amount of any Additional Finance Charge in respect
thereof (together, the “Additional Committed Facility Amount”) and

7.4.2 the
Additional Facility shall automatically be reduced by the Additional Committed
Facility Amount

PROVIDED
THAT nothing in this Agreement shall cause the Committed Facility Amount to
exceed $90,000,000 at any time. The Borrower shall pay to the Banker the fees
described in Clauses 17.2 and 17.3 and to ECGD the Additional Finance Charge
described in Clause 18.2 with respect to any increase in the Committed Facility
Amount

 32
 

 

 

8                                         REIMBURSEMENT
CLAIMS

8.1                                From time to time the Borrower may
present claims to the Banker by the submission of a Reimbursement Certificate
signed by a Borrower’s Signatory and accompanied by either a Supplier’s Receipt
for payments made in respect of Eligible Goods delivered and/or Eligible
Services rendered (if any) or an ECGD Finance Charge/Additional Finance Charge
Receipt for payments made pursuant to Clauses 18.1.2 or 18.2 as the case may be
PROVIDED THAT the first such claim for all sums paid to the Supplier referred
to in this Clause 8 prior to the date of loan effectiveness is received by the
Banker within 45 Business Days of the date of the Banker serving notice on the
Borrower confirming loan effectiveness in accordance with Clause 5 and that all
subsequent claims for sums paid to the Supplier or ECGD referred to in this
Clause 8 are received by the Banker within 45 Business Days of the date of
receipt of payment by the Supplier or ECGD specified in the relevant Supplier’s
Receipt or ECGD Finance Charge/Additional Finance Charge Receipt

8.2                                Reimbursement Claims may be made only in respect of (i) the
Eligible Value of an Approved Contract or (ii) the Finance Charge or
Additional Finance Charge payable to ECGD in respect thereof

9                                       ADVANCES
AND REIMBURSEMENT PROCEDURES

9.1                             The Banker shall open and maintain records in accordance
with its usual practices into which the Banker shall promptly enter from time
to time details of the aggregate amount of all Advances made and of all
repayments and prepayments thereof the aggregate amount of interest falling due
and of all payments thereof and the aggregate amount of all amounts of
commissions and fees falling due and of all payments thereof together with
details of any other amounts payable by the Borrower and of all payments
thereof

9.2                               The Banker shall make the first Advance immediately
upon notifying the Borrower that the conditions set out in Clause 5 have been
fulfilled

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9.3                               If the Borrower wishes to use the Additional Facility
to assist the financing of further contracts entered into with the Supplier
pursuant to Recital (1) the Banker shall make the first Advance in respect
of the relevant contract immediately after notifying the Borrower that the
conditions set out in Clause 5.5 have been fulfilled in respect of that
contract

9.4
                            Subject to the provisions of this Agreement as soon as
practicable after receipt of a Reimbursement Claim the Banker shall make an
Advance hereunder by way of disbursement in dollars to the Borrower in
accordance with Clause 9.6 of the amount of such Reimbursement Claim

9.5
                            Where ECGD is required to make an Advance by virtue of
the provisions of Clause 9.8 ECGD shall not more than 10 Business Days after
receipt of notification from the Banker to that effect make its Advance
available to the Banker by payment in New York City in freely transferable dollars
that are available for immediate use by the Banker or are “same-day funds” in
the New York Clearing House Interbank Payment System (or in such other
immediately available funds as may at the time of payment be customary in New
York for the same-day settlement of international banking transactions in
dollars) to the Banker’s Account and the Banker shall as soon as practicable
after the Advance is made by ECGD disburse such amount to the Borrower in
accordance with Clause 9.6

9.6
                            Advances made in accordance with Clauses 9.4 and 9.5 shall
be disbursed to the Borrower by payment in dollars to the Borrower’s Account

9.7                              Notwithstanding
any other provisions of this Clause 9 no Advance (other than the first Advance
made hereunder) shall be made in accordance with Clauses 9.4 and 9.5 before the
Business Day next following a period of 5 Business Days from the date of the
previous Advance

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9.8
                            ECGD hereby undertakes that if the Commitment is
terminated under the provisions of Clause 13.1 or 13.2 ECGD will subject to the
terms and conditions of this Agreement make the Advances which the Banker would
otherwise have made

10                                  AMOUNTS
DUE TO BE PAID TO THE BORROWER

10.1                        All
amounts received or retained by the Banker by virtue of any letter of
instruction given in the terms set out in Appendix D or by virtue of accrual of
interest on any sum held on deposit in accordance with Clause 19 shall be applied as the Borrower
may direct EXCEPT THAT if any of the circumstances referred to in Clause 10.2
shall occur before the application by the Banker of any such amounts in
accordance with such direction the Banker shall apply such amounts as ECGD may
direct in writing in or towards satisfaction of any sum to be paid by the
Borrower under this Agreement

10.2                        The
circumstances referred to in Clause 10.1 are as follows:

10.2.1              \the Supplier or the Borrower has
notified the Banker that the Supply Contract has been terminated or

10.2.2              the Supplier or the Borrower has notified
the Banker that arbitration has been initiated under the Supply Contract or

10.2.3            an Event of Default has occurred and remains unremedied

10.3                        Where
the Banker is directed by ECGD to apply an amount referred to in Clause 10.1 in
or towards repayment of the Loan Value and such amount is received or retained
by the Banker on a date other than an Interest Due Date the Banker shall hold
such amount on deposit until the next Interest Due Date and shall then apply it
as directed

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11                                DEFAULT

11.1
                     For the purposes of this Agreement there shall be an
Event of Default:-

11.1.1              if
the Borrower fails to pay in full in accordance with Clause 4.7 on the due date
for payment thereof

11.1.1.1        any
instalment due in accordance with Clauses 4.1  and 4.2 or

11.1.1.2        any
interest due under this Agreement

unless such failure to pay is
caused by administrative or technical error and payment is made within 3
Business Days of the due date

11.1.2               if the Borrower fails in the
performance or observance of any of its other obligations hereunder

11.1.3

(a)                                  if any Financial Indebtedness of any
member of the Group is not paid when due nor within any originally applicable
grace period

(b)                                  if any Financial Indebtedness of any
member of the Group 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)                                 if any commitment for any Financial
Indebtedness of any member of the Group is cancelled or suspended by a creditor
of any member of the Group as a result of an event of default (however
described)

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(d)                                  if any creditor of any member of the
Group becomes entitled to declare any Financial Indebtedness of any member of
the Group due and payable prior to its specified maturity as a result of an
event of default (however described)

provided that no Event of Default
will occur under this Clause 11.1.3 unless the events described in paragraphs (a) to
(d) above occur either (1) in respect of any single item of Financial
Indebtedness or single commitment for Financial Indebtedness in an amount exceeding
$10,000,000 (or its equivalent in any other currency or currencies), or (2) where
the aggregate of unpaid amounts in respect of Financial Indebtedness and
withdrawn commitments for Financial Indebtedness is in excess of $35,000,000
(or its equivalent in any other currency or currencies)

11.1.4     if any action or
proceedings are taken or instituted for the dissolution or disestablishment of
the Borrower or for the suspension of its operations or any measures are taken
which would prevent or impede the Borrower from or in carrying on its
operations or any substantial part thereof provided that no Event of Default will occur under this Clause 11.1.4 in
respect of any action, proceeding or measure which is - in the sole discretion
of the Banker - frivolous or vexatious and is withdrawn or rejected within 30
calendar days from the date of commencement

