Document:

Exhibit 4.3

 

EXECUTION
VERSION

 

Dated  21 June 2010

 

MOBILE
TELESYSTEMS OPEN JOINT-STOCK COMPANY

 

and

 

MTS
INTERNATIONAL FUNDING LIMITED

 

 

LOAN AGREEMENT

 

U.S.$750,000,000

 

 

 

Ref: AB/JAP

 

Linklaters LLP

 

 

Table of Contents

 

	
  Contents

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1

  	
  Definitions and
  Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  2

  	
  Facility

  	
  8

  
	
   

  	
   

  	
   

  
	
  3

  	
  Drawdown

  	
  9

  
	
   

  	
   

  	
   

  
	
  4

  	
  Interest

  	
  9

  
	
   

  	
   

  	
   

  
	
  5

  	
  Repayment and Prepayment

  	
  10

  
	
   

  	
   

  	
   

  
	
  6

  	
  Payments

  	
  12

  
	
   

  	
   

  	
   

  
	
  7

  	
  Conditions Precedent

  	
  14

  
	
   

  	
   

  	
   

  
	
  8

  	
  Change in Law or Increase in
  Cost

  	
  14

  
	
   

  	
   

  	
   

  
	
  9

  	
  Representations and
  Warranties

  	
  16

  
	
   

  	
   

  	
   

  
	
  10

  	
  Covenants

  	
  21

  
	
   

  	
   

  	
   

  
	
  11

  	
  Events of Default

  	
  24

  
	
   

  	
   

  	
   

  
	
  12

  	
  Indemnity

  	
  26

  
	
   

  	
   

  	
   

  
	
  13

  	
  Survival

  	
  27

  
	
   

  	
   

  	
   

  
	
  14

  	
  General

  	
  27

  
	
   

  	
   

  	
   

  
	
  15

  	
  Notices

  	
  28

  
	
   

  	
   

  	
   

  
	
  16

  	
  Assignment

  	
  29

  
	
   

  	
   

  	
   

  
	
  17

  	
  Law and Jurisdiction

  	
  30

  
	
   

  	
   

  	
   

  
	
  18

  	
  Severability

  	
  31

  
				

 

i

 

	
  19

  	
  Contracts (Rights of Third
  Parties) Act 1999

  	
  31

  
	
   

  	
   

  	
   

  
	
  20

  	
  Language

  	
  31

  
	
   

  	
   

  	
   

  
	
  21

  	
  Amendments

  	
  32

  
	
   

  	
   

  	
   

  
	
  22

  	
  Counterparts

  	
  32

  
	
   

  	
   

  	
   

  
	
  23

  	
  Limited Recourse and Non
  Petition

  	
  32

  

 

ii

 

This Agreement is made on 21 June 2010 between:

 

(1)                              MOBILE TELESYSTEMS OPEN
JOINT-STOCK COMPANY (the
“Borrower”); and

 

(2)                              MTS INTERNATIONAL FUNDING LIMITED  (the “Lender”).

 

Whereas:

 

(A)                           The Lender has at the request of the Borrower agreed
to make available to the Borrower a loan facility in the amount of
U.S.$750,000,000 on the terms and subject to the conditions of this Agreement.

 

(B)                             It is intended that the Lender will issue loan
participation notes for the sole purpose of financing the loan facility.

 

Now it is hereby agreed as follows:

 

1                                      Definitions and Interpretation

 

1.1                            Definitions

 

In this Agreement (including the recitals), the
following terms shall have the meanings indicated:

 

“Account”
means the account in the name of the Lender with the Principal Paying Agent,
account number 3655498400 (or such other account as may from time to time be
agreed between the Lender and the Trustee pursuant to the Trust Deed and
notified to the Borrower in writing at least five Business Days in advance of
such change);

 

“Advance”
means the advance made or to be made by the Lender under Clause 3 of the sum
equal to the amount of the Facility, as from time to time reduced by
prepayment;

 

“Affiliate”
of any specified person means (i) any other person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified person; or (ii) any other person who is a director or
executive officer of (a) such specified person or (b) any person
described in (i) above. For purposes of this definition, “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;

 

“Agency”
means any agency, authority, central bank, department, government, legislature,
minister, official or public statutory person (whether autonomous or not) of,
or of the government of, any state or supra-national body;

 

“Agency
Agreement” means the agency agreement relating to the Notes dated on
or around the date hereof between the Lender, the Borrower, the Trustee, the
Principal Paying Agent and the other agents named therein, from time to time
modified;

 

“Agreement”
means this loan agreement as originally executed or as it may be amended from
time to time;

 

“Attributable
Debt” means, in respect of a Sale and Lease-Back Transaction, at the
time of determination, the lesser of (i) the Fair Market Value of the property
subject to such Sale 

 

1

 

and Lease-Back Transaction; and (ii) the
present value (discounted at the weighted average annual interest rate on all
Notes then issued and outstanding, compounded semi-annually) of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such Sale and Lease-Back Transaction after excluding all
amounts required to be paid on account of maintenance and repairs, insurance,
taxes and similar charges;

 

“Authorised
Signatory” means, in relation to the Borrower, any person who is
duly authorised (in such manner as may be reasonably acceptable to the Lender
or the Trustee as the case may be) and in respect of whom the Lender has received
a certificate signed by a director or another Authorised Signatory of the
Borrower setting out the name and signature of such person and confirming such
person’s authority to act;

 

“Bankruptcy
Law” means any law of any jurisdiction for the relief of debtors as
now or hereafter constituted, including, without limitation, any such law in
the Russian Federation and, with respect to the United States, Title 11 of the
United States Code and any similar federal or state law;

 

“Business Day”
means a day on which, if on that day a payment is to be made hereunder,
commercial banks generally are open for business in Dublin, Moscow, New York
City and in the city where the Specified Office (as defined in the Agency
Agreement) of the Principal Paying Agent is located;

 

“Capital
Stock” of any person means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such person, including any
Preferred Stock, but excluding any debt securities convertible or exchangeable
into such equity;

 

“Change of Control” means any of the following events or circumstances:
any person or group of persons acting in concert or under an express or implied
agreement or understanding, directly or through one or more intermediaries,
shall (x) acquire ultimate beneficial or legal ownership of, or control
over, more than 50% of the issued shares of the Borrower; (y) acquire
ownership of or control over more than 50% of the voting interests in the share
capital of the Borrower; or (z) obtain the power (whether or not
exercised) to elect not less than half of the directors of the Borrower
(provided, however, that or (a) any contribution by Sistema of all or part
of its ownership interest in the Borrower into a partnership, joint venture or
other indirect holding vehicle will not be a Change of Control unless another
person who is an owner of or party interested in that partnership, joint
venture or other indirect holding vehicle acquires an indirect, direct or
beneficial interest in the Borrower that results in the 50% threshold in
paragraphs (x) and (y) above being exceeded, or in the power referred
to in paragraph (z) above being obtained or (b) any acquisition by
Sistema,  any of its Subsidiaries, the Borrower,
any Subsidiary of the Borrower or the Borrower’s employee benefit plan that
results in the 50% threshold in paragraphs (x) and (y) above being
exceeded, or in the power referred to in paragraph (z) above being
obtained, will not be a Change of Control;

 

“Change of Control
Put Event” means the occurrence of a
Change of Control;

 

“Change of Control
Put Option” means the put option
granted to Noteholders pursuant to the Conditions;

 

“Change of Control
Put Period” has the meaning given to it
in the Conditions;

 

2

 

“Change of Control
Put Settlement Date” means the fifth
Business Day after the expiration of the Change of Control Put Period;

 

“Closing Date”
means 22 June 2010 (or such later date not later than 6 July 2010 as
may be agreed between the Lender and the Borrower);

 

“Commission”
means the United States Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act, or, if at any time after the
execution of this Agreement such Commission is not existing and performing the
duties now assigned to it under applicable law, then the body performing such
duties at such time;

 

“Conditions”
means the terms and conditions of the Notes;

 

“Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law;

 

“Debt” means, with respect to any person, without duplication: (i) all
obligations of such person for borrowed money; (ii) all reimbursement
obligations of such person in respect of letters of credit, banker’s
acceptances or other similar instruments or credit transactions; (iii) all
obligations of such person evidenced by bonds, debentures, notes or other
similar instruments; (iv) all obligations of such person to the extent
that they defer the purchase price of property or services for more than 180
days, except trade accounts payable arising in the ordinary course of business;
(v) all obligations of such person as lessee under leases that would be
capitalised on a balance sheet of the lessee prepared in accordance with U.S.
GAAP; (vi) all guarantees and indemnities of such person in respect of the
Debt of any other person or persons, without duplication of any Debt otherwise
included in this definition; and (vii) all Debt of other persons secured
by a Lien on any property, income and assets of such person, whether or not
such Debt is assumed by such person; provided
that if such Debt is not assumed by such person, the amount of such
Debt shall be the lesser of (a) the Fair Market Value of such property,
income or assets at such date of determination and (b) the amount of such
Debt of such other person;

 

“Default”
means any event which is, or after notice or passage of time or after making
any determination under this Agreement or the fulfilment of any other
requirement (or any combination of the foregoing) would be, an Event of
Default;

 

“Definitive
Certificate” means the definitive certificates in registered form
representing the Notes to be issued in limited circumstances pursuant to the
Trust Deed;

 

“Event of
Default” has the meaning given to it in Clause 11.1;

 

“Facility”
means the U.S.$750,000,000 term loan facility granted by the Lender to the
Borrower as specified in Clause 2;

 

“Fair Market
Value” means, with respect to any property or assets, the sale
price  for such property or asset as
could be negotiated in a free market transaction for cash conducted at arm’s
length between a willing seller and a willing and able buyer, as determined by
the board of directors of the Borrower in cases of property or assets with a
Fair Market Value in excess of U.S.$100,000,000 (or the U.S. Dollar Equivalent
thereof), or by the chief financial officer or chief executive officer of the
Borrower in cases of property or assets with a Fair Market Value equal to or
less than U.S.$100,000,000 (or the U.S. Dollar Equivalent thereof);

 

“Fitch” means
Fitch Ratings Limited;

 

3

 

“Global
Certificates” means the Rule 144A Global Certificate or, as the
context may require, the Regulation S Global Certificate and “Global Certificates” shall be construed accordingly;

 

“Group”
means the Borrower and its Subsidiaries taken as a whole;

 

“Interest
Payment Date” means 22 June and
22 December of each year;

 

“Interest
Period” has the meaning given to it in Clause 4.2;

 

“Investment Grade Rating”
means a rating equal to or higher than (i) Baa3 (or the equivalent) by
Moody’s (ii) BBB- (or the equivalent) by Standard & Poor’s and (iii) BBB-
(or the equivalent) by Fitch;

 

“Investment Grade Status”
means that the Notes have an Investment Grade Rating from any two Ratings
Agencies;

 

“Lien”
means, any mortgage, lien, pledge, charge, security interest, right of set off
or other encumbrance or preferential arrangement, whether or not filed,
recorded or otherwise perfected under applicable law (including any conditional
sale or other title retention agreement, any lease in the nature thereof, any
option or other agreement to sell or give a security interest in and any filing
of or agreement to give any financing statement under the Uniform Commercial
Code (or equivalent statutes) of any jurisdiction);

 

“Loan”,
at any time, means an amount equal to the aggregate principal amount of the
Facility advanced by the Lender pursuant to this Agreement and outstanding at
such time;

 

“Material
Adverse Effect” means a material adverse effect, or any development
that would be likely to result in a material adverse effect, on (a) the
business, financial condition, prospects, or results of operations of the
Borrower or the Borrower and its Subsidiaries, taken as a whole; (b) the
Borrower’s ability to perform or comply with its obligations under this
Agreement; or (c) the validity or enforceability of this Agreement or the
rights or remedies of the Lender hereunder;

 

“Material
Subsidiary” means any Subsidiary of the Borrower:

 

(i)                                  whose total consolidated assets represent not less
than ten per cent. of the consolidated total assets of the Group or whose
consolidated revenues represent not less than ten per cent. of the consolidated
revenues of the Group all as calculated by reference to the then latest audited
U.S. GAAP financial statements (consolidated or, to the extent that there are
no Subsidiaries in the Group, unconsolidated) of the Group; or

 

(ii)                               to which is transferred the whole or substantially the
whole of the undertaking and assets of a Subsidiary of the Borrower which
immediately before the transfer was a Material Subsidiary;

 

provided however, that an Officers’ Certificate
that a Subsidiary of the Borrower is or is not a Material Subsidiary shall, in
the absence of manifest error, be conclusive and binding on all parties;

 

“Moody’s”
means Moody’s Investors Service Limited;

 

“Noteholder”
means, in relation to a Note, the person in whose name such Note is for the
time being registered in the register of the Noteholders (or, in the case of a
joint holding, the first named holder thereof);

 

4

 

“Notes”
means the U.S.$750,000,000 8.625 per cent. loan participation notes due 2020
proposed to be issued by the Lender pursuant to the Trust Deed for the purpose
of financing the Loan;

 

“Officers’
Certificate” means a certificate signed, in the case of the
Borrower, by two officers of the Borrower, at least one of whom shall be the
chief executive officer, a director, a chief financial officer, chief legal
officer or general director of the Borrower;

 

“Opinion of
Counsel” means a
written opinion from legal counsel who is acceptable to the Trustee, which counsel
may be an employee of or counsel to the Borrower;

 

“Permitted Lien” means:

 

(i)                                  any Lien existing on the date of this Agreement;

 

(ii)                               any Lien on any property or 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
Lien shall extend to any other property or assets;

 

(iii)                            any Lien existing on any property or 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 Lien
shall extend to any other property or assets;

 

(iv)                           any Lien on any property or assets securing Debt of
the Borrower or any Subsidiary of the Borrower incurred or assumed for the
purpose of financing all or part of the cost of acquiring, repairing or
refurbishing, purchasing or constructing such property or assets, provided that
(a) no such Lien shall extend to any other property or assets; (b) the
aggregate principal amount of all Debt secured by such Liens on such property
or assets shall not exceed the lower of (x) the purchase price of such
property or assets and (y) the Fair Market Value of such property or
assets at the time of acquisition, repair or refurbishing; and (c) such
Lien attaches to such property or assets concurrently with the repair or
refurbishing thereof or within 90 days after the acquisition thereof, as the
case may be;

 

(v)                              any Lien arising by operation of law, including any
Liens (a) 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 (b) for taxes,
assessments, government charges or claims, including without limitation those
in favour of Russian governmental fiscal authorities;

 

(vi)                           any Lien on the property or assets of any Subsidiary
of the Borrower securing intercompany Debt of such Subsidiary owing to the
Borrower or another Subsidiary of the Borrower;

 

(vii)                        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 Borrower’s business or the
business of any of the Borrower’s Subsidiaries, including any encumbrance or
restriction with respect to an equity interest of any joint venture pursuant to
a joint venture agreement;

 

5

 

(viii)                     any extension, renewal or replacement of any Lien
described in paragraphs (i)-(vii) above, provided that (a) such
extension, renewal or replacement shall be no more restrictive in any material
respect than the original Lien; (b) the amount of Debt secured by such
Lien is not increased; and (c) if the property, income or assets securing
the Debt subject to such Lien are changed in connection with such refinancing,
extension or replacement, the Fair Market Value of the property or assets
securing such Debt is not increased; and

 

(ix)                             any Lien, other than those described in paragraphs (i) to
(viii) above, provided that, immediately after giving effect to such Lien,
all of the Borrower’s secured Debt and Attributable Debt (other than such Debt
and Attributable Debt permitted by paragraphs (i) to (viii) above) in
the aggregate do not exceed 10 per cent. of the book value of the Borrower’s
total assets as determined by reference to the Borrower’s most recent quarterly
or annual consolidated balance sheet on a pro forma basis
after giving effect to the incurrence of any Debt and any other changes in the
Borrower’s Debt since the date of such balance sheet;

 

“person” means
any individual, corporation, limited liability company, partnership, joint
venture, association, joint-stock company, trust, unincorporated organisation,
government or any agency or political subdivision thereof or any other entity;

 

“Preferred Stock” as applied to the Capital Stock of any corporation, means Capital
Stock of any class or classes (however designated) that is preferred as to the
payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such corporation, over shares of
Capital Stock of any other class of such corporation;

 

“Principal Paying Agent”
has the meaning given to it in the Agency Agreement;

 

“Prospectuses”
has the meaning given to it in the Subscription Agreement;

 

“Rate of
Interest” has the meaning given to it in Clause 4.1;

 

“Ratings Agency”
means Moody’s, Standard & Poor’s or Fitch;

 

“Regulation S Global
Certificate” means the single, permanent global Note in fully
registered form, without interest coupons, substantially in the form set out in
Part A of Schedule 1 of the Trust Deed and includes any replacements for
the Regulation S Global Certificate issued pursuant to Condition 13;

 

“Relevant Event”
has the meaning given to it in the Trust Deed;

 

“Repayment
Date” means 22 June 2020;

 

“Reserved
Rights” has the meaning given to it in the Trust Deed and the
Conditions;

 

“Rule 144A Global
Certificate” means the single, permanent global Note in fully
registered form, without interest coupons, substantially in the form set out in
Part B of Schedule 1 of the Trust Deed and includes any replacements for
the Rule 144A Global Certificate issued pursuant to Condition 13;

 

“Sale and
Lease-Back Transaction” means any arrangement providing for the
leasing for a period, including renewals, in excess of 18 months, of any
property or asset that has been owned by the Borrower or any Subsidiary of the
Borrower for more than 180 days and has been or is to be sold or transferred by
the Borrower or such Subsidiary in such transaction;

 

6

 

“Same-Day
Funds” means same day, freely transferable, clearly identifiable
cleared U.S. Dollar-funds or such other funds for payment in U.S. Dollars as
the Lender may at any time reasonably determine to be customary for the
settlement of international transactions in London of the type contemplated
hereby;

 

“Securities Act”
means the U.S. Securities Act of 1933, as amended;

 

“Sistema” means Joint Stock Financial
Corporation Sistema;

 

“Standard
& Poor’s” means Standard & Poor’s Ratings Service, a
division of The McGraw-Hill Companies, Inc.

 

“Subscription
Agreement” means the subscription agreement relating to the Notes
dated the date hereof between the Lender, the Borrower and the managers named
therein;

 

“Subsidiary”
means, with respect to any person, (i) any corporation, association or other
business entity of which more than 50 per cent. of the total voting power of
shares of Capital Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof
is at the time owned or controlled, directly or indirectly, by such person or
one or more of the other Subsidiaries of such person (or any combination
thereof); and (ii) any partnership (a) the sole general partner or the managing
general partner of which is such person or a Subsidiary of such person or (b)
the only general partners of which are such person or one or more Subsidiaries
of such person (or any combination thereof);

 

“Successor”
means, in the case of a merger, consolidation or combination of a person, or
the sale, assignment, transfer, conveyance or other disposal of all or
substantially all of a person’s assets, the corporation formed by or resulting
from such consolidation or merger or which shall have received such assets;

 

“Tax”
means any present or future taxes, duties, assessments, fees or other
governmental charges imposed or levied by or on behalf of Ireland, the Russian
Federation, any jurisdiction from or through which a payment is made or any
political subdivision or taxing authority thereof or therein;

 

“Trust Deed”
means the trust deed relating to the Notes to be dated the Closing Date between
the Lender and the Trustee, as amended from time to time;

 

“Trustee”
means BNY Corporate Trustee Services Limited, as trustee under the Trust Deed
and any successor thereto as provided thereunder;

 

“Uniform
Commercial Code” means the Uniform Commercial Code as in effect from
time to time in the State of New York;

 

“U.S. Dollar Equivalent”
means with respect to any amount denominated in a currency other than U.S.
Dollars, at such time for the determination thereof, the amount of U.S. Dollars
obtained by converting such other currency involved into U.S. Dollars at the
spot rate for the purchase of U.S. Dollars with such other currency as most
recently published under “Currency Rates” in the section of the Financial Times entitled “Currencies, Bonds & Interest
Rates”;

 

“U.S. Dollars”
and “U.S.$” mean the lawful
currency of the United States of America;

 

“U.S. GAAP”
means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting 

 

7

 

Standards Board or in such other statements by
such other entity as have been approved by a significant segment of the
accounting profession, which are in effect on the date of this Agreement; and

 

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

 

1.2                            Other Definitions

 

Unless the context otherwise requires, terms
used in this Agreement which are not defined in this Agreement but which are
defined in, or are defined by cross-reference to definitions in or other
provisions of, the Trust Deed, the Notes (including the Conditions), the Agency
Agreement or the Subscription Agreement shall have the meanings given to such
terms therein.

 

1.3                            Interpretation

 

Unless the context or the express provisions of
this Agreement otherwise require, the following shall govern the interpretation
of this Agreement:

 

1.3.1                   all references to “Clause”
or “sub-Clause” are references to a Clause
or sub-Clause of this Agreement;

 

1.3.2                   the terms “hereof”, “herein” and “hereunder” and
other words of similar import shall mean this Agreement as a whole and not any
particular part hereof;

 

1.3.3                   words importing the singular number include the plural
and vice versa;

 

1.3.4                   all references to “taxes”
include all present or future taxes, levies, imposts and duties of any nature
and the terms “tax” and “taxation”
shall be construed accordingly; and

 

1.3.5                   the table of contents and the headings are for
convenience only and shall not affect the construction hereof.

 

2                                      Facility

 

2.1                            Facility

 

On the terms and subject to the conditions set
forth herein, the Lender hereby agrees to lend the Borrower and the Borrower
hereby agrees to borrow from the Lender U.S.$750,000,000.

 

2.2                            Purpose

 

The net proceeds of the Advance will be used by
the Borrower for general corporate purposes  and,
accordingly, the Borrower shall apply all amounts raised by it hereunder for
such purposes, but the Lender shall not be concerned with the application
thereof.

 

2.3                            Facility Fee

 

The Borrower shall pay fees and expenses in the
amount of U.S.$6,134,733.68 to the
Lender in consideration for the arrangement of the Facility (the “Facility Fee”) as
set forth in Clause 3.2 below.

 

8

 

3                                      Drawdown

 

3.1                            Drawdown

 

On the terms and subject to the conditions of
this Agreement, on the Closing Date the Lender shall make the Advance to the
Borrower and the Borrower shall make a single drawing in the full amount of the
Facility (less any amount to be deducted in accordance with Clause 3.2).

 

3.2                            Facility Fee

 

In consideration of the Lender making the
Advance to the Borrower, the Borrower hereby agrees to pay to the Lender, in
Same-Day Funds, the Facility Fee promptly, but in any event no later than 10.00
a.m. (New York City time) on 25 June 2010.

 

3.3                            Disbursement

 

Subject to the conditions set forth herein, on
the Closing Date the Lender shall transfer the amount of the Advance (less any
amount to be deducted pursuant to Clause 3.2) to the Borrower’s account no. 40702840300000000652, for the account of Mobile TeleSystems OJSC INN 7740000076 with Moscow
Bank for Reconstruction and Development, Moscow Russia, SWIFT Code MBRD RU MM in Same-Day Funds.

 

3.4                            Ongoing Fees and Expenses

 

In consideration of the Lender making available
the Loan to the Borrower, the Borrower shall pay in one or more instalments on
demand to the Lender each year an additional fee equating to all properly
incurred and documented  ongoing
fees, taxes and expenses of the Lender (including, without limitation, any
corporate service provider fees,
stock exchange fees, listing fees, audit fees, legal fees and the
anticipated winding-up expenses of the Lender) as set forth in an invoice from
the Lender to the Borrower. Before such payment is made by the Borrower, the
Lender shall submit an invoice providing, in reasonable detail, the nature and
calculation of the relevant payment or expense.

 

4                                      Interest

 

4.1                            Rate of Interest

 

The Borrower will pay interest in U.S. Dollars
to the Lender on the outstanding principal amount of the Loan from time to time
at the rate of 8.625 per cent. per annum (the “Rate of Interest”).

