Document:

Exhibit 4.50

 

CREDIT AGREEMENT

Dated 25 November 2005

between

OJSC Mobile TeleSystems, Russian Federation

as Borrower

and

HSBC Bank plc

ING Bank Deutschland AG

Bayerische Landesbank

as Mandated Lead Arrangers and Lenders

 

and

ING Bank Deutschland AG

as
Facility Agent

and

HSBC
Bank plc

as
Hermes Agent

 

1

 

Table
of Contents

 

 

 

Preamble

 

Clause

 

	
  1.

  	
   

  	
  Definitions and Interpretations

  	
   

  	
  5

  
	
  2.

  	
   

  	
  Amount and
  Purpose of the Credits

  	
   

  	
  8

  
	
  3.

  	
   

  	
  Disbursements
  / Reimbursements

  	
   

  	
  12

  
	
  4.

  	
   

  	
  Conditions
  Precedent to Disbursements / Reimbursements

  	
   

  	
  13

  
	
  5.

  	
   

  	
  Interest Periods, Interest, Increased Costs

  	
   

  	
  15

  
	
  6.

  	
   

  	
  Fees

  	
   

  	
  17

  
	
  7.

  	
   

  	
  Calculation of Periods

  	
   

  	
  18

  
	
  8.

  	
   

  	
  Repayment and Prepayment

  	
   

  	
  18

  
	
  9.

  	
   

  	
  Payments

  	
   

  	
  19

  
	
  10.

  	
   

  	
  Taxes, Levies, Duties and Other Costs

  	
   

  	
  20

  
	
  11.

  	
   

  	
  Guarantee of the Federal Republic of Germany for tied Buyer’s Credits

  	
   

  	
  23

  
	
  12.

  	
   

  	
  Suspension of Disbursement, Payments Immediately Due (Events of
  Default)

  	
   

  	
  24

  
	
  13.

  	
   

  	
  Representations and Warranties

  	
   

  	
  26

  
	
  14.

  	
   

  	
  Financial Statements, Information and Undertakings (Covenants)

  	
   

  	
  26

  
	
  15.

  	
   

  	
  Assignability

  	
   

  	
  29

  
	
  16.

  	
   

  	
  Statements and Notices

  	
   

  	
  29

  
	
  17.

  	
   

  	
  Miscellaneous

  	
   

  	
  30

  
	
  18.

  	
   

  	
  Currency Indemnity

  	
   

  	
  30

  
	
  19.

  	
   

  	
  Applicable Law, Place of Performance and Jurisdiction

  	
   

  	
  31

  
	
  20.

  	
   

  	
  General Provisions

  	
   

  	
  31

  

 

 

2

 

Annexes to the Credit
Agreement

 

 

	
  1a – 1f

  	
   

  	
  Certificates for Disbursement and Reimbursement and
  Request for a fixed interest rate

  
	
  2

  	
   

  	
  Confirmation
  of Coming into Force of the Export Contracts / Additional Export Contract

  
	
  3a - 3b

  	
   

  	
  Confirmation
  of Mean-weighted Date of Delivery of Equipment and License Products in
  relation to the Export Contract / in relation to the Additional Export
  Contract / in relation to the Export Contracts

  
	
  4

  	
   

  	
  Specimen
  Signature List of the Borrower

  
	
  5

  	
   

  	
  Form for
  Appointment of Agent for Service of Process to the Credit Agreement

  

 

 

3

 

This Agreement is made by and between:

 

OJSC Mobile TeleSystems, Moscow, Russian Federation
(the “Borrower”)

 

 and

 

HSBC Bank plc, London, United Kingdom

 

and

 

ING Bank Deutschland AG, Frankfurt am Main, Federal
Republic of Germany

 

and

 

Bayerische Landesbank, München, Federal Republic of
Germany (each a “Lender” and together the “Lenders”).

 

and

 

ING
Bank Deutschland AG., as Facility Agent (the “Facility Agent”)

 

and

 

HSBC
Bank plc, as Hermes Agent (the “Hermes Agent”).

 

Preamble

 

	
  A.

  	
   

  	
  On 18 November 2004 the Borrower concluded an
  amendment to the delivery contract number # 43-525 dated 28 May 2004
  providing for an increase to the contract value of USD150,000,000 and on 21
  September 2005 the Borrower concluded a delivery contract number 43-625 for
  an amount of USD70,000,000 (individually the “Amended Export Contract” and
  the “Export Contract” respectively and together the “Export Contracts”) with
  Alcatel SEL AG, Stuttgart, Federal Republic of Germany (the “Exporter”) for
  the delivery of telecommunication equipment and provision of license products
  as described in the Export Contracts.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  The total contract value of the equipment to be
  delivered and license products to be provided under the Export Contracts
  amounts to USD 220,000,000 (the “Total Contract Values”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  According to the Export Contracts the delivery of
  equipment and provision of license products shall be made through the
  placement of individual orders by way of documents of intent signed by
  authorised representatives of the Borrower and Exporter, drawn up by the
  Borrower and accepted for execution by the Exporter. Such orders must be
  placed by the Borrower with the Exporter under (i) the Amended Export
  Contract between 6 November 2004 and 30 June 2006 and (ii) under the Export
  Contract between 21 September 2005 and 31 December 2005. Local services
  (including but not limited to installation, commissioning and transportation
  to site) and locally procured supplies will be provided by Alcatel ZAO and
  are not subject of financing hereunder.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  The value of the orders expected to be made by the
  Borrower under the Export Contracts until 31 December 2005 or such later date
  as may be agreed between the Borrower and the Exporter amount to USD
  133,800,671 being made of USD 82,500,671 in respect of the Amended Export
  Contract and USD 51,300,000 in respect of the Export Contract and is to be
  paid, according to the terms of the Export Contracts, as follows:

  

 

 

4

 

	
   

  	
   

  	
  (1)

  	
   

  	
  15% down payments

  
	
   

  	
   

  	
  (2)

  	
   

  	
  85% of the value of each delivery or service (the
  “Partial Contract Value”)

  provided
  that a tied buyer’s credit is available for financing of the Partial Contract
  Value, pro rata to deliveries of equipment/provision of license products
  within 15 or 60 calendar days as specified in the Export Contracts as
  applicable from the date of such deliveries/provisions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  The Borrower and the Exporter may also agree to
  enter into a further contract for the supply of additional telecommunications
  equipment and/or additional license products or to make additional orders
  under the Export Contracts(in either case the “Additional Export Contract”)
  up to the Total Contract Value, the financing terms of which may provide for
  additional payments partially being made under the terms of this Credit
  Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  The total additional contract value of further
  deliveries to be made or further license products to be provided under the
  Additional Export Contract (if such Additional Export Contract is agreed) is
  expected to amount up to USD 18,700,000 (the “Total Additional Contract
  Value”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
   

  	
  The terms of the Additional Export Contract (if
  agreed) are expected to enable deliveries to be made or license products to
  be provided through a further series of purchase orders to be issued during
  2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H.

  	
   

  	
  The Total Additional Contract Value (if the
  Additional Export Contract is agreed) is expected to consist of 15%
  downpayments and a portion of 85% as partial additional contract value (the
  “Partial Additional Contract Value”) to be financed hereunder at the option
  of the Borrower, subject to the agreement of Hermes (as defined below) and
  the Lenders.

  
							

 

This
being premised, it is hereby agreed as follows:

 

1.                             Definitions and Interpretations

 

	
  Additional Export Contract

  	
   

  	
  means an additional contract which may be entered
  into between the Borrower and the Exporter or additional deliveries to be
  made or license products to be provided under the Export Contracts as defined
  in Article E of the Preamble

  
	
   

  	
   

  	
   

  
	
  Additional Insurance Premium

  	
   

  	
  means the premium as defined in Clause 11.3

  
	
   

  	
   

  	
   

  
	
  Additional Repayment Date

  	
   

  	
  means the date(s) as defined
  in Clause 5.1 d)

  
	
   

  	
   

  	
   

  
	
  Affiliate

  	
   

  	
  means, in relation to any person a Subsidiary of
  that person, or a Holding Company of that person, or any other Subsidiary of
  that Holding Company

  
	
   

  	
   

  	
   

  
	
  Agent for Service of Process

  	
   

  	
  means the person or entity as defined in Clause 19.4

  
	
   

  	
   

  	
   

  
	
  Agreed Currency

  	
   

  	
  means the currency as defined in Clause 18

  
	
   

  	
   

  	
   

  
	
  Banking Day

  	
   

  	
  means a day (other than Saturday or Sunday) on which
  banks are generally open for business in London, Moscow, Frankfurt am Main
  and Munich

  
	