11.1.5     if any order is made or
a resolution is passed to wind up the Borrower or the Borrower becomes insolvent
or makes any arrangement for the benefit of its creditors generally or admits in writing its
inability to pay its debts as they become due or commits any act substantially
equivalent thereto or any analogous procedure or step is taken in any
jurisdiction

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11.1.6     if a receiver or
manager is appointed in respect of the
Borrower or any of its assets for the benefit of debenture holders or
other creditors of the Borrower

11.1.7                if any representation or warranty of
the Borrower or any statement deemed to be made by the Borrower in this
Agreement or in any other certificate or notice delivered by the Borrower in
connection with this Agreement proves to have been inaccurate incomplete or
misleading in any material respect at the time it was made or deemed to have
been made and such representation
warranty or statement is not rendered accurate complete and not misleading
within 10 Business Days of notice in writing by the Banker or ECGD to
the Borrower

11.1.8                if any governmental authorisation
necessary for the performance of any obligation of the Borrower under this
Agreement ceases to be in full force and effect

11.1.9     if
there is a seizure compulsory acquisition expropriation nationalisation or
renationalisation in each case without appropriate compensation by or under
state authority of all or part of the
assets of the Borrower (the book value of which is 15 per cent. or more of the book value
of the Borrower’s total assets
immediately prior thereto) PROVIDED THAT this Clause 11.1.9 shall not apply to
the transfer of any or all of the Borrower’s shares in UMC pursuant to the UMC
Litigation to a person that is not an Affiliate of the Borrower

11.1.10        if the Borrower ceases (or proposes to cease) to carry on all or any substantial part of
its business PROVIDED THAT this Clause 11.1.10 shall not apply to the transfer
of all or any of the Borrower’s shares in UMC pursuant to the UMC Litigation

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11.1.11        if any law regulation or order or any change in
any law or regulation does or purports to vary suspend terminate or excuse performance
by the Borrower of any of its obligations under this Agreement or a moratorium
on the payment of interest or principal under this Agreement is announced

11.1.12        if a Material
Adverse Effect occurs or

11.1.13        if the UMC Litigation is adversely determined
and in the reasonable opinion of the Banker such adverse determination has or
is reasonably likely to have a Material Adverse Effect

11.2
                     If an Event of Default occurs a Default Notice may be
sent by the Banker to the Borrower

11.3
                     If an Event of Default occurs and is continuing unremedied a Default Demand
may be sent by the Banker to the Borrower

11.3.1                                                            in the case of an Event of Default specified in Clause
11.1.1.1 or 11.1.3 with the Default Notice or at any time thereafter

11.3.2                                                            in the case of an Event of Default specified in Clause
11.1.1.2 not less than 7 days after the sending of the Default Notice

11.3.3                                                            in the case of any other Event of Default not less
than 14 days after the sending of the Default Notice

11.4
                     On the occurrence of any of the events of default
referred to in Clause 11.1 the obligation of the Banker and/or ECGD to make
Advances 

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shall
immediately cease but the Banker shall continue to make Advances if and for so
long as ECGD so directs and ECGD may continue to make Advances without
prejudice to the right of the Banker and/or ECGD to receive payment of any sums
due to them but only until the sending of a Default Demand PROVIDED THAT if no
Default Demand has been sent by the Banker and if the Event of Default is such
an event as is referred to in Clause 11.1.1.2 and such Event of Default is
remedied within 10 days or in Clause 11.3.3 and such Event of Default is
remedied within 30 days the Banker and ECGD shall thereupon again be bound by
their obligations as if such Event of Default had not occurred

11.5
                     Upon the sending of the Default Demand there shall
forthwith become due and payable by the Borrower in respect of each Approved
Contract the aggregate of the Approved Contract Loans and all interest accrued
and unpaid in respect thereof calculated up to the date of the Default Demand
together with any unpaid amount which has accrued under the provisions of
Clause 4.5 up to that date

11.6
                     In lieu of the interest referred to in Clauses 4.4 and
4.5 which shall cease to accrue from the date of the Default Demand the
Borrower shall pay without further notice or demand of any kind from day to day
interest at the relevant Default Interest Rate on each amount payable under
Clause 11.5 until such amount is paid to the Banker in accordance with Clause
4.7

11.7
                     If late or partial payment is received of any amount
payable under this Agreement the Borrower hereby waives any rights which it may have to make any appropriation thereof
and the amount so received shall be applied at the written direction of ECGD by
the Banker in or towards satisfaction of the amounts which are due or overdue
for payment

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12 UNDERTAKINGS
COVENANTS AND REPRESENTATIONS BY THE BORROWER

General Undertakings

12.1                           The
undertakings in this Clause 12.1 remain in force from the date of this
Agreement for so long as any amount is outstanding under this Agreement

Authorisations

12.1.1                                          The Borrower shall promptly:

12.1.1.1  obtain
comply with and do all that is necessary to maintain in full force and effect
and

12.1.1.2  supply certified copies to the Banker of

any Authorisation required under any law or
regulation of its jurisdiction of incorporation to enable it to perform its
obligations under this Agreement and to ensure the legality validity
enforceability or admissibility in evidence in its jurisdiction of
incorporation of this Agreement

Compliance with
laws

12.1.2               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 this Agreement

Maintenance of
existence

12.1.3               The Borrower shall maintain its
corporate existence

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Negative pledge

12.1.4                                            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

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

12.1.5.1                                   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

12.1.5.2            sell
transfer or otherwise dispose of any of its receivables on recourse terms

12.1.5.3            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

12.1.5.4           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

12.1.6                                            Clauses
12.1.4 and 12.1.5 above do not apply to Permitted Security

Disposals 

12.1.7                                            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

 42
 

 

 

(whether
related or not and whether voluntary or involuntary) to sell, lease, transfer
or otherwise dispose of any asset

12.1.8                                            Clause
12.1.7 above does not apply to any sale lease transfer or other disposal

12.1.8.1                                   made
in the ordinary course of trading of the disposing entity

12.1.8.2                                   of assets in
exchange for other assets comparable or superior as to type value and quality

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

12.1.8.4                                   of
cash or cash equivalents for cash or cash equivalents

12.1.8.5                                   where the book value
of such asset (when aggregated with the book value of each other asset disposed
of under this Clause 12.1.8.5) (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 date of this Agreement and ending on the date
that all amounts outstanding under this Agreement have been paid in full. At
the request of the Banker (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 Banker setting out in reasonable detail the book value of
any assets disposed of under this Clause 12.1.8.5 (calculated in accordance
with GAAP) or

12.1.8.6                                 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
Clause 12.1.8.6 shall not in any way prejudice the rights of the Finance
Parties under Clause 11.1.13 (UMC Litigation)).

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When calculating the
Borrower’s Total Assets under Clause 12.1.8.5 above if the annual consolidated
balance sheet of the Borrower for the immediately preceding 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 Banker

Merger

12.1.9                                            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

12.1.10                                     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 Banker (acting
reasonably) have a Material Adverse Effect.