 

4.2                            Payment

 

Interest at the Rate of Interest shall accrue
from day to day, starting from (and including) the Closing Date and shall be
paid in arrear not later than 10.00 a.m. (New York City time) one Business Day
prior to each Interest Payment Date. Interest on the Loan will accrue to (but
excluding) the Repayment Date (or any date upon which the Loan is prepaid
pursuant to Clause 5) unless payment of principal due on such date is withheld
or refused, in which event interest will continue to accrue (before or after
any judgment) at the Rate of Interest to (but excluding) the date on which
payment in full of the principal thereof is made. The amount of interest
payable in respect of the Loan for any Interest Period shall be calculated by
applying the Rate of Interest to the Loan, dividing the product by two and
rounding the resulting figure to the nearest cent (half a cent being rounded
down). If interest is required to be calculated for any period of less than a
year, it will be calculated 

 

9

 

on the basis of a year of 360 days consisting
of 12 months of 30 days each and, in the case of an incomplete month, the
actual number of days elapsed. “Interest
Period” means each period beginning on (and including) the Closing
Date or any Interest Payment Date and ending on (but excluding) the next
Interest Payment Date.

 

5                                      Repayment and Prepayment

 

5.1                            Repayment

 

Except as otherwise provided herein, the
Borrower shall repay the Loan not later than 10 a.m. (New York City time) one
Business Day prior to the Repayment Date.

 

5.2                            Prepayment in the Event of Taxes
or Increased Costs

 

If, as a result of the application of any
amendments or clarification to, or change (including a change in interpretation
or application) in, or determination under, the double tax treaty between the
Russian Federation and Ireland or the laws or regulations of the Russian
Federation or Ireland or of any political sub-division thereof or any authority
thereof or therein having power to tax (the “Taxing
Jurisdiction”) or the enforcement
of the security provided for in the Trust Deed, the Borrower would thereby be
required to make or increase any payment due hereunder as provided in Clause
6.2 or 6.3 (other than, in each case, where the increase in payment is in
respect of any amounts due or paid pursuant to Clause 3), or if (for whatever
reason) the Borrower would have to or has been required to pay additional
amounts pursuant to Clause 8, and in any such case such obligation cannot be
avoided by the Borrower taking reasonable measures available to it, then the
Borrower may (without premium or penalty), upon not less than 30 calendar days’
nor more than 60 calendar days’ prior written notice to the Lender (which
notice shall be irrevocable), prepay the Loan in whole (but not in part) at any
time.

 

Prior to giving any such notice in the event of
an increase in payment pursuant to Clause 6.2, the Borrower shall deliver to
the Lender (with a copy to the Trustee) an Officers’ Certificate confirming
that the Borrower would be required to increase the amount payable, supported
by an opinion of an independent tax adviser of international repute addressed
to the Lender.

 

5.3                            Prepayment in the Event of
Illegality

 

If, at any time, by reason of the introduction
of any change after the date of this Agreement in any applicable law,
regulation, regulatory requirement or directive of any applicable Agency, the
Lender reasonably determines (setting out in reasonable detail the nature and
extent of the relevant circumstances and such determination being accompanied
if so requested by an Opinion of Counsel with the cost of such Opinion of
Counsel being borne solely by the Borrower) that it is or would be unlawful or
contrary to any applicable law, regulation, regulatory requirement or directive
of any Agency or otherwise for the Lender to allow all or part of the Loan or
the Notes to remain outstanding or for the Lender to maintain or give effect to
any of its obligations in connection with this Agreement and/or to charge or
receive or to be paid interest at the rate then applicable to the Loan (an “Event of Illegality”), then upon notice by
the Lender to the Borrower in writing, the Borrower and the Lender shall
consult in good faith as to a basis which eliminates the application of such
Event of Illegality; provided, however, that the Lender shall be under no
obligation to continue such consultation if a basis has not been determined
within 30 days of the date on which it so notified the Borrower. If such a
basis has not been determined within the 30 days, then upon written notice by
the Lender to the Borrower and the Trustee, the 

 

10

 

Borrower shall prepay the Loan in whole (but
not in part) on the next Interest Payment Date or on such earlier date as the
Lender shall (acting reasonably) certify to be necessary to comply with such
requirements.

 

5.4                            Prepayment upon Change of Control
Put Event

 

5.4.1                   Promptly, and in any event within 30 calendar days
after becoming aware of the occurrence of any Change of Control Put Event, the
Borrower shall deliver to the Lender and the Trustee a written notice in the
form of an Officers’ Certificate, which notice shall be irrevocable, stating
that a Change of Control Put Event has occurred and stating the circumstances
and relevant facts giving rise to such Change of Control Put Event.

 

5.4.2                   If, following a Change of Control Put Event, any
Noteholder has exercised its Change of Control Put Option, the Borrower shall
on the Change of Control Put Settlement Date, prepay 101  per
cent. of the principal amount of the Loan in an amount which corresponds to the
aggregate principal amount of the Notes (as notified to the Borrower by the
Paying Agents) in relation to which the Change of Control Put Option has been
duly exercised together with interest accrued (if any) to the Change of Control
Put Settlement Date in accordance with the Conditions.

 

5.5                            Reduction of Loan upon
Cancellation of Notes

 

The Borrower or any Subsidiary of the Borrower
may from time to time, in accordance with the Conditions, purchase Notes in the
open market or by tender or by a private placement at any price and deliver to
the Lender Notes, having an aggregate principal value of at least
U.S.$1,000,000, together with a request for the Lender to present such Notes to
the Registrar for cancellation, and may also from time to time procure the
delivery to the Registrar of the Global Certificates with instructions to cancel
a specified aggregate principal amount of Notes (being at least U.S.$1,000,000)
represented thereby (which instructions shall be accompanied by evidence
satisfactory to the Registrar that the Borrower is entitled to give such
instructions), whereupon the Lender shall, pursuant to Clause 8.1 of the Agency
Agreement, request the Registrar to cancel such Notes (or specified aggregate
principal amount of Notes represented by the Global Certificates). Upon any
such cancellation by or on behalf of the Registrar, the principal amount of the
Loan corresponding to the principal amount of such Notes shall be extinguished
for all purposes as of the date of such cancellation.

 

5.6                            Payment of Other Amounts

 

If the Loan is to be prepaid by the Borrower
pursuant to any of the provisions of Clause 5.2, 5.3 or 5.4, the Borrower
shall, simultaneously with such prepayment, pay to the Lender accrued interest
thereon to the date of actual payment and all other sums payable by the
Borrower pursuant to this Agreement in relation to the prepaid amount. For the
avoidance of doubt, if the principal amount of the Loan is reduced pursuant to
the provisions of Clause 5.5, then no interest shall accrue or be payable
during the Interest Period in which such reduction takes place in respect of
the amount by which the Loan is so reduced and the Lender shall not be entitled
to any interest in respect of the cancelled Notes.

 

11

 

5.7                            Provisions Exclusive

 

The Borrower shall not prepay or repay all or
any part of the amount of the Loan except at the times and in the manner
expressly provided for in this Agreement. The Borrower shall not be permitted
to re-borrow any amounts prepaid or repaid.

 

6                                      Payments

 

6.1                            Making of Payments

 

All payments of principal, interest and
additional amounts (other than those in respect of Reserved Rights) to be made
by the Borrower under this Agreement shall be made unconditionally by credit
transfer to the Lender not later than 10 a.m. (New York City time) one Business
Day prior to each Interest Payment Date or the Repayment Date or the date of
any payment (as the case may be) in Same-Day Funds to the Account, or as the
Trustee may otherwise direct following the occurrence of a Default or a
Relevant Event.

 

The Borrower shall, before 10 a.m. (Local Time)
on the second Business Day prior to each Interest Payment Date or the Repayment
Date or such other date (as the case may be), procure that the bank effecting
such payments on its behalf confirms to the Principal Paying Agent or to the
Borrower (who shall immediately provide the same to the Principal Paying Agent)
by tested telex or authenticated SWIFT the payment instructions relating to
such payment.

 

The Lender agrees with the Borrower that it
will not deposit any other moneys into the Account and that no withdrawals
shall be made from the Account other than as provided for and in accordance
with the Trust Deed and the Agency Agreement.

 

The parties to the Trust Deed and the Agency
Agreement are intended by the parties to this Agreement to have the right under
the Contracts (Rights of Third Parties) Act 1999 to enforce the terms of this
Clause 6.1.

 

6.2                            No Set-Off, Counterclaim or
Withholding; Gross-Up

 

All payments to be made by the Borrower under
this Agreement shall be made in full without set-off or counterclaim and
(except to the extent required by law) free and clear of and without deduction
for or on account of any Taxes. If the Borrower shall be required by applicable
law to make any deduction or withholding from any payment under this Agreement
for or on account of any such Taxes, it shall, on the due date for such
payment, increase the payment of principal or interest or any other payment due
hereunder to such amount as may be necessary to ensure that the Lender receives
a net amount in U.S. Dollars equal to the full amount which it would have
received had payment not been made subject to such Taxes, and shall promptly
account to the relevant authorities for the relevant amount of such Taxes so
withheld or deducted within the time allowed for such payment under applicable
law, and shall deliver to the Lender without undue delay evidence of such
deduction or withholding and of the accounting therefor to the relevant taxing
authority. If the Lender pays any amount in respect of such Taxes (including
penalties or interest) the Borrower shall reimburse the Lender in U.S. Dollars
for such properly documented  payment on
demand. For the avoidance of doubt, this Clause 6.2 is without prejudice to any
obligations of the Lender contained in Clause 6.6.

 

6.3                            Withholding on the Notes

 

Without prejudice to the provisions of Clause
6.2, if the Lender notifies the Borrower (setting out in reasonable detail the
nature and extent of the obligation) that it has become 

 

12

 

obliged to make any withholding or deduction
for or on account of any present or future taxes, duties, assessments or
governmental charges of whatever nature imposed, levied, collected, withheld or
assessed by or on behalf of Ireland or any political subdivision or any
authority thereof or therein having the power to tax from any payment which it
is obliged to make, or would otherwise be obliged to make but for the
imposition of any such withholding or deduction for or on account of such
taxes, under or in respect of the Notes, the Borrower agrees to pay into the
Account in Same-Day Funds, no later than one Business Day prior to the date on
which payment is due to the Noteholders, such additional amounts as are equal to
the additional amounts which the Lender would be required to pay in order that
the net amounts received by the Noteholders, after such withholding or
deduction, will equal the respective amounts which would have been received by
the Noteholders in the absence of such withholding or deduction; provided,
however, that the Lender shall immediately upon receipt from any Paying Agent
of any reimbursement of the sums paid pursuant to this provision, to the extent
that any Noteholders are not entitled to such additional amounts pursuant to
the Conditions, pay such additional amounts to the Borrower (it being
understood that neither the Lender, the Principal Paying Agent or any Paying
Agent shall have any obligation to determine whether any Noteholder is entitled
to any such additional amounts).

 

Any notification by the Lender to the Borrower
in connection with this Clause 6.3 shall be given as soon as reasonably
practicable after the Lender becomes aware of any obligation on it to make any
such withholding or deduction.

 

6.4                            Reimbursement

 

To the extent that the Lender subsequently
obtains or uses any tax credit or allowance or other reimbursements relating to
a deduction or withholding with respect to which the Borrower has made a
payment pursuant to this Clause 6, the Lender shall promptly pay to the
Borrower so much of the benefit it received as will leave the Lender in
substantially the same position as it would have been had no additional amount
been required to be paid by the Borrower pursuant to this Clause 6; provided,
however, that the question of whether any such benefit has been received, and
accordingly, whether any payment should be made to the Borrower, the amount of
any such payment and the timing of any such payment, shall be determined
reasonably by the Lender. Subject to Clauses 6.5 and 6.6, the Lender shall have
the absolute discretion whether, and in what order and manner, it claims any
credits, allowances or refunds available to it, and the Lender shall in no
circumstances be obliged to disclose to the Borrower any information regarding
its tax affairs or its computations.

 

6.5                            Mitigation

 

If at any time either party hereto becomes
aware of circumstances which would or might, then or thereafter, give rise to
an obligation on the part of the Borrower to make any deduction, withholding or
payment as described in Clauses 6.2 or 6.3, then, without in any way limiting,
reducing or otherwise qualifying the Lender’s rights, or the Borrower’s
obligations, under such Clauses, such party shall as soon as reasonably
practicable upon becoming aware of such circumstances notify the other party,
and, thereupon the parties shall consider and consult with each other in good
faith with a view to finding, agreeing upon and implementing a method or
methods by which any such obligation may be avoided or mitigated and, to the
extent that both parties can do so without taking any action which in the
reasonable opinion of such party is prejudicial to its own position, take such
reasonable steps as may be available to it to avoid such obligation or mitigate
the 

 

13

 

effect of such circumstances. The Borrower
agrees to reimburse the Lender upon receipt of an original demand for payment
for all properly documented  costs and
expenses (including but not limited to legal fees) incurred by the Lender in
connection with this Clause 6.5.

 

6.6                            Tax Treaty Relief

 

6.6.1                   The Lender shall once in each calendar year, prior to
the first Interest Payment Date in that calendar year, at the expense of the
Borrower, use commercially reasonable efforts to obtain and deliver, to the
Borrower no later than 10 Business Days prior to such Interest Payment
Date, a tax residency certificate issued by the competent authorities of
Ireland confirming that the Lender is resident for tax purposes in Ireland. At
the cost of the Borrower, the residency certificate shall be apostilled at the
Irish Department of Foreign Affairs. Provided that the tax residency
certificate application has been filed in due time, the Lender shall not be
responsible for any failure to provide, or any delays in providing, such tax
residency certificate as a result of any action or inaction of any authority of
Ireland, but shall notify the Borrower as soon as practicable about any such failure
or delay with an indication of the actions taken by the Lender to obtain such
tax residency certificate.

 

6.6.2                   If Russian legislation regulating the procedures for
obtaining an exemption from Russian withholding tax on income changes, the
Lender shall (subject to being informed of any such changes by the Borrower)
use its reasonable and timely efforts to assist the Borrower to obtain relief
from such tax pursuant to the double taxation treaty between the Russian
Federation and Ireland and the procedures referred to in Clause 6.6.1 will be
deemed changed accordingly.

 

7                                      Conditions Precedent

 

7.1                            Documents to be Delivered

 

The obligation of the Lender to make the
Advance shall be subject to the receipt by the Lender on or prior to the
Closing Date of written evidence that the persons mentioned in Clause 17.5 have
agreed to receive process in the manner specified herein.

 

7.2                            Further Conditions

 

The obligation of the Lender to make the
Advance shall be subject to the further conditions precedent that as at the
Closing Date (a) the representations and warranties made and given by the
Borrower in Clause 9.1 shall be true and accurate as if made and given on the
Closing Date with respect to the facts and circumstances then existing; (b) the
Borrower shall not be in breach of any of the terms, conditions and provisions
of this Agreement; (c) the Subscription Agreement, the Agency Agreement and the
Trust Deed shall have been executed and delivered; (d) the Lender shall have
received the full amount of the proceeds of the issue of the Notes pursuant to
the Subscription Agreement; and (e) the Lender shall have received in full the
amount referred to in Clause 2.3.

 

8                                      Change in Law or Increase in Cost

 

8.1                            Compensation

 

In the event that after the date of this Agreement
there is any change in or introduction of any tax, law, regulation, regulatory
requirement or official directive (whether or not having the force of law but,
if not having the force of law, the observance of which is in accordance 

 

14

 

with the generally accepted financial practice
of financial institutions in the country concerned) or in the interpretation or
application thereof by any person charged with the administration thereof
and/or any compliance by the Lender in respect of the Loan or the Facility with
any request, policy or guideline (whether or not having the force of law but,
if not having the force of law, the observance of which is in accordance with
the generally accepted financial practice of financial institutions in the
country concerned) from or of any central bank or other fiscal, monetary or
other authority, agency or any official of any such authority, which:

 

8.1.1                   subjects or will subject the Lender to any Taxes with
respect to payments of principal of or interest on the Loan or any other amount
payable under this Agreement (other than any Taxes payable by the Lender on its
overall net income, any taxes referred to in Clause 6.2, or any Taxes referred
to in Clause 6.3);

 

8.1.2                   increases or will increase the taxation of or changes
or will change the basis of taxation of payments to the Lender of principal of
or interest on the Loan or any other amount payable under this Agreement (other
than any such increase or change which arises by reason of any increase in the
rate of tax payable by the Lender on its overall net income or as a result of
any taxes referred to in Clause 6.2 or any taxes referred to in Clause 6.3); or

 

8.1.3                   imposes or will impose on the Lender any other
condition affecting this Agreement, the Facility or the Loan,

 

and if as a result of any of the foregoing:

 

(i)                                  the cost to the Lender of making, funding or
maintaining the Loan or the Facility is increased;

 

(ii)                               the amount of principal, interest or additional amounts
payable to or received by the Lender hereunder is reduced; or

 

(iii)                            the Lender makes any payment or foregoes any interest
or other return on or calculated by reference to the gross amount of any sum
receivable by it from the Borrower hereunder or makes any payment or foregoes
any interest or other return on or calculated by reference to the gross amount
of the Loan,

 

then, subject to the following and in each such
case:

 

(a)                                the Lender shall, as soon as practicable after
becoming aware of such increased cost, reduced amount or payment made or
foregone, give written notice to the Borrower together with a certificate
signed by two directors of the Lender or by any persons empowered by the
authorised signatories of the Lender on behalf of the Lender describing in
reasonable detail the introduction or change or request which has occurred and
the country or jurisdiction concerned and the nature and date thereof and
demonstrating the connection between such introduction, change or request and
such increased cost, reduced amount or payment made or foregone, setting out in
reasonable detail the basis on which such amount has been calculated, and
providing all relevant supporting documents evidencing the matters set out in
such certificate; and

 

(b)                               upon demand by the Lender to the Borrower, the
Borrower, in the case of sub-Clauses (i) and (iii) above, shall pay to the
Lender such additional amount as shall be necessary to compensate the Lender
for such increased cost, and, in the case 

 

15

 

of sub-Clause (ii) above, at
the time the amount so reduced would otherwise have been payable, pay to the
Lender such additional amount as shall be necessary to compensate the Lender
for such reduction, payment or forgone interest or other return; provided
however, that the amount of such increased cost, reduced amount or payment made
or forgone shall be deemed not to exceed an amount equal to the proportion
which is directly attributable to this Agreement, and provided, further, that
the Lender will not be entitled to such additional amount where such reduction,
payment or forgone interest or other return arises as a result of the
negligence or wilful default of the Lender,

 

provided that this Clause 8.1 will not apply to
or in respect of any matter for which the Lender has already been compensated
under Clauses 3.4, 6.2 and 6.3.

 

8.2                            Mitigation

 

In the event that the
Lender becomes entitled to make a claim pursuant to Clause 8.1, the Lender
shall consult in good faith with the Borrower and shall use reasonable efforts
(based on the Lender’s reasonable interpretation of any relevant tax, law,
regulation, requirement, official directive, request, policy or guideline) to
reduce, in whole or in part, the Borrower’s obligations to pay any additional
amount pursuant to such Clause except that nothing in this Clause 8.2 shall
obligate the Lender to incur any costs or expenses in taking any action
hereunder which, in the reasonable opinion of the Lender, is prejudicial to it
unless the Borrower agrees to reimburse the Lender such costs or expenses.

 

9                                      Representations and Warranties

 

9.1                            The Borrower’s Representations
and Warranties

 

The Borrower represents and warrants to the
Lender, with the intent that such shall form the basis of this Agreement, at
the date hereof and shall be deemed to be repeated by the Borrower on the
Closing Date, that:

 

9.1.1                   the Borrower has been duly registered and is validly
existing as an open joint stock company under the laws of the Russian
Federation with full power and authority to own, lease and operate its
properties and assets and conduct its business as described in the
Prospectuses, and is duly qualified to transact business in each jurisdiction
in which its ownership, leasing or operation of its properties or assets or the
conduct of its business requires such qualification, except where the failure
to be so qualified would not have a Material Adverse Effect and each Subsidiary
is a company duly registered and validly existing under the laws of the
jurisdiction of its incorporation and is duly qualified to transact business in
each jurisdiction in which its ownership, leasing or operation of its
properties or assets or the conduct of its business requires such
qualification, and each has full power and authority to own, lease and operate
its properties and assets and conduct its business as described in the
Prospectuses, in each case except where the failure to be so qualified would
not have a Material Adverse Effect;

 

9.1.2                   this Agreement is a valid and binding agreement of the
Borrower, enforceable against the Borrower in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganisation,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles;

 

16

 

9.1.3                   the execution and delivery of this Agreement by the
Borrower, the compliance by the Borrower with the provisions of this Agreement
and the consummation of the other transactions herein contemplated do not (i) require
the consent, approval, authorisation, registration or qualification of or with
any governmental authority, except such as have been obtained or made; (ii) conflict
with or result in a breach or violation of any of the terms and provisions of,
or constitute a default under, (a) any indenture, mortgage, deed of trust,
lease or other agreement or instrument to which the Borrower or any of its
Subsidiaries is a party or by which the Borrower or any of its Subsidiaries or
any of their respective properties are bound, except where any such violation
would not have a Material Adverse Effect; or (b) the constitutive
documents of the Borrower; or (iii) conflict with or violate any statute
or any judgment, decree, order, rule or regulation of any court or other
governmental authority or any arbitrator applicable to the Borrower or any of
its Subsidiaries;

 

9.1.4                   (i) the execution and delivery of this Agreement
have been duly authorised by all necessary corporate action of the Borrower; (ii) this
Agreement has been duly executed and delivered by the Borrower; and (iii) the
Borrower has received all licences, approvals, registrations and permissions
necessary to effect the transactions contemplated by this Agreement;

 

9.1.5                   (i) (a) no Event of Default exists and (b) no
event has occurred which, with notice or lapse of time or both, would
constitute a default in the due performance and observance of any term,
covenant or condition of any indenture, mortgage, deed of trust, lease or other
agreement or instrument to which the Borrower or any of its Subsidiaries is a
party or by which the Borrower or any of its Subsidiaries or any of their
respective properties is bound, except where (in the case of this sub-Clause
9.1.5(i)(b) only) such default would not have a Material Adverse Effect;
and (ii) no such event will occur upon the making of the Advance;

 

9.1.6                   except as disclosed in the Prospectuses  no legal or governmental
proceedings are pending or, to the best of the Borrower’s knowledge, threatened
to which the Borrower or any of its Subsidiaries is a party or to which the
property of the Borrower or any of its Subsidiaries is subject that are
required to be described in the Prospectuses or are otherwise material to the
Borrower or the Borrower and its Subsidiaries, taken as a whole, and are not
described therein;

 

9.1.7                   the Borrower’s obligations under the Loan rank at
least pari passu with all its
other unsecured and unsubordinated Debt, except as otherwise provided by
mandatory provisions of applicable law;

 

9.1.8                   the Borrower and each of the Subsidiaries have good
and marketable title to all items of real property and marketable title to all
personal property owned by each of them, in each case free and clear of any
security interests, liens, encumbrances, equities, claims and other defects,
and any real property and buildings held under lease by the Borrower or any
Subsidiary are held under valid, subsisting and enforceable leases, all except
as described in the Prospectuses or where the failure to have or hold the same
would not have a Material Adverse Effect;

 

9.1.9                   the Borrower and its Subsidiaries own or possess, or
can acquire on reasonable terms, all material patents, patent applications,
trademarks, service marks, trade 

 

17

 

names,
licences, know-how, copyrights, trade secrets and proprietary or other
confidential information necessary to operate the business now operated by
them, and neither the Borrower nor any Subsidiary has received any notice of
infringement of or conflict with asserted rights of any third party with
respect to any of the foregoing which, singly or in the aggregate, if the
subject of an unfavourable decision, ruling or finding, would have a Material
Adverse Effect;

 

9.1.10            the Borrower and its Subsidiaries possess all consents, licences,
certificates, authorisations and permits issued by the appropriate Russian or
foreign regulatory authorities, including in each instance federal, state and
local authorities, necessary to conduct their respective businesses, except as
described in the Prospectuses or  except
where the failure to possess the same would not have a Material Adverse Effect.
Neither the Borrower nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any such certificate, authorisation
or permit which, singly or in the aggregate, if the subject of an unfavourable
decision, ruling or finding, would have a Material Adverse Effect;

 

9.1.11            (i) except as described in the Prospectuses, the
Borrower and each of its Subsidiaries maintains insurance of the types and in
amounts adequate for its business and, to the best of the Borrower’s knowledge,
consistent with insurance coverage maintained by companies carrying on similar
business or owning assets of a similar nature in the jurisdiction in which it
operates; and (ii) neither the Borrower nor any Subsidiary has any reason
to believe that it will not be able to renew its existing insurance coverage as
and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not
have a Material Adverse Effect;