   

  	
   

  	
   

  
	
  Borrower

  	
   

  	
  means OJSC Mobile TeleSystems, 4 Marksistskaya
  Street, Moscow 109147, Russian Federation

  Payment details:
  foreign currency account No. 40702840500001001817

  

 

 

5

 

	
   

  	
   

  	
  with ING Bank (Eurasia) ZAO, Moscow 127473, Krasnoproletarskaya
  Str., 36 SWIFT code INGBRUMM

  
	
   

  	
   

  	
   

  
	
  Credit A

  	
   

  	
  means the principal amount as specified in Clause
  2.1 already disbursed and/or still to be disbursed as the context requires
  and shall include each of Tranche 1 and Tranche 2

  
	
   

  	
   

  	
   

  
	
  Credit B

  	
   

  	
  means the principal amount as specified in Clause
  2.1 already disbursed and/or still to be disbursed as the context requires
  and shall include each of Tranche 3 and Tranche 4

  
	
   

  	
   

  	
   

  
	
  Credit or Credits

  	
   

  	
  means the aggregate principal amount as specified in
  Clause 2.1 already disbursed and/or still to be disbursed as the context
  requires and “Credits” shall include Credit A and Credit B

  
	
   

  	
   

  	
   

  
	
  Credit Agreement

  	
   

  	
  means this agreement

  
	
  Export Contracts

  	
   

  	
  means the contracts between the Borrower and the
  Exporter defined in Article A of the Preamble

  
	
   

  	
   

  	
   

  
	
  Exporter

  	
   

  	
  means
  Alcatel SEL AG, Lorenzstrasse. 10, 70435

  Stuttgart,
  Federal Republic of Germany

  
	
   

  	
   

  	
   

  
	
  Facility Agent

  	
   

  	
  means ING Bank Deutschland AG, Hahnstrasse 49,
  Frankfurt am Main, Federal Republic of Germany

  
	
   

  	
   

  	
   

  
	
  Hermes

  	
   

  	
  means the German export credit agency Euler Hermes
  Kreditversicherungs-AG, Hamburg, Federal Republic of Germany

  
	
   

  	
   

  	
   

  
	
  Hermes Agent

  	
   

  	
  means HSBC Bank plc, 8 Canada Square, London E14
  5HQ, United Kingdom

  
	
   

  	
   

  	
   

  
	
  Holding Company

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Insurance Agreement

  	
   

  	
  means the agreement as per Clause 11.1

  
	
   

  	
   

  	
   

  
	
  Insurance Premium

  	
   

  	
  means the premium as defined in Clause 11.2

  
	
   

  	
   

  	
   

  
	
  Interest Payment Date

  	
   

  	
  means the date as defined in Clause 5.2.e)

  
	
   

  	
   

  	
   

  
	
  Interest Period(s)

  	
   

  	
  means the period(s) as defined in Clause 5.1

  
	
   

  	
   

  	
   

  
	
  Judgement Currency

  	
   

  	
  means the currency as defined in Clause 18

  
	
   

  	
   

  	
   

  
	
  Lender(s)

  	
   

  	
  means HSBC Bank plc, 8 Canada Square, London E14
  5HQ, United Kingdom

  Payment
  details: SWIFT MRMDUS33, account number 000-023868 held with HSBC Bank USA,
  New York, in favour of HSBC Bank plc, London, SWIFT MIDLGB22 account number
  36677449 in the name of Project and Export Finance quoting ref 53M/FC1078

  

 

 

6

 

	
   

  	
   

  	
  and

  ING
  Bank Deutschland AG, Hahnstrasse 49, 60606 Frankfurt am Main, Federal
  Republic of Germany

  Payment
  details: SWIFT CHASUS33, account number 0011048220 in favour of ING Belgium
  SWIFT BBRUBEBB account number 301040407777 in favour of ING Bank Deutschland
  AG / SWIFT INGBDEFF quoting SEF / MTS Alcatel

  

  and

  Bayerische
  Landesbank, Department 6422, Brienner Strasse 18, D-80333 München, Federal
  Republic of Germany

  Payment
  details: In favour of Bayerische Landesbank / SWIFT — code BYLADEMM account
  number: 2000193534122 held with: Wachovia Bank NA, New York / SWIFT — code
  PNBPUS3NNYC quoting ref:: 6422 — KANR 76050895 / Russland / MTS - Alcatel

  
	
   

  	
   

  	
   

  
	
  LIBOR

  	
   

  	
  means the interest rate as defined in Clause 5.2.a)

  
	
   

  	
   

  	
   

  
	
  Margin

  	
   

  	
  means the margin as defined in Clause 5.2.a)

  
	
   

  	
   

  	
   

  
	
  Partial Contract Value

  	
   

  	
  means the part of the value of deliveries made or
  license products provided as defined in Article D of the Preamble

  
	
   

  	
   

  	
   

  
	
  Partial Additional Contract
  Value

  	
   

  	
  means the part of the value of deliveries made or
  license products provided as defined in Article H of the Preamble

  
	
   

  	
   

  	
   

  
	
  Passport Bank

  	
   

  	
  means ING Bank Eurasia ZAO,
  36, Krasnoproletarskaya ulitsa, 127473 Moscow, Russian Federation or such
  other bank as approved by the Facility Agent

  
	
   

  	
   

  	
   

  
	
  Reference Banks

  	
   

  	
  means the London Offices of HSBC Bank plc and ING
  Bank Deutschland AG and Bayerische Landesbank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Repayment Date(s)

  	
   

  	
  means the date(s) as defined in Clause 5.1.d)

  
	
   

  	
   

  	
   

  
	
  Special Payment Procedure

  	
   

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

  
	
  Subsidiary

  	
   

  	
  means an entity from time to time of which a person
  has direct or indirect control or owns directly or indirectly more than 50% of
  the share capital or similar right of ownership

  
	
   

  	
   

  	
   

  
	
  Supplemental Insurance
  Agreement

  	
   

  	
  means the supplemental agreement as per Clause 11.1

  
	
   

  	
   

  	
   

  
	
  Total Assets

  	
   

  	
  means the book value of the consolidated total
  assets of the Borrower as determined by reference to the Borrower’s most
  recent annual consolidated balance sheet delivered in accordance with Clause
  14 a)

  
	
   

  	
   

  	
   

  
	
  Total Contract Value

  	
   

  	
  means the aggregate price agreed upon in the Ex­port
  Contracts for delivery of equipment and provision of license products
  thereunder as defined in Article B of the Preamble

  

 

 

7

 

	
  Total Additional Contract
  Value

  	
   

  	
  means the aggregate price agreed upon in the
  Additional Ex­port Contract for deliveries to be made and licensed products
  provided thereunder as defined in Article F of the Preamble

  
	
   

  	
   

  	
   

  
	
  Tranche 1

  	
   

  	
  means the part of Credit A as defined in Clause
  2.2.a) hereof

  
	
   

  	
   

  	
   

  
	
  Tranche 2

  	
   

  	
  means the part of Credit A as defined in Clause
  2.2.b) hereof

  
	
   

  	
   

  	
   

  
	
  Tranche 3

  	
   

  	
  means the part of Credit B as defined in Clause
  2.2.c) hereof

  
	
   

  	
   

  	
   

  
	
  Tranche 4

  	
   

  	
  means the part of Credit B as defined in Clause
  2.2.d) hereof

  
	
   

  	
   

  	
   

  
	
  Tranches

  	
   

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

  
	
   

  	
   

  	
   

  
	
  UMC

  	
   

  	
  means Closed Joint Stock Company “Ukrainian Mobile
  Communications”, 15 Leiptsyzka Street, Kyiv, 01015, Ukraine

  
	
   

  	
   

  	
   

  
	
  UMC Litigation

  	
   

  	
  means any of the claims, proceedings (present of
  future) and causes of action involving the Borrower, and/or any Affiliate
  thereof (including UMC) relating to or arising out of the sale of UMC to the
  Borrower, or the acquisition, reorganization or ownership of UMC by the
  Borrower.

  
	
   

  	
   

  	
   

  
	
  USD

  	
   

  	
  means the lawful currency of the United States of
  America

  

 

 

	
  2.