Change
of business

12.1.11          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 date of this
Agreement

 44
 

 

 

Conduct
of business

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

12.1.12.1  all Telecommunications Laws to
which it is or may become subject

12.1.12.2                                              all
requirements of the telecommunications regulators of the Russian Federation
Ukraine and any other jurisdiction where it conducts its business and

12.1.12.3                                              the
terms of all relevant Telecommunications Authorisations.

Asset
maintenance

12.1.13          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

Insurance

12.1.14          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

 45
 

 

 

Transactions with Related Parties

12.1.15        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

12.1.15.1                                              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

12.1.15.2                                              such
intercompany loan is made pursuant to a contract or contracts existing on the
date of this Agreement (excluding any amendments or modifications thereto after
the date of this Agreement),

provided that the
aggregate outstanding amount of all such intercompany loans described in
Clauses 12.1.15.1 and 12.1.15.2 above does not at any time exceed $100,000,000

12.1.16        Clause 12.1.15 above does
not apply to

12.1.16.1                                              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

12.1.16.2                                              transactions
between members of the Group

12.1.17        For the purposes of
Clauses 12.1.15 and 12.1.16 only a “Related Party” means with respect to any
specified person

12.1.17.1  any other person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified person or

 46
 

 

 

12.1.17.2        any other person who is a director or executive
officer of (a) such specified person or (b) any person described in
Clause 12.1.17.1 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

Restriction
on acquisitions 

12.1.18          The Borrower shall not
establish or acquire any Subsidiary or invest in any other entity without the
consent of the Banker (such consent not to be unreasonably withheld) provided
that this Clause 12.1.18 shall not apply to any such acquisition or
investment where

12.1.18.1  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

12.1.18.2  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 permitted
under this Clause 12.1.18.2 does not exceed 20 per cent. of the Borrower’s
Total Assets in any financial year of the Borrower

Prompt
payment of Taxes

12.1.19      The Borrower shall (and
shall ensure that each Significant Subsidiary will) duly pay all Taxes payable
by it other than (a) those taxes 

 47
 

 

 

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)

Pari passu

12.1.20          The Borrower shall procure
that its obligations under this Agreement rank at least pari passu with all its other unsecured
unsubordinated obligations save where such other obligations are mandatorily
preferred by law

Loans
and guarantees

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

12.1.21.1  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

12.1.21.2  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)

12.1.22                               The restrictions in
Clause 12.1.21 above do not apply to (i) loans credits financial
accommodation guarantees indemnities bonds and letters of credit expressly
permitted by this Agreement (if any) 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 

 48
 

 

 

permitted under Clauses 12.1.15 and 12.1.16 (Transactions with Related Parties)

Financial statements

12.1.23                                                      The Borrower shall supply to the Banker and ECGD

12.1.23.1                                          as soon as the same becomes 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

12.1.23.2                                          as soon as the same becomes available but in any event
within 45 days after the end of each of its financial quarters its unaudited
consolidated and non-consolidated financial statements for that financial
quarter

12.1.24
    The Borrower undertakes promptly upon the occurrence
of an Event of Default as specified in Clauses 11.1.3 to 11.1.13 to notify the
Banker thereof specifying all relevant details

12.2
                               The Borrower hereby covenants and agrees that the
Borrower shall and shall procure that the Supplier shall obtain all necessary
consents licences permits and authorisations and fulfil all conditions of all
governmental and other authorities in the Russian Federation in respect of the
purchase and import of the Eligible Goods to be supplied and the Eligible
Services to be rendered to the Borrower in accordance with the terms of the
relevant Approved Contract and the payment therefor in dollars in New York. The
Borrower further agrees that the liability of the Borrower to make payment to
the Banker under this Agreement is in no way conditional upon the performance
by the Borrower (or any agent appointed by it, including the Moscow Bank for Reconstruction
and Development) of its undertaking or obligations under the law of the Russian
Federation to obtain such authorisation (including any deal passport that may
be required)

 49
 

 

 

12.3  The Borrower
represents that 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
this Agreement to a Qualifying Lender

12.4                                  The Borrower represents that 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 exceed in aggregate exceed
$25,000,000 (or its equivalent in any other currencies)

12.5                                  The Borrower makes the representations set out in
Clauses 12.3 and 12.4 on the date of this Agreement. Such representations are also
deemed to be made by the Borrower by reference to the facts and circumstances
then existing on each date that an Application for Approval is submitted to the
Banker by the Borrower in relation to a Supply Contract (other than Contract No. 1)

13                                THE
FUNDING AND BENEFIT OF THE AGREEMENT

13.1
                     The Commitment shall terminate if the introduction of
a new law or regulation or a change in any applicable law or regulation or in
the interpretation thereof by a court or tribunal or by any authority charged
with the administration thereof shall make it illegal for the Banker to fulfil
its obligations hereunder

13.2
                     ECGD may at any time terminate the Commitment by giving
to the Banker notice in writing of such termination specifying the date on
which the Commitment shall terminate and thereafter the Banker shall have no
further liability to make Advances

13.3
                     The Banker may at any time (with the prior written
consent of ECGD and subject to Clause 13.6 the Borrower (such consent not to be 

 50
 

 

 

unreasonably
withheld or delayed)) assign to any Eligible Bank all or any part of its rights
and benefits hereunder. Any such assignment shall be in a minimum amount of
$5,000,000 (except in the case of an assignment which has the effect of
reducing the Banker’s participation in the Loan Facility to zero). The Borrower’s
consent to an assignment or transfer by the Banker shall not be required if
such transfer or assignment is to an Affiliate of the Banker

13.4                         The Banker may at any time (with the
prior written consent of ECGD) assign to ECGD all part of its rights and
benefits hereunder

13.5
                     ECGD may at any time assign all or any part of its
rights and benefits hereunder to any Eligible Bank

13.6                        The Borrower hereby authorises the Banker to accept on
its behalf notice in writing of any assignment of rights and benefits made in
accordance with Clause 13.5

13.7                        The consent of the Borrower to an assignment of rights
under Clause 13.3 shall not be required if an Event of Default shall have
occurred and remains unremedied

13.8
                     ECGD shall be entitled to make whatever arrangements
it shall deem appropriate to procure dollars to enable it to fulfil its
obligations but any such arrangements shall not affect the rights benefits and
obligations of the Borrower

13.9
                     If the Commitment shall terminate in accordance with
Clause 13.1 or 13.2 or if there shall be any assignment of the rights or
benefits of the Banker to ECGD or any assignment of the rights and benefits of
ECGD to an Eligible Bank the Banker shall inform the Borrower thereof but the
Borrower shall notwithstanding having received such information continue to
make payment of all sums due under this Agreement through the Banker in the
manner provided hereunder and any failure by the Banker to inform 

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the
Borrower thereof shall not in any way affect the rights benefits or obligations
of any person hereunder

13.10
              The Borrower shall not assign or transfer any of its
rights benefits or obligations hereunder

14                                  TAXES

14.1                      All
payments to be made by the Borrower hereunder shall be made without any Tax Deduction, unless a Tax Deduction is required
by law

14.2                      The
Borrower agrees to pay or cause to be paid directly to the appropriate
governmental authority and reimburse the Banker and/or ECGD for the cost of any
and all present and future Taxes
levied or imposed by that authority on or in respect of any right obligation or
action granted imposed or undertaken pursuant to this Agreement