 

9.1.12            except as described in the Prospectuses, neither the
Borrower nor any of its Subsidiaries has violated any (i) Russian or
foreign, including in each instance applicable federal, state or local, law or
regulation relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants; (ii) any applicable Russian or foreign, including in each
instance federal, state or local, law or regulation relating to discrimination
in the hiring, promotion or pay of employees; or (iii) any applicable
Russian or foreign, including in each instance, federal, state or local wages
and hours laws or regulation, which in the case of (i), (ii) or (iii) above
might reasonably be expected to have a Material Adverse Effect;

 

9.1.13            other than the restrictions imposed by Russian Law or other law
applicable to the Borrower or its Subsidiaries, no Subsidiary of the Borrower
is currently prohibited, directly or indirectly, from paying any dividends to
the Borrower, making any other distribution on such Subsidiary’s capital stock,
repaying to the Borrower any loans or advances to such Subsidiary from the
Borrower or transferring any of such Subsidiary’s property or assets to the
Borrower or any other Subsidiary of the Borrower;

 

9.1.14            the consolidated financial statements and schedules and the interim
financial information for the three months ended March 31, 2010 extracted
from a press release dated 8 June 2010, of the Borrower and its
consolidated Subsidiaries included in the Prospectuses were prepared in
accordance with U.S. GAAP consistently applied throughout the periods involved
(except as otherwise noted 

 

18

 

therein),
and they present fairly the financial condition of the Borrower and its
consolidated Subsidiaries as at the dates at which they were prepared and the
results of operations of the Borrower and its consolidated Subsidiaries in
respect of the periods for which they were prepared;

 

9.1.15            subsequent to 31 December 2009 and except as described in the
Prospectuses, (i) neither the Borrower nor any of its Subsidiaries has
sustained any loss or interference with its respective businesses or properties
from fire, flood, hurricane, accident or other calamity, whether or not covered
by insurance, or from any labour dispute or any legal or governmental
proceeding that is material to the Borrower or the Borrower and its
Subsidiaries, taken as a whole; (ii) there has been no material adverse
change, or development involving a prospective material adverse change, in the
business, financial condition or results of operations of the Borrower or the
Borrower and its Subsidiaries, taken as a whole; (iii) the Borrower or the
Borrower and its Subsidiaries, taken as a whole, have not incurred any material
liability or obligation, direct or contingent, or entered into any material
transaction not in the ordinary course of business; (iv) the Borrower has
not purchased any of its outstanding capital stock, or declared, paid or
otherwise made any dividend or distribution of any kind on its capital stock;
and (v) there has not been any material change in the capital stock, short-term
or long-term debt of the Borrower or the Borrower and its Subsidiaries, taken
as a whole;

 

9.1.16            the execution, delivery and enforceability of this Agreement is not
subject to any tax, duty, fee or other charge, including, but without
limitation to, any registration or transfer tax, stamp duty or similar levy,
imposed by or within the Russian Federation or any political subdivision or
taxing authority thereof or therein (other than state duty paid on any claim,
petition or other application filed with a Russian court);

 

9.1.17            the Borrower is subject to civil and commercial law with respect to its
obligations under this Agreement, and the execution, delivery and performance
of this Agreement by it constitutes private and commercial acts rather than
public or governmental acts. Under the laws of Russia, neither the Borrower nor
any of its assets has any immunity (sovereign or otherwise) from set-off, the
jurisdiction of any court of Russia or any legal process in any court of Russia
(whether through service of notice, attachment prior to judgment, attachment in
aid of execution, execution or otherwise);

 

9.1.18            the Borrower has access, subject to the laws of the Russian Federation,
to the internal currency market in the Russian Federation and, to the extent
necessary, valid agreements with Russian commercial banks for purchasing U.S.
dollars to make payments of amounts which may be payable pursuant to this
Agreement;

 

9.1.19            except as would not have a Material Adverse Effect, no labour strike,
dispute, disturbance, lockout, slowdown or stoppage of employees of the
Borrower or any of the Subsidiaries currently exists, and, to the best
knowledge of the Borrower, no such action is threatened;

 

9.1.20            in any proceedings taken in the Russian Federation in relation to this
Agreement, the choice of English law as the governing law of this Agreement and
any arbitration award obtained in England in relation thereto will be
recognised and 

 

19

 

enforced
in the Russian Federation after compliance with the applicable procedures and rules and
all other legal requirements and court practice in Russia; and

 

9.1.21            subject to the performance by the relevant parties of the relevant
established procedures in connection with the obtaining of an applicable
withholding tax exemption for payments hereunder, no withholding in respect of
any taxes is required to be made from any payment by the Borrower under this
Agreement, save (in each case) for VAT that may be payable with respect to the
reimbursement of legal fees.

 

9.2                            Lender’s Representations and
Warranties

 

The Lender represents and warrants to the
Borrower as follows:

 

9.2.1                   the Lender is duly incorporated and validly existing
under the laws of Ireland and has full power and capacity to execute this
Agreement and to undertake and perform the obligations expressed to be assumed
by it herein and the Lender has taken all necessary action to approve and
authorise the same;

 

9.2.2                   the execution of this Agreement and the undertaking
and performance by the Lender of the obligations expressed to be assumed by it
herein will not conflict with, or result in a breach of or default under, the
laws of Ireland, any agreement or instrument to which it is a party or by which
it is bound or in respect of any Debt in relation to which it is a surety or
the constitutive documents of the Lender;

 

9.2.3                   this Agreement has been duly executed by and
constitutes legal, valid and binding obligations of the Lender enforceable in
accordance with its terms, subject to applicable bankruptcy, examinership,
insolvency, liquidation, administration, moratorium, re-organisation and
similar laws affecting creditors’ rights generally, and subject, as to
enforceability, to general principles of equity;

 

9.2.4                   all authorisations, consents and approvals required by
the Lender in Ireland for or in connection with the execution of this Agreement
and the performance by the Lender of the obligations expressed to be undertaken
by it herein have been obtained and are in full force and effect;

 

9.2.5                   the Lender is a resident of Ireland for taxation
purposes and subject to taxation in Ireland not merely on the basis of the
source of its income or location of its property but on the basis of its
registration as a legal entity, location of its management body or other
similar criteria. The Lender may also receive certification to the effect that
it is resident in Ireland for taxation purposes from the relevant Irish
authority. At the date hereof, the Lender reasonably believes that it does not
have a permanent establishment or presence in the Russian Federation save for
any which may be created solely as a result of the Lender entering into and
performing its obligations under this Agreement and the transactions
contemplated herein;

 

9.2.6                   the Loan will be treated as an asset of the Lender
under accounting guidance applicable in Ireland;

 

9.2.7                   the Lender does not own, either directly or
indirectly, any shares of the Borrower;

 

9.2.8                   the Lender has taken no action (other than entering
into loan arrangements with the Borrower and the transactions and documents
connected therewith) which would cause it to become registered in Russia for
VAT purposes;

 

20

 

9.2.9                   there is no reference to the territory of Russia as
the actual place of the Lender’s activity in the memorandum or articles of
association of the Lender; and

 

9.2.10            the members of the board of directors of the Lender
are all individuals that are tax resident in Ireland.

 

10                               Covenants

 

So long as the Loan or any other sum owing
hereunder remains outstanding:

 

10.1                     Negative Pledge

 

The Borrower will
not, and will not permit any Subsidiary to, create, assume or permit to exist
any Debt secured by Lien (other than a Permitted Lien) upon or in respect of
any of its or their property or assets, now owned or hereafter acquired,
without effectively providing that the Loan shall be directly secured equally
and rateably with the Debt secured by such Lien.

 

10.2                     Corporate Existence

 

Except as permitted in Clauses 10.3 and 10.4,
the Borrower shall do or cause to be done all things necessary to preserve and
keep in full force and effect the corporate existence, rights (by charter and
statutory), licences and franchises of the Borrower and each of its Material
Subsidiaries; provided that it and any of its Material Subsidiaries shall not
be required to preserve the corporate existence of any such Material Subsidiary
or any such right, licence or franchise if the board of directors of the
Borrower shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Borrower and its Material Subsidiaries
and that the loss thereof is not disadvantageous in any material respect to the
Lender.

 

10.3                     Merger, Consolidation and Disposition
of Assets

 

The Borrower shall not, consolidate with or
merge into any other person or convey, transfer, sell or lease its properties
or assets substantially as an entirety to any person, or permit any person to
consolidate with or merge into the Borrower, unless each of the following
requirements is met:

 

(a)           the Successor, if other than the Borrower (i) shall be a
corporation organised and existing under the laws of the Russian Federation and
(ii) shall assume, by operation of law or by entering into an agreement
supplemental hereto in a form satisfactory to the Lender, the due and punctual
payment of all obligations under this Agreement and the performance of every
covenant of this Agreement on the part of the Borrower to be performed or
observed;

 

(b)          immediately after giving effect to such transaction, no Default shall
have occurred; and

 

(c)           the Borrower shall have delivered to the Lender an Officer’s Certificate
relating to conditions (a) and (b) above and an Opinion of Counsel
relating to condition (a) above.

 

In the event of any transaction described in
and complying with this Clause 10.5 in which the Borrower is not the Successor,
such Successor shall succeed to, and be substituted for, and may exercise every
right and power of, the Borrower under this Agreement and, except in the case
of a lease, the Borrower will be discharged from its obligations under this
Agreement. Notwithstanding any other provision hereof, the Borrower and such 

 

21

 

Successor shall provide written notice of such
succession or substitution to the Lender, the Trustee and the Noteholders.

 

10.4                     Sale of Assets by the Borrower

 

So long as the Loan remains outstanding, (a) each
conveyance, transfer, sale or lease of assets (other than the payment of
dividends) by the Borrower or one of its Subsidiaries to an Affiliate (other
then the Borrower or one of its Subsidiaries) shall be made for Fair Market
Value; and (b) if at any time subsequent to the Closing Date, the Borrower
and its Subsidiaries have engaged in a transaction or series of related
transactions that, in the aggregate, result in the conveyance, transfer, sale
or lease of assets to one or more Affiliates (other than to the Borrower or one
of its Subsidiaries) with a Fair Market Value of more than U.S.$100,000,000 (or
the equivalent in other currencies), the Borrower shall deliver to the Lender a
resolution of the board of directors of the Borrower, which shall confirm that
such transaction was made for Fair Market Value.

 

10.5                     Reports

 

10.5.1                   The Borrower shall (i) file with the Commission
or otherwise make public and deliver to the Lender, within 180 days of the end
of each fiscal year, an annual report on Form 20-F (or any successor form)
containing the information required to be contained therein (or in such
successor form), regardless of whether the Borrower is then required to file a Form 20-F
under the rules promulgated by the Commission; (ii) make public and
deliver to the Lender, within 150 days of the end of each fiscal year, reports
for the fourth quarter of such fiscal year containing its consolidated balance
sheet, statement of operations and cash flow statement prepared in accordance
with U.S. GAAP (but excluding footnotes) and a discussion by its management
highlighting critical financial developments during the fourth quarter; and (iii) submit
to the Commission or otherwise make public and furnish to the Lender, within 90
days of the end of the first three fiscal quarters of each fiscal year, quarterly
reports on Form 6-K (or any successor form) containing its consolidated
balance sheet, statement of operations and cash flow statement prepared in
accordance with U.S. GAAP (but excluding footnotes) and a discussion by its
management highlighting critical financial developments during the period. In
addition, the Borrower has agreed that, during any period in which it is not
subject to and in compliance with Section 13 or 15 (d) of the
Exchange Act or is not exempt from such reporting requirements pursuant to and
in compliance with Rule 12g3-2(b) under the Exchange Act, it will
provide to each Holder of the Notes (or holder of a beneficial interest
therein) and to each prospective purchaser of the Notes (as designated by such
Holder or holder of a beneficial interest), upon the request of such Holder,
prospective purchaser or holder of a beneficial interest in the Notes, any
information required to be provided by Rule 144A(d)(4) under the
Securities Act.

 

10.5.2                   The Borrower hereby undertakes that it will deliver to
the Lender, without undue delay, such additional information regarding the
financial position of the Borrower as the Lender may reasonably request
including providing certification to the Trustee pursuant to the Trust Deed.

 

22

 

10.5.3                   The Borrower consents that any information provided to
the Lender pursuant to this Clause 10.6 may also be provided to the Trustee, if
so requested by the Trustee, without violating any duty of confidentiality or
secrecy that the Lender may owe to the Borrower under the laws of Ireland.

 

10.5.4                   Delivery of such reports, information and documents to
the Lender is for informational purposes only and the Lender’s receipt thereof
shall not constitute constructive notice of any information contained therein
or determinable from information contained therein, including the Borrower’s
compliance with any of their respective covenants hereunder (as to which the
Lender is entitled to rely exclusively on Officers’ Certificates).

 

10.6                     Further Instruments and Acts

 

Upon request of the Lender or the Trustee, the
Borrower shall execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Agreement.

 

10.7                     Officers’
Certificates

 

10.7.1            Following the occurrence of any matter or event specified in this
Agreement where this Agreement provides for a determination of whether such
matter or event has or will have a Material Adverse Effect, the Borrower shall
provide the Lender (with a copy to the Trustee) with an Officers’ Certificate
certifying whether such matter or event has or will have a Material Adverse
Effect and setting out such additional information as may be required to
support such determination. The Lender and the Trustee shall each be entitled
to rely solely on an Officers’ Certificate from the Borrower, certifying
whether or not such matter has or will have a Material Adverse Effect without
liability to the Noteholders or any other person for so doing.

 

10.7.2            The Borrower shall deliver within 14 days of any written request by the
Trustee an Officers’ Certificate as to any fact or matter prima facie
within the knowledge of the Borrower as sufficient evidence thereof and a like
certificate to the effect that any particular dealing or transaction or step or
thing is, in the opinion of the person so certifying, expedient shall
be  sufficient evidence that such dealing,
transaction, step or thing is
expedient and the Trustee shall not be bound in any such case to call for
further evidence or be responsible for any loss that may be occasioned by its
failing to do so.

 

10.8                     Pari Passu Ranking

 

The Borrower shall ensure that at all times the
claims of the Lender against it under this Agreement rank at least pari passu with the claims of all its
other unsecured creditors save those whose claims are preferred by any
bankruptcy, insolvency, liquidation or other similar laws of general
application and save for obligations mandatorily preferred by law applying to
companies generally.

 

10.9                     Notes held
by the Borrower

 

Upon being so requested in writing by the
Lender or the Trustee, the Borrower shall deliver to the Lender (and to the
Trustee) an Officers’ Certificate of the Borrower setting out the total
principal amount of Notes which, at the date of such certificate, are held by
any person (including, but not limited to, the Borrower, the Lender or any of
their respective Subsidiaries) for the benefit of the Borrower or any
Subsidiary of the Borrower.

 

23

 

10.10              Verification

 

Neither the Lender nor the Trustee shall be
under any obligation to verify the authenticity of any Officers’ Certificate or
any other certificate received by it or be responsible for determining the
existence of any Default or Event of Default. The Lender and the Trustee shall
each be at liberty to accept any aforementioned Officers’ Certificate as
sufficient evidence of any fact or matter stated in such Officers’ Certificate
and neither the Lender nor the Trustee shall be bound to call for further
evidence or be responsible for any loss that may be occasioned by acting on
such Officers’ Certificate or selection or failure to determine the existence
of any Default or Event of Default or whether any matter shall have a Material
Adverse Effect.

 

10.11              Covenant Suspension

 

10.11.1     From and after the date on which the Notes have reached Investment Grade
Status until such time as the Notes no longer have Investment Grade Status, the
Borrower will be released from its obligations to comply with Clauses 10.3 and
10.4 and, in each case, any related Events of Default under Clause 11.

 

10.11.2     In the event that, after the Notes achieve Investment Grade Status, the
Notes lose such Investment Grade Status, the Borrower will thereafter again be
subject to all of the provisions of Clause 10. Such provisions will not,
however, be of any effect with regard to the actions of the Borrower properly
taken during the continuance of the covenant suspension described in Clause
10.11.1.

 

11                               Events of Default

 

11.1                     If one or more of the following events of default
(each, an “Event of Default”)
shall occur, the Lender shall be entitled to the remedies set forth in Clause
11.3.

 

11.1.1            The Borrower fails to make any payment of interest or additional amounts
payable hereunder when the same becomes due and payable and such failure
continues for a period of 15 calendar days.

 

11.1.2            The Borrower fails to make any payment of principal when the same
becomes due and payable.

 

11.1.3            The Borrower fails to comply with its obligations described in Clause
5.4.

 

11.1.4            The Borrower fails to comply with any of its other agreements or
covenants in, or provisions of, this Agreement for 30 days.

 

11.1.5            A default under any Debt of the Borrower or any Subsidiary of the
Borrower (other than the Loan) or under any indenture or other instrument under
which any such Debt has been issued or by which it is governed and the
expiration of the applicable period of grace, if any, contained in any such
Debt (or the U.S. Dollar Equivalent), which in the aggregate exceeds
U.S.$15,000,000, which default (i) results in the acceleration of the
payment of such Debt or (ii) has not been cured or waived and constitutes
the failure to make any payment of principal or interest on such Debt when due,
after the expiration of any applicable grace period.

 

11.1.6            The entry, by a court having jurisdiction in the premises, of (i) a
decree or order for relief in respect of the Borrower or any Material Subsidiary
in an involuntary case or proceeding under any Bankruptcy Law; or (ii) a
decree or order adjudging the Borrower or any Material Subsidiary bankrupt or
insolvent, or approving as properly 

 

24

 

filed
a petition seeking reorganisation, arrangement, adjustment or composition of,
or in respect of, the Borrower or any Material Subsidiary under any Bankruptcy
Law or appointing a Custodian of the Borrower or any Material Subsidiary or of
any substantial part of the property of the Borrower or any Material
Subsidiary, or ordering the winding-up or liquidation (except for any
liquidation arising as a result of a merger of a Material Subsidiary into the
Borrower) of the affairs of the Borrower or any Material Subsidiary, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 60 consecutive calendar days.

 

11.1.7            (i) The commencement by the Borrower or any Material Subsidiary of
a voluntary case or proceeding under any Bankruptcy Law or of any other case or
proceeding to be adjudicated a bankrupt or insolvent; (ii) the consent by
the Borrower or any Material Subsidiary to the entry of a decree or order for
relief in respect of the Borrower or any Material Subsidiary in an involuntary
case or proceeding under any Bankruptcy Law or to the commencement of any
bankruptcy or insolvency case or proceeding against the Borrower or any
Material Subsidiary; (iii) the filing by the Borrower or any Material Subsidiary
of a petition or answer or consent seeking reorganisation or relief under any
Bankruptcy Law; (iv) the consent by the Borrower or any Material
Subsidiary to the filing of such petition or to the appointment of or taking
possession by a Custodian of the Borrower or any Material Subsidiary or of any
substantial part of the property of the Borrower or any Material Subsidiary, or
the making by the Borrower or any Material Subsidiary of an assignment for the
benefit of creditors; (v) the admission by the Borrower or any Material
Subsidiary in writing of its inability to pay its debts generally as they
become due; or (vi) the taking of corporate action by the Borrower or any
Material Subsidiary to authorise or effect any such action.

 

11.1.8            A final action resulting in the suspension for more than 30 days or loss
of any of the Borrower’s GSM 900 or 1800 licences for the Moscow licence area,
the St. Petersburg licence area, the Krasnodar licence area or the Ukraine
licence area, in each case other than (a) in a transaction permitted under
Clause 10.5; or (b) a loss where the relevant licence is issued within 30
days to the Borrower, the Successor of the Borrower or any of the Borrower’s or
Successor’s Subsidiaries).

 

11.1.9            The reassignment to other users (other than a Subsidiary of the
Borrower), cancellation or other loss of any of the Borrower’s or Ukrainian
Mobile Communications’ assigned spectrum allocations, other than as would not
have a Material Adverse Effect on the business, financial condition or results
of operations of the Borrower or the Borrower and its Subsidiaries, taken as a
whole.

 

11.1.10     The express transfer, sale or lease by the Borrower or any of its
Subsidiaries of any of its GSM 900 or 1800 licences for the Moscow licence
area, the St. Petersburg licence area, the Krasnodar licence area or the
Ukraine licence area, regardless of whether such transfer, sale or lease is
permitted by law, other than in a transaction described in and meeting the
requirements of Clause 10.5 or that would not have a material adverse effect on
the business, financial condition or results of operations of the Borrower or
the Borrower and its Subsidiaries, taken as a whole.

 

11.1.11     The rendering against the Borrower or any Subsidiary of the Borrower of
a judgment, decree or order for the payment of money in an amount in excess of
U.S.$15,000,000 and the continuance of any such judgment, decree or order 

 

25

 

unsatisfied
and in effect for any period of 60 consecutive calendar days without such
judgment, decree or order being appealed, discharged, waived or the execution
thereof stayed.

 

11.2                     Notice of Default

 

The Borrower shall deliver to the Lender and
the Trustee (i) on each Interest Payment Date; (ii) within seven
Business Days of any written request by the Lender; or (iii) promptly upon
becoming aware of the occurrence thereof, written notice in the form of an
Officers’ Certificate stating whether any Default or Event of Default has
occurred, its status and what action the Borrower is taking or proposes to take
with respect thereto.

 

11.3                     Default Remedies

 

If any Event of Default shall occur, the Lender
may, by notice in writing to the Borrower, (a) declare the obligations of
the Lender hereunder to be terminated, whereupon such obligations shall
terminate; and (b) declare the Loan to be immediately due and payable by
the Borrower and declare all other amounts accrued and/or payable hereunder by
the Borrower up to (and including) the date of such termination to be immediately
due and payable, whereupon all such amounts shall become immediately due and
payable, all without diligence, presentment, demand of payment, protest or
notice of any kind, which are expressly waived by the Borrower; provided,
however, that if any event of any kind referred to in Clause 11.1.6 or 11.1.7
occurs, the obligations of the Lender hereunder shall immediately terminate,
and all amounts payable hereunder by the Borrower that would otherwise be due
after the occurrence of such event shall become immediately due and payable,
all without diligence, presentment, demand of payment, protest or notice of any
kind, which are expressly waived by the Borrower.

 

11.4                     Rights Not Exclusive

 

The rights provided for herein are cumulative
and are not exclusive of any other rights, powers, privileges or remedies
provided by law.

 

11.5                     Right of Set-off

 

If any amount payable by the Borrower hereunder
is not paid as and when due, the Borrower authorises the Lender to proceed, to
the fullest extent permitted by applicable law, without prior notice, by right
of set-off, banker’s lien, counterclaim or otherwise, against any assets of the
Borrower in any currency that may at any time be in the possession of the
Lender, at any branch or office, to the fullest extent of all amounts payable
to the Lender hereunder.

 

12                               Indemnity

 

12.1                     Indemnification

 

The Borrower undertakes to the Lender, that if
the Lender or any of its Affiliates, each director, officer, employee or agent
of the Lender and each person controlling the Lender within the meaning of the
United States securities laws (each an “indemnified
party”) incurs any loss, liability, cost, claim, charge, expense
(including, without limitation, taxes and properly incurred legal fees, costs
and expenses), demand or damage (a “Loss”)
as a result of or in connection with the Loan, this Agreement (or enforcement
thereof), and/or the issue, constitution, sale, listing and/or enforcement of
the Notes and/or the Notes being outstanding, the Borrower shall pay to the
Lender on demand an amount equal to such documented Loss and all costs, charges
and expenses which it or any indemnified party 

 

26

 

may pay or incur in connection with
investigating, disputing or defending any such action or claim as such costs,
charges and expenses are incurred unless such Loss was either caused by such
indemnified party’s gross negligence, bad faith, fraud or wilful misconduct or
arises out of a breach of the representations and warranties of the Lender
contained in this Agreement. The Lender shall not have any duty or obligation
whether as fiduciary or trustee for any indemnified party or otherwise, to
recover any such payment or to account to any other person for any amounts paid
to it under this Clause 12.1.

 

12.2                     Independent Obligation

 

Clause 12.1 constitutes a separate and
independent obligation of the Borrower from its other obligations under or in
connection with this Agreement or any other obligations of the Borrower in
connection with the issue of the Notes by the Lender and shall not affect, or
be construed to affect, any other provision of this Agreement or any such other
obligations.