  	
   

  	
  Amount and Purpose of the Credits

  
	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  The Lenders grant to the Borrower a credit in an
  aggregate amount of up to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USD
  123,797,863

  (in words: United States Dollars one hundred and
  twenty three million seven hundred and ninety seven thousand eight hundred
  and sixty three)

  (“Credit
  A”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USD
  17,311,827

  (in words: United States Dollars seventeen million
  three hundred and eleven thousand eight hundred and twenty seven)

  (“Credit
  B”)

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

8

 

	
  2.2

  	
   

  	
  Credits shall consist of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

  	
  Tranche 1 in an amount of USD 113,730,570 (in words:
  United States Dollars one hundred and thirteen million seven hundred and
  thirty thousand five hundred and seventy) which shall be available for the
  financing of the Partial Contract Value either (i) still due and payable to
  the Exporter resulting from delivery of equipment/provision of license
  products under the Export Contracts, or (ii) payable to the Borrower
  resulting from delivery of equipment/provision of license products under the
  Export Contracts for which payment has been made, directly by the Borrower to
  the Exporter; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

  	
  Tranche 2 in an amount of USD 10,067,293 (in words:
  United States Dollars ten million sixty seven thousand and two hundred and
  ninety three) which shall be available for the financing of up to 100% of the
  Insurance Premium for cover of the Lenders’ payment claims under the
  Insurance Agreement as per Clause 11.1 paid or payable by the Lenders through
  the Facility Agent to Hermes; and if so applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

  	
  Tranche 3 in an amount of up to USD 15,895,000 (in
  words: United States Dollars fifteen million eight hundred and ninety five
  thousand) which shall be available for the financing of the Partial
  Additional Contract Value either (i) still due and payable to the Exporter
  resulting from delivery of equipment under the Additional Export Contract, or
  (ii) payable to the Borrower resulting from delivery of equipment under the
  Additional Export Contract for which payment has been made directly by the
  Borrower to the Exporter; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

  	
  Tranche 4 in an amount of USD 1,416,827 (in words: United
  States Dollars one million four hundred and sixteen thousand eight hundred
  and twenty seven) which shall be available for the financing of up to 100% of
  the Additional Insurance Premium for cover of the Lenders’ payment claims
  under the Supplemental Insurance Agreement as per Clause 11.1 paid or payable
  by the Lenders through the Facility Agent to Hermes;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  unless otherwise stipulated hereinafter, any
  reference in this Credit Agreement to the Credit shall include the Tranches
  applicable to that Credit, and to Credits or to credit amounts or to any
  other similar term shall include the Tranches.

  

 

 

9

 

	
  2.3

  	
   

  	
  The amounts borrowed under this Credit Agreement are
  exclusively available (i) provided that payment of the Partial Contract Value
  for delivery of equipment/provision of licensed products has been effected by
  the Borrower to the Exporter prior to fulfilment of all conditions precedent
  to disbursements / reimbursements under Clause 4 of this Credit Agreement or
  waiver thereof by the Lenders by means of payment from sources other than
  this Credit Agreement, for reimbursement thereof to the Borrower; (ii) with
  effect from the date of fulfilment of all conditions precedent to
  disbursements / reimbursements under this Credit Agreement or waiver thereof
  by the Lenders, for reimbursement to the Borrower in the amount of the
  Partial Contract Value resulting from delivery of equipment or provision of
  license products under the Export Contracts for which payment  has been made directly by the Borrower to
  the Exporter; (iii) with effect from the date of fulfilment of all conditions
  precedent to disbursements / reimbursements under this Credit Agreement or
  waiver thereof by the Lenders, for the payment of sums due to the Exporter in
  the amount of the Partial Contract Value resulting from delivery of
  equipment/provision of license products under the Export Contracts; (iv) for
  reimbursement to the Borrower of up to 100% of the Insurance Premium paid by
  the Borrower to the Lenders through the Facility Agent; (v) in respect of the
  additional financing of Credit B if so required by the Borrower, and subject
  to the agreement of Hermes and the Lenders, for reimbursement to the Borrower
  in the amount of the Partial Additional Contract Value resulting from further
  delivery of equipment/provision of license products under the Additional
  Export Contract for which payment has been made directly by the Borrower to
  the Exporter; (vi) in respect of the optional financing of Credit B if so
  required by the Borrower, and subject to the agreement of Hermes and the
  Lenders, for the payment of sums due to the Exporter in the amount of the
  Partial Additional Contract Value resulting from delivery of
  equipment/provision of license products under the Additional Export Contract;
  and (vii) in respect of the additional financing of Credit B if so required
  by the Borrower, and subject to the agreement of Hermes and the Lenders, for
  reimbursement to the Borrower of up to 100% of the Additional Insurance
  Premium paid by the Borrower to the Lenders through the Facility Agent.

  

 

 

10

 

	
  2.4

  	
   

  	
  Upon and subject to the terms and conditions of this
  Credit Agreement each of the Lenders shall participate in each disbursement
  or reimbursement of the Credits in the proportion of its maximum liability
  mentioned in this Clause 2.4 as percentage of the maximum credit amounts
  mentioned in Clause 2.1 hereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HSBC Bank plc

  8 Canada Square

  London E14 5HQ

  United Kingdom

  	
   

  	
  Credit A

  35%, max. USD 43,329,252.05

  (in words: United States Dollars forty three million

  three hundred and twenty nine thousand two hundred
  and fifty two cents five)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Credit B (additional financing)

  35%, max. USD 6,059,139.45

  (in words: United States Dollars six million fifty nine thousand one hundred
  and thirty nine cents forty five )

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ING
  Bank Deutschland AG 

  Hahnstrasse
  49

  Frankfurt am Main 

  Federal Republic of Germany 

  	
   

  	
  Credit A

  35%, max.
  USD 43,329,252.05

  (in words:
  United States Dollars forty three million

  three hundred and twenty nine thousand two hundred
  and fifty two cents five)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Credit B (additional financing)

  35%, max. USD 6,059,139.45

  (in words: United States Dollars six million fifty nine thousand one hundred
  and thirty nine cents forty five )

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bayerische Landesbank

  Department 6422

  Brienner Strasse 18

  D – 80333 München

  Federal Republic of Germany

  	
   

  	
  Credit A

  30%, max. USD 37,139,358.90

  (in words: United States Dollars thirty seven

  million one hundred and thirty nine thousand three

  hundred and fifty eight cents ninety)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Credit B (additional
  financing)

  30%, max. USD 5,193,548.10

  (in words: United States Dollars five million one hundred and ninety three
  thousand five hundred and forty eight cents ten)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.5

  	
   

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

  

 

 

11

 

	
  3.

  	
   

  	
  Disbursements /
  Reimbursements

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Borrower hereby irrevocably agrees that - under Clause 3.2.b) below - only
  the Exporter shall have the exclusive right to request payments under Tranche
  1 (and if applicable, Tranche 3) and that such direct payments to the
  Exporter will constitute disbursements of Tranche 1 (and if applicable,
  Tranche 3) to the Borrower under this Credit Agreement.

  
	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  a)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  In case of
  delivery of equipment

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  -

  	
  a copy of
  the commercial invoice issued by the Exporter;

  
	
   

  	
   

  	
   

  	
   

  	
  -

  	
  CMR or
  airway bill or post/courier receipt, as the case may be relating to such
  equipment.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  In case of
  provision of license products

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  -

  	
  a copy of
  the commercial invoice issued by the Exporter;

  
	
   

  	
   

  	
   

  	
   

  	
  -

  	
  a copy of
  the written notice sent by the Exporter to the Borrower confirming the
  granting of the license products.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  Disbursements
  / reimbursements under Tranche 1 (and if applicable, Tranche 3) as per Clause
  3.2 shall be made in minimum amounts of USD 1,000,000.00 provided, however,
  that, in the event that 85% of the value of any documents presented to the
  Facility Agent during a calendar month for

  

 

 

12

 

	
   

  	
   

  	
  disbursements
  under Tranche 1 (and if applicable, Tranche 3) or the amount mentioned in a
  reimbursement certificate as per Annex 1a or 1d, as the case may be, is less
  than the aforementioned minimum amount, disbursements or reimbursements under
  Tranche 1 (and if applicable, Tranche 3) will be made at the end of the
  relevant calendar month in one amount equal to 85% of the aggregate value of
  all documents or equal to the aggregate value of all certificates, as the
  case may be, received by the Lenders during that month in relation to which
  disbursements or reimbursements under Tranche 1 (and if applicable, Tranche
  3) have not previously been made.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.4

  	
   

  	
  Disbursement
  under Tranche 2 (and if applicable, Tranche 4) for the financing of up to
  100% of the Insurance Premium (or as the case may be, the Additional
  Insurance Premium) shall in either event, whether the Insurance Premium has
  become due and payable prior to or after the fulfilment of all conditions
  precedent to disbursements / reimbursements under this Credit Agreement or
  the waiver thereof by the Facility Agent, acting on behalf of the Lenders,
  and provided that the Borrower has paid the total amount of the Insurance
  Premium (or the Additional Insurance Premium) to the Facility Agent as per
  Clause 11.2 hereof, be made without any request or action by the Borrower
  upon fulfilment of the conditions precedent to disbursements / reimbursements
  or waiver thereof by the Lenders through the Facility Agent to the Borrower
  to such account as will be specified by the Borrower to the Facility Agent.