14.3                         If the
Borrower is prohibited by operation of law from making payments without any Tax Deduction pursuant to Clause 14.1 or from paying causing to be paid
or reimbursing any Finance Party
for the cost of all Taxes
pursuant to Clause 14.2 then the payment due to such Finance Party under this Agreement
shall be increased to ensure that after such Tax Deduction or payment of such Taxes that Finance Party receives
a net sum equal to the sum which
it would have received and to which it would have been entitled had no such Tax Deduction or payment been required

14.4                      If
the Borrower must make payments for Tax
as provided for in this Clause 14
then the Borrower shall confirm to the Banker and/or ECGD that all such Taxes have been paid by forwarding to
the Banker and/or ECGD within 30 days after payment an official receipt or such
other documentary evidence as is acceptable to the Banker and/or ECGD acting
reasonably

 52
 

 

 

14.5                        Clause 14.2
shall not apply:

14.5.1               with respect to any Tax assessed on a Finance Party

14.5.1.1     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

14.5.1.2     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

14.5.2                                   to the extent a loss liability or cost

14.5.2.1      is
compensated for by an increased payment under Clause 14.3 or

14.5.2.2      would
have been compensated for by an increased payment under Clause 14.3 but was not so compensated solely
because one of the exclusions in Clause 14.5 applied

14.6                        The Borrower is not required to make an increased
payment to a Finance Party under Clause 14.3 if on the date on which the payment falls due the Borrower
could have made such a payment to that Finance Party without a Tax Deduction if
that Finance Party was a Qualifying Lender but on that date that Finance Party
is not or has ceased to be a Qualifying Lender (other than as a result of any
change after the date it became a Finance Party in (or in the interpretation
administration or application of) any 

 53
 

 

 

law
or treaty or any published practice or concession of any relevant taxing
authority)

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

14.7.1.           a Tax Credit is attributable to that Tax Payment and

14.7.2.           that Finance Party has obtained utilised and retained
that Tax Credit

that
Finance Party shall promptly pay 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

14.8                         ECGD is not a Finance Party for the
purposes of Clauses 14.5 to 14.7 inclusive

15                                  INCREASED COSTS

15.1                        If after the date of this Agreement a Finance Party
incurs or becomes aware that it will in the immediate future incur an increase
in the cost of making Advances and/or maintaining the Loan as a result of:

15.1.1                         the
introduction of or any change in or in the interpretation of any law or
regulation and/or

15.1.2                         compliance
with a request from any central bank or other fiscal or monetary authority

(an
“Increased Cost”)

 54
 

 

 

the
Borrower shall upon receipt of written notice from the Banker on behalf of
itself or ECGD specifying the event giving rise to such increase and estimating
the amount of such increase in respect of any Advances to be made by the Banker
or ECGD and/or in respect of maintaining the Loan pay as hereinafter provided
the amount of the increase in costs incurred by the Banker or ECGD in making
Advances and/or maintaining the Loan

15.2                        The Banker on behalf of itself or ECGD shall as soon
as practicable certify to the Borrower the amount of such increase in costs
incurred for the period from and including the date on which such increase in
costs was first incurred to the Interest Due Date following the receipt by the
Borrower of a notice in accordance with Clause 15.1 and supply with each such
certificate a copy of the calculations made by itself or ECGD to determine the
amount specified

15.3                        Notwithstanding the Borrower’s obligation to pay the
Banker or ECGD pursuant to this Clause the Banker shall within a reasonable
time after it has become aware of the same consult with the Borrower and ECGD
with a view to exploring possible ways to minimise such increased costs

15.4                        On the Interest Due Date specified in Clause 15.2 and
on each subsequent Interest Due Date the Borrower shall pay to the Banker by an
increase to the Margin the amount of such increase in costs certified as aforesaid.
If any certificate is received by the Borrower less than 15 days before an
Interest Due Date the amount certified shall not be paid until the Interest Due
Date next following that Interest Due Date

15.5                        Clause 15.1 does not apply to the extent that any
Increased Cost is:

15.5.1                             attributable to a Tax Deduction required by law to be
made by the Borrower

15.5.2                              compensated for by Clause 15.2 (or would have been
compensated for under Clause 15.2 but was not so compensated 

 55
 

 

 

solely
because any of the exclusions in Clause 15.5 applied)

15.5.3         compensated for by the
payment of the Mandatory Cost; or

15.5.4         attributable to the wilful breach by the Banker or its
Affiliates of any law or regulation

15.6                              The Banker 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 Clause 14 or Clause 15, including (but not limited to)
transferring its rights and obligations under this Agreement to another
Affiliate or facility office. This Clause 15.6 does not in any way limit the
obligations of the Borrower under this Agreement

15.7                        The
Borrower shall indemnify the Banker for all costs and expenses reasonably
incurred by the Banker as a result of steps taken by it under Clause 15.6

15.8                        The Banker
is not obliged to take any steps under Clause 15.6 if in the opinion of the
Banker(acting reasonably), to do so might be prejudicial to it.

16   EXPENSES

The Borrower shall pay on
demand to the Banker in the currency and in the manner specified by the Banker
:-

16.1                        all amounts whatsoever which the Banker or ECGD may
expend or become liable for in demanding suing for recovering and receiving
payment of any sum due to the Banker or ECGD hereunder and under any documents
executed pursuant hereto and

 56
 

 

 

16.2 the
legal charges reasonably and properly incurred in the UK by the Banker in
connection with the preparation and due execution of this Agreement and all
documents executed hereunder and in connection with the fulfilment of the
conditions specified in Clause 5 (subject to an aggregate cap of $15,000)

17   COMMISSIONS

17.1                The Borrower shall pay the
Banker an arrangement fee of 0.40% flat on the original Committed Facility
Amount with a minimum fee of $85,000 payable on the date of this agreement

17.2                The Borrower
shall pay the Banker an additional arrangement fee of 0.40% flat on each Additional
Committed Facility Amount within 5 Business Days from the issuance of a Notice
of Approval in relation to the relevant Supply Contract PROVIDED THAT such
additional arrangement fee shall be payable only once in relation to each
Additional Committed Facility Amount

17.3                The Borrower
shall pay the Banker a commitment fee of 0.175% per annum payable quarterly in
arrear during the Availability Period and on the last day of the Availability
Period on the undrawn portion of the Committed Facility Amount

18                                  FINANCE CHARGE

18.1                  The Borrower shall pay to ECGD the sum of
$2,180,544.33 due in respect of Contract No. 1 as follows

18.1.1 $10,000
on signature of this Agreement which will constitute an administrative charge
which will not be refunded in any event

18.1.2 $2,170,544.33
representing the balance of the Finance Charge due in respect of Contract No. 1
within the validity period of the 

 57
 

 

 

Approval
in Principle and before the first Advance is made in accordance with Clause 9.2

18.2  If the Borrower wishes to use the Additional
Facility to assist the financing of further contracts entered into with the
Supplier pursuant to Recital (1) then the Borrower shall pay an Additional
Finance Charge in respect of each Approved Contract. The amount of such
Additional Finance Charge shall be notified by the Banker to the Borrower in
the relevant Approval in Principle and be paid to ECGD within the validity
period of such Approval in Principle and before the first Advance is made in relation
thereto in accordance with Clause 9.3