 

12.3                     Evidence of Loss

 

A certificate of the Lender setting forth the
amount of Loss and specifying in full detail the basis therefor shall, in the
absence of manifest error, be conclusive evidence of the amount of such Loss.

 

12.4                     Currency Indemnity

 

To the fullest extent permitted by law, the
obligations of the Borrower under this Agreement in respect of any amount due
in the currency (the “first currency”)
in which the same is payable shall, notwithstanding any payment in any other
currency (the “second currency”) (whether
pursuant to a judgment or otherwise), be discharged only to the extent of the
amount in the first currency that the Lender may, acting reasonably and in
accordance with normal banking procedures, purchase with the sum paid in the
second currency (after any premium and costs of exchange) on the Business Day
immediately following the day on which the Lender receives such payment. If the
amount in the first currency that may be so purchased for any reason falls
short of the amount originally due (the “Due Amount”),
the Borrower hereby agrees to indemnify and hold harmless the Lender against any
deficiency in the first currency. Any obligation of the Borrower not discharged
by payment in the first currency shall, to the fullest extent permitted by
applicable law, be due as a separate and independent obligation and, until
discharged as provided in this Agreement, shall continue in full force and
effect.

 

13                               Survival

 

The obligations of the Borrower pursuant to
Clauses 6.2, 6.3, 12 and 14.2 shall survive the execution and delivery of this
Agreement, the drawdown of the Facility and the repayment of the Loan, in each
case by the Borrower.

 

14                               General

 

14.1                     Evidence of Debt

 

The entries made by the Lender in the accounts
maintained by the Lender in accordance with its usual practice and evidencing
the amounts from time to time lent by and owing to it hereunder shall, in the
absence of manifest error, be prima facie
evidence of the existence and amounts of the Borrower’s obligations recorded
hereunder.

 

27

 

14.2                     Stamp Duties

 

14.2.1            The Borrower shall pay all stamp, registration and documentary taxes or
other charges (if any) imposed on the Borrower by any person in the United
Kingdom, the Russian Federation, Luxembourg, Belgium, the United States or
Ireland which may be payable or determined to be payable in connection with the
execution, delivery, performance, enforcement, or admissibility into evidence
of this Agreement and shall indemnify the Lender against any and all costs and
expenses which may be incurred or suffered by the Lender with respect to, or
resulting from, delay or failure by the Borrower to pay such taxes or similar
charges upon presentation by the Lender to the Borrower of documentary evidence
of such costs and expenses.

 

14.2.2            The Borrower agrees that if the Lender incurs a liability to pay any
stamp, registration and documentary taxes or other charges (if any) imposed by
any person in the United Kingdom, the Russian Federation, Luxembourg, Belgium,
the United States or Ireland which may be payable or determined to be payable
in connection with the execution, delivery, performance, enforcement, or
admissibility into evidence of this Agreement and any documents related hereto,
the Borrower shall repay the Lender on demand an amount equal to such stamp or
other documentary taxes or duties and shall indemnify the Lender against any
and all costs and expenses which may be incurred or suffered by the Lender with
respect to, or resulting from, delay or failure by the Borrower to procure the
payment of such taxes or similar charges.

 

14.3                     Waivers

 

No failure to exercise and no delay in
exercising, on the part of the Lender or the Borrower, any right, power or
privilege hereunder and no course of dealing between the Borrower and the
Lender shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege preclude any other or further
exercise thereof, or the exercise of any other right, power or privilege. The
rights and remedies herein provided are cumulative and not exclusive of any
rights or remedies provided by applicable law.

 

14.4                     Prescription

 

In the event that any Notes become void
pursuant to Condition 11, the Lender shall forthwith repay to the Borrower the
principal amount of such Note subject to the Lender having previously received
from the Borrower a corresponding amount in respect of principal pursuant to
this Agreement.

 

15                               Notices

 

All notices, requests, demands or other
communications to or upon the respective parties hereto shall be given or made
in the English language by fax or otherwise in writing and shall be deemed to
have been duly given or made at the time of delivery, if delivered by hand or
courier or if sent by facsimile transmission or by airmail to the party to
which such notice, request, demand or other communication is required or
permitted to be given or made under this Agreement addressed as follows:

 

15.1                     if to the Borrower:

 

Mobile TeleSystems Open-Joint Stock Company

4, Marksistskaya Street

 

28

 

	
  109147 Moscow

  
	
  Russian Federation

  
	
   

  
	
  Fax:

  	
  +7 495 766 0100

  
	
  Attention:

  	
  Vice President—Investments and Securities

  

 

 

15.2                     if to the Lender:

 

MTS International Funding Limited

19-20 City Quay

Dublin 2

Ireland

 

	
  Fax:

  	
  +353 1 633 6049

  
	
  Attention:

  	
  The Directors

  

 

or to such other address or facsimile number as
any party may hereafter specify in writing to the other.

 

16                               Assignment

 

16.1                     General

 

This Agreement shall inure to the benefit of
and be binding upon the parties, their respective Successors and any permitted
assignee or transferee of some or all of a party’s rights or obligations under
this Agreement. Any reference in this Agreement to any party shall be construed
accordingly and, in particular, references to the exercise of rights and
discretions by the Lender or the forming of an opinion or the making of any
determination, following notification to the Borrower of the assignment and/or
enforcement of the security, each as referred to in Clause 16.3, shall include
references to the exercise of such rights or discretions or the forming of an
opinion or the making of any determination by the Trustee (as Trustee).
Notwithstanding the foregoing, the Trustee shall not be entitled to participate
in any determinations by the Lender, or any discussions between the Lender and
the Borrower or any agreements of the Lender or the Borrower, pursuant to
Clause 6.4, 6.5 or 8.2.

 

16.2                     By the Borrower

 

The Borrower shall not be entitled to assign or
transfer all or any part of its rights or obligations hereunder to any other
person.

 

16.3                     By the Lender

 

Subject to the provisions of Clause 17 of the
Trust Deed, the Lender may not assign or transfer, in whole or in part, any of
its rights and benefits or obligations under this Agreement other than the
Reserved Rights except (i) the charge by way of first fixed charge granted
by the Lender in favour of the Trustee (as Trustee) of certain of the Lender’s
rights and benefits under this Agreement; and (ii) the absolute assignment
by the Lender to the Trustee of certain rights, interests and benefits under
this Agreement, in each case, pursuant to Clause 4 of the Trust Deed. Nothing
herein shall prevent the Trustee from assigning or transferring any rights held
by it in relation to or under this Agreement, provided that any such assignment
or transfer is in accordance with Clause 26 of the Trust Deed.

 

29

 

17                               Law and Jurisdiction

 

17.1                     Governing Law

 

This Agreement and any non-contractual
obligations arising out of or in connection with it shall be governed by, and
construed in accordance with, English law.

 

17.2                     Jurisdiction

 

The parties irrevocably agree that any dispute
arising out of or in connection with this Agreement, including a dispute as to
the validity, existence or termination of this Agreement or the consequences of
its nullity and/or this Clause 17.2 (a “Dispute”),
shall be resolved:

 

17.2.1            subject to sub-Clause 17.2.2, by arbitration in London, England,
conducted in the English language by three arbitrators, in accordance with the rules set
down by the LCIA (formerly the London Court of Arbitration (“LCIA Rules”), which rules are deemed to be incorporated
by reference into this sub-Clause 17.2.2, save that Article 5.6 of the
LCIA Rules shall be amended as follows: unless the parties agree
otherwise, the third arbitrator, who
shall act as chairman of the tribunal, shall be nominated by the two
arbitrators nominated by or on behalf of the parties. If he is not so nominated
within 30 days of the date of nomination of the later of the two
party-nominated arbitrators to be nominated, he shall be chosen by the LCIA
Court. Save as provided in sub-Clause 17.2.2, the parties agree to
exclude the jurisdiction of the English court under Sections 45 and 69 of the
Arbitration Act 1996; or

 

17.2.2            at the sole option of the Lender, by proceedings brought in the courts
of England, which courts are to have non-exclusive jurisdiction. If the Lender
is in the position of a respondent and wishes to exercise this option, it must
do so by notice to the other parties to the Dispute within 60 days of service
on it of the request for arbitration.

 

For the avoidance of doubt, sub-Clause 17.2.2
is for the benefit of the Lender alone and shall not limit the right of the
Lender to bring proceedings in any other court of competent jurisdiction.

 

17.3                     Appropriate Forum

 

Each of the parties irrevocably waives any
objection which it might now or hereafter have to the courts of England being
nominated as the forum to hear and determine any Dispute, and agrees not to
claim that any such court is not a convenient or appropriate forum.

 

17.4                     Lender’s Process Agent

 

The Lender irrevocably appoints Law Debenture Corporate Services Limited (the “Lender’s Agent”), now of Fifth Floor, 100 Wood Street, London EC2V 7EX, United Kingdom,
as its agent to accept service of process in England in any Dispute (whether
that Dispute is to be resolved by arbitration or litigation), provided that:

 

17.4.1            service upon the Lender’s Agent shall be deemed valid service upon the
Lender whether or not the process is forwarded to or received by the Lender;

 

17.4.2            the Lender shall inform all other parties to this Agreement, in writing,
of any change in the address of the Lender’s Agent within 28 days of such
change;

 

30

 

17.4.3            if the Lender’s Agent ceases to be able to act as a process agent or to
have an address in England, the Lender irrevocably agrees to appoint a new
process agent in England acceptable to the other parties to this Agreement and
to deliver to the other parties to this Agreement within 14 days a copy of a
written acceptance of appointment by the new process agent; and

 

17.4.4            nothing in this Agreement shall affect the right to serve process in any
other manner permitted by law.

 

17.5                     Borrower’s Process Agent

 

The Borrower irrevocably appoints Law Debenture Corporate Services Limited (the “Borrower’s Agent”), now of Fifth Floor, 100 Wood Street, London EC2V 7EX, United Kingdom,
as its agent to accept service of process in England in any Dispute (whether
that Dispute is to be resolved by arbitration or litigation), provided that:

 

17.5.1            service upon the Borrower’s Agent shall be deemed valid service upon the
Borrower whether or not the process is forwarded to or received by the
Borrower;

 

17.5.2            the Borrower shall inform all other parties to this Agreement and the
Trustee, in writing, of any change in the address of the Borrower’s Agent
within 28 days of such change;

 

17.5.3            if the Borrower’s Agent ceases to be able to act as a process agent or
to have an address in England, the Borrower irrevocably agrees to appoint a new
process agent in England acceptable to the other parties to this Agreement and
the Trustee and to deliver to the other parties to this Agreement and the
Trustee within 14 days a copy of a written acceptance of appointment by the new
process agent; and

 

17.5.4            nothing in this Agreement shall affect the right to serve process in any
other manner permitted by law.

 

17.6                     Waiver of Immunity

 

To the extent the Borrower may, in relation to
any Dispute, claim in any jurisdiction, for itself or its assets or revenues,
immunity from the jurisdiction of any court or tribunal, service of process,
injunctive or other interim relief, or any
process for execution of any award or judgment against its property, the
Borrower irrevocably waives such immunity.

 

18                               Severability

 

In case any provision in or obligation under
this Agreement shall be invalid, illegal or unenforceable in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

19                               Contracts (Rights of Third
Parties) Act 1999

 

A person who is not a party to this Agreement
has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce
any term of this Agreement, save that the Contracts (Rights of Third Parties)
Act 1999 shall apply in favour of the Trustee to Clauses 6.1, 10 and 16.

 

20                               Language

 

The language which governs the interpretation
of this Agreement is the English language.

 

31

 

21                               Amendments

 

Except as otherwise provided by its terms, this
Agreement may not be varied except by an agreement in writing signed by the
parties hereto.

 

22                               Counterparts

 

This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which when
so executed shall constitute one and the same binding agreement between the
parties hereto.

 

23                               Limited Recourse and Non Petition

 

The Borrower hereby agrees that it shall have
recourse in respect of any claim against the Lender only to sums in respect of
principal, interest or other amounts (if any), as the case may be, actually
received from the Borrower (after any tax deduction required by law to be made
by the Borrower in respect of such sums and for which the Lender has not received
a corresponding additional payment from the Borrower pursuant to this Agreement
(also after any tax deduction as may be required by law)) by or for the account
of the Lender pursuant to this Agreement (the “Lender Assets”), subject always to (i) the Security
Interests (as defined in the Trust Deed); and (ii) to the fact that any
claims of the Joint Lead Managers (as defined in the Subscription Agreement)
shall rank in priority to claims of the Borrower hereunder, and that any such
claim by the Joint Lead Managers or the Borrower shall be reduced pro rata so that the total of all such claims does not
exceed the aggregate value of the Lender Assets after meeting claims secured on
them. The Trustee having realised the same, neither the Borrower nor any person
acting on its behalf shall be entitled to take any further steps against the
Lender to recover any further sums and no debt shall be owed by the Lender to
such person in respect of any such further sum. In particular, neither the
Borrower nor any other person acting on behalf of any of them shall be entitled
at any time to institute proceedings against the Lender, or join with any other
person in bringing, instituting or joining, insolvency proceedings (whether
court-based or otherwise) against the Lender.

 

Neither the Borrower nor any other person
acting on its behalf shall be entitled at any time to institute against the
Lender, or join in any institution against the Lender of, any bankruptcy,
administration, moratorium, reorganisation, controlled management, arrangement,
insolvency, examinership, winding-up or liquidation proceedings or similar
insolvency proceedings under any applicable bankruptcy or similar law in
connection with any obligation of the Lender under this Agreement, save for
lodging a claim in the liquidation of the Lender which is initiated by another
party or taking proceedings to obtain a declaration or judgment as to the
obligations of the Lender.

 

The Borrower shall have no recourse against any
director, shareholder, or officer of the Lender in respect of any obligations,
covenants or agreement entered into or made by the Lender in respect of this
Agreement, except to the extent that any such person acts in bad faith or is
negligent in the context of its obligations.

 

32

 

In witness whereof, the parties hereto have caused this Agreement to be executed on the
date first written above.

 

For and on behalf of  

MOBILE TELESYSTEMS OPEN-JOINT STOCK COMPANY:

 

 

	
  /s/ Alexey Kornya

  	
   

  	
  /s/ Irina Borisenkova

  
	
   

  	
   

  	
   

  
	
  By: Alexey Valerievich Kornya

  	
   

  	
  By: Irina Radomirovna Borisenkova

  
	
   

  	
   

  	
   

  
	
  Title: Vice President for Finance and
  Investment pursuant to Power of Attorney No. 0503/10 dated 15
  June 2010

  	
   

  	
  Title: Chief Accountant

   

  

 

 

Signed by a duly authorised attorney of  

MTS INTERNATIONAL FUNDING LIMITED:

 

	
  /s/ Nigel Woods

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: Nigel Woods

  	
   

  
	
   

  	
   

  
	
  Title: Director

  	
   

  

 

33Exhibit
4.4

 

Non-Revolving Credit
Facility Agreement No. 9656

 

	
  City of Moscow

  	
   

  	
  September     ,
  2009

  

 

Joint Stock Commercial Savings Bank of the Russian
Federation (Open Joint Stock Company), hereinafter referred to as the “Lender”,
represented by its Vice-President and Director of the Major Clients Department,
Mr. Alexander Vladimirovich Bazarov, acting on the basis of the Charter
and Power of Attorney No. 01-1/480 dated June 15, 2009, as one party,
and Mobile TeleSystems Open Joint Stock Company, hereinafter referred to as the
“Borrower”, represented by its President Mr. Mikhail Valerievich Shamolin,
acting on the basis of the Charter, as the other party, hereinafter
collectively referred to as the “Parties” and individually the “Party” have
made this agreement (the “Agreement”) on the following:

 

Article 1. Subject of
the Agreement

 

1.1. The Lender agrees to open to the Borrower a
non-revolving Credit Facility with a facility limit of Twenty-Five Billion
Rubles (RUR 25,000,000,000) for the purposes of financing of direct or indirect
acquisition of shares of Comstar-UTS OJSC, and for the purposes of funding the
Borrower’s 2009 investment program, maturing on September     ,
2013, at a variable interest rate to be determined in accordance with Clause
2.5. hereof, and the Borrower agrees to repay the facility and pay interest
thereon in the amount, within the period and on the terms and conditions
hereof.

 

Article 2. Conditions
Precedent to the Loan

 

2.1.          The
Lender shall open to the Borrower facility account No. 45208810600140029656.

 

2.2.          The
Borrower shall be charged a facility fee in the amount of Twenty Million (RUR
20,000,000). Such amount shall be paid up-front by the Borrower to the Lender
within Two (2) business days after the execution hereof by the Parties.

 

2.3.          The facility shall be made available to the Borrower after:

 

2.3.1.       Provision to the Lender of documents confirming the intended
use of the facility (agreements, contracts, payment documents and/or other
documents) in form satisfactory to the Lender.

 

2.3.2.       Execution and provision to the Lender of agreements
(amendment agreements) to bank account agreements which provide the Lender with
the right to debit without acceptance settlement and current currency accounts
of the Borrower No. 40702810100020008293, No. 40702840400020008293
and No. 40702978000020008293 with Transaction Department of Sberbank of
Russia OJSC, No. 40702810738050011729 with Maryinaroshchinskoye Branch No. 7981
of Sberbank of Russia OJSC, No. 40702810000000000652 and No. 40702840300000000652
with the Joint Stock Commercial Bank Moscow Bank for Reconstruction and
Development (OJSC).

 

2.3.3. Payment of the
facility fee specified in Clause 2.2 hereof.

 

2.3.4. Execution of the
equipment pledge agreement specified in sub-clause 6.2.4.1. hereof.

 

2.3.5. Execution of an
agreement on extrajudicial foreclosure on the property pledged under Clause
6.2.4.1. hereof.

 

2.4. The facility shall
be disbursed by way of transfer of funds to the Borrower’s settlement account No. 40702810100020008293
with Transaction Department of Sberbank of Russia OJSC on the basis of the
Borrower’s drawdown requests.

 

The facility shall be disbursed
provided that no payments hereunder and under any other loan agreements
(including non-revolving Credit Facility agreements) made or to be made between
the Lender and the Borrower, including Non-Revolving Credit Facility Agreement No. 9662
dated August 28, 2009, are overdue.

 

2.5.
The Borrower shall pay to the Lender interest on
the facility at the rate of Sixteen percent(16%) per annum from the date hereof
through March 27, 2010.

 

During the period from March 28,
2010 to the date of full repayment of the facility specified in Clause 1.1
hereof the Borrower shall pay to the Lender interest at a variable interest
rate determined as the sum of the Base Rate, “A” and “B”, where:

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

 

Non-Revolving Credit Facility Agreement No. 9656
dated September     , 2009

 

The Base Rate shall be Sixteen
percent (16%) per annum.

 

“A” is the per annum percentage of
increase in the Interest Rate depending on the average daily balances of the
accounts specified in Annex 1 hereto constituting an integral part hereof
(“Annex 1”) calculated in accordance with Clause 2.5.1. hereof;

 

“B” is the per annum percentage of increase in the interest
rate depending on the amount of quarterly transfers to the accounts of the
employees of the Borrower and/or Russian Telephony Company Closed Joint Stock
Company (OGRN 1027739165662, registered address: 5 Vorontsovskaya Str., build. 2, Moscow, 109147,
Russian Federation, hereinafter “RTC”) opened as part of the salary projects
with the Lender, to be calculated in accordance with Clause 2.5.2. hereof.

 

The interest rate shall be
fixed on a quarterly basis in accordance with the Calculation/Interest Periods
reconciliation table:

 

	
  Calculation Period

  	
   

  	
  Interest
  Period

  	
   

  
	
  from January 1 to
  March 31

  	
   

  	
  from June 28 to
  September 27

  	
   

  
	
  from April 1 to June 30

  	
   

  	
  from September 28 to
  December 27

  	
   

  
	
  from July 1 to
  September 30

  	
   

  	
  from December 28 to
  March 27

  	
   

  
	
  from October 1 to
  December 31

  	
   

  	
  from March 28 to June 27

  	
   

  

 

The interest rate shall be fixed
for the relevant Interest Period without execution of an amendment agreement
hereto by way of a written notice given by the Lender to the Borrower regarding
the interest rate fixed for the Interest Period.

 

The Lender shall give notice of the
Interest Rate to the Borrower on or before the Tenth (10) day of the
second month of each calendar quarter in the manner set forth in Clause 9.3.
hereof.

 

If the Borrower does not receive the
notice in accordance with the preceding paragraph on or before the
Twenty-Eighth (28th) day of the second month of the calendar quarter, the
Interest Rate shall be determined by the Borrower itself in accordance
herewith.

 

2.5.1. “A” shall
be determined depending on the amount of average daily balances of accounts
specified in Annex No. 1 in accordance with Clause 2.5.1.1. hereof.

 

The amount of average daily balances
of accounts specified in Annex No. 1 shall be the sum of average daily
balances of each account opened with the Lender. The average daily balance of
an account shall be determined using the following formula:

 

Bav = (B1+B2+B3+...+Bn) / n, where

 

Bav is the average daily balance of
the account;

 

B1,B2,B3...Bn — daily opening balances
of the account;

 

n is the number of calendar days in
the calculation period.

 

Daily opening balances of the
currency accounts specified in Annex No. 1 shall be converted into rubles. The conversion of daily opening balances
shall be effected at the exchange rate of the Bank of Russia quoted on the
relevant calendar day of conversion.

 

2.5.1.1. In relation to
the interest periods from the date hereof through March 27, 2010 the
interest rate shall not be increased by “A”.

 

In relation to the interest periods from March 28,
2010 to the date of full repayment of the facility specified in Clause 1.1
hereof “A” shall be calculated on a quarterly basis in accordance with the
Calculation/Interest Periods reconciliation table:

 

	
  Calculation Period

  	
   

  	
  Interest
  Period

  	
   

  
	
  from January 1 to
  March 31

  	
   

  	
  from June 28 to
  September 27

  	
   

  
	
  from April 1 to June 30

  	
   

  	
  from September 28 to
  December 27

  	
   

  
	
  from July 1 to
  September 30

  	
   

  	
  from December 28 to
  March 27

  	
   

  
	
  from October 1 to
  December 31

  	
   

  	
  from March 28 to June 27

  	
   

  

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

2

 

“A” shall be determined
depending on the average daily balances of the Borrower’s accounts with the
Lender specified in Annex 1 in accordance with the following table:

 

	
  Amount of average daily balances of the

  Borrower’s accounts specified in Annex No.

  1 for the Calculation Period, RUR

  	
   

  	
  “A” (increase in the interest
  rate depending

  on the average daily balances, % p.a.)

  	
   

  
	
  Less than One Billion
  (1,000,000,000)

  	
   

  	
  + Five Tenths (0.5)

  	
   

  
	
  One Billion (1,000,000,000) or more

  	
   

  	
  + Zero Tenths (0.0)

  	
   

  

 

2.5.1.2. For the
purposes of Clause 2.5.1. hereof the Borrower shall provide to the Lender (or
ensure that the Lender is provided with) properly certified bank statements of
all settlement and currency accounts specified in Annex 1 for each full
calendar quarter within Fifteen (15) business days from the last day of the
calendar quarter.

 

If the Borrower fails to provide to the Lender within
Fifteen (15) business days from the last day of the calendar quarter the bank statements
containing information on the average daily balances of all settlement and
current currency accounts specified in Annex 1 the amount of average daily
balances of the Borrower’s accounts specified in Annex 1 for the relevant
calculation period shall be deemed to be less than One Billion Rubles
(RUR1,000,000,000).

 

2.5.2. In
relation to the interest periods from the date hereof through March 27,
2010 the interest rate shall not be increased by “B”.