  
	
   

  	
   

  	
   

  
	
  3.5

  	
   

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

  
	
   

  	
   

  	
   

  
	
  3.6

  	
   

  	
  Unless
  otherwise instructed by Hermes, the Lenders may (but are not obliged to do
  so) refuse to disburse the Credits or any portion thereof after the due date
  of the first repayment instalment laid down in Clause 8 hereof. The Credits
  will then be reduced by the corresponding amount.

  
	
   

  	
   

  	
   

  
	
  3.7

  	
   

  	
  The
  Borrower may - in case of disbursements according to Clause 3.2.b) - only
  waive disbursement of the Credits, in full or in part, with the prior written
  consent of the Lenders and the Exporter.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Conditions
  Precedent to Disbursements / Reimbursements

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  In
  relation to Credit A

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The first
  disbursement or reimbursement under Credit A of this Credit Agreement shall
  be conditional upon the Facility Agent having received the following
  documents free of expense in form and substance satisfactory to the Lenders:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

  	
  a legal opinion to be issued by Freshfields
  Bruckhaus Deringer, Moscow, Russian Federation;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

  	
  a written
  confirmation in accordance with Annex 2 hereof certifying that the Export
  Contracts have come into force;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

  	
  a specimen signatures list as per Annex 4 hereof
  with the specimen signatures of such persons authorised by the Borrower to
  act on its behalf in connection with this Credit Agreement and such other
  documents which, pursuant to mandatory provisions under German, Dutch or
  English law, are required by the Lenders and/or the Facility Agent to open
  and to maintain a credit account on behalf of the Borrower such documents to
  be specified by the Lenders and/ or the Facility Agent without any undue
  delay in writing;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

  	
  a copy of the executed Export Contracts;

  

 

 

13

 

	
   

  	
   

  	
  e)

  	
   

  	
  an undertaking by the Exporter in favour of the
  Lenders with regard to certain risks and obligations not covered by the
  Insurance Agreement as per Clause 11.1 hereof;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  f)

  	
   

  	
  a certificate as per Annex 1a, 1b, 1c, 1d or 1e , as
  the case may be;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  g)

  	
   

  	
  confirmation issued by the
  Passport Bank certifying its appointment by the Borrower as Passport Bank;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  h)

  	
   

  	
  evidence that the down payment referred to in
  Article D of the Preamble has been made to the Exporter by the Borrower; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i)

  	
   

  	
  such other certificates and documentation and other
  evidence reasonably requested by the Lenders in order for them to carry out
  and be satisfied with the results of all necessary “know your customer” or
  similar requirements, including those reasonably required to ensure
  compliance with money laundering procedures in their relevant jurisdictions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In relation to Credit
  B (if applicable)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The first disbursement or reimbursement under Credit
  B of this Credit Agreement shall be conditional upon the Facility Agent
  having received the following documents free of expense in form and substance
  satisfactory to the Lenders:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

  	
  a written confirmation issued by Freshfields
  Bruckhaus Deringer, Moscow, as Lenders’ counsel confirming that the original
  legal opinion rendered under Clause 4.1.a) above is applicable mutatis
  mutandis to this Credit Agreement as increased by Credit B, such confirmation
  stating inter alia that all necessary permits, authorisations and
  registrations in the Russian Federation have been obtained;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

  	
  a copy of the executed Additional Export Contract;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

  	
  a written confirmation in accordance with Annex 2
  hereof certifying that the Additional Export Contract has come into force;
  and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

  	
  an undertaking by the Exporter in favour of the
  Lenders with regard to certain risks and obligations not covered by the
  Supplemental Insurance Agreement as per Clause 11.1 hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Furthermore, the first disbursement or reimbursement
  under Credit A or, if applicable Credit B, is conditional upon receipt by the
  Lenders of the following payments:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a)

  	
  payment of the fee as per
  Clause 6.2 hereof in the case of Credit A and, payment of  additional fees pursuant to Clause 6.4
  hereof in the case of Credit B;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b)

  	
  payment of 100% of the Insurance Premium and, as the
  case may be, 100% of the Additional Insurance Premium;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Moreover, the first
  disbursement under this Credit Agreement by way of direct disbursement to the
  Exporter as per Clause 3.2.b) is subject to such disbursement procedure being
  in full and strict compliance with the Russian laws (in particular but not
  limited to the Law on Currency Regulation and Currency Control dated 10
  December 2003); such compliance to be evidenced to the Lenders 

  
							

 

 

14

 

	
   

  	
   

  	
  in form and substance
  satisfactory to the Lenders.

  
	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Each reimbursement under Tranche 1 or Tranche 3 as per Clause 3.2. a)
  hereof is furthermore subject to evidence satisfactory to the Lenders that
  payments were made by the Borrower for deliveries of equipment/provision of
  license products under the Export Contracts or the Additional Export
  Contract, as the case may be, and have been received by the Exporter in
  amounts corresponding to those mentioned in the relevant reimbursement
  certificate in form and substance as per Annex 1a or 1d, as the case may be,
  hereto.

  
	
   

  	
   

  	
   

  
	
  4.5

  	
   

  	
  Each disbursement or reimbursement under this Credit Agreement is
  subject to the condition that the Insurance Agreement and, as the case may
  be, the Supplemental Insurance Agreement, as per Clause 11.1 is in full force
  and effect and covers the Lenders’ claims under this Credit Agreement.

  
	
   

  	
   

  	
   

  
	
  4.6

  	
   

  	
  The Lenders through the Facility Agent shall together be entitled to
  waive any one or more of the aforementioned conditions precedent to
  disbursements / reimbursements as the Lenders at their sole discretion deem
  fit, whereupon — unless otherwise notified in writing by the Facility Agent
  to the Borrower - any such condition precedent shall be deemed to constitute
  a condition subsequent which the Borrower undertakes to satisfy within such
  period of time which the Facility Agent may reasonably determine.

  
	
   

  	
   

  	
   

  
	
  4.7

  	
   

  	
  The Facility Agent will notify the Borrower and the Exporter without
  delay in writing of the fulfilment of the conditions precedent to first
  disbursement or reimbursement and, if applicable, conditions subsequent.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Interest Periods, Interest,
  Increased Costs

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  For the purpose of
  periodical calculation of interest and its pay­ment by the Borrower as
  determined hereinafter, each interest period (the “Interest Period”) shall be
  of a duration of 6 months, provided that:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

  	
  the first Interest Period in
  respect of the first disburse­ment or reimbursement shall commence on the
  date of that disburse­ment or reimbursement and end 6 months after the date
  of that disburse­ment or reimbursement subject to 5.1 d and 5.1 e below;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

  	
  the first Interest Period in
  respect of any subsequent disbursement or reimbursement shall commence on the
  date of that disbursement or reimbursement and end upon expiry of the then
  current Interest Period relating to the respective Credit A or Credit B, as
  the case may be;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

  	
  each subsequent Interest
  Period shall commence on the expiry of the preceding Interest Period;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

  	
  any Interest Period which
  would otherwise extend be­yond the due date of any repayment instalment pursu­ant
  to Clause 8.1 of this Credit Agreement (any such repayment date hereinafter
  re­ferred to as a “Repayment Date” or “Additional Repayment Date”, if
  applicable) shall be shortened to the extent necessary to end upon such
  Repayment Date or Additional Repayment Date, as the case may be;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e)

  	
   

  	
  any Interest Period which
  would otherwise end on a day which is not a Banking Day shall end on the next
  Banking Day unless the result of such extension would be to carry such
  Interest Period over into another calendar month, in which event such
  Interest Period shall end on the preceding Banking Day.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  a)

  	
   

  	
  Subject to Clause 5.2 d)
  below, for as long as any principal amounts repayable under this Credit
  Agreement remain outstanding, the Borrower shall pay to the Lenders through
  the Facility Agent for each Interest Period on each credit amount outstanding
  interest at a rate per annum to be the aggregate of (i) a margin of 0.30%
  p.a. (in words zero point three zero per

  

 

15

 

	
   

  	
   

  	
   