18.3  All amounts payable to ECGD under this Clause
18 shall be paid in dollars to

Account Number:                    000142794

Account Name:                             Export Credits Guarantee
Dept

SWIFT Address:                          MRMDUS33

Federal Reserve Routing Number: 021001088

Bank Name and Address:

HSBC Bank USA 

452 Fifth Avenue 

New York, NY 10005

Quoting reference                   “ECGD - Premium BD1/RUSSIA/18367/1”

19                                SUMS
ON DEPOSIT

19.1                        All moneys held by the Banker under the terms of this
Agreement which are not to be applied by the Banker in accordance with such
terms within one day of the date of their receipt shall be placed by the Banker
on deposit as soon as possible after receipt and interest shall be payable
thereon at the Banker’s usual rate from time to time for deposits of a similar
amount and nature. The interest accruing on all moneys held on deposit under
this Agreement shall be applied in the manner specified in Clause 10.1

 58
 

 

 

19.2                        If any amounts to be held and applied by the Banker
under the terms of this Agreement are received in a currency other than dollars
such amounts shall be sold for dollars by the Banker in the London foreign
exchange market as soon as practicable after receipt by the Banker

20                                LAW

This Agreement shall be governed by and construed in
accordance with English law

21                                ARBITRATION

21.1                        Subject to Clause 21.7, 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 London Court of International Arbitration (the “LCIA Court”).

21.2                        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 Court
within 15 days of the appointment of the second arbitrator.

21.3                        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 Court 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 Court within 15 days of such
failure who shall designate one of them as chairman.

 59
 

 

 

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

21.5                        The seat of arbitration shall be London, England and
the language of the arbitration shall be English.

21.6                        Save as provided in Clause 21.7, the parties exclude
the jurisdiction of the courts under Sections 45 and 69 of the Arbitration Act
1996.

21.7                        Before an arbitrator has been appointed by a Finance
Party to determine a Dispute, the Banker may (and, if so instructed by ECGD,
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 Banker gives such notice,
the Dispute to which such notice refers shall be determined in accordance with
Clause 22.

22                                JURISDICTION

22.1                        The Borrower hereby agrees that any legal action or
proceedings arising out of or in connection with this Agreement may be brought
in the High Court of Justice in England and the Borrower irrevocably submits to
the jurisdiction of such court and agrees that any writ judgement or other
notice of legal process shall be sufficiently served in connection with proceedings
in England if delivered to Law Debenture Corporate Services Limited of Fifth
Floor, 100 Wood Street, London EC2V 7EX or any other person in England duly authorised
by the Borrower to receive the same

22.2                        Submission to such jurisdiction shall not prevent the
Banker or ECGD or either of them from taking proceedings against the Borrower
in whatever jurisdiction it or they shall think fit nor shall the taking of
proceedings in one or more jurisdictions preclude the taking of proceedings in
any other jurisdiction whether concurrently or not

 60
 

 

 

22.3                        If in any jurisdiction in which proceedings are being
taken in connection with this Agreement the Borrower has the power to claim for
itself or its assets immunity from suit or other legal process or if the court
may of its own motion grant such immunity to the Borrower or its assets the
Borrower hereby irrevocably undertakes not to claim and hereby irrevocably
waives such immunity and consents generally to the giving of any relief or the
issue of any process in connection with such proceedings including without
limitation the making enforcement or execution against any property whatever of
any order or judgement which may be made or given in such proceedings

22.4                        If for the purpose of obtaining or enforcing judgement
in any court it is necessary to convert a sum due hereunder in dollars into
another currency (“the second currency”) the rate of exchange which shall be
applied shall be that at which in accordance with normal banking procedures the
Banker could purchase dollars with the second currency on the Business Day
preceding that on which final judgement is given. The obligation of the
Borrower in respect of any such sum due hereunder shall notwithstanding any
judgement in the second currency and notwithstanding the rate of exchange
actually applied in giving such judgement be discharged only to the extent that
on the Business Day following receipt by the Banker of any sum adjudged to be
due hereunder in the second currency the Banker may in accordance with normal
banking procedures purchase wherever the Banker shall deem appropriate dollars
with the amount of the second currency so received and if the dollars so purchased
fall short of the sum originally due in dollars the Borrower agrees as a
separate obligation and notwithstanding any such judgement to indemnify the
Banker and/or ECGD as the case may be in accordance with their respective
entitlements against such deficiency

23                                ALTERATION
TO APPROVED CONTRACTS

23.1                        Unless ECGD shall otherwise elect the obligation of
the Banker and/or ECGD to make Advances hereunder in respect of any Approved 

 61
 

 

 

Contract shall cease if any alteration of or amendment
to or departure from the terms of that Approved Contract is made or agreed
without the consent in writing of the Banker the Borrower and ECGD

23.2                        For the purposes hereof the expression “alteration of
or amendment to or departure from the terms of that Approved Contract” shall
not include any variation of the technical specifications or scope of Eligible
Goods to be supplied or in the scope of Eligible Services to be rendered under
the Approved Contract unless such variation would increase the total amount
payable under that Approved Contract or would involve a material change in the
scope or objects of that Approved Contract or a change in the details of that
Approved Contract as described in the Application for Approval

24                                NOTICES
AND DEMANDS

24.1                        In addition to the modes of service of documents
prescribed by the laws of the country of the addressee notices and demands to
be given or made to or of any party hereto may be sent by telex facsimile
transmission internationally recognised courier acceptable to the Banker or
first class prepaid mail (registered airmail if overseas) and shall be
addressed:-

If to the Borrower as follows:-

Open Joint Stock Company
Mobile TeleSystems

Ul. Vorontsovskaya 5, Bldg. 2

109147 Moscow

Russian Federation

Fax: +007 (095) 911 6531

Attention: Tatiana
Evtoushenkova/Elena Zharikova

If to
the Banker as follows:-

Barclays
Capital

5 The
North Colonnade

 62
 

 

 

Canary Wharf

London E14 4BB

Fax: +44 (0) 2077731831

Attention: Roger Wright

If to ECGD as follows:-

The Manager

Guarantee & Policy Administration Division

ECGD, PO Box 2200

2 Exchange Tower

Harbour Exchange Square

London E14 9GS

Fax: 020 7512

or
to such other address facsimile or telex number as such party designates in
writing

24.2                        In the case of notices and demands sent by telex or
facsimile transmission a copy thereof shall be sent by first class prepaid mail
(registered airmail if overseas) addressed as aforesaid not later than the
first business day in the country of the sender following the day on which such
telex or facsimile transmission was sent

24.3                        Notices and demands and copies thereof shall be deemed
to have been received in the case of telex or facsimile transmission or inland
mail one business day in the country of the addressee and in the case of
courier or registered airmail 7 business day(s) in the country of the
addressee after they have been sent

24.4                        Any facsimile or telex instructions received by the
Banker purporting to be given by an authorised officer of the Borrower and
believed by the 

 63
 

 

 

Banker
to be genuine shall have the same validity as a written instruction duly signed
by an authorised officer of the Borrower

25                                MISCELLANEOUS

25.1                        If at any time any provision
of this Agreement is or becomes illegal invalid or unenforceable in any respect
under the law of any jurisdiction neither the legality validity or
enforceability of the remaining provisions hereof nor the legality validity or
enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby

25.2                         For the avoidance of doubt the parties to
this Agreement do not intend that any of the terms of this Agreement should be
enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by
any person who is not a party to this Agreement

25.3                              This Agreement may be executed in
any number of counterparts and all such counterparts taken together shall be
deemed to constitute one and the same instrument.