 

In relation to the interest periods from March 28,
2010 to the date of full repayment of the facility specified in Clause 1.1
hereof “B” shall be determined on a quarterly basis depending on the amount of
quarterly transfers made in the calculation period (for the purposes of
sub-clause 2.5.2. hereof the calculation period shall be three calendar months)
to the accounts of the employees of the Borrower and/or RTC opened as part of
salary projects with the Lender, as follows:

 

2.5.2.1. “B” shall be
calculated on a quarterly basis in accordance with the Calculation/Interest
Periods reconciliation table:

 

	
  Calculation Period

  	
   

  	
  Interest
  Period

  	
   

  
	
  from January 1 to
  March 31

  	
   

  	
  from June 28 to
  September 27

  	
   

  
	
  from April 1 to June 30

  	
   

  	
  from September 28 to
  December 27

  	
   

  
	
  from July 1 to
  September 30

  	
   

  	
  from December 28 to March 27

  	
   

  
	
  from October 1 to
  December 31

  	
   

  	
  from March 28 to June 27

  	
   

  

 

In relation to the interest
periods from March 28, 2010 “B” shall be calculated in accordance with the
following table:

 

	
  Amount of transfers to the accounts of the

  employees of the Borrower and/or RTC opened

  as part of salary projects with the Lender, made

  in the Calculation Period, RUR

  	
   

  	
  “B” (increase
  in the interest rate

  depending on the amount of quarterly

  transfers of salary, % p.a.)

  	
   

  
	
  Less than Five Hundred Million
  (500,000,000)

  	
   

  	
  + Five Tenths (0.5)

  	
   

  
	
  Five Hundred Million (500,000,000)
  or more

  	
   

  	
  + Zero Tenths (0.0)

  	
   

  

 

2.5.2.2.
The Borrower shall provide to the Lender (or
ensure that the Lender is provided with) properly certified bank statements in
the agreed form of all transfers made in the Calculation Period to the accounts
of the employees of the Borrower and/or RTC opened as part of salary projects
with the Lender, within Fifteen (15) business days from the last day of the
calculation period.

 

If the Borrower fails to provide to
the Lender within Fifteen (15) business days from the last day of the
Calculation Period the bank statements of all transfers made in the Calculation
Period to the accounts of the employees of the Borrower and/or RTC the amount
of transfers made to the accounts of the employees of the Borrower and/or RTC
opened as part of salary projects with the Lender in the 

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

3

 

relevant calculation period shall be
deemed to be less than Five Hundred Million Rubles (RUR 500,000,000).

 

2.6. The interest shall be paid for the actual period
during which the facility remained outstanding on a quarterly basis on the 27th day of the third month of each
calendar quarter and on the final repayment date of the facility being September     ,
2013.

 

2.7. Any advance under the facility shall be made
within the available balance of the facility limit in accordance with the
following schedule:

 

	
  No. of

  Tranche

  	
   

  	
  Availability Period

  	
   

  	
  Amount (in words), RUR

  
	
  1

  	
   

  	
  From September     , 2009
  to September 30, 2009

  	
   

  	
  Twenty-Five Billion Rubles

  (RUR 25,000,000,000)

  

 

Repayment of any part of the facility shall not
increase the available balance of the Credit Facility limit.

 

2.8. The Borrower shall be charged a commitment fee
at Two percent (2%) per annum. The commitment fee shall accrue on the
undisbursed amounts of the tranche for the period starting from the first
drawdown date (excluding such date) determined in Clause 2.7. hereof to the
last tranche disbursement date (including such date) determined in Clause 2.7.
hereof.

 

2.9. The commitment fee shall be paid on a quarterly
basis on the 27th day of the third month of each calendar
quarter and on the final date of the availability period being September 30,
2009.

 

2.10. The facility shall be available for disbursement
through September 30, 2009. If on September 30, 2009 the facility is
not drawn down by the Borrower in full, the available facility limit shall be
forfeited.

 

2.11. The outstanding facility shall be repaid in
accordance with the following repayment schedule:

 

	
  No

  	
   

  	
  Repayment Date

  	
   

  	
  Payment in percentage of the
  outstanding facility as of the

  final availability date (September 30, 2009)

  
	
  1

  	
   

  	
  March 27, 2012

  	
   

  	
  1/7 (One Seventh)

  
	
  2

  	
   

  	
  June 27, 2012

  	
   

  	
  1/7 (One Seventh)

  
	
  3

  	
   

  	
  September 27, 2012

  	
   

  	
  1/7 (One Seventh)

  
	
  4

  	
   

  	
  December 27, 2012

  	
   

  	
  1/7 (One Seventh)

  
	
  5

  	
   

  	
  March 27, 2013

  	
   

  	
  1/7 (One Seventh)

  
	
  6

  	
   

  	
  June 27, 2013

  	
   

  	
  1/7 (One Seventh)

  
	
  7

  	
   

  	
  September     , 2013

  	
   

  	
  1/7 (One Seventh)

  

 

2.12. The Borrower shall pay to the Lender the loan
administration fee in the amount of Twenty-Five Thousandths percent (0.25%) per
annum of the amount actually outstanding under the facility.

 

The loan administration fee shall be paid on the dates
and for the periods set out in Clause 2.6 hereof for interest payments.

 

Article 3.  Liability of the
Parties

 

3.1.          The
Parties shall be liable in accordance with the applicable laws of the Russian
Federation for failure to perform or improper performance of their obligations
hereunder.

 

3.2.          If
the Borrower fails to make when due a repayment of the facility, to pay
interest, or pay the facility fee, the commitment fee or loan administration
fee, the Borrower shall pay to the Lender a penalty at the refinancing rate of
the Bank of Russia in percent per annum multiplied by Two (2) to accrue on
the overdue payment for each day of delay for the period from the date on which
any payment becomes overdue (excluding such date) to the date of full repayment
of the overdue amount (and including such date).

 

	
   

  	
   

  	
   

  
	
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4

 

Article 4. Settlement
and Payment Terms

 

4.1. The facility disbursement date shall be the date
on which the facility becomes outstanding as recorded on the facility account
specified in Clause 2.1 hereof.

 

The date of performance of payment obligations
hereunder shall be the date on which the Borrower’s or third parties’ accounts
with the Lender are debited with the amounts intended for repayment of the
obligations hereunder or the date on which the proceeds intended for repayment
of the obligations hereunder are received at the correspondent account of the
Lender if repayment is made from the accounts opened with other banks.

 

4.2. The interest, loan
administration fee, commitment fee, prepayment fee and penalties shall be
calculated on the basis of actual number of calendar days within a payment
period, and the actual number of calendar days in a year (365 or 366,
respectively).

 

4.3. The repayment proceeds
hereunder, including the proceeds for which a direct debit was made, shall be
applied regardless of the purpose of payment specified in the payment documents
(subject to the provisions set forth in Clauses 4.7, 4.8, 4.9, 4.10 hereof), in
the first place to cover the litigation and other costs incurred by the Lender
as a result of recovery of the outstanding facility, and then in the following
order of priority:

 

1)             to pay the penalty for
failure to perform obligations hereunder when due (other than the penalty under
Clause 9.2. hereof);

2)             to pay the overdue facility
fee;

3)             to pay the overdue commitment fee;

4)             to pay the overdue loan
administration fee;

5)             to pay overdue interest;

6)             to pay the facility fee due;

7)             to pay the commitment fee
due;

8)             to pay the loan
administration fee due;

9)             to pay interest due;

10)           to repay the overdue
principal of the facility;

11)           to pay the prepayment fee;

12)           to repay the principal of
the facility due;

13)           to repay the outstanding
facility before stated maturity dates as set forth in Clause 2.11 hereof
pursuant to Clause 5.2.2 hereof;

14)           to pay the penalty pursuant
to Clause 9.2. hereof.

 

The obligations under this
Agreement (to repay the outstanding principal, pay the interest and pay the
fees) shall become due and payable on their stated maturity date pursuant to
the provisions of Clauses 2.2, 2.5, 2.6, 2.8, 2.9, 2.12, 5.2.2. hereof (the “Payment
Date”).

 

For the purposes hereof the
overdue obligations shall mean the obligations hereunder which are not
performed on the Payment Date.

 

4.4. Payment obligations
hereunder may be performed by third parties.

 

4.5. If a payment hereunder
is made in a currency different from the currency of the payment under the
Agreement, the Lender may itself convert such payment into the currency of the
payment hereunder at the exchange rate and on the terms of the Lender and then
apply the same to repay the due amounts hereunder.

 

4.6. The obligations to
repay the outstanding facility may be performed before their stated maturity
dates as set forth in Clause 2.11 hereof pursuant to Clause 5.2.2 hereof.

 

The payments received to
repay the outstanding facility before the maturity dates stated in Clause 2.11
hereof shall be applied by the Lender to repay such obligations against the
repayment of the outstanding facility which mature the next as set forth in
Clause 2.11 hereof, subject to the order of the payments set out in Clause 4.3
hereof.

 

	
   

  	
   

  	
   

  
	
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5

 

If it is impossible to
identify the purpose of a payment (where the obligation against which such
payment is to be applied is not specified) under a payment document, the
amounts received shall be applied by the Lender to repay the outstanding
facility in accordance with this clause.

 

4.7. Interest and/or loan
administration fee and/or commitment fee payable on the nearest Payment Date as
set forth in Clauses 2.2, 2.5, 2.6, 2.8, 2.9, 2.12 hereof may be paid before
such date (“Prepayment Amounts”), but not more than Ten (10) business days
(including the 1st and the 10th business days) before the nearest Payment Date
(the “Prepayment Period”), in accordance with the purpose of payment specified
in the payment document.

 

Prepayment Amounts received
during the relevant Prepayment Period shall be applied by the Lender against
repayment of such obligations on the nearest date of the relevant payment.

 

If during the Prepayment
Period other obligations of the Borrower to repay the principal, other than the
obligation(s) specified in the payment document(s), become due and payable
the Lender shall apply the Prepayment Amounts in accordance with the order of
priority set out in Clause 4.3 hereof, except for the payment specified in
sub-clause 13) of Clause 4.3 hereof.

 

4.8. Prepayment Amounts
received before the Prepayment Period set forth in Clause 4.7 hereof, upon
allocation in accordance with the order of payments set out in Clause 4.3
hereof, except for the payment specified in sub-clause 13) of Clause 4.3
hereof, shall be returned by the Lender to the accounts from which they were
made, on or before the first business day following the actual date of receipt
of the relevant payment.

 

If the date of return falls
within the Prepayment Period set forth in Clause 4.7 hereof, the Prepayment
Amounts shall be applied by the Lender in accordance with Clause 4.7 and/or
Clause 4.9 hereof.

 

4.9. The Borrower may within
Three (3) business days following the actual date on which a Prepayment
Amount is paid, but no later than Two (2) business days (inclusive) before
the nearest Payment Date, submit a written request to the Lender (pursuant to
Clause 9.3 hereof) on return or application against repayment of the
outstanding facility of the Prepayment Amounts paid pursuant to Clause 4.7
hereof.

 

The Lender upon allocation
in accordance with the order of payments set out in Clause 4.3 hereof,
excluding the payment set forth in sub-clause 13) of Clause 4.3 hereof, shall
return the Prepayment Amounts and/or apply the same to repay the outstanding
facility pursuant to Clause 5.2.2 hereof, on or before the first business day immediately
following the day on which the Borrower’s written application is received.

 

The Lender shall return the
Prepayment Amounts to the accounts from which they were made.

 

If the Prepayment Amounts
are applied to repay the outstanding facility the repayment date of the
outstanding facility shall be the date on which the Lender applies the prepaid
amount against the outstanding facility.

 

4.10. If on the date set
forth in Clauses 2.2, 2.5, 2.6, 2.8, 2.9, 2.12 hereof, the payment amount
received either before the stated maturity date (pursuant to Clause 4.7
hereof), or on such date exceeds the amount due under the said clauses, the
overpaid amount upon allocation in accordance with the order of payments set
out in Clause 4.3 hereof, excluding the payments set forth in sub-clause 13) of
Clause 4.3 hereof, shall be returned by the Lender to the account from which it
was transferred, on or before the first business day following the relevant
Payment Date.

 

Article 5. Rights of the
Parties

 

5.1. The Lender may:

 

5.1.1.       Unilaterally
at its discretion increase the interest rate under Clause 2.5 hereof for the
period from the execution date hereof to March 27, 2010 (inclusive) and
the Base Rate values established in Clause 2.5 hereof for a period from March 28,
2010 to the final maturity date of the facility specified in Clause 1.1 hereof,
including, without limitation, where the Bank of Russia makes a decision to
increase its discount (refinancing) rate, by giving a notice thereof to the
Borrower without execution of an amendment agreement hereto to this effect. In the event of a unilateral increase of the 

 

	
   

  	
   

  	
   

  
	
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6

 

interest rate by the Lender, such change shall become
effective upon expiration of Sixty (60) calendar days following the date the
Lender gives a notice to the Borrower, unless a later effective date is
specified in the notice.

 

The Borrower shall be
notified of such amendments of this Agreement as provided for in Clause 9.3
hereof.

 

5.1.2. Unilaterally decrease
the interest rate values specified in Clause 2.5 hereof, including, without
limitation, where the Bank of Russia makes a decision to decrease its discount
(refinancing) rate, by giving a notice thereof to the Borrower without execution
of an amendment agreement to this effect. Should the Lender reduce the interest
rate unilaterally, such change shall become effective upon expiration of Thirty
(30) calendar days following the date the Lender gives notice to the Borrower,
unless such notice specifies another date for such change to come into effect.

 

The Lender may unilaterally
at its discretion decrease the penalty and/or grant a grace period during which
the penalty will not be charged by giving a notice thereof to the Borrower
without execution of an amendment agreement to this effect.

 

Reduction of the penalty amount and/or the
commencement of grace period shall become effective on expiration of Thirty
(30) calendar days following the date the Lender gives notice to the Borrower,
unless such notice specifies another date for such change to come into effect.

 

The Borrower shall be
notified of such amendments of this Agreement as provided for in Clause 9.3
hereof.

 

5.1.3.       Request
that the Borrower submit information and documents evidencing application of
the facility proceeds in accordance with their designated purpose.

 

5.1.4.       If
any principal and/or interest and/or other payments hereunder become overdue,
as the funds are credited directly debit the Borrower’s accounts (including
accounts with the Lender’s branches and other banks) and apply such funds to
repay such overdue amounts and pay the penalty.

 

The Lender shall inform the Borrower in writing of
any such debit without acceptance subject to the procedure specified in Clause
9.3 hereof within Ten (10) business days from the date of such debit.

 

5.1.5. If the funds on the
Borrower’s accounts with the Lender are insufficient to make a repayment of the
overdue amount hereunder, sell foreign currency from the current currency
accounts of the Borrower opened by the Borrower with the Lender and other banks
at the exchange rate and on the terms established by the Lender and other banks
for conversion operations as of the transaction date, and credit the proceeds
from sale of foreign currency to the Borrower’s account with the Lender and
other banks.

 

The Lender shall notify the
Borrower in writing of the fact of sale of foreign currency as provided for in
Clause 9.3 hereof.

 

5.1.6. Suspend disbursement
of the facility and/or demand that the Borrower repay the total amount of the
facility before maturity, pay the interest due, the facility fee, the
commitment fee, the loan administration fee, penalties and make any other
payments hereunder as well as foreclose on the pledged property securing
performance hereof if:

 

a) the Borrower fails to perform or improperly
performs its obligations under the Agreement and any of the agreements
(including, without limitation: loan agreement, revolving/non-revolving credit
facility agreement, bank guarantee agreement, deed of guarantee, other types of
agreements) and arrangements as have been entered into (or may be entered into
during the term hereof) between the Borrower and the Lender, and the payment
obligations to the Lender and/or third parties to settle bills, repay notes,
pay coupon yield, make involuntary/voluntary offers by virtue of the Federal
Law On Joint Stock Companies which have arisen (may arise during the term
hereof);

 

b) any MTS Group Company (as defined below) is in
default or improperly performs its obligations under facility agreements
(including revolving/non-revolving credit facility agreements) which are
entered into (or may be entered into during the term hereof) between the MTS
Group Companies and any other lender, as a result of which the MTS Group
Company 

 

	
   

  	
   

  	
   

  
	
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7

 

received an acceleration demand with respect to any
outstanding amount in excess of Thirty Million US Dollars (US$30,000,000) as a
result of occurrence of an event of default, if such term is defined in the
agreement with such lender and if the outstanding amount is declared
immediately due and payable for any reason, if the term “event of default” is
not defined in the agreement with such lender.

 

The Borrower shall provide or procure the provision to
the Lender of copies of documents confirming whether an obligation which has
not been performed qualifies as an “event of default” or not within Five (5) business
days from the date of the acceleration demand by the relevant lender to repay
the outstanding amount due to such lender.

 

The amounts of ruble facilities which were declared
immediately due and payable shall be recalculated into US Dollars at the
exchange rate of the Bank of Russia as at the date the relevant lender makes an
acceleration demand with respect to the facility.

 

The amounts of facilities denominated in a currency
other than US Dollars which were declared immediately due and payable shall be
recalculated into US Dollars at the exchange rate determined by recalculation
through the currency rates to the Russian Rubles established by the Bank of
Russia as at the date the relevant lender makes an acceleration demand with
respect to the facility.

 

For the purposes hereof, an “MTS
Group Company” shall mean the Borrower and its subsidiaries, where a “Subsidiary”
means a company which the Borrower, directly or indirectly (through any other
companies) controls or owns, directly or indirectly (through other companies)
over Fifty percent (50%) of the shares/interests in the charter capital or
similar ownership rights.

 

c) loss of security hereunder or deterioration of its
conditions, and a threat of loss of security or deterioration of its conditions
due to reasons beyond the Lender’s control, except for a change of the market
price of the shares pledged pursuant to Clause 6.2.4.2. hereof;

 

d) the Borrower uses the facility other than in
accordance with its designated purpose;

 

e) the Borrower is in default under its reporting
obligations set forth in Clauses 6.2.5. and 6.2.6 hereof;

 

f) applications, confirmations or information
furnished by the Borrower to the Lender, including with respect to the MTS
Group Companies, in connection with the Parties’ relations hereunder, are
inaccurate, incomplete or unverified;

 

g) an arbitration court, acting in accordance with the
procedure set forth in the applicable laws, accepts a petition seeking to
recognize the Borrower as insolvent (bankrupt);

 

h) a claim or claims have been filed against the
Borrower seeking payment of a cash amount or recovery of assets the amount of
which exceeds in the aggregate Thirty Million US Dollars (US$30,000,000) or an
equivalent thereof in the currency of the Russian Federation at the rate of the
Bank of Russia as of the date the claims were filed, or in another currency
recalculated into US Dollars through the currency exchange rates to the Russian
Rubles established by the Bank of Russia as of the date the claims were filed
(provided that the amount of at least one of such claims exceeds Five Million
US Dollars (US$5,000,000) or an equivalent thereof in the currency of the
Russian Federation at the rate of the Bank of Russia as of the date such claim
was filed, or an equivalent amount in any other currency recalculated into US
Dollars through the currency exchange rates to the Russian Rubles established
by the Bank of Russia as of the date the claim was filed) and the judgment to
grant such claim(s) entered into legal force;

 

i) a decision is made on reorganization (other than
reorganization in the form of a merger of subsidiaries into the Borrower),
liquidation or reduction of the charter capital of the Borrower without prior
consent of the Lender;

 

	
   

  	
   

  	
   

  
	
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8

 

j)              the
Borrower is declared insolvent (bankrupt) in accordance with the procedure set
forth by the applicable laws;

 

k) the Borrower is in default under its obligations
set forth in Clause 6.2.4.2 hereof;

 

l) the Borrower is in default under the provisions of
Clauses 6.2.7.-6.2.13 and 6.2.16 hereof;

 

m) the Borrower is in breach of the terms of Clauses
7.2-7.6 hereof.

 

The
above violations and changes in circumstances shall be deemed material by the
Lender.

 

The Lender shall notify the Borrower of its claims
subject to the procedure specified in Clause 9.3 hereof.

 

5.1.7.    Unilaterally
terminate the available balance of the facility limit hereunder in the event
that the disbursement of the facility is terminated for reasons specified in
Clause 5.1.6 hereof, and the Lender shall notify the Borrower as provided in
Clause 9.3 hereof.

 

5.1.8.    Refuse
to disburse the loan, in full or in part, if there is reasonable evidence that
the loan will not be repaid by the Borrower within the timeline set out herein.

 

5.1.9.    Conduct
audits and check the accuracy of the information provided by the Borrower
regarding its business and financial activity in a manner convenient for the
Lender, and request other data pertaining to the use of the facility proceeds.

 

5.1.10.  If
requested by the Borrower at least Fifteen (15) calendar days prior to the
maturity of the facility, the Lender shall have the right to extend the loan
maturity date.

 

5.2. The Borrower may:

 

5.2.1.       in
the event that the Lender increases the interest rate pursuant to Clause 5.1.1
hereof, repay a portion or the entire amount of the facility and pay the
interest, penalties and make other payments accrued as of the repayment date on
the former terms (the terms that existed before the Lender increase the
interest rate) within Sixty (60) calendar days from the date on which the
Lender gives a written notice to the Borrower of such change of the terms of
the facility.

 

5.2.2. fully or partially prepay the outstanding
facility before the maturity dates set forth in Clause 2.11. hereof, and pay
the interest, all fees hereunder and penalties accrued as of the prepayment
date by giving a written notice to the Lender at least Sixty (60) business days
before the prepayment date of the facility (or a portion thereof) (inclusive).
The date of receipt of the notice by the Lender shall be not be taken into
account as a business day of the notice period.

 

The
Borrower shall notify the Lender of its intention to prepay the facility (or a
portion thereof) as provided for in Clause 9.3. hereof and such notice shall
specify the amount and the date of such prepayment.

 

In
the event of a prepayment of the facility (or a portion thereof) without a
prior written notice to the Lender or notice to the Lender given less than
Sixty (60) business days prior to the prepayment date of the facility (or a
portion thereof) the Borrower shall pay to the Lender a prepayment fee for
prepayment of the facility (or a portion thereof) in the amount of Three
percent (3%) of the amount so prepaid.

 

The
prepayment fee for prepayment of the facility (or a portion thereof) shall be
paid by the Borrower simultaneously with the prepayment hereunder.

 

5.2.3.
If there is a need to extend the maturity date, submit a request to the Lender
at least Fifteen (15) calendar days prior to the maturity date of the facility.

 

Article 6. Obligations of
the Parties

 

6.1. The Lender assumes the following obligations:

 

6.1.1 Subject to the fulfillment of conditions set
forth in Clauses 2.3, 2.4 and 2.7 hereof, as well as in the absence of any
of the conditions whereby the Lender is entitled to terminate the disbursement
of the facility and accelerate the same, to transfer facility amounts within
the available balance of the facility limit, to the Borrower’s settlement
account based on its drawdown requests, within not later than Ten (10) calendar
days from the date of the relevant drawdown request of the Borrower.

 

	
   

  	
   

  	
   

  
	
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9

 

6.2. The Borrower assumes the following obligations:

 

6.2.1. To repay the principal and pay the interest
due, the commitment fee, the loan administration fee, and any penalties accrued
as of the repayment date, within Five (5) business days from receipt of
the Lender’s acceleration demand in accordance with Clause 5.1.6 hereof.

 

6.2.2. To use facility in strict accordance with its
designated purpose as provided in Article 1 hereof.

 

6.2.3. To provide the Lender with the duly executed
payment documents confirming the intended use of the facility.

 

6.2.4. With the view to secure the Borrower’s timely
and complete performance of its obligations hereunder, including repayment of
the principal, payment of the interest, the facility fee, the commitment fee,
and the loan administration fee:

 

6.2.4.1. To pledge in favor of the Lender the
equipment owned by the Borrower, the balance value of which as of September 1,
2009, is not less than Thirty Billion (RUR 30,000,000,000) rubles, and the
pledge value of which, as determined by application of a Thirty (30%) per cent
discount to the balance value thereof, is not less than Twenty-One Billion (RUR
21,000,000,000) rubles.

 

6.2.4.2. Not later than Forty-Five (45) calendar days
from the date of transfer of title to any number of shares in COMSTAR-United
TeleSystems Open Joint-Stock Company (Registered address:
27 Smolenskaya-Sennaya Sq., build. 2, Moscow, 119121, OGRN
1027700003946, hereinafter “COMSTAR-UTS”) by Joint Stock Financial Corporation
Sistema Open Joint Stock Company (OGRN 2077758799590, registered address:
17/8/9 Prechistenka str., Moscow, 119034, hereinafter “Sistema”),
and/or any subsidiary of Sistema, to the Borrower and/or Communications
Provider Limited Liability Company (OGRN 1097746395790, registered address:
8 Presnenskaya emb., build. 1, Moscow, 123100, Russian Federation,
hereinafter “Communications Provider”), and/or Capital Limited Liability
Company (OGRN 1097746415073, registered address: 8 Presnenskaya emb.,
build. 1, Moscow, 123100, Russian Federation, hereinafter “Capital”), to
pledge (or to ensure that the relevant owners pledge) in favor of the Lender
two hundred nine million six hundred eighty-seven thousand eight hundred and
sixty (209,687,860) common shares of COMSTAR-UTS with the nominal value of one
(RUR 1) ruble, representing Fifty Point Seventeen (50.17%) per cent, rounded
down to the hundredth, of the charter capital of COMSTAR-UTS as of the
execution date hereof.