  	
   

  	
  cent per annum) (the
  “Margin”) and (ii) the London Interbank Offered Rate (“LIBOR”) relating to
  such Interest Period (rounded upwards - if necessary - to a full month).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LIBOR shall mean, in
  relation to such Interest Period, the rate per annum determined by the
  Facility Agent to be equal to the arithmetic mean (rounded upwards, if
  necessary, to five decimal places) of the London interbank offered rates for
  deposits of USD for a period equal to such period as are displayed at or
  about 11.00 a.m. (London time) on the second Banking Day prior to the
  commencement of such period on the relevant page on the Reuter Monitor Money
  Rates Services (or such other page as may replace such page on such service
  for the purpose of displaying London interbank offered rates of leading banks
  for deposits of USD) or, if on such date the offered rates for the relevant
  period of fewer banks than two leading banks are so displayed, as quoted to
  the Facility Agent by each of the Reference Banks at the request of the
  Facility Agent and calculated on the above mentioned basis. Interest (Margin
  plus LIBOR), as specified under this Clause 5.2(a) in due from the Borrower
  exclusively against delivery to the Borrower of the related invoices
  (originals) and the original (apostilled and with notarised translation into
  Russian) residency certificate for the Lenders and/or the Facility Agent,
  depending on the Borrower’s request. Each Lender and the Facility Agent
  hereby undertake prior to issuance of the relevant invoices to the Borrower
  for the purposes of this Clause 5.2(a) to agree with the Borrower in written
  correspondence on whether the Russian VAT shall apply to a receipt by, or
  payment to the Lender(s) and/or the Facility Agent due from the Borrower
  under this Clause 5.2(a), as may be required under the Russian law.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  the last disbursement or
  reimbursement under the Credit Agreement has been effected, in the case of
  either Credit A or Credit B,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  the exact Repayment Dates
  for the repayment instal­ments of the Credits stand firm in the case of
  either Credit A or Credit B,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

  	
  the Borrower’s request in
  the form of Annex 1f  hereto has been
  received by the Facility Agent at the latest 15 Banking Days prior to the
  next Repayment Date and,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iv)

  	
   

  	
  corresponding funds in like
  amounts and for a duration equivalent to the term of the Credits under this
  Agreement  are available to the
  Lenders.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Such fixed interest rate
  takes binding effect for the period starting with the next Repayment Date and
  ending on the last Repayment Date for the Credits, in the case of either
  Credit A or Credit B, as may be the case, provided that the Facility Agent
  has received the Borrower’s agreement to the fixed rate offered by the
  Lenders through the Facility Agent within the validity period of such offer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e)

  	
   

  	
  Interest on any credit
  amounts outstanding shall accrue from day to day and be calculated on

  

 

 

16

 

	
   

  	
   

  	
   

  	
   

  	
  a per annum basis from the
  date of each disbursement or reimbursement until the date on which the
  respective repayment instalment is unconditionally credited on the account
  specified in or to be indicated by the Facility Agent in accordance with
  Clause 9.1 hereof. Interest on any credit amounts outstanding shall be paid
  by the Borrower in arrears on each Interest Payment Date (each “Interest
  Payment Date” being, (i) in the case of an interest rate applicable as per
  Clause 5.2 a), the last day of any and each Interest Period; and (ii) in case
  of  a fixed interest rate applicable as
  per Clause 5.2 d) hereof each Repayment Date).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Subject to Clause 5.5
  (Exceptions), if by reason of any change occurring after the date of this
  Credit Agreement in any law, regulation, treaty or official directive
  (whether or not having the force of law) or the interpretation or application
  thereof (including but not limited to any reserve, deposit or similar
  requirements) and for compliance by the Lenders and/or the Facility Agent
  with any legally binding requirement of any central bank or other
  governmental or monetary authority arising after the date of this Credit
  Agreement any of the Lenders incur any Increased Costs (as defined
  hereinafter), then, in any such case, the Borrower shall pay to the Facility
  Agent for account of the Lenders within thirty days of a demand by the
  Facility Agent such amounts of the Increased Costs as the Lenders through the
  Facility Agent shall specify to be necessary to compensate the Lenders for
  such increase or such reduction.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In this Agreement “Increased
  Costs” means:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  an additional or increased
  cost; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.4.

  	
   

  	
  A Lender intending to make a
  claim pursuant to Clause  5.3 (Increased Costs) shall notify the
  Facility Agent of the event giving rise to the claim, following which the
  Facility Agent shall promptly notify the Borrower. Each Lender shall, as soon
  as practicable after a demand by the Facility Agent, provide a certificate
  confirming the amount of its Increased Costs and the circumstances giving
  rise to the claim.

  
	
   

  	
   

  	
   

  
	
  5.5

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  compensated for under
  another Clause or would have been but for an exception to that Clause;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  a tax, levy, duty, charge or
  fee of whatever nature on the overall net income of a Lender or attributable
  to any deduction or withholding for or on account of any tax, levy, duty,
  charge or fee of whatever nature required by law to be made by the Borrower
  (provided that nothing in this sub-clause 5.5 (ii) reduces the Borrower’s Liability
  to make any payment on account of any tax, levy, duty, charge or fee required
  pursuant to Clause 10); or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

  	
  attributable to a Lender
  being grossly negligent or wilfully failing to comply with any law or
  regulation or official administration order or court decision.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Fees

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  From the date of this Credit
  Agreement until disbursement of Credit A in full, the Borrower shall pay to
  the Lenders through the Facility Agent a commitment fee at a rate of 0.10%
  p.a. (in words: zero point one zero per cent per annum) calculated on a daily
  basis on such portion of the maximum amount of Credit A not yet disbursed at
  any time. The commitment fee is payable pro

  
								

 

 

17

 

	
   

  	
   

  	
  rata in arrears (i) prior to
  the first disbursement or reimbursement on June 30 and December 30 of each
  year; and (ii) with effect from the first disbursement or reimbursement on
  each Interest Payment Date.

  
	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  The Borrower will pay to the
  Lenders (in their capacity as mandated lead arrangers) through the Facility
  Agent an arrangement fee of 0.20% flat (in words: zero point two zero per
  cent flat) calculated on the maximum amount of Credit A mentioned in Clause
  2.1 hereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The arrangement fee is due
  prior to the first disbursement or reimbursement under the Credit Agreement,
  at the latest however, within 30 days after the date of this Credit
  Agreement.

  
	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  From the date of this Credit
  Agreement until all monies owing by the Borrower are fully repaid to the
  Lenders, the Borrower shall pay to the Facility Agent an agency fee of USD
  10,000 per annum on the date of signature of this Credit Agreement and
  annually thereafter on the anniversary date of this Credit Agreement.

  
	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Clauses 6.1 and 6.2 shall
  apply mutatis mutantis in case of Credit B being made available by the
  Lenders to the Borrower whereas calculation of the additional commitment fee
  shall start on the date on which the Lenders will have approved the granting
  of Credit B to the Borrower in writing; the additional arrangement fee shall
  be paid within 30 days after the date of such approval , at the latest,
  however, prior to disbursement or reimbursement under Credit B. 

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Calculation of Periods

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Repayment and Prepayment

  
	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Credit A

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The credit amounts disbursed
  under Credit A are to be repaid in 17 equal and consecutive semi-annual
  repayment instalments; the first of which will be due on the earlier of (i)
  the date falling 6 months after the date of the mean-weighted date of
  delivery of equipment and license products to be evidenced concurrently to
  the Borrower and the Lenders (by delivery as specified in Clause 16.1
  hereunder) by a certificate in accordance with Annex 3a hereof; and (ii) 31 August
  2006 . Credit amounts disbursed after the first Repayment Date under Credit A
  shall be repaid in equal amounts on the remaining Repayment Dates; the
  repayment instalments which then have not yet become due will be increased
  accordingly and the Facility Agent shall promptly, upon its drawing up
  thereof  however, at the latest 20
  Business Days prior to the next Repayment Date, deliver an updated repayment
  schedule to the Borrower showing the amounts of repayment instalments due on
  each subsequent Repayment Date, provided that no failure by the Facility
  Agent to so advise the Borrower shall relieve the Borrower from its payment
  obligations under this Credit Agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit B

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If applicable, the credit
  amounts disbursed under Credit B will be repaid in 17 equal and consecutive
  semi-annual repayment instalments; the first of which will, depending on the
  respective Hermes approval, either be due on the earlier of (i) the date
  falling 6 months after the date of the mean-weighted acceptance of equipment
  and license products relating to the deliveries made under the Additional
  Export Contract, to be evidenced by a certificate in accordance with Annex 3b
  hereof, or (ii) a certain latest date still to be agreed upon prior to the
  first disbursement under Credit B, subject to Hermes approval, in each such
  case as advised to the Borrower by the Facility Agent. Credit amounts
  disbursed after the first Additional Repayment Date under Credit B shall be
  repaid in equal amounts on the remaining Additional Repayment Dates; the
  repayment instalments which then have not yet become due will be increased
  accordingly and the Facility

  

 

 

18

 

	
   

  	
   

  	
  Agent shall promptly, upon
  its drawing up thereof, however, at the latest 20 Business Days prior to the
  next Additional Repayment Date, deliver an updated repayment schedule to the
  Borrower showing the amounts of repayment due on each subsequent Additional
  Repayment Date, provided that no failure by the Facility Agent to so advise
  the Borrower shall relieve the Borrower from its payment obligations under
  this Credit Agreement.