IN WITNESS WHEREOF
this Agreement has been signed on behalf of the parties hereto by persons duly
authorised in that behalf the day and year first above written

 64
 

 

 

SIGNATURE
PAGE

The Borrower

OPEN
JOINT STOCK COMPANY MOBILE TELESYSTEMS

 

	
  By:

  	
  .

  	
   

  	
  By:

  	
  .

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  R. Kolomiets

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  Chief Accountant

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The Banker

BARCLAYS
BANK PLC

	
  By:

  	
  .

  	
   

  	
  By:

  	
  .

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  R. Kolomiets

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  Chief Accountant

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

ECGD

HER
BRITANNIC MAJESTY’S SECRETARY OF STATE

(acting by the EXPORT CREDITS GUARANTEE DEPARTMENT)

	
  By:

  	
  .

  	
   

  	
  By:

  	
  .

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  R. Kolomiets

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  Chief Accountant

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 65
 

 

 

 APPENDIX A

	
  o: The Banker

  	
   

  	
  Date:

  	
   

  

[Address ]

 

Serial No:

Dear Sirs,

APPLICATION FOR
APPROVAL OF A CONTRACT FOR FINANCING UNDER LOAN AGREEMENT BETWEEN US AND ECGD
DATED [ ]

1              We give you below

a              details of a contract/contract
under negotiation*

b              revised details of a
contract/contract under negotiation* (previously notified on our Serial No. [
])

and
invite you to agree that the contract shall be financed under the terms of the
above-mentioned Loan Agreement

2              The
details of the said contract are as follows:-

a                                         Name and address of UK Supplier

b                                          Detailed
description of UK Goods

c                                           Description of UK Services

d                                          Contract price of UK Goods                                                                                                                                        $

 66
 

 

 

e                                           Contract price of UK Services                                                                                                                               $

f                                            Total of d and e                                                                                                                                                                                                         $

g                                           Detailed description of non-UK Goods

h                                          Description of non-UK Services

i                                              Contract price of non-UK Goods                                                                                                               $

j                                             Contract price of non-UK Services                                                                                                      $

k                                          Total of i and j                                                                                                                                                                                                               $

l Terms of
Payment:-

m Estimated
programme of delivery of goods and performance of services

	
  UK Goods

  	
  Non-UK Goods 

  	
  UK Services

  	
  Non-UK Services

  

 

Commence

Complete

3         We understand that:

*a            the
goods to be supplied under this contract will be usable on delivery and the date
by which it is estimated that 50 per cent. by value of the Eligible Goods will
have been supplied is [    ]

*b            the
plant or equipment will not be usable until final delivery of all the parts
thereof

*c            the Supplier
is responsible for installation of the goods and completion of installation is estimated at [    ]
months from contract

 67
 

 

 

*d the date by which it is estimated that 50 per cent.
by value of the Eligible Services will have been rendered is [   ]]

4              We propose that Reimbursement
Claims in respect of the Eligible Value of the contract shall be made by us to
you in the form set out in Appendix E(1) to the Loan Agreement

5              We
propose that Reimbursement Claims in respect of the Finance Charge or
Additional Finance Charge shall be made by us to you in the form set out in
Appendix E(2) to the Loan Agreement

6              We confirm that all contract prices
are denominated in dollars and the figures quoted above are the offer prices and
are not derived from the conversion by us of any other currency into dollars

 

Yours faithfully

 

 

For and on behalf of

[the Borrower]

 

 

Borrower’s
Signatory

* delete or
complete as appropriate

 68
 

 

APPENDIX B

APPROVAL
IN PRINCIPLE

	
  To: The Borrower

  	
   

  	
  Date:

  	
   

  

 

Copied to:             [The Supplier]

Dear Sirs

1              We refer to your Application for
Approval Serial No                 
dated

2              The contract described in your
application is provisionally approved by us for financing under the Loan
Agreement made between us and ECGD on [                    2005]
and we are willing to make available a total sum of $[  ] subject to
the conditions of Clause 5 of the Loan Agreement having been fulfilled

3              The Eligible Value of the contract
is $

4              The
Finance Charge/Additional Finance Charge* is $

5              The
Financed Percentage is                                           85                                  per cent.

6              The repayment terms acceptable to
us are as follows:

Amount
of each Semi-annual    Due
Date of each Semi-annual                     Instalment                                     Instalment

7                                         The
Reimbursement Claims in respect of the Eligible Value of the contract shall be
made by you to us in the form set out in Appendix E(1) to the Loan
Agreement

 69
 

 

 

8                                         The
Reimbursement Claims in respect of the Finance Charge or Additional Finance
Charge shall be made by you to us in the form set out in Appendix E(2) to
the Loan Agreement

9              Upon receipt of your unqualified
acceptance in writing of the terms of this Approval in Principle and upon the
fulfilment to our satisfaction of the conditions specified by Clause 5.5 of the
Loan Agreement we will send you a Notice of Approval

10           This Approval in Principle will lapse
on the date which is 90 days after the date hereof or 27 months from the date
of signature of the Loan Agreement whichever is the earlier unless a Notice of
Approval has by then been issued or unless otherwise agreed by us in writing

Yours faithfully

 

For and on behalf of [the Banker]

* delete as appropriate

 70
 

 

 

APPENDIX
C

NOTICE
OF APPROVAL

	
  To: The Borrower

  	
   

  	
  Date:

  	
   

  

 

[Address]

 

 

copied to [the Supplier]

LOAN AGREEMENT DATED

Reference - Serial No:

Contract
between [Supplier]
 and [Borrower]

Eligible Value: $

Financed Percentage                                85%

1              Notice is hereby given that the
contract specified above is approved
by us in accordance with the provisions of Clause 7.3 of the above mentioned
Loan Agreement the conditions set out in Clause 5.5 thereof in relation to that
contract having been fulfilled to our satisfaction

2              We confirm that against
presentation of your Reimbursement Claim referred to in Clause 8 of the above
Loan Agreement we shall make payments to you in accordance with the terms of that
Loan Agreement

 71
 

 

 

Yours faithfully

 

 

For and on behalf of [the Banker]

 72
 

 

 

APPENDIX D

LETTER OF
INSTRUCTION

(dated)

[Addressed to the
Supplier]

 

Dear Sirs

Until
you shall have been informed in writing by [name of the Banker] that all
Advances made in accordance with the terms of the Loan Agreement made between [the
Banker] and [the Borrower] and ECGD dated the                                
day of  as amended from time to time have
been repaid with interest that no Advance remains to be made and that no sum
remains to be paid in accordance with the terms of the said Loan Agreement we
hereby irrevocably instruct you to pay to [name of the Banker] all sums which
you may become due to pay to us in connection with the contract approved by the
Banker for financing under Approval in Principle serial number [                                                                                       ]
dated [           ]

 

 

 

For and on behalf of

[Borrower]

 73
 

 

 