 

The estimated value of the shares pledged in
accordance with this clause is determined on the basis of the sale and purchase
agreement in respect of COMSTAR-UTS’ shares (or any similar document) to be
entered into by the Borrower, Communications Provider and/or Capital from the
one part, and Sistema and System of Telecommunications, Information and
Communications Limited Liability Company (OGRN 1097746062996, registered
address: 7 Bolshaya Pirogovskaya, Moscow, 119021, hereinafter “Telecom
System”) from the other part.

 

The pledged value shall be determined by application
of a Fifty (50%) per cent discount to the estimated value determined in
accordance with this clause.

 

COMSTAR-UTS’ shares pledged in accordance with this
clause shall be accounted for at the pledger’s custody account opened with the
Depositary of Sberbank of Russia OJSC (Registered address: 19 Vavilov
str., Moscow, 117997, hereinafter the “Depositary”). The pledger shall bear all
costs related to the pledge registration.

 

Further on, in case of issue and placement of
additional common shares of COMSTAR-UTS, the Borrower shall within Ten (10) business
days from the date of registration of the placement report with the relevant
government authorities, ensure the pledge of so many common shares of
COMSTAR-UTS in favor of the Lender, as to make the percentage of COMSTAR-UTS’
shares pledged to the Lender in accordance with Clause 6.2.4.2 hereof
after such placement of additional shares, be not less than Fifty Point
Seventeen (50.17%) per cent of the charter capital of COMSTAR-UTS, and moreover
the percentage of common shares thus pledged shall be not less than Fifty Point
Seventeen (50.17%) per cent of the total number of the outstanding common
shares.

 

Should it be resolved that no dividends shall be paid
on preferred shares of COMSTAR-UTS, the pledger shall within Ten (10) business
days from the date of the decision not to pay the dividends on 

 

	
   

  	
   

  	
   

  
	
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10

 

preferred shares, ensure the pledge of so many shares
of COMSTAR-UTS in favor of the Lender, as to make the percentage of COMSTAR-UTS’
voting shares pledged to the Lender in accordance with Clause 6.2.4.2
hereof, be not less than Fifty Point Seventeen (50.17%) per cent of the total
number of COMSTAR-UTS’ voting shares, and moreover the percentage of common
shares thus pledged shall be not less than Fifty Point Seventeen (50.17%) per
cent of the total number of the outstanding common shares.

 

6.2.5. Each quarter not later than Ten (10) business
days from the expiration of the period allocated by Federal Law No. 129-FZ
On Accounting dated November 21, 1996, for preparation of the accounting
statements, the Borrower shall provide to the Lender:

 

·                 a full accounting statement in forms established by the Ministry of Finance
of Russia, containing a mark on submission method of the same with the relevant
unit of the Federal Tax Service of Russia, certified by the signature of the
Borrower’s general manager and its seal, with the attachment of the notes (in
respect of the annual accounts) and an auditor report (or its final part)
(subject to mandatory audit of the accounting statements in accordance with the
laws of the Russian Federation, and in respect of the annual statements);

·                 a breakdown of the accounting statements in respect of the accounts payable
and receivable, specifying the names of creditors and debtors, the amounts due
and the dates of their origination, and also indicating the status thereof
(overdue/current);

·                 a breakdown of the accounting statements in respect of the short-term and
long-term financial investments specifying their type, the amount, as well as
the names of companies and entities;

·                 a breakdown of the accounting statements in respect of the short-term and
long-term credits and loans (including bill and bond loans) specifying the
creditor, the amounts due, the loan term, the interest rate (or the coupon
yield), the repayment and interest payment schedule, the amounts overdue (dates
of origination), accelerated amounts claimed (including the reasons for such
acceleration, and the relevant creditor);

·                 a breakdown of the accounting statements in respect of the security
received (indicating the security provider and the beneficiary of the same),
and security provided (indicating the secured person and the beneficiary, the
maturity date, and the balance value of the assets secured (pledged);

·                 information on all accounts opened by the Borrower and communicated to the
tax inspectorate, as well as turnover and balance statements in respect of
settlement and current currency accounts, and any claims thereon;

·                 copies of any changes and amendments introduced into the constituent
documents of the Borrower (duly registered in accordance with the laws), and a
copy of the certificate on the entry made in the Unified State Register of
Legal Entities on the state registration of amendments introduced into the
Borrower’s constituent documents, either notarized or certified by a
registering body, should any such changes be introduced into the Borrower’s
constituent documents in the expired calendar year.

·                 information on any changes in the membership of the Borrower’s management
bodies (Board of Directors/Management Board/General Director/President)
occurred in the expired calendar quarter;

·                 information on any changes in the list of persons recorded in the share
register and holding five (5%) per cent or more of the Borrower’s shares,
occurred in the expired calendar quarter;

·                 information on the subsidiaries (more than Fifty (50%) percent in the
charter capital) and dependent entities (more than Twenty (20%) of the charter
capital) as of the last reporting date, indicating the percentage of the
charter capital held in such subsidiaries or dependent entities;

·                 information on security extended by MTS Group (indicating the secured
person and the beneficiary, the maturity date, and the balance value of the
assets secured (pledged));

 

	
   

  	
   

  	
   

  
	
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11

 

·                 a note issued by the relevant unit of the Federal Tax Service of Russia, on
the status of statutory payments, or a settlement reconciliation report in
respect thereto (and in case of any overdue statutory amounts — a taxpayer
certificate specifying the periods, the amounts and the reasons of the debt).

 

Moreover, the Borrower shall upon demand of the Lender
provide other reports and financial documents within Ten (10) business
days from the date of receipt of the relevant Lender’s demand.

 

6.2.6. Each quarter, within One Hundred And Twenty
(120) business days from the date of expiration of each calendar quarter, the
Borrower shall provide the Lender with the Borrower’s consolidated financial
statements certified by the Borrower’s general manager and its chief
accountant, prepared in accordance with the Generally Accepted Accounting
Principles of the United States of America (GAAP) (hereinafter, the “Financial
Statements”), and moreover, the Borrower’s Financial Statements thus prepared
following the calendar year results shall be confirmed by an audit company.

 

6.2.7. In case of reorganization (other than
reorganization in form of the subsidiaries’ merger into to the Borrower) or
liquidation, reduction of the charter capital, to inform the Lender accordingly,
at least Ten (10) business days prior to any of the abovementioned events,
and upon the Lender’s demand, to repay the facility irrespective of the due
date specified in the Agreement, to pay the interest due, the commitment fee,
and other payments as provided by the Agreement.

 

6.2.8. Prior to performance of its obligations to the
Lender in full, to refrain from issuing additional shares in COMSTAR-UTS, as
well as their consolidation and/or fraction in the absence of the Lender’s
written consent.

 

6.2.9. At the date of the transaction for the
acquisition by the Borrower and/or Communications Provider and/or Capital of
shares in COMSTAR-UTS, to provide to the Lender a copy of the sale and purchase
agreement(s) (or similar documents) entered into between the seller and
the buyer, duly and properly notarized.

 

6.2.10. To ensure that all settlements connected with
the acquisition of shares in COMSTAR-UTS as between the Borrower,
Communications Provider and/or Capital and Sistema, and Telecom System, be
conducted only through the settlement accounts of the companies referred to in
this clause, opened with the Lender.

 

6.2.11. To ensure the maintenance of not less than
Fifty (50%) per cent plus one share of unpledged and unencumbered voting stock
of COMSTAR-UTS at custody accounts of Communications Operator and/or Capital
and/or United TeleSystems Closed Joint Stock Company (OGRN 1047796779535,
registered address: 27 Smolenskaya-Sennaya Sq., build. 2, Moscow,
119121, hereinafter “UTS”) opened with the Depositary of Sberbank of Russia
OJSC, from the date of acquisition (from the date of acquisition by
Communications Operator and/or Capital of shares in UTS), and up to the date of
the pledge executed in favor of the Lender.

 

6.2.12. Beginning from October 1, 2009 and up to
the date of full repayment of the facility, specified in Clause 1.1
hereof, to maintain the overall credit turnover on any of the Borrower’s
settlement and current currency accounts opened with the Lender and specified
in Annex 1 hereto, in the amount of no less than Seventeen Billion (RUR
17,000,000,000) rubles in each calendar quarter, however, no loans, issue
proceeds, conversions of own funds, or transfers of the same to pay under
import contracts, no borrowings or repayments of the loans extended shall be
taken into account in the abovementioned overall amount.

 

Quarterly credit turnover in foreign currencies on
current currency accounts shall be converted into rubles at the average
exchange rate of the relevant currency as quoted by the Bank of Russia. The
average exchange rate is calculated as the simple average of exchange rates of
foreign currencies to ruble quoted by the Bank of Russia, in a given calendar
quarter.

 

For the purposes of Clause 6.2.12 hereof the Borrower
shall provide to the Lender properly certified bank statements of all the
Borrower’s settlement and currency accounts opened with the Lender and
specified in Annex 1 hereto, for each full calendar quarter, within Twenty
(20) business days from the last day of the calendar quarter.

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

12

 

Failure to provide the abovementioned information
within the timing set forth herein shall constitute a default to maintain the
credit turnover on the Borrower’s settlement and current currency accounts
opened with the Lender, referred to in the first paragraph of this clause.

 

6.2.13. Beginning from January 1, 2010 and up to
the date of full repayment of the facility, specified in Clause 1.1
hereof, to ensure that Ukrainian Mobile Communications CJSC (Registered
address: 15 Leipzig Str., Kiev, 01015, Ukraine, EGRPOU (enterprise
identification code) 14333937, hereinafter, “Ukrainian Communications”)
maintain the credit turnover on all accounts opened with the Subsidiary Bank of
Sberbank of Russia OJSC (Registered address: 46 Vladimirskaya Street,
Kiev, 01034 Ukraine, hereinafter the “Subsidiary Bank”) and specified in
Annex 2 hereto, in the amount of no less than Five Hundred Million (UAH
500,000,000) hryvnas in each calendar quarter, however, no loans, issue
proceeds, conversions of own funds, or transfers of the same, no borrowings or
repayments of the loans extended shall be taken into account in the
abovementioned overall amount.

 

Quarterly credit turnover in foreign currencies on
current currency accounts shall be converted into hryvnas at the average
exchange rate of the relevant currency as quoted by the National Bank of
Ukraine. The average exchange rate is calculated as the simple average of
exchange rates of foreign currencies to hryvna quoted by the National Bank of
Ukraine, in a given calendar quarter.

 

For the purposes of Clause 6.2.13 hereof the Borrower
shall provide to the Lender properly certified bank statements of all the
settlement and currency accounts of Ukrainian Communications opened with the
Subsidiary Bank and specified in Annex 2 hereto, for each full calendar
quarter, within Twenty (20) business days from the last day of the calendar
quarter.

 

Failure to provide the abovementioned information
within the timing set forth herein shall constitute a default to maintain the
credit turnover on the accounts, referred to in the first paragraph of this
clause.

 

6.2.14. Within Ten (10) business days from the
execution date of any bank account agreement in respect of opening by the
Borrower with the Lender of a new settlement and/or current currency account,
to inform the Lender in writing of the details of such new account and of its
intention, should it be necessary, to amend accordingly Annex 1 hereto in
connection with opening by the Borrower of a new settlement and/or current
currency account with the Lender.

 

6.2.15. Within Ten (10) business days from the
execution date of any bank account agreement in respect of opening by Ukrainian
Communications with the Subsidiary Bank of a new account, to inform the Lender
in writing of the details of such new account and of the intention, should it
be necessary, to amend accordingly Annex 2 hereto in connection with
opening by Ukrainian Communications of a new account with the Subsidiary Bank.

 

6.2.16. Within Ten (10) business days from the
date of receipt of the relevant notice from the Lender, the Borrower shall
provide any additional collateral, or repay unsecured amount of the facility
if, during the term hereof, the pledged value of the pledged properties
specified in Clause 6.2.4.1 hereof, becomes by more than Twelve (12%) per
cent less than the balance of the principal hereunder as of the date of the
Lender’s notice referred to in this clause.

 

Article 7. Special Terms

 

7.1. The Borrower does not object to filing by the
Lender of the Borrower’s information with the bureau of credit histories, as
specified in Clause 4 of Federal Law No. 218-FZ On Credit Histories,
dated December 30, 2004.

 

7.2. The ratio of the Indebtedness of the MTS Group of
Companies to OIBDA value determined for the Reporting Period, shall not exceed
Three (3) during the whole term hereof.

 

The following terms shall be used herein for the
abovementioned purposes:

 

“Indebtedness of the MTS Group of Companies” shall
mean any indebtedness (the nominal amount of any principal/limit of liability
under off-balance obligations) of the Borrower and/or its Subsidiaries:

 

1) under loans and credits obtained, bond issues,
financial leasing agreements, any other forms of repayable borrowings received
either for consideration or without the same;

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

13

 

2) under issued suretyships and/or guarantees (except
for suretyships and/or guarantees provided by Subsidiaries in respect of the
borrowings made by the Borrower, and/or suretyships and/or guarantees provided
by the Borrower in respect of the borrowings made by Subsidiaries), notes
(guarantees of the same), as well as other contingent liabilities.

 

For the purposes of calculation of the Indebtedness of
the MTS Group of Companies, any amount due to be paid or repaid and denominated
in the currency other than US Dollars, shall be taken on this day into account
in US Dollars at a cross-rate which would be used for preparation of the
Financial Statements on this day in accordance with US GAAP applied to the
Borrower’s Financial Statements.

 

The Indebtedness of the MTS Group of Companies and
OIBDA will be calculated on the basis of the Financial Statements of the MTS
Group of Companies and will be denominated in US Dollars.

 

“Reporting Period” shall mean a period of Six (6) consecutive
months ending on the last day of each financial year, or of the relevant
Borrower’s financial quarter.

 

“OIBDA” shall mean in respect of each Reporting
Period, the aggregate consolidated income of the MTS Group of Companies in such
Reporting Period, determined on the basis of the Financial Statements, that:

 

1) does not include inflows or outflows recorded in
the statement of profits and losses in respect of: the minority interest, the
income tax, other expenses/income, MTS Group of Companies’ interest in net
profit (net losses) of its associated companies or entities, interest expenses
and any interest income received, as well as any currency exchange and
translation gains (losses);

 

2) is increased by depreciation and amortization
charges and assets impairment losses, included in the operating costs in the
given Reporting Period and multiplied by Two (2).

 

7.3. The ratio of OIBDA to the value of the Income
Expenses determined for the given Reporting Period, shall not exceed Five (5) during
the whole term hereof.

 

The following term shall be used herein for the
abovementioned purposes:

 

“Interest Expenses” shall mean in respect of each
Reporting Period, the aggregate expenses to pay any interest, commissions and
other financial charges (irrespective of whether they have been paid, are due
or to be capitalized) accrued as payable by MTS Group of Companies in the
relevant Reporting Period, reduced by the interest income of the MTS Group of
Companies in such Reporting Period, payable in cash, determined on the basis of
the Financial Statements and multiplied by Two (2).

 

The value of the Interest Expenses will be calculated
on the basis of the Financial Statements and will be denominated in US Dollars.

 

7.4. During the whole term hereof the balance value of
the Borrower’s assets as of each reporting date calculated on the basis of its
accounting statements prepared in accordance with the requirements of the RAS Enterprise Accounting as approved by Order of the Ministry
of Finance of the Russian Federation No. 43n dated July 6, 1999,
shall be no less than Two Hundred Billion (RUR 200,000,000,000) rubles.

 

7.5. During the whole term hereof the balance value of
the assets secured (pledged) by the MTS Group of Companies (except for the
security granted to the Lender) calculated in accordance with the Financial
Statements as of the last reporting date shall not exceed Thirty (30%) per cent
of the aggregate value of assets calculated in accordance with the Financial
Statements as of the last reporting date.

 

7.6. The Borrower shall ensure that MTS Group of
Companies shall hold valid licenses for the provision of cellular wireless
telephony in GSM 900/1800 MHz range in Moscow, Moscow Region, and St.
Petersburg, from the execution date hereof and up to the date of full repayment
of the facility referred to in Clause 1.1 hereof.

 

For the purposes of this clause, at the execution
hereof, the Borrower shall provide the Lender with the certified copies of the
licenses for the provision of cellular wireless telephony in GSM 900/1800 MHz
range in Moscow, Moscow Region, and St. Petersburg.

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

14

 

Article 8. Term

 

8.1. The Agreement shall become effective on the date
of its execution by the Parties and remain in full force and effect until the
Parties fully perform their obligations hereunder.

 

Article 9.
Miscellaneous

 

9.1. All changes and amendments hereto, except
indicated in Clause 2.5, 5.1.1, and 5.1.2 hereof, shall be valid only if
they are made in writing and signed by authorized representatives of the
Parties.

 

9.2. In the event of any change in the registered or
mailing address of either Party, such Party shall notify the other Party of
such change before it is officially registered in its constituent documents.

 

In the event of any change in the bank details of
either Party, such Party shall notify the other Party of such change before it
becomes effective.

 

The Borrower shall notify the Lender of any changes in
the membership or powers of its management bodies authorized to enter into any
transactions on behalf of the Borrower, stamp impression, other information
required by the Lender to duly perform its obligations hereunder, not later
than the date when such change becomes effective, and subject to provision of
the duly certified copies of the confirmation documents within Three (3) business
days. In case of failure to perform or timely perform the abovementioned
condition:

 

a) the Borrower shall pay a penalty in the amount of
Ten Thousand (RUR 10,000) rubles. The penalty shall be paid within Five (5) business
days from the date of receipt from the Lender of the relevant notice to pay the
same (including such date of receipt).

 

b) the Lender shall bear no liability for any
consequences of processing the Borrower’s drawdown requests for the transfer of
facility amounts from the facility account to the settlement account, signed by
any unauthorized persons.

 

9.3. Any notice or other communication sent by the
Parties to each other hereunder shall be made in writing. Such notice or
communication shall be deemed duly given if delivered to the addressee by hand,
by registered mail with return receipt requested or by fax to its address
stated herein (or to such other address as such other Party may specify in
accordance with Clause 9.2 hereof) and signed by a duly authorized person.

 

9.4. Any and all disputes under this Agreement shall
be resolved in accordance with the applicable laws of the Russian Federation by
the Moscow Arbitrazh Court.

 

9.5. The Agreement is made in 2 counterparts having
equal legal force: one counterpart shall be kept by the Lender, the other — by
the Borrower.

 

Article 10. Annexes

 

10.1. Annex 1 — A list of settlement and current
currency accounts of the Borrower on one (1) page constituting an
integral part hereof.

 

10.2. Annex 2 — A list of settlement and current
currency accounts of Ukrainian Communications on one (1) page constituting
an integral part hereof.

 

Addresses
and Bank Account Details of the Parties

 

	
  Lender

  	
   

  	
  Borrower

  
	
   

  	
   

  	
   

  
	
  Joint Stock Commercial Savings Bank of the Russian
  Federation (Open Joint Stock Company)

  	
   

  	
  Mobile TeleSystems Open Joint Stock Company

  

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

15

 

	
  Registered/mailing address:

  19 Vavilov Str., Moscow 117997, Russian Federation

  Tel: (495) 957 57 75, fax: (495) 957 55 61

  Account details for payments in rubles: corr. acc. #
  30101810400000000225 maintained by Sberbank of Russia with the Transaction
  Department of the Moscow Principal Territorial Branch of the Bank of Russia,
  BIC 044525225, INN 7707083893

  Account details for payments in foreign currencies:
  #30301840800001000014 with Sberbank of Russia, Moscow Bank of New York: New
  York, NY, SWIFT IRVT US 3N, acc. #890-0057-610 Sberbank, Moscow, Russia,
  SWIFT: SABRRUMM

  	
   

  	
  Registered/mailing address:

  4 Marksistskaya Str., Moscow 109147, Russian
  Federation

  Tel: (495) 223 21 64, fax: (495) 223 21 68

  INN 7740000076, OGRN 1027700149124,

  KPP 770901001, OKPO 52686811

  Account details for payments in rubles:

  s/a. #40702810100020008293 with the Transaction
  Department of Sberbank of Russia,

  corr. acc. #30101810400000000225 maintained by
  Sberbank of Russia with the Transaction Department of the Moscow Principal
  Territorial Branch of the Bank of Russia,

  BIC 044525225,

  Account details for payments in foreign currencies:

  Curr. foreign-currency acc. #40702840400020008293
  with the Transaction Department of Sberbank of Russia,

  Bank of New York, New York, acc. #8900057610

  

 

Signatures
of the Parties

 

	
  Lender

  	
   

  	
  Borrower

  
	
  Vice-President - Head of the Major Clients
  Department of Sberbank of Russia OJSC

  	
   

  	
  President of MTS OJSC

  
	
   

  	
  A.V. Bazarov

  	
   

  	
   

  	
  M.V. Shamolin

  
	
  Seal here

  	
   

  	
  Seal here

  
					

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

16

 

 

Annex 1 to Non-Revolving Credit
Facility Agreement No. 9656 dated September         
2009

 

List of Settlement and Current
Currency Accounts of Mobile TeleSystems OJSC

 

	
  No.

  	
   

  	
  Account number:

  	
   

  	
  Account

  currency

  	
   

  	
  Type of

  account

  	
   

  	
  Sberbank of Russia Unit

  	
   

  	
  Bank Account Agreement

  Number

  	
   

  	
  Bank Account

  Agreement Date

  
	
  1

  	
   

  	
  40702810100020008293

  	
   

  	
  RUR

  	
   

  	
  settlement

  	
   

  	
  Transaction Department of Sberbank of Russia, 19
  Vavilov Str., Moscow 117997

  	
   

  	
  40702810100020008293

  	
   

  	
  August 12, 2009

  
	
  2

  	
   

  	
  40702810738050011729

  	
   

  	
  RUR

  	
   

  	
  settlement

  	
   

  	
  Maryina Roscha Branch No. 7981 of Sberbank of
  Russia, OJSC

  	
   

  	
  40702810738050011729

  	
   

  	
  March 10, 2009

  
	
  3

  	
   

  	
  40702840400020008293

  	
   

  	
  USD

  	
   

  	
  current

  	
   

  	
  Transaction Department of Sberbank of Russia, 19
  Vavilov Str., Moscow 117997

  	
   

  	
  40702840400020008293

  	
   

  	
  August 12, 2009

  
	
  4

  	
   

  	
  40702978000020008293

  	
   

  	
  EURO

  	
   

  	
  current

  	
   

  	
  Transaction Department of Sberbank of Russia, 19
  Vavilov Str., Moscow 117997

  	
   

  	
  40702978000020008293

  	
   

  	
  August 12, 2009

  

 

Signatures of the Parties

 

	
  Lender

  	
   

  	
  Borrower

  
	
   

  	
   

  	
   

  
	
  Vice-President - Head of the Major Clients
  Department of Sberbank of Russia OJSC

  	
   

  	
  President of MTS OJSC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.V. Bazarov

  	
   

  	
   

  	
  M.V. Shamoli

  
	
   

  	
   

  	
   

  
	
  Seal here

  	
   

  	
  Seal here

  

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

17

 

Annex 2 to to Non-Revolving
Credit Facility Agreement No. 9656 dated September         
2009

 

List of settlement and current
currency accounts of Ukrainian Communications

 

	
  No.