  
	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  Where the interest rate
  defined in Clause 5.2 a) applies, the Borrower shall be entitled upon 30
  days’ prior notice to the Facility Agent to prepay on any Interest Payment
  Date, in full or in part, any credit amounts outstanding together with
  interest accrued thereon and any other amounts then due under the Credit
  Agreement. Any such notice of the Borrower shall be irrevocable and binding
  and obliges the Borrower to repay the credit amounts in accordance with its
  notice of prepayment.  In case of
  partial prepayments, any partial amount repaid may be applied by the Facility
  Agent in the inverse order of their maturities.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Any amount prepaid in accordance
  with this Clause 8.2 may not be reborrowed.

  
	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  Where the interest rate in
  Clause 5.2 d) applies, prepayment of any amounts not yet due according to
  this Credit Agreement is not permitted.

  
	
   

  	
   

  	
   

  
	
  8.4

  	
   

  	
  Prior to the first Repayment
  Date the Facility Agent shall furnish the Borrower with a repayment schedule
  which sets out the Repayment Dates and the amount of repayment instalments to
  be paid on each such Repayment Date or Additional Repayment Date, if
  applicable, provided that no failure by the Facility Agent to so advise the
  Borrower shall relieve the Borrower from its obligations hereunder. In case
  of the granting of Credit B and if a repayment schedule in relation to Credit
  A has already been delivered at such time, the Lenders shall furnish the
  Borrower with a revised repayment schedule or an additional repayment
  schedule, as the case may be. All other stipulations of the preceding
  sentence shall apply mutatis mutandis to such revised or additional schedule.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Payments

  
	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  All payments to be made by
  the Borrower to the Lenders through the Facility Agent under this Credit
  Agreement shall be made in USD without any deduction not later than 10.00
  a.m. local time on the respective due date at the Facility Agent’s free
  disposal to the account of the Facility Agent held with Chase Manhattan Bank,
  SWIFT CHASUS33, account number 0011048220 in favour ING Belgium SWIFT
  BBRUBEBB account number 301040407777 in favour of ING Bank Deutschland AG /
  SWIFT INGBDEFF quoting ref. SEF/MTS Alcatel or such other account with such
  other financial institution as notified by the Facility Agent to the
  Borrower.

  
	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  The Borrower shall not be
  entitled to exercise any right of reten­tion or to set off any counterclaims
  against claims arising from this Credit Agreement against any Lender unless
  such counterclaims exist against the Lender that the Borrower exercises the
  right of retention or set off against, and such counterclaims have been
  accepted by that Lender in writing or have otherwise been adopted or consistently
  relied upon. 

  
	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  If the Facility Agent
  receives a payment insufficient to discharge all the amounts then due and
  payable by the Borrower under this Credit Agreement, the Facility Agent on
  behalf of the Lenders shall, notwithstanding any converse instruction given
  by the Borrower, apply incoming payments in the following order:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
   

  	
  firstly, in or towards any
  costs and expenses due and payable hereunder;

  
	
   

  	
   

  	
  (ii)

  	
   

  	
  secondly, in or towards
  payment of any fees due and payable hereunder;

  
	
   

  	
   

  	
  (iii)

  	
   

  	
  thirdly, in or towards
  payment of any default interest and/ or indemnification then due and payable
  as provided for in Clauses 9.4 and 9.5;

  
	
   

  	
   

  	
  (iv)

  	
   

  	
  fourthly, in or towards
  payment of any contractual interest due and payable hereunder;

  
	
   

  	
   

  	
  (v)

  	
   

  	
  fifthly, in or towards
  repayment of any principal amount due and payable hereunder;

  
	
   

  	
   

  	
  (vi)

  	
   

  	
  sixthly, in or towards
  payment of any other amount (including any indemnification other than such as
  under Clause 9.5) due and payable hereunder.

  

 

 

19

 

 

	
  9.4

  	
   

  	
  The Lenders through the Facility Agent shall be entitled to demand on
  repayment instalments overdue default interest at a rate which is the sum of
  2% p.a. (in words: two per cent per annum) and the rate which would have been
  payable if such overdue amount had, during the period of non payment,
  constituted a Credit for successive periods of any duration as the Lenders
  (acting reasonably) through the Facility Agent may determine from time to
  time.

  
	
   

  	
   

  	
   

  
	
  9.5

  	
   

  	
  The Lenders through the Facility Agent shall be entitled to demand on
  amounts overdue other than repayment instalments, a lump sum indemnification
  which is the sum of 2% p.a. (in words: two per cent per annum) and the rate
  which would have been payable if such overdue amount had, during the period
  of non payment, constituted a Credit for successive periods of any duration
  as the Lenders (acting reasonably) through the Facility Agent may determine
  from time to time.

  
	
   

  	
   

  	
   

  
	
  9.6

  	
   

  	
  All payments owed by the Borrower as per Clauses 9.4 and 9.5 shall be
  made immediately upon the Facility Agent’s first demand except when under the
  applicable Russian currency regulations the Borrower is required to reserve a
  particular amount of payment at a special account prior to proceeding with a
  transfer of such amounts to the benefit of the Facility Agent. In the latter
  case the delay in payment shall not exceed the particular reservation period
  specified in the Russian currency regulations applicable to the Borrower.. 

  
	
   

  	
   

  	
   

  
	
  9.7

  	
   

  	
  If a due date on which a
  payment of the Borrower must have been received at the free disposal of the
  Facility Agent is not a Bank­ing Day, the next succeeding Banking Day shall
  be the due date, unless such Banking Day falls into a new calendar month in
  which event the due date shall be the preceding Banking Day. The obligations
  of the Borrower to pay interest and fees shall accrue accordingly.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Taxes, Levies, Duties and
  Other Costs

  
	
  10.1

  	
   

  	
  Definitions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

  	
  In this Credit Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

 

20

 

	
   

  	
   

  	
  b)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.2

  	
   

  	
  Tax Gross up

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  f)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  g)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.3

  	
   

  	
  Tax Indemnity

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

  	
  Paragraph (a) above shall
  not apply:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  with respect to any Tax
  assessed on a Lender:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (A)

  	
   

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

  

 

 

21

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (B)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  to the extent a loss,
  liability or cost:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (C)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (D)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

  	
  A Protected Party shall, on
  receiving a payment from the Borrower under this Clause 10.3, notify the
  Facility Agent.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.4

  	
   

  	
  Tax Credit

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  A Tax Credit is attributable
  to that Tax Payment; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  the Lender has obtained,
  utilised and retained that Tax Credit,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  the Lender shall (within
  three Business Days of demand by the Borrower) pay through the Facility Agent
  an amount to the Borrower which that Lender determines will leave the Lender
  (after that payment) in the same after-tax position as it would have been in
  had the Tax Payment not been made by the Borrower.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  However, if the relevant
  Lender should be obliged by any law, regulation or court or any other
  official decision to repay any Tax Credit obtained by such Lender and paid to
  the Borrower pursuant to the preceding paragraph, or if any such Tax Credit
  should otherwise be officially revoked, the Borrower shall promptly upon
  demand of such Lender and against reasonable evidence of such repayment
  obligation or revocation, as the case may be, refund the respective Lender
  through the Facility Agent of such amount.

  
	
   

  	
   

  	
   

  
	
  10.5

  	
   

  	
  Without prejudice to the
  Borrower’s obligations/the Lenders’ rights accord­ing to Clause 10.2 and
  10.3, in the event of withholding taxes being imposed in the Russian
  Federation on payments due under this Credit Agreement that are eligible for
  exemption and provided that the Borrower and/or the Lenders can claim such
  exemption with the result that they are released from any obligation to pay
  such taxes, the Borrower hereby undertakes to apply with the competent
  authorities in the Russian Federation to be exempted and released from such taxes
  and to provide the Facility Agent with a tax exemption certificate or any
  other evidence of such tax exemption, all in form and substance as reasonably
  may be required by the Lenders through the Facility Agent. In turn, in order
  to enjoy the benefits of an applicable convention on avoidance of double
  taxation each Lender undertakes to submit to the Borrower a certificate of
  its residence in the form and in the manner required by Russian Law, provided
  that any expenses incurred by a Lender in doing so shall be borne by the
  Borrower. The form of the certificate as well as its main items shall be
  advised by the Borrower to the Facility Agent reasonably in advance.