APPENDIX E (1)

REIMBURSEMENT CERTIFICATE (ELIGIBLE GOODS AND/OR
ELIGIBLE SERVICES)

TO:                           [the
Banker]

Serial No:

Loan Agreement
dated:

Supply Contract
between                                                                 
[Borrower] and  [Supplier] dated [                 
] (“the Supply Contract”)

1                                         We
certify that [further] payments totalling $ 
have been made to the above Supplier under the above Supply Contract and
attach the Supplier’s Receipt(s) in respect of Eligible Goods delivered
and/or associated Eligible Services rendered

(Note:   the figures provided should clearly
differentiate between amounts claimed for goods and those relating to services)

2                                         The
amount due to be reimbursed under the terms of the Loan Agreement and for which
we hereby claim is $                           
being 85% of the payments specified in paragraph 1 above. The amount to be
reimbursed hereby when added to any previous amounts reimbursed in respect of
this Supply Contract will not exceed the Loan Facility

3                                         The
amount claimed in paragraph 2 above does not include any sum which is not permitted
to be financed using the Loan Facility

Signed

For and on behalf of the Borrower

 

[Borrower’s
Signatory]

 74
 

 

 

APPENDIX E(2)

REIMBURSEMENT CERTIFICATE (ECGD FINANCE

CHARGE/ADDITIONAL
FINANCE CHARGE)

To:                             [Addressed to the Banker]

Copied to ECGD

Serial No:

Loan Agreement dated:

Supply Contract between ourselves and [Supplier] dated [  ] (“the Supply Contract”)

1                                         We
certify that we have paid to ECGD the sum of
$[            ]
being [the balance of the Finance Charge]* [the Additional Finance Charge]* due
in respect of the above Supply Contract and which is payable pursuant to
[Clause 18.1.2]*[Clause 18.2]* of the Loan Agreement.

2                                         We understand that upon your receiving from ECGD
a duly completed ECGD Finance Charge/Additional Finance Charge Receipt in
respect of the sum specified at paragraph 1 above you will make a corresponding
Advance to us of 85% of such amount in accordance with Clause 9.5 of the Loan
Agreement

3                                         We hereby claim reimbursement of 85% of the sum
specified in paragraph 1 above and confirm that:

3.1                               the amount to be reimbursed hereby when added to
any amounts already reimbursed in respect of Approved Contracts will not exceed
the Loan Facility and

3.2                               the amount claimed above does not include any sum
in respect of the direct payment referred to in Clause 18.1.1 of the Loan
Agreement

 75
 

 

 

Signed

For and on behalf of the Borrower

 

 

[Borrower’s Signatory]

* delete as appropriate

 76
 

 

 

APPENDIX F

SPECIMEN SUPPLIER’S RECEIPT

To: [Borrower]

[Date]

Serial No:

Supply Contract
between ourselves and                                                                                          
[Borrower] dated

We acknowledge the
receipt of the following payment(s) from you in respect of sums due to us
under the terms of the above mentioned Supply Contract. The payments are in
respect of delivered goods that have been produced or manufactured in the
United Kingdom of Great Britain and Northern Ireland or the Channel Islands or
the Isle of Man or in respect of services rendered by persons ordinarily
resident or ordinarily carrying on business in those territories and/or such
other goods and services as have been approved by the Banker for financing

	
  Dates of

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Payment Receipt

  	
   

  	
  Goods/Services

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  

  	
   

  	
  TOTAL

  	
   

  	
  $

  	
   

  	
   

  

 

(Note: the figures provided should clearly
differentiate between amounts claimed for goods and those relating to services
and the date of each individual payment received should be shown)

We hereby warrant
that all necessary approvals (if any) including export licences in respect of
the UK Goods and/or the UK Services supplied and/or rendered in accordance with
the Supply Contract have been obtained in the UK and have not been withdrawn
and that all necessary approvals (if any) including export 

 77
 

 

 

licences in
respect of other goods and/or services supplied and/or rendered in accordance
with the Supply Contract have been obtained in the country of origin of those
goods and/or services and have not been withdrawn

Yours
faithfully

For and on behalf of

[The Supplier]

[Supplier’s
Signatory]

 78
 

 

 

APPENDIX G

MANDATORY COST
FORMULA

1.                                      The Mandatory Cost is an addition to the
interest rate to compensate the Banker 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 Banker shall calculate, as a percentage
rate, a rate (the “Additional Cost Rate”)
in accordance with the paragraphs set out below.

3.                                      The Additional Cost Rate for the Banker
if lending from a Facility Office in a Participating Member State will be the
percentage notified by the Banker to the Borrower as being its reasonable
determination of the cost 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 of the Banker if
lending from a Facility Office in the United Kingdom will be calculated by the
Banker as follows:

Where:

A                                       is designed to compensate the Banker for
amounts payable under the Fees Rules and is calculated as the rate of
charge payable by the Banker 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 the Banker as being the
average of the Fee Tariffs applicable to the Banker for that financial year)
and expressed in pounds per £1,000,000 of the Tariff Base of the Banker.

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 the Fees Rules.

 79
 

 

 

6.                                      In application of the above formula, the
resulting figures shall be rounded to four decimal places.

7.                                      The Banker may from time to time, after
consultation with the Borrower, 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.

8.                                      The Mandatory Cost shall not apply to any
Loans made by ECGD.

 80
 

 

 

APPENDIX H

SPECIMEN ECGD
FINANCE CHARGE/ADDITIONAL FINANCE CHARGE RECEIPT

	
  To: [Addressed to the Banker]

  	
   

  	
  [Date]

  	
   

  

 

For the attention of

Serial No:

ECGD reference no:
BD1/RUSSIA/18367/1

Dear Sirs

Loan Agreement
entered into between OJSC Mobile TeleSystems, Barclays Bank PLC and Export
Credits Guarantee Department dated the            
day
of

[Supply Contract details]

1                                         We
refer to the Approval in Principle dated                      ,
Serial No:[       ], issued by the Banker in
respect of [Contract No.1]* [a Supply Contract approved for financing under the
Additional Facility]*

2                                         We
hereby acknowledge receipt of the amount of $[           ]
on [date of payment receipt] representing [the balance of the Finance Charge
due in accordance with Clause 18.1.2]* [the Additional Finance Charge due in
accordance with Clause 18.2]* in respect of the Approved Contract

 

Yours faithfully

For the EXPORT CREDITS GUARANTEE DEPARTMENT

 

 

[name and title of
underwriter]

 

 

* delete as appropriate

 

 81Exhibit 4.54.1

EXECUTION COPY

 

AMENDMENT AGREEMENT

 

 

Dated 12 December 2005

 

 

relating to a

 

LOAN AGREEMENT

 

Dated 15 February 2005

 

 

For

 

OPEN JOINT STOCK COMPANY MOBILE
TELESYSTEMS

as Borrower

 

with

BARCLAYS BANK PLC

as Banker

 

 

and

HER BRITANNIC MAJESTY’S SECRETARY OF STATE

(acting
by the EXPORT CREDITS GUARANTEE DEPARTMENT)

 

as ECGD

 

 

 

THIS AMENDMENT
AGREEMENT is dated 12 December 2005 BETWEEN:

1                                         Barclays
Bank PLC (“the Banker”) of 1 Churchill Place, London, E14

5HP;

2                                          Her
Britannic Majesty’s Secretary of State acting by the Export Credits

Guarantee Department (“ECGD”); and

3                                         Open
Joint Stock Company Mobile TeleSystems (“the Borrower”) established and existing
under the laws of the Russian Federation and having its registered office at 4 Marksistskaya Street,
109147 Moscow, Russian Federation.