  	
   

  	
  Account

  number:

  	
   

  	
  Account currency

  	
   

  	
  Type of

  account

  	
   

  	
  Sberbank of Russia Unit

  	
   

  	
  Bank Account

  Agreement Number

  	
   

  	
  Bank Account

  Agreement Date

  
	
  1

  	
   

  	
  260090132615

  	
   

  	
  multi-currency

  	
   

  	
  current

  	
   

  	
  SUBSIDIARY BANK OF SBERBANK OF RUSSIA, OJSC,
  46 Vladimirskaya Str. Kiev, 01034

  	
   

  	
  No. RKO32615

  	
   

  	
  August 18, 2009

  

 

Signatures of the Parties

 

	
  Lender

  	
   

  	
  Borrower

  
	
   

  	
   

  	
   

  
	
  Vice-President - Head of the Major Clients
  Department of Sberbank of Russia OJSC

  	
   

  	
  President of MTS OJSC

  
	
   

  	
   

  	
   

  
	
   

  	
  A.V. Bazarov

  	
   

  	
   

  	
  M.V. Shamoli

  
	
   

  	
   

  	
   

  
	
  Seal here

  	
   

  	
  Seal here

  
					

 

	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Borrower

  

 

18

 

PROPERTY PLEDGE AGREEMENT

No. Z-9656/1

 

	
  City of Moscow

  	
   

  	
  September     , 2009

  

 

Joint Stock Commercial Savings
Bank of the Russian Federation (Open Joint Stock Company), also known as “Sberbank of Russia,” hereinafter referred to as the “Pledgee,” represented by Mr. Alexander Vladimirovich
Bazarov, its Vice President and Director of its Key Accounts Department, who is
acting pursuant to its Charter and Power of Attorney No. 01-1/480 dated June 15,
2009, on the one part, and Mobile TeleSystems Open
Joint Stock Company hereinafter referred to as the “Pledger,” represented by Mr. Mikhail Valerievich
Shamolin, its President, who is acting pursuant to its Charter, on the other
part, hereinafter referred to collectively as the “Parties”
and each individually, a “Party,” have
made this Agreement (“this Agreement”)
on the following:

 

Article 1. Scope of Agreement

 

1.1        Under
this Agreement, the Pledger shall pledge to the Pledgee certain
telecommunications equipment beneficially owned by the Pledger (the “Pledged Properties”) as listed and described in terms of
their quantity and qualitative characteristics in the Specification attached
hereto as Annex 1 and constituting an integral part hereof.

 

1.2        The
Pledged Properties have not been pledged, assigned or subjected to any dispute
or seizure as of the effective date of this Agreement.

 

1.3        The
net book value of the Pledged Properties has been determined based on the
accounting data as of September 1, 2009 to amount to thirty billion
four hundred and sixty-four thousand four hundred and fourteen rubles and
fifty-two kopecks (RUR 30,000,464,414.52).

 

1.4        The
Parties have agreed to value the Pledged Properties at twenty-one billion three
hundred and twenty-five thousand ninety rubles and sixteen kopecks (RUR
21,000,325,090.16).

 

Article 2. Obligations Secured by the Pledge

 

2.1        The
Pledged Properties shall secure the Pledger’s obligations under Non-revolving
Credit facility Agreement No. 9656 dated September     ,
2009 made by and between the Pledger (as the “Borrower”) and the Pledgee (as
the “Lender”) (the “Loan Agreement”).

 

2.2        The
Borrower’s obligations secured by this Agreement shall include, but not limited
to, those to repay the amount of the loan and pay the loan interest, commitment
fee, loan administration fees and any penalties payable under the Loan
Agreement as well as any losses which may be inflicted on the Lender by any
failure by the Borrower to perform or duly perform any of its obligations
thereunder as well as the Borrower’s obligations to reimburse the Lender for
any legal and other debt collection costs, including any costs required to
maintain the Pledged Properties.

 

2.3        The
Pledger is aware of all of the terms of the Loan Agreement and hereby agrees to
be liable for the Borrower’s obligations under the Loan Agreement to the extent
of the Pledged Properties, in particular on the following terms:

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

1

 

2.3.1           Under
the Loan Agreement, a non-revolving credit facility has been provided to the
Borrower with a limit amounting to twenty-five billion rubles (RUR
25,000,000,000) for the period ending on September     ,
2013 to fund the purchase, whether direct or indirect, of shares in Comstar
United TeleSystems OJSC and the Borrower’s 2009 Investment Program.

 

2.3.2           The
Borrower shall pay the Lender a loan interest at a variable interest rate to be
determined in accordance with Article 2.5 of the Loan Agreement to be not
more than seventeen percent (17%) per annum but not less than sixteen percent
(16%) per annum.

 

2.3.3           The
loan interest shall be payable for the period during which the loan has been
actually drawn down, on a quarterly basis, on the 27th day of the third month of each calendar
quarter and on the last repayment date on September     ,
2013.

 

2.3.4           The
Borrower shall pay the Lender a commitment fee amounting to two percent (2%)
per annum. Such commitment fee shall be accrued on the undrawn amounts of each
tranche for the period from the first drawdown date of such tranche (excluding
that date) as specified in Article 2.7 of the Loan Agreement through the
last drawdown date of such tranche as specified in Article 2.7 of the Loan
Agreement.

 

2.3.5           The
commitment fee shall be payable on a monthly basis, on the 27th day of each month, and on the end
date of the availability period on September 30, 2009.

 

2.3.6           The
Borrower shall pay the Lender a loan administration fee amounting to naught
point twenty-five percent (0.25%) per annum of the actual debt owed for the
loan.

 

The loan administration fee shall be payable in cash
in the national currency of the Russian Federation under payment orders to be
issued by the Borrower, from its current account No. 40702810100020008293
maintained with the Transaction Department of Sberbank of Russia OJSC and from
any other banks accounts of the Borrower on such dates and for such periods as
specified in Article 2.6 of the Loan Agreement for interest payments.

 

2.3.7           The
loan shall be repayable in accordance with the following schedule:

 

	
  No.

  	
   

  	
  Repayment date

  	
   

  	
  Amount of payment as a share of
  the total debt

  as of the end date of the availability period

  (September 30, 2009)

  
	
  1

  	
   

  	
  March 27, 2012

  	
   

  	
  One seventh (1/7)

  
	
  2

  	
   

  	
  June 27, 2012

  	
   

  	
  One seventh (1/7)

  
	
  3

  	
   

  	
  September 27, 2012

  	
   

  	
  One seventh (1/7)

  
	
  4

  	
   

  	
  December 27, 2012

  	
   

  	
  One seventh (1/7)

  
	
  5

  	
   

  	
  March 27, 2013

  	
   

  	
  One seventh (1/7)

  
	
  6

  	
   

  	
  June 27, 2013

  	
   

  	
  One seventh (1/7)

  
	
  7

  	
   

  	
  September     , 2013

  	
   

  	
  One seventh (1/7)

  

 

2.3.8           Should
the Borrower delay in making any payment to repay the loan or pay any loan
interest, commitment fee or loan administration fee, the Borrower shall pay the
Lender a penalty amounting to twice the refinancing rate set by the Bank of
Russia in percent per annum to be applied to the amount of the overdue payment
for each day of such delay during the period from the date on which the past
due debt emerges (excluding that date) through the date on which such past due
debt is repaid in full.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

2

 

2.3.9           The
Lender may unilaterally, at its sole discretion, increase the interest rate
specified in Article 2.5 of the Loan Agreement for the period from the
execution date of the Loan Agreement through March 27, 2010 as well
as the Base Rate set by Article 2.5 of the Loan Agreement for the period
from March 28, 2010 through the final repayment date specified in Article 1.1
of the Loan Agreement, including, but not limited to, in the event that the
Bank of Russia decides to increase its discount (refinancing) rate, upon notice
to the Borrower of such increase but without the need to execute any addendum
to the Loan Agreement for such increase to become effective. If the Lender
unilaterally increases the interest rate, such increase shall become effective
sixty (60) calendar days after the date of the notice of such increase sent by
the Lender to the Borrower, unless a later effective date is stated in such
notice.

 

The Lender shall notify the Borrower on any such
change in the Loan Agreement in accordance with the procedure established by Article 9.3
thereof.

 

Article 3. Rights and Obligations of the Parties

 

3.1        The
Pledger shall be obligated as follows:

 

3.1.1           The
Pledger shall take whatever measures may be deemed fit in the current
circumstances to ensure the safekeeping of the Pledged Properties, including
any current repairs or overhauls thereof.

 

The Pledger shall solely
bear all the risks related to the safekeeping of the Pledged Properties.

 

3.1.2           The
Pledger may not sell, exchange, present, grant on lease, financial lease or in
trust, invest, re-pledge, assign, alienate or otherwise dispose of the Pledged
Properties without prior written consent of the Pledgee until the Borrower
fully performs all of its obligations under the Loan Agreement.

 

3.1.3           The
Pledger may not take any action resulting in any modification or termination of
the Pledged Properties or any decrease in the value thereof other than that
resulting from the depreciation of the Pledged Properties in the course of
normal business operation thereof.

 

3.1.4           The
Pledger may not make any design changes in the Pledged Properties. If any
actions taken by the Pledger in respect of the properties specified in the
Specification attached hereto as Annex 1 result in the emergence of any new
property, the Pledger shall notify the Pledgee on such emergence and sign an
addendum to this Agreement to clarify the list of the Pledged Properties within
ten (10) business days of the earlier of the date on which an inventory
number is assigned to such new property or the date on which such new property
is recorded in the Pledger’s books.

 

3.1.5           The
Pledger shall immediately notify the Pledgee on any emerging threat of loss of
or damage to the Pledged Properties.

 

3.1.6           The
Pledger shall immediately make the Pledged Properties available to the Pledgee
for inspection at the place where they are actually located or furnish to the
Pledgee any additional documents or information concerning the Pledged
Properties as may be

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

3

 

requested
by the Pledgee within ten (10) business days of the receipt date of such
request sent by fax, telex, telegram or registered mail with return receipt
requested.

 

3.1.7           The
Pledger shall immediately notify the Pledgee on any change (other than natural
wear and tear) in, any third-party infringement committed in respect of, or any
third-party claim raised against the Pledged Properties.

 

3.1.8           The
Pledger shall keep a book of pledges and within ten (10) business days of
the execution date of this Agreement make a record therein describing the
Pledged Properties and the extent to which the Borrower’s obligations under the
Loan Agreement are secured by the Pledged Properties.

 

The Pledger shall make such book of pledges
available to the Pledgee for review upon its request in writing; provided,
however, that the Pledger shall be responsible for ensuring that the
information concerning the Pledged Properties is entered into such book in due
time and is true.

 

3.1.9           Upon
request of the Pledgee, the Pledger shall replace the Pledged Properties with
any property of equal value within thirty (30) calendar days of the date of
such request if any real threat of loss or shortage of the Pledged Properties
emerges not through the Pledgee’s fault or if the Pledged Properties gets lost
or damaged or title thereto is terminated for any ground provided for by law.

 

3.1.10         When
executing this Agreement, the Pledger shall furnish to the Pledgee copies of
any documents duly certified by the Pledger as proof of the Pledger’s title to
the Pledged Properties or any other documents as may be needed to operate the
Pledged Properties.

 

3.1.11         Upon
request of the Pledgee, the Pledger shall provide to the Pledgee any reasonably
necessary information concerning the Pledged Properties within thirty (30)
business days of the date of such request.

 

3.1.12         If
any force liquidation or bankruptcy proceeding is instituted against the
Pledger, the Pledger shall notify the Pledgee in writing on the application for
such proceeding filed with the arbitration court within three (3) business
days of the date of receipt of a copy of such application from the applicant.

 

3.1.13         The
Pledged Properties are located at the addresses stated in Annex 1 hereto. Those
addresses may not be changed without consent of the Pledgee except for:

 

·       any
relocation of those Pledged Properties or any part thereof located at the
Pledger’s warehouse as of the execution date hereof from such warehouse to the
place of subsequent operation; or

 

·       any
relocation of those Pledged Properties or any part thereof located at the
places where they are operated by the Pledger at those addresses stated in
Annex 1 hereto as of the execution date hereof to any other place of operation
due to any operational need in order to ensure operability of the network or
enhance the communication quality; or

 

·       any
relocation of those Pledged Properties or any part thereof located at the
places where they are operated by the Pledger at those addresses stated in Annex
1 hereto as of the execution date hereof for carrying out any repair if such
repair cannot be carried out at such addresses.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

4

 

The Pledger shall notify the Pledgee in writing
no later than on the twentieth (20th)
day of the first month of each calendar quarter of those Pledged Properties or
any part thereof relocated in the preceding calendar quarter as well as their
location, place of subsequent operation and inventory numbers.

 

3.1.14         The
Pledger shall be fully liable for the Pledged Properties and bear all risks of
accidental loss thereof or damage thereto.

 

3.1.15         The
Pledger shall warn the Pledgee on any potential risks to which the Pledged
Properties may be exposed, including those arising out of the Pledger’s
business operations or any other events affecting the condition of the Pledged
Properties.

 

3.1.16         The
Pledger hereby confirms that the Pledged Properties have not been sold, pledged
or subjected to any dispute, seizure or third-party rights as of the execution
date hereof. The Pledger shall take any lawful steps practicable to prevent the
Pledged Properties from being seized by any competent authorities and to
protect the same against any third-party claims throughout the term of the Loan
Agreement.

 

3.1.17         Should
the Pledged Properties pledged in accordance with Article 1.1 above or any
part thereof be recognized to be subject to registration with Gostekhnadzor,
the Pledger shall register its title thereto under the applicable laws of the
Russian Federation with Gostekhnadzor within thirty (30) calendar days of the
date of receipt of the relevant written request from the Pledgee or the date of
such recognition. The Pledger shall bear all costs related to such
registration.

 

3.1.18         Should
the Pledged Properties pledged in accordance with Article 1.1 above or any
part thereof be recognized to constitute a real property, the Pledger shall
enter into a pledge agreement in respect of such real property and cause such
pledge agreement to be registered under the applicable laws of the Russian
Federation within forty-five (45) calendar days of the date of receipt of a
written request for entering into such pledge agreement from the Pledgee or the
date of such recognition. The Pledger shall bear all costs related to such
registration.

 

3.2        The
Pledger shall have the right to:

 

3.2.1           Use
the Pledged Properties for their intended purpose while ensuring their safety
and integrity.

 

3.2.2           Stop
recovery of the Pledged Properties at any time before they are sold by
performing its obligations secured by the Pledged Properties.

 

3.3        The
Pledgee shall have the right to:

 

3.3.1           Check,
against documents and in practice, the availability, quantity, condition and
terms of use of the Pledged Properties and request any documents as may be
needed to do that.

 

3.3.2           Be
involved as a third party in any case concerning any claim against the Pledged
Properties.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

5

 

3.3.3           Recover
the Pledged Properties before the obligations secured thereby become mature
where permitted by the applicable laws of the Russian Federation and the Loan
Agreement.

 

3.3.4           Demand
the Pledger to early perform its obligations where permitted by the applicable
laws of the Russian Federation.

 

3.3.5           Put
its signs and seals onto the Pledged Properties to separate them from a plenty
of similar pledged items and suspend any transactions with the Pledged
Properties from being carried out if the Pledger fails to perform its
obligations hereunder until the Pledger rectifies such failure.

 

3.3.6           Review
the Pledger’s book of pledges.

 

Article 4. Liability of the Parties

 

4.1        The
Parties may be held liable under the applicable laws of the Russian Federation
for any failure to perform or duly perform any of their respective obligations
hereunder.

 

4.2        If
the Pledger fails to perform any of its obligations under Articles 3.1.1,
3.1.2, 3.1.3, 3.1.4, 3.1.5, 3.1.8, 3.1.13, 3.1.15 and 3.1.16 above, the Pledger
shall pay the Pledgee a penalty amounting to naught point one percent (0.1%) of
the pledge value of the Pledged Properties as stated in Article 1.4 above
within ten (10) business days of the date of receipt of a written request
to pay such penalty from the Pledgee.

 

4.3        If
the Pledger fails to perform any of its obligations under Articles 3.1.6,
3.1.7, 3.1.9, 3.1.11, 3.1.12, 3.1.17 or 3.1.18 above, the Pledger shall pay the
Pledgee a penalty amounting to naught point naught five percent (0.05%) per day
of the pledge value of the Pledged Properties as stated in Article 1.4
above for each day of such failure.

 

4.4        No
payment of any penalty shall release the Pledger from any of its obligations
hereunder.

 

Article 5. Miscellaneous

 

5.1        The
Parties hereby agree that the Pledged Properties described in Article 1
above, which constitute the security of the Borrower’s obligations under the
Loan Agreement, may be recovered in accordance with the procedure established
by the Extrajudicial Recovery Agreement made in respect of the Pledged
Properties.

 

5.2        All
proceeds from the sale of the Pledged Properties to repay the debt owed by the
Borrower to the Lender under the Loan Agreement shall be applied to cover any
legal or other costs as may be incurred by the Lender to collect such debt.

 

Any proceeds remaining after such legal or other costs
incurred by the Lender to collect such debt are covered shall be applied in the
following order of priority, irrespective of the purpose of payment stated in
the relevant payment order:

 

(1)        to
repay the debt owed by the Borrower to the Lender under the Loan Agreement in
accordance with the payment schedule specified by the Loan Agreement; and

 

(2)        to
pay the penalties payable by the Pledger hereunder.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

6

 

Any proceeds remaining after the legal or other costs
incurred by the Lender to collect the debt are covered, the debt under the Loan
Agreement fully repaid and the penalties payable hereunder paid shall be
transferred to the Pledger.

 

Article 6. Special Terms

 

6.1        In
the event that the Borrower performs only part of its obligations secured by
the pledge hereunder, the pledge shall remain in full force and effect in its
original volume until the Borrower duly performs all of its obligations secured
by the Pledged Properties.

 

6.2        The
pledge hereunder shall remain in full force and effect if the Pledgee duly
assigns its claims secured by the Pledged Properties to any third party;
provided, however, that:

 

·       the
Pledgee may assign any of its rights hereunder without the Pledger’s consent in
accordance with the applicable claim assignment rules; and

 

·       the
Pledger may not assign, whether in whole or in part, any of its rights
hereunder without the Pledgee’s written consent.

 

Article 7. Term

 

7.1        This
Agreement shall become effective on the date of its signing by both Parties and
remain in full force and effect until the Borrower fully performs all of its
obligations under the Loan Agreement and the Pledger fully performs all of its
obligations hereunder.

 

Article 8. Concluding Provisions

 

8.1        Any
relations between the Parties which are not covered by this Agreement shall be
governed by the applicable laws of the Russian Federation.

 

8.2        Any
and all disputes arising out of or related to this Agreement shall be resolved
by the Moscow Arbitration Court under the applicable laws of the Russian
Federation.

 

8.3        The
Parties may not be held liable for any failure to perform, whether in whole or
in part, any of their respective obligations hereunder if such failure is
caused by any force majeure circumstances such
as an earthquake, flood, fire, governmental resolution or order, or military
actions, which prevents the Parties from performing their respective
obligations hereunder and occurs after the execution date hereof as a result of
any extraordinary event which the Parties could neither foresee nor prevent.

 

A Party referring to any force
majeure circumstances shall immediately, but in no case later than
three (3) business days following the occurrence of such circumstances,
notify the other Party in writing on the occurrence of such circumstances.

 

After such circumstances cease to continue, the
Parties may be held financially liable hereunder; provided, however, that the
Parties may not be held liable for any failure to perform any of their
respective obligations hereunder in the period during which such circumstances
continued.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

7

 

8.4        Any
agreement to amend or terminate this Agreement shall be made in writing by
executing addenda hereto to be signed by duly authorized representatives of
both Parties.

 

8.5        In
the event of any change in the registered address of either Party, such Party
shall notify the other Party of such change before the amendment made to its
constituent documents to reflect such change is officially registered, but in
no case later than five (5) business days after the date on which such
change actually occurs.

 

In the event of any change in the bank account details
of either Party, such Party shall notify the other Party of such change before
such change takes effect, but in no case later than five (5) business days
after the date on which such change actually occurs.

 

8.6        Any
notice or other communication given or sent by either Party to the other Party
hereunder shall be made in writing and deemed duly given if delivered to such
other Party by hand, by registered mail with return receipt requested or by fax
to its address stated herein (or to such other address as may be specified by
such other Party in accordance with Article 8.5 above) and signed by a
duly authorized representative of the giving or sending Party.

 

8.7        This
Agreement is made in two (2) counterparts of equal legal effect, one for
each of the Pledgee and the Pledger.

 

Article 9. Annexes

 

9.1        Annex
1 (Specification) containing one hundred
and ninety-three (193) pages shall constitute an integral part hereof.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

8

 

Addresses and Bank Account Details of
the Parties

 

	
  The
  Pledgee:

  	
   

  	
  The
  Pledger:

  
	
   

  	
   

  	
   

  
	
  Joint
  Stock Commercial Savings Bank of the Russian Federation (Open Joint Stock Company)

  	
   

  	
  Mobile
  TeleSystems Open Joint Stock Company

  
	
   

  	
   

  	
   

  
	
  Registered/mailing
  address:

  	
   

  	
  Registered/mailing
  address:

  
	
  19
  Vavilov Str., Moscow 117997, Russian Federation 

  	
   

  	
  4
  Marksistskaya Str., Moscow 109147, Russian Federation 

  
	
  Tel.:
  (495) 957 57 75

  	
   

  	
  Tel.:
  (495) 223 21 64

  
	
  Fax:
  (495) 957 55 61

  	
   

  	
  Fax:
  (495) 223 21 68

  
	
   

  	
   

  	
  INN
  7740000076, OGRN 1027700149124,

  
	
  Account
  details for payments in rubles:

  	
   

  	
  KPP
  770901001, OKPO 52686811

  
	
  #30301810500001000014,

  	
   

  	
   

  
	
  corr.
  acc. # 30101810400000000225 maintained by Sberbank of Russia with the Transaction
  Department of the Moscow Principal Territorial Branch of the Bank of Russia,
  BIC 044525225, INN 7707083893 

  	
   

  	
  Account
  details for payments in rubles:

  
	
   

  	
  Curr.
  acc. #40702810100020008293 with the Transaction Department of Sberbank of
  Russia,

  corr. acc. #30101810400000000225 maintained by Sberbank of Russia with the
  Transaction Department of the Moscow Principal Territorial Branch of the Bank
  of Russia, BIC 044525225

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Account
  details for payments in foreign currencies: 

  	
   

  	
   

  
	
  #30301840800001000014
  with Sberbank of Russia, Moscow 

  	
   

  	
   

  
	
  Bank
  of New York: New York, NY, SWIFT

  	
   

  	
  Account
  details for payments in foreign currencies:

  
	
  IRVT
  US 3N, acc. #890-0057-610 Sberbank,

  Moscow,
  Russia, SWIFT: SABRRUMM

  	
   

  	
  Curr.
  foreign-currency acc. #40702840400020008293 with the Transaction Department
  of Sberbank of Russia,

  
	
   

  	
   

  	
  Bank
  of New York, New York, acc. #8900057610

  

 

Signatures of the Parties

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.V. Bazarov

  Vice President and Director of the Key
  Accounts

  Department, Sberbank of Russia OJSC

  	
   

  	
  M.V. Shamolin

  President, Mobile TeleSystems OJSC

  
	
   

  	
   

  	
   

  
	
  Seal here

  	
   

  	
  Seal here

  

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

9

 

Out-of-Court Enforcement
Agreement

in Respect of the Properties
Pledged under Property Pledge Agreement No. Z-9656/1

dated September     ,
2009

 

	
  City of Moscow

  	
   

  	
  September     , 2009

  

 

Joint Stock Commercial Savings Bank of the Russian Federation (Open Joint
Stock Company), also known as “Sberbank of
Russia,” hereinafter referred to as the “Pledgee,”
represented by Mr. Alexander Vladimirovich Bazarov, its Vice President and
Director of its Key Accounts Department, who is acting pursuant to its Charter
and Power of Attorney No. 01-1/480 dated June 15, 2009, on the one
part, and Mobile TeleSystems Open Joint Stock Company
hereinafter referred to as the “Pledger,”
represented by Mr. Mikhail Valerievich Shamolin, its President, who is
acting pursuant to its Charter, on the other part, hereinafter referred to
collectively as the “Parties” and
each individually, a “Party,” have
made this Agreement (“this Agreement”)
on the following:

 

1.          The
Pledgee may have its claims satisfied from those properties pledged under Property Pledge Agreement No. Z-9656/1 dated
September     , 2009 (the “Pledge
Agreement”) made by and between the Pledgee and the Pledger without
going to court (Out-of-Courtly).

 

2.          Under
this Agreement, the Parties shall agree on a procedure for Out-of-Courtly
recovering those properties pledged under the Pledge Agreement as listed in
Annex 1 hereto (the “Pledged Properties”).