  
	
   

  	
   

  	
   

  
	
  10.6

  	
   

  	
  Without prejudice to the
  Lenders’ rights under this Credit Agreement, in particular under this

  

 

 

22

 

	
   

  	
   

  	
  Clause 10, the Borrower
  shall pay to, or reimburse the Lenders through the Facility Agent upon demand
  for (i) any stamp duties, registration fees and similar taxes and charges in
  connection with this Credit Agreement and (ii) all legal fees (including VAT)
  and out-of-pocket expenses incurred by the Lenders and/or the Facility Agent
  in connection with the negotiation, preparation, documentation and execution
  of this Credit Agreement provided that in relation to Credit A only all such
  fees and expenses shall not exceed USD 15,000.00 (plus VAT and disbursements,
  plus costs for required translation of any of the finance documents related
  to this Credit Agreement into the Russian language) and (iii) any costs,
  including lawyer’s fees and taxes arising thereon, in connection with the
  preservation and enforcement of the Lenders’ rights under this Credit
  Agreement.

  
	
   

  	
   

  	
   

  
	
  10.7

  	
   

  	
  Each Lender and the Facility
  Agent hereby undertake prior to the issuance of any invoice(s) to the
  Borrower to discuss the invoicing procedure with the Borrower in written
  correspondence and hereby further undertakes to provide the Borrower upon its
  request as soon  reasonably practicable
  with original invoice(s) and an original (updated) residency certificate
  (apostilled and together with a translation into Russian).

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Guarantee of the Federal
  Republic of Germany for tied Buyer’s Credits

  
	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  The Hermes Agent on behalf
  of the Lenders has applied for insurance cover of 95% of the Lenders’ claims
  arising from this Credit Agreement by the Federal Republic of Germany,
  represented by Hermes by means of an insurance agreement (the “Insurance
  Agreement”). Credit A will be made available on the basis of such Insurance
  Agreement and the terms and conditions governing it. In the event that
  additional insurance cover is provided by Hermes for the purposes of
  financing being made available for Credit B hereunder, then Credit B will be
  made available on the basis of such supplemental insurance (“Supplemental
  Insurance Agreement”) and the terms and conditions governing it.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Lenders are entitled to give
  informa­tion on the Credit Agreement and the transactions contemplated
  thereby to the competent authorities of the Federal Republic of Germany and
  the European Union and to allow such authorities perusal of all records that
  may be connected with this Credit Agreement and to furnish them with copies
  thereof.

  
	
   

  	
   

  	
   

  
	
  11.2

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  11.3

  	
   

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

  
	
   

  	
   

  	
   

  
	
  11.4

  	
   

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

  

 

23

 

	
   

  	
   

  	
  Insurance Premium (or as
  applicable the Additional Insurance Premium).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the aggregate amount
  reimbursed by the Borrower is more than the re­spective Insurance Premium (or
  if applicable, the Additional Insurance Premium), on the Interest Payment
  Date following the date on which the Lenders have received the excess amount
  from Hermes the Lenders through the Facility Agent will refund the excess
  amount to the Borrower. Payment of the excess amount to the Borrower as per
  the preceding sentence shall be made by the Lenders through the Facility
  Agent by application of the amounts thus to be refunded to the Borrower
  towards partial prepayment of the Credit disbursed and then still outstanding
  under this Credit Agreement. In order to achieve the purpose laid down in
  this paragraph on the due date thereof the excess amount to be paid to the
  Borrower shall — at the option of the Lenders either equally and
  proportionally or in the inverse order of maturities — be set off by the
  Lenders against repayment instalments then still outstanding under this
  Credit Agreement without any prior notice by the Lenders to the Borrower with
  regard thereto. The Lenders through the Facility Agent will inform the
  Borrower without delay of any such set-off.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the aggregate amount paid
  by the Borrower towards reimbursement against the respective Insurance
  Premium (or if applicable, the Additional Insurance Premium) was less than
  the Insurance Premium (or if applicable, the Additional Insurance Premium)
  payable by the Lenders, the Borrower undertakes upon request of the Facility
  Agent within 30 calendar days to pay to the Facility Agent the balance in
  favour of the Lenders.

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Suspension of Disbursement,
  Payments Immediately Due (Events of Default)

  
	
   

  	
   

  	
   

  
	
  12.1

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

  	
  any representation, warranty
  or statement in this Credit Agreement or any other document provided by the
  Borrower under the terms of this Credit Agreement  is or proves to be or to have been
  incorrect or untrue in any material respect at any time during the term of
  this Credit Agreement and in case that such incorrectness is capable of being
  remedied - whereas the determination of such capability shall be upon the
  sole but reasonable discretion of the Lenders - such incorrectness is not
  cured within 15 Banking Days after the Facility Agent has notified the
  Borrower in writing of such incorrectness;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

  	
  the Borrower shall fail to
  pay when due or within any applicable period of grace any indebtedness owed
  to any of the Lenders or to any other creditor, provided, however, that in
  relation to any such indebtedness owed by the Borrower to any creditor other
  than any of the Lenders (including any of their Affiliates) such failure by
  the Borrower shall not constitute an

  

 

 

24

 

	
   

  	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e)

  	
   

  	
  at any time it shall become
  unlawful for the Borrower (provided that such event, if capable of being
  cured in the reasonable opinions of the Lenders, is not cured within 30
  Business Days from the date it became unlawful) to perform any or all of its
  obligations under this Credit Agreement (including, without limitation, any
  governmental or other consent, licence or authorisation required to make this
  Credit Agreement legal, valid, binding and enforceable, or required at any
  time to enable the Borrower to perform its obligations under this Credit
  Agreement, ceasing to be in full force and effect);

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  f)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  g)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  h)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  provided, however, that in
  case of the occurrence of any of the events as stipulated in sub-clauses a),
  b), c) and d) of this Clause 12.1, for so long as such events are continuing
  the Lenders through the Facility Agent shall be entitled to suspend
  disbursements / reimbursements under this Credit Agree­ment prior to the
  expiry of the grace period for remedy of the relevant events of default.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.2

  	
   

  	
  Insofar as any statements
  made by the Facility Agent according to Clause 12.1 are sent by airmail (with
  a copy by fax), these state­ments shall be deemed to have been received not
  later than on the 

  

 

 

25

 

	
   

  	
   

  	
  10th Banking Day after their
  dispatch. If such statements are made by means of telecommunication, the day
  following their dispatch shall be deemed as the date of receipt.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Representations and Warranties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Borrower hereby
  represents and warrants to the Lenders that

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e)

  	
   

  	
  the execution, delivery and
  performance of this Credit Agreement will not violate any provisions of, and
  have duly and validly been authorised under, the laws, regulations, orders
  and decrees of the Russian Federation or any other competent Russian
  authority and all consents, licences, approvals, authorisations and
  instrumentalities of, and registrations and/or declarations with any
  authority within the Russian Federation required in connection with the valid
  execution, delivery, performance or enforceability of this Credit Agreement
  (including without limitation the obtaining and transfer in USD of all amounts
  due under this Credit Agreement) have been obtained and made and are in full
  force and effect;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  f)

  	
   

  	
  each action necessary under
  the statutes of the Borrower or under any other agreement or instrument
  binding on the Borrower to authorise the execution, delivery and/or
  performance of this Credit Agreement has been duly taken and the execution,
  delivery and performance of this Credit Agreement will not conflict with, or
  constitute a breach of the statutes of the Borrower or any such agreement or
  instrument binding upon the Borrower;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  g)

  	
   

  	
  the Borrower is not in
  default under any agreement or instrument constituting present or future
  payment obligations as debtor, surety or guarantor;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  h)

  	
   

  	
  other than the UMC
  Litigation no litigation, administration or insolvency proceedings are
  pending or, to the knowledge of the Borrower are threatened, which adversely
  determined, would reasonably be expected to have a material adverse effect on
  the assets or financial condition of the Borrower or on its right or ability
  to perform its obligations hereunder or would affect the legality, validity
  or enforceability of this Credit Agreement; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i)

  	
   

  	
  all its payment obligations
  in connection with this Credit Agreement rank at least pari passu in point of
  preference and security with all other unsecured and unsubordinated existing
  and future indebtedness owed to any creditor other than the Lenders, except
  for any preference being due to mandatory law.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Financial Statements,
  Information and Undertakings (Covenants)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a)

  	
   

  	
  furnish the Facility Agent
  within 6 months from the end of its financial year with audited annual
  financial statements (including profit and loss accounts and ex­planatory
  notes) prepared in accordance with US GAAP (US Generally Accepted Accounting
  Principles, Standards and Practices) and provide the Facility Agent with such
  additional financial

  

 

 

26

 

	
   

  	
   

  	
   

  	
   

  	
  information as the Facility
  Agent may from time to time reasonably request. In the event that completion
  and adoption of the financial statements should be delayed, the Borrower
  shall furnish the Facility Agent with provisional profit and loss account and
  balance sheet figures within 6 months after the end of its financial year;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b)

  	
   

  	
  inform the Facility Agent
  without delay of the occurrence of any of the events mentioned in Clause 12
  hereof and in the event any of the Representations and Warranties mentioned
  in Clause 13 hereof ceases to be true or correct in any material respect;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e)

  	
   

  	
  comply with all applicable
  laws, rules, regulations and orders including all environmental laws and all
  applicable restrictions imposed by all governmental authorities (including
  but not limited to the central bank of the Russian Federation) and do all
  such acts and things which are required thereunder, if failure so to comply
  will or in the reasonable opinion of the Lenders may, materially impair the
  ability of the Borrower to perform its obligations, whether in respect of any
  payment of principal, interest, fees, costs or expenses or otherwise, under
  this Credit Agreement in strict compliance with its terms;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  f)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  g)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  h)

  	
   

  	
  ensure that neither in a
  single transaction nor in a series of transactions, whether related or not,
  all or any substantial part of its assets are sold, transferred, granted or
  leased or otherwise disposed of unless such sale, transfer, grant, lease or
  disposal is:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iv)

  	
   

  	
  for cash or cash
  equivalents;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (v)

  	
   

  	
  where the book value of such
  asset (when aggregated with the book value of each other asset disposed of
  under this sub-clause (v)) (in each case as calculated in accordance with US
  GAAP) does not exceed 25% of the Borrower’s Total Assets in any financial
  year of the Borrower and provided that at all times the disposal of such
  assets will be made for full consideration and will not lead to any material
  adverse change which would fall within the scope of Clause 12.1 i). At

  

 

 

27

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  the request of the Facility
  Agent (any such request to be made no more than once per calendar quarter,
  unless an Event of Default is continuing), the Borrower shall provide a
  certificate to the Agent setting out in reasonable detail the book value of
  any assets disposed of under this sub-clause (v) (calculated in accordance
  with US GAAP); or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (vi)

  	
   

  	
  involving the transfer of
  any or all of the Borrower’s shares in UMC pursuant to the UMC Litigation to
  a person that is not the Borrower or any of its Subsidiaries.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i)

  	
   

  	
  do all such things as are
  necessary to maintain its corporate existence and ensure that it has the
  right and is duly qualified to conduct its business;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  j)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  “Permitted Lien” means:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  any lien on any property or
  assets of any person existing at the time such person is merged or
  consolidated with or into the Borrower and not created in contemplation of
  such event;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  any lien existing on any
  property or assets prior to the acquisition thereof by the Borrower and not
  created in contemplation of such acquisition;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

  	
  any lien on any property or
  assets securing indebtedness of the Borrower incurred or assumed for the
  purpose of financing all or part of the cost of acquiring or constructing or
  refurbishing any property or assets, provided that  the aggregate principal amount of all
  indebtedness secured by liens under this sub-Clause (iii) 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 or
  constructing or refurbishment;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iv)

  	
   

  	
  any netting or set-off
  arrangement entered into in the ordinary course of the Borrower’s banking
  arrangements for the purpose of netting debit and credit balances;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (v)

  	
   

  	
  any lien arising by
  operation of law either (a) in the ordinary course of business; or (b) in
  respect of 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 the Borrower securing inter-company indebtedness;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (vii)

  	
   

  	
  any extension, renewal or
  replacement of any lien described in sub-Clauses (i) to (vi) 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 indebtedness
  secured by such lien is not increased and (c) if the property, income or
  assets securing the indebtedness subject to such lien are changed in connection
  with such refinancing,

  
									

 

 

28

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  extension or replacement,
  the fair market value of the property, income or assets is not increased;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (viii)

  	
   

  	
  any other lien, pledge,
  mortgage or other type of encumbrance, provided that, immediately after
  giving effect to such lien, pledge, mortgage or other type of encumbrance the
  Borrower’s secured indebtedness in the aggregate do not exceed 10% of the
  book value of the aggregate amount of the Borrower’s total assets, determined
  by reference to its most recent quarterly or, as the case may be,
  audited  annual unconsolidated balance
  sheet;

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ix)

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  k)

  	
   

  	
  ensure that its payment
  obligations under this Credit Agreement rank at least pari passu with all its
  other present and future unsecured payment obligations.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Assignability

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.1

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.2

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.3

  	
   

  	
  Any Lender may also disclose
  to any person to whom it assigns or intends to assign its rights and
  obligations hereunder such information about the Borrower and the Credit
  Agreement, as such Lender shall consider necessary.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Statements and Notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.1

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Borrower:

  	
   

  	
  OJSC Mobile TeleSystems 

  
	
   

  	
   

  	
   

  	
   

  	
  4 Marksistskaya Street

  
	
   

  	
   

  	
   

  	
   

  	
  Moscow 109147

  
	
   

  	
   

  	
   

  	
   

  	
  Russian Federation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Telefax:

  
	
   

  	
   

  	
   

  	
   

  	
  +7 095 223-2168

  
	
   

  	
   

  	
   

  	
   

  	
  Attention of Ms. Marina V.
  Zabolotneva

  
	
   

  	
   

  	
   

  	
   

  	
  Head of Treasury Department

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facility Agent:

  	
   

  	
  ING Bank Deutschland AG

  
	
   

  	
   

  	
  (for and on behalf of

  	
   

  	
  Hahnstrasse 49

  
	
   

  	
   

  	
  the Lenders)

  	
   

  	
  Frankfurt am Main

  
	
   

  	
   

  	
   

  	
   

  	
  Federal Republic of Germany

  
									

 

 

29

 

	
   

  	
   

  	
   

  	
   

  	
  Telefax

  
	
   

  	
   

  	
   

  	
   

  	
  +49 69 75936 207

  
	
   

  	
   

  	
   

  	
   

  	
  Attention of: Mr. Michiel de
  Vries

  
	
   

  	
   

  	
   

  	
   

  	
  + 49 69 75936 521

  
	
   

  	
   

  	
   

  	
   

  	
  Head of Structured Export
  Finance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.2

  	
   

  	
  The Borrower shall provide
  the Facility Agent with specimen signatures in form and substance as per
  Annex 4 of those persons who are authorised to act on its behalf.

  
	
   

  	
   

  	
   

  
	
  16.3

  	
   

  	
  Any alteration in the above-mentioned companies’ names, addresses and
  power of representation shall be binding upon the other contracting party
  only upon receipt by such other party of written notification or documents
  evidencing such alteration.

  
	
   

  	
   

  	
   

  
	
  16.4

  	
   

  	
  All correspondence between
  the parties hereto shall be conducted and carried out in the English
  language. Should the wording of any document be in a language other than
  English such document  shall be
  accompanied by a translation certified to be true and accurate that is either
  authorised by the person who produced it or by a sworn translator.

  
	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Miscellaneous

  
	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  This Credit Agreement is
  independent from the Export Contracts and, as the case may be, the Additional
  Export Contract. Neither the Borrower nor the Lenders are allowed to raise
  and hereby each waives any defences or objections emanat­ing from the Export
  Contracts and, if appropriate the Additional Export Contract, and from its
  legal relationship with the Exporter. In particular, the Borrower’s
  obligation to repay the Credits as well as all other payment obligations
  under this Credit Agreement as well as the Lenders’ obligations to disburse
  the financing hereunder are independent from the legality, validity and
  enforceability of the Export Contracts and, as the case may be, the
  Additional Export Contract or from any non-performance, bad performance
  and/or default by the Exporter under the Export Contracts and, as the case
  may be, the Additional Export Contract.

  
	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  In satisfaction of the
  Lenders’ respective obligations under the Money Laundering Act, to record the
  economical beneficiary of borrowing hereunder, the Borrower hereby confirms
  that the borrowing of the Credits is made on its own behalf and for its own
  account.

  
	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Currency Indemnity

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In the event that for the
  purpose of obtaining judgement in any court of any country or enforcement of
  any judgement by the Lenders it becomes necessary to convert an amount of the
  currency due hereunder (the “Agreed Currency”), into an amount of another
  currency (the “Judgement Currency”), then the amount due hereunder, expressed
  in the Judgement Currency, shall be determined on the basis of the rate of
  exchange at which the Facility Agent for