WHEREAS:

(A)                                The parties to this
Amendment Agreement are parties to a loan agreement dated 15 February 2005
(the “Loan Agreement”) in respect
of a committed dollar loan facility of $25,653,462.68 and an additional uncommitted
dollar loan
facility of up to $64,346,537.32, each to assist the Borrower in making payments to the Supplier in respect of
Approved Contracts.

(B)                                  The parties to this
Amendment Agreement wish to supplement and amend the Loan Agreement in the manner stated below.

IT IS AGREED as follows:

1.             DEFINED TERMS

Terms defined in the Loan
Agreement and not otherwise defined herein shall have the same meaning in this
Amendment Agreement.

2.             LOAN AGREEMENT

The
parties hereto agree that the Loan Agreement shall be amended with effect from the date
hereof as follows:

2.1          Recital
3

Recital
3 to be amended to read as follows:

“The Banker has agreed on
the terms and conditions of this Agreement to
advance to the Borrower the sum of $25,653,462.68 to assist the financing of Contract No. 1 and the Finance
Charge referred to in Clause 18.1 and
an uncommitted additional facility of $94,346,537.32 (or such other higher amount as may be agreed in
writing by ECGD and the Banker) to
assist the financing of the contracts referred to in Recital (1) and
the Additional Finance Charge and”

 

 

2.2          Definitions

The following definitions in clause 1.1 shall be amended
to read as follows:

“Additional Facility” means the additional
uncommitted facility of $94,346,537.32 or such other higher amount as may be
agreed in writing
by ECGD and the Banker (to the extent not cancelled or reduced in accordance with the terms of this
Agreement)

“Margin” means

a in
respect of the first Approved Contract Loan the sum of 15 basis points per annum; and

b in
relation to any other Approved Contract Loan (including Contract No. 2) the sum of 13 basis points per annum

and any increase to the
Margin pursuant to Clause 15.4

The
following new definitions shall be inserted into Clause 1.1 of the Loan Agreement as
follows

“Contract No. 1” means the contract
between the Borrower and the Supplier dated 11 August 2004

“Contract No. 2” means the contract
between the Borrower and the Supplier
dated 17 December 2004

2.3           Clause 3.2

Clause
3.2 to be amended to read as follows:

“If the Banker has
advanced $25,653,462.68 to the Borrower under this agreement then the
Borrower may request additional drawings under the Additional Facility for the
purposes of financing additional Supply Contracts and the Additional Finance Charge
due in respect thereof. The Borrower shall not consider the Banker to be under
any obligation to lend funds under the Additional Facility. Any drawing agreed thereunder shall be at the sole discretion of
the Banker”

2.4           Clause 7.4

Clause 7.4 to be amended to
read as follows:

“7.4
Following the issuance of a Notice of Approval in relation to a new Supply Contract
(which for the avoidance of doubt shall exclude Contract No. 1):

7.4.1
the Committed Facility Amount shall automatically be increased by the Financed
Percentage of (i) the amount of such Supply Contract

 

 

and (ii) the amount of
any Additional Finance Charge in respect thereof (together, the “Additional
Committed Facility Amount”) and

7.4.2
the Additional Facility shall automatically be reduced by the Additional Committed Facility Amount

PROVIDED
THAT nothing in this Agreement shall cause the Committed Facility
Amount to exceed $120,000,000.00 (or such higher amount as may be agreed in writing by ECGD and the
Banker) at any time. The Borrower shall pay to the Banker the fees described in Clauses 17.2 and 17.3
and to ECGD the Additional Finance Charge described in Clause 18.2 with respect to any
increase in the Committed Facility Amount”

2.5           Clause
14.8

Clause 14.8 to be deleted
and replaced with the following:

“14.8
Within 20 Business Days of receipt by it of a written request from the Borrower, the relevant Finance Party
shall use its reasonable efforts to provide
to the Borrower a document issued by the relevant government authority in the jurisdiction of
residence of such Finance Party confirming that it is a resident of that
jurisdiction. The Borrower shall not
be entitled to make more than one such request of any Finance Party in any calendar year.

14.9                At the written request of the Borrower (acting
reasonably), each Finance Party 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 any payments the Borrower
is required to make under this
Agreement.

14.10       The Borrower shall promptly reimburse each Finance
Party for any
out-of-pocket costs and expenses reasonably and properly incurred by such Finance
Party in complying with any written request made by the Borrower under Clause 14.8 or Clause 14.9.

14.11              ECGD is not a Finance Party for the purpose
of Clauses 14.5 to

14.10 inclusive.”

2.5           Clause
17.2

Clause
17.2 to be amended to read as follows:

“The
Borrower shall pay the Banker an additional arrangement fee of 0.33% flat on each Additional Committed
Facility Amount (including for the avoidance
of doubt Contract No. 2) within 5 Business Days from the issuance of a Notice of Approval in relation
to the relevant Supply Contract PROVIDED
THAT such additional arrangement fee shall be

 

 

payable
only once in relation to each Additional Committed Facility Amount”

2.6          Clause
17.3

Clause 17.3 to be amended to
read as follows:

“The Borrower shall pay the
Banker a commitment fee of 0.065% per annum payable quarterly in arrear during
the Availability Period and on the last day of the Availability Period on the
undrawn portion of the Committed Facility Amount”

3.             REPRESENTATIONS
AND WARRANTIES

The Borrower represents and
warrants to and for the benefit of the other parties hereto that the
representations and warranties in Clauses 12.3 and 12.4 of the Loan Agreement
are true as if made on the date of this Amendment Agreement and as if
references to the Loan Agreement were references to this Amendment Agreement
and that it has the power to enter into, that it has taken all necessary action
to authorise the entry by it into this Amendment Agreement.

4.             EFFECT

With effect from the date of
this Amendment Agreement, the Loan Agreement shall be read and construed as one
document with this Amendment Agreement.

5.             INCORPORATION

5.1                               Clause 21 (Arbitration), Clause 22
(Jurisdiction), Clause 24 (Notices and Demands) and Clause 25 (Miscellaneous)
of the Loan Agreement shall apply to this Amendment Agreement, mutatis mutandis, as if set out in full
herein, with references to “this Agreement” being construed as references to
this Amendment Agreement.

5.2                               This Amendment Agreement shall be deemed
incorporated as part of the Loan Agreement.

5.3                               The Loan Agreement, as amended by this
Amendment Agreement, and every clause thereof shall continue in full force and
effect.

6.             LAW

This Amendment Agreement
shall be governed by and construed in accordance with English law.

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

 

 

SIGNATORIES

	
  The Borrower

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  OPEN JOINT STOCK COMPANY MOBILE TELESYSTEMS

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  The Banker

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BARCLAYS
  BANK PLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ECGD

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HER BRITANNIC MAJESTY’S SECRETARY OF STATE (acting

  by the EXPORT CREDITS GUARANTEE DEPARTMENT)

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

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