 

The Pledged Properties shall
secure the performance of the Borrower’s obligations under Non-revolving Loan Facility Agreement No. 9656
dated September     , 2009 (the “Loan
Agreement”) made by and between the Pledgee (as the “Lender”) and
the Pledger (as the “Borrower”).

 

3.          In
the event that the Borrower fails to perform or duly perform any of its
obligations under the Loan Agreement, the Pledgee may at its sole discretion
either take ownership of or sell the Pledged Properties. The Pledgee shall
notify the Pledger in accordance with the procedure established by the
applicable laws of the Russian Federation on its beginning to recover the
Pledged Properties.

 

4.          The
Pledgee may take ownership of the Pledged Properties on the following terms:

 

4.1        The
price at which the Pledgee will take ownership of the Pledged Properties shall
be determined by an independent appraiser to be chosen and engaged by the
Pledgee at its sole option from the following companies:
PricewaterhiouseCoopers Audit CJSC, KPMG CJSC, Deloitte & Touche CIS
CJSC and Ernst & Young LLC;

 

4.2        Should
the purchase price determined in accordance with Article 4.1 above, including
any costs that may be incurred by the Pledgee to acquire the Pledged
Properties, exceed the debt owed by the Borrower to the Pledgee, the Pledgee
shall transfer the difference to the bank account to be opened by the Pledger
with the Pledgee and specified by the Pledger to the Pledgee within three (3) business
days of the date on which the ownership of the Pledged Properties is
transferred from the Pledger to the Pledgee.

 

5.          The
Pledgee may sell the Pledged Properties on the following terms:

 

5.1        The
Pledgee may sell the Pledged Properties at its sole discretion either through
an auction to be held under the laws of the Russian Federation or to any third
party direct

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

1

 

without holding an auction, inter alia, under a commission agreement to be made by and
between the Pledgee and a commission agent to be chosen by the Pledgee without
consultation with the Pledger.

 

5.2        The
Pledgee may sell the Pledged Properties upon expiry of the earlier of ten (10) calendar
days from the date of receipt by the Pledger of the notice mentioned in Article 3
above or forty-five (45) calendar days from the date on which the Pledgee or
the auction arranger gives such notice to the Pledger. The Pledgee may sell the
Pledged Properties before expiry of the above periods if the Pledged Properties
are exposed to a material risk of loss or damage of the Pledged Properties or
devaluation of the same as compared to the price (initial selling price) stated
in the notice.

 

5.3        The
initial selling price of the Pledged Properties shall amount to 90% of their
market value to be determined by an independent appraiser to be chosen and
engaged by the Pledgee at its sole option from the following companies:
PricewaterhiouseCoopers Audit CJSC, KPMG CJSC, Deloitte & Touche CIS
CJSC and Ernst & Young LLC.

 

5.4        The
auction arranger’s or commission agent’s fee not exceeding three percent (3%)
of the proceeds from the sale of the Pledged Properties shall be withheld by
the Pledgee from such proceeds. If such fee exceeds three percent (3%) of the
proceeds from the sale of the Pledged Properties, the difference shall be paid
by the Pledgee.

 

5.5        Under
this Agreement, if the Pledgee opts to sell the Pledged Properties, the Pledgee
shall do so within three (3) months of the date on which it becomes
entitled to sell the Pledged Properties as determined under Article 5.2
above.

 

5.6        The
Pledgee shall transfer any amount by which the proceeds from the sale of the
Pledged Properties less any costs that may be incurred by the Pledgee to sell
the Pledged Properties exceed the debt owed by the Borrower to the Pledgee to
the bank account to be opened by the Pledger with the Pledgee and specified by
the Pledger to the Pledgee within three (3) business days of the date on
which such proceeds were received by the Pledgee.

 

5.7        In
the event that the Pledgee sells the Pledged Properties to any third party
direct without holding an auction or making a commission agreement, the Pledgee
shall send to the Pledger a copy of the purchase agreement made with such third
party as certified by the Pledgee within five (5) business days of the
execution date of such purchase agreement.

 

5.8        The
Pledger shall deliver the Pledged Properties to the purchaser within three (3) business
days of the date of receipt of a copy of the purchase agreement as certified by
the Pledgee.

 

6.          For
the purpose of Enforcement of the Pledged Properties, the Pledgee shall have
the right to make on its own behalf any transactions as may be necessary to do
that and within its legal capacity, including, but not limited to, any
transactions with the auction arranger, commission agent or independent
appraiser, and sign any necessary documents, including, but not limited to, any
contracts, agreements, acceptance reports, transfer orders, etc.

 

7.          Upon
request of the Pledgee, the Pledger shall transfer the Pledged Properties to
the Pledgee within three (3) business days of the date of receipt of such
request.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

2

 

8.          Upon
request of the Pledgee, the Pledger shall make the Pledged Properties available
for appraisal by an independent appraiser within three (3) business days
of the date of receipt of such request.

 

9.          If
the Pledgee does not sell the Pledged Properties within the period specified in
Article 5.5 above, the Pledger may demand that the Pledged Properties be
recovered through court proceedings.

 

10.        Any
notice, statement or other communication given, made or sent by either Party to
the other Party hereunder shall be made in writing and deemed duly given if
sent by telegram or registered mail with return receipt requested or delivered
by hand to the mailing address of such other Party as stated in the Pledged
Agreement or, if given, made or sent to the Pledger, to such other address as
may be specified by the Pledger in accordance with Article 8.5 of the
Pledge Agreement.

 

11.        Any
amendment or addendum to this Agreement shall only be valid if made in writing
and signed by duly authorized representatives of both Parties.

 

12.        Any
and all disputes arising out of or related to this Agreement shall be resolved
by the Moscow Arbitration Court under the applicable laws of the Russian Federation.

 

13.        This
Agreement shall become effective on the date of its signing by both Parties and
terminate on the occurrence of any of the following two events: the Pledger
fully performs all of its obligations under the Pledge Agreement or the
Borrower fully performs all of its obligations under the Loan Agreement.

 

14.        This
Agreement is made in two (2) counterparts of equal legal effect, one for
the Pledgee and the other one for the Pledger.

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

3

 

Addresses and Bank Account Details of
the Parties

 

	
  The
  Pledgee:

  	
   

  	
  The
  Pledger:

  
	
   

  	
   

  	
   

  
	
  Joint
  Stock Commercial Savings Bank of the Russian Federation (Open Joint Stock Company)

  	
   

  	
  Mobile
  TeleSystems Open Joint Stock Company

  
	
   

  	
   

  	
   

  
	
  Registered/mailing
  address:

  	
   

  	
  Registered/mailing
  address:

  
	
  19
  Vavilov Str., Moscow 117997, Russian Federation 

  	
   

  	
  4
  Marksistskaya Str., Moscow 109147, Russian Federation 

  
	
  Tel.:
  (495) 957 57 75

  	
   

  	
  Tel.:
  (495) 223 21 64

  
	
  Fax:
  (495) 957 55 61

  	
   

  	
  Fax:
  (495) 223 21 68

  
	
   

  	
   

  	
  INN
  7740000076, OGRN 1027700149124,

  
	
  Account
  details for payments in rubles:

  	
   

  	
  KPP
  770901001, OKPO 52686811

  
	
  #30301810500001000014,

  	
   

  	
   

  
	
  corr.
  acc. # 30101810400000000225 maintained by Sberbank of Russia with the
  Transaction Department of the Moscow Principal Territorial Branch of the Bank
  of Russia, BIC 044525225, INN 7707083893

  	
   

  	
  Account
  details for payments in rubles:

  Curr. acc. #40702810100020008293 with the Transaction Department of Sberbank
  of Russia, corr. acc. #30101810400000000225 maintained by Sberbank of Russia
  with the Transaction Department of the Moscow Principal Territorial Branch of
  the Bank of Russia, BIC 044525225 

  
	
  Account
  details for payments in foreign currencies:

  	
   

  	
   

  
	
  #30301840800001000014
  with Sberbank of Russia, Moscow

  Bank of New York: New York, NY, SWIFT IRVT US 3N, acc. #890-0057-610
  Sberbank, Moscow, Russia, SWIFT: SABRRUMM

  	
   

  	
  Account
  details for payments in foreign currencies: 

  Curr. foreign-currency acc. #40702840400020008293 with the Transaction Department
  of Sberbank of Russia,

  Bank of New York, New York, acc. #8900057610

  

 

Signatures of the Parties

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.V. Bazarov

  Vice President and Director of the Key
  Accounts

  Department, Sberbank of Russia OJSC

  	
   

  	
  M.V. Shamolin

  President, Mobile
  TeleSystems OJSC

  
	
   

  	
   

  	
   

  
	
  Seal here

  	
   

  	
  Seal here

  

 

	
  For the Pledgee:

  	
   

  	
  For the Pledger:

  
	
   

  	
   

  	
   

  

 

4

 

[On Sberbank’s letterhead]

 

Agreement No. 9656-BS

 

	
  City of Moscow

  	
   

  	
  September     ,
  2009

  

 

Joint Stock Commercial Savings
Bank of the Russian Federation (Open Joint Stock Company), also known as “Sberbank of Russia,” hereinafter
referred to as the “Bank,”
represented by Mr. Alexander Vladimirovich Bazarov, its Vice President and
Director of its Key Accounts Department, who is acting pursuant to its Charter
and Power of Attorney No. 01-1/480 dated June 15, 2009, on the one
part, and Mobile TeleSystems Open Joint Stock
Company hereinafter referred to as the “Client,” represented by Mr. Mikhail Valerievich Shamolin,
its President, who is acting pursuant to its Charter, on the other part,
hereinafter referred to collectively as the “Parties”
and each individually, a “Party,”
have made this Agreement (“this Agreement”)
on the following:

 

In consideration of Articles 2.3.2, 5.1.4 and 5.1.5 of
Non-revolving Credit facility Agreement No. 9656 dated September     ,
2009 made by and between the Client (as the “Borrower”) and the Bank (as the “Lender”)
(the “Loan Agreement”), the Parties hereby
agree to amend Bank Account Agreement No. 40702810100020008293 dated August 12,
2009, Bank Account Agreement No. 40702840400020008293 dated August 12,
2009, Bank Account Agreement No. 40702978000020008293 dated August 12,
2009 and Bank Account Agreement No. 40702810738050011729 dated March 10,
2009 as follows:

 

1.          The
Bank shall have the right to withdraw, without any acceptance by or any further
instruction from the Client, any amounts of money, whether immediately or as
available, in repayment of any past due debt owed by the Borrower to the Lender
(including the principal amount of the loan, loan interest and any other
payments) and/or in payment of any penalties payable by the Borrower to the
Lender under the Loan Agreement, to the extent of the amounts of such past due
debt and penalties:

 

·       from
current account #40702810100020008293 maintained by the Client with the
Transaction Department of Sberbank of Russia OJSC and current account
#40702810738050011729 maintained by the Client with Mariina Roscha Branch
Office No. 7981 of Sberbank of Russia OJSC;

 

·       if
the funds kept on the current accounts mentioned above are insufficient for
such repayment, from current foreign-currency account #40702840400020008293 and
current foreign-currency account #40702978000020008293 maintained by the Client
with the Transaction Department of Sberbank of Russia OJSC and convert such
amounts into rubles on the conversion terms set by the Bank for the date of
such conversion, with the amounts resulting from such conversion to be credited
on current account #40702810100020008293 maintained by the Client with the
Transaction Department of Sberbank of Russia OJSC.

 

2.          This
Agreement shall constitute an instruction from the Client to the Bank to
independently fill in any certificates for those foreign-currency transactions
made hereunder in accordance with the regulations of the Bank of Russia.

 

3.          The
Bank shall return any amounts excessively withdrawn without acceptance
hereunder to those accounts specified in Article 1 above no later than on
the next business day following the withdrawal date.

 

	
  For the Bank:

  	
   

  	
  For the Client:

  
	
   

  	
   

  	
   

  

 

1

 

Agreement No. 9656-BS dated
September     , 2009

 

4.          This
Agreement shall become effective on the date of its signing by both Parties and
terminate on the date on which the Client fully performs all of its obligations
to the Bank under the Loan Agreement. This Agreement shall constitute an
integral part of Bank Account Agreement No. 40702810100020008293 dated August 12,
2009, Bank Account Agreement No. 40702840400020008293
dated August 12, 2009, Bank Account Agreement No. 40702978000020008293
dated August 12, 2009 and Bank Account Agreement No. 40702810738050011729
dated March 10, 2009.

 

5.          This
Agreement is made in two (2) counterparts of equal legal effect, one for
the Bank and the other one for the Client.

 

Addresses and Bank Account Details of the Parties

 

	
  The Bank:

  	
   

  	
  The Client:

  
	
   

  	
   

  	
   

  
	
  Joint Stock Commercial Savings
  Bank of the

  Russian Federation (Open Joint Stock

  Company)

  	
   

  	
  Mobile TeleSystems Open Joint
  Stock

  Company

   

  
	
   

  	
   

  	
   

  
	
  Registered/mailing address:

  19 Vavilov Str., Moscow 117997, Russian
  Federation

  Tel.: (495) 957 57 75

  Fax: (495) 957 55 61

   

  Account details for payments in rubles:

  #30301810500001000014,

  corr. acc. # 30101810400000000225 maintained by
  Sberbank of Russia with the Transaction Department of the Moscow Principal
  Territorial Branch of the Bank of Russia, BIC 044525225, INN 7707083893

   

  Account details for payments in foreign currencies:

  #30301840800001000014 with Sberbank of Russia,
  Moscow

  Bank of New York: New York, NY, SWIFT IRVT US
  3N, acc. #890-0057-610 Sberbank, Moscow, Russia, SWIFT: SABRRUMM

  	
   

  	
  Registered/mailing address:

  4 Marksistskaya Str., Moscow 109147, Russian
  Federation

  Tel.: (495) 223 21 64

  Fax: (495) 223 21 68

  INN 7740000076, OGRN 1027700149124,

  KPP 770901001, OKPO 52686811

   

  Account details for payments in rubles:

  Curr. acc. #40702810100020008293 with the Transaction
  Department of Sberbank of Russia, corr. acc. #30101810400000000225 maintained
  by Sberbank of Russia with the Transaction Department of the Moscow Principal
  Territorial Branch of the Bank of Russia, BIC 044525225

   

  Account details for payments in foreign currencies:

  Curr. foreign-currency acc. #40702840400020008293
  with the Transaction Department of Sberbank of Russia,

  Bank of New York, New York, acc. #8900057610

  

 

	
  For the Bank:

  	
   

  	
  For the Client:

  
	
   

  	
   

  	
   

  

 

2

 

Agreement No. 9656-BS dated
September     , 2009

 

Signatures of the Parties

 

	
  For the Bank:

  	
   

  	
  For the Client:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.V. Bazarov

  Vice President and Director of the Key
  Accounts

  Department, Sberbank of Russia OJSC

   

  	
   

  	
  M.V. Shamolin

  President, Mobile
  TeleSystems OJSC

   

  
	
   

  	
   

  	
   

  
	
  Seal here

  	
   

  	
  Seal here

  

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  I.R. Borisenkova

  
	
   

  	
   

  	
  Chief Accountant, Mobile
  TeleSystems OJSC

  

 

	
  For the Bank:

  	
   

  	
  For the Client:

  
	
   

  	
   

  	
   

  

 

3

 

AGREEMENT No. 9656-BS/MBRD

 

	
  City of Moscow

  	
   

  	
  ,
  2009

  

 

Joint Stock Commercial Savings Bank of the Russian Federation (Open
Joint Stock Company), also known as “Sberbank of
Russia,” hereinafter referred to as the “Lender,”
represented by Mr. Alexander Vladimirovich Bazarov, its Vice President and
Director of its Key Accounts Department, who is acting pursuant to its Charter
and Power of Attorney No. 01-1/480 dated June 15, 2009, Mobile TeleSystems Open Joint Stock Company hereinafter
referred to as the “Client,”
represented by Mr. Mikhail Valerievich Shamolin, its President, who is
acting pursuant to its Charter, and Joint
Stock Commercial Moscow Bank for Reconstruction and Development (Open Joint Stock Company)  hereinafter
referred to as the “Bank,”
represented by Mr. Andrey Vitalievich Sergiyenko, Director of its
Corporate Accounts Department, who is
acting pursuant to its Charter and Power of Attorney No. I-24-665/8-(0)
dated December 30, 2008, hereinafter referred to collectively as
the “Parties” and each individually, a “Party,” have made this Agreement (“this
Agreement”) on the following:

 

In consideration of Articles 2.3.2, 5.1.4 and 5.1.5 of
Non-revolving Credit Facility Agreement No. 9656 dated September     ,
2009 made by and between the Lender and the Client (the “Loan
Agreement”), the Parties hereby agree as follows:

 

1.          The
Client hereby authorizes the Bank to withdraw, without any acceptance by or any
further instruction from the Client, any amounts from current account
#40702810000000000652 maintained by the Client with Joint Stock Commercial Moscow Bank for Reconstruction and Development (Open
Joint Stock Company), upon a
payment request from the Lender containing a reference to this Agreement and
Articles 2.3.2, 5.1.4 and 5.1.5 of the Loan Agreement, in repayment of any past
due debt owed by the Client to the Lender under the Loan Agreement (including
the principal amount of the loan, loan interest and any other payments) and in
payment of any penalties payable by the Client to the Lender under the Loan, to
the extent of the amounts of such past due debt and penalties, and transfer
such amounts to the bank account specified in such payment request.

 

2.          Upon
receipt of any payment request from the Lender, the Bank shall withdraw the
amount stated therein from the Client’s current account specified in Article 1
above and transfer such amount to the bank account specified in such payment
request within one (1) transaction day of the receipt date thereof. If no
funds are kept on the Client’s current account specified in Article 1
above or if the funds kept thereon are insufficient to meet the Lender’s claim,
the Bank shall transfer the missing funds to the Lender as they are credited
onto such current account.

 

3.          If
the funds kept on the Client’s current account specified in Article 1
above are insufficient to repay the debt owed by the Client to the Lender as
stated in the payment request from the Lender, the Client shall authorize the
Bank to sell, no later than on the next transaction day following the receipt
date of such request, the foreign-currency funds kept on foreign-currency
account #40702840300000000652 maintained by the Client with Joint Stock Commercial Moscow Bank for
Reconstruction and Development (Open Joint Stock Company) on the conversion terms set by the
Bank for the date of such transaction and transfer the proceeds from the sale
of such funds to current account #40702810000000000652 maintained by the Client
with Joint Stock Commercial Moscow Bank
for Reconstruction and Development (Open Joint Stock Company).

 

4.          The
Lender shall notify the Bank in writing when the Client fully performs all of
its obligations under the Loan Agreement no later than on the next business day
following the date of such performance.

 

5.          This
Agreement shall constitute an instruction from the Client to the Bank to
independently fill in any certificates for those foreign-currency transactions
made hereunder in accordance with the regulations of the Bank of Russia.

 

 

Agreement No. 9656-BS/MBRD
dated                         
    , 2009

 

6.          If
any other account is opened for the Client with the Bank, the Client shall
notify the Lender in writing of such opening within three (3) business
days of the date on which the Bank gives notice of such opening or the date on
which the information letter confirming receipt of the notice of such opening
is filed with the local branch of the Federal Tax Service. Within five (5) business
days of the date of receipt by the Lender of the notice of such opening, the
Bank, the Client and the Lender shall make an additional agreement authorizing
the Bank to withdraw without acceptance any amounts in favor of the Lender from
such other account opened for the Client with the Bank in addition to those
stated herein.

 

7.          The
Lender shall return any amounts excessively withdrawn without acceptance
hereunder to those accounts specified in Articles 1 and 3 above no later than
on the next business day following the date on which such amounts were credited
on the Lender’s correspondent account.

 

8.          This
Agreement shall become effective on the date of its signing by the Parties and
terminate on the date on which the Client fully discharges all of its
obligations under the Lender under the Loan Agreement. This Agreement shall
constitute an integral part of Bank Account Agreement No. 1517 dated July 3,
2000 and Bank Account Agreement No. 1555 dated July 3, 2000.

 

9.          This
Agreement may be amended or terminated by agreement of the Parties.

 

10.        This
Agreement is made in three (3) counterparts of equal legal effect, one for
each of the Parties.

 

Addresses and Bank Account
Details of the Parties:

 

The Lender:

 

Joint Stock Commercial Savings Bank of the Russian Federation (Open
Joint Stock Company)

 

Registered/mailing address:

19 Vavilov Str., Moscow 117997, Russian Federation

Tel.: (495) 957 57 75

Fax: (495) 957 55 61

 

Account details for payments in rubles:

#30301810500001000014,

corr. acc. # 30101810400000000225 maintained by
Sberbank of Russia with the Transaction Department of the Moscow Principal Territorial
Branch of the Bank of Russia, BIC 044525225, INN 7707083893

 

Account details for payments in foreign currencies:

#30301840800001000014 with Sberbank of Russia, Moscow

Bank of New York: New York, NY, SWIFT IRVT US 3N, acc.
#890-0057-610 Sberbank, Moscow, Russia, SWIFT: SABRRUMM

 

	
  For the Lender:

  	
   

  	
  For the Client:

  	
   

  	
  For the Bank:

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

2

 

The Bank:

 

Joint Stock Commercial Moscow Bank
for Reconstruction and Development (Open
Joint Stock Company)

 

Registered/mailing address:

9 Kuznetsky Most, bldg. 1, Moscow 103031, Russian
Federation

INN 7702045051,

Corr. acc. # 3010181060000000232 with the Transaction
Department of the Principal Branch of the

Russian Federation Central Bank, BIC 044525232

 

The Client:

 

Mobile TeleSystems Open Joint
Stock Company

 

Registered/mailing address:

4 Marksistskaya Str., Moscow 109147, Russian
Federation

Tel.: (495) 223 21 64

Fax: (495) 223 21 68

INN 7740000076, OGRN 1027700149124,

KPP 770901001, OKPO 52686811

 

Account details for payments in rubles:

Curr. acc. #40702810100020008293 with the Transaction
Department of Sberbank of Russia,

corr. acc. #30101810400000000225 maintained by
Sberbank of Russia with the Transaction Department of the Moscow Principal
Territorial Branch of the Bank of Russia, BIC 044525225

 

Account details for payments in foreign currencies:

Curr. foreign-currency acc. #40702840400020008293 with
the Transaction Department of Sberbank of Russia,

Bank of New York, New York, acc. #8900057610

 

	
  For the Lender:

  	
   

  	
  For the Client:

  	
   

  	
  For the Bank:

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

	
  For the Lender:

  	
   

  	
  For the Client:

  	
   

  	
  For the Bank:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A.V. Bazarov

  Vice President and Director of the Key Accounts
  Department, Sberbank of Russia OJSC

   

  	
   

  	
  Mikhail Valerievich Shamolin, President, Mobile
  TeleSystems

  OJSC

   

  	
   

  	
  Andrey Vitalievich Sergiyenko, Director of the
  Corporate Accounts Department, Joint
  Stock Commercial Moscow Bank for Reconstruction and Development (Open
  Joint Stock Company)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seal here

  	
   

  	
  Seal here

  	
   

  	
  Seal here

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [·]

  Chief Accountant, Mobile

  TeleSystems OJSC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seal here

  	
   

  	
   

  

 

	
  For the Lender:

  	
   

  	
  For the Client:

  	
   

  	
  For the Bank:

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

Schedule
No. 1 to Property Pledge Agreement No. Z-9656/1

 

The
following is an English summary of the Russian language document in accordance
with Exchange Act Rule 12b-12(d).

 

Schedule
No. 1 to the Property Pledge Agreement No. Z-9656/1 entered into
between MTS and Sberbank on September 25, 2009 lists assets pledged under
the credit facility. These assets are comprised entirely of equipment.

 

The
specification includes 9,395 items for the total net book value of
approximately RUR30 billion as of September 1, 2009, and the total agreed
discounted pledge value of approximately RUR21 billion. The description of each
list item includes the relevant asset’s identification number, full title,
location, net book value as of September 1, 2009, discount percentage and
agreed pledge value.

 

The
document was signed by (1) Mr. Alexander V. Bazarov, Sberbank’s Vice
President and major client relationship department head and (2) Mr. Mikhail
V. Shamolin, MTS’ President.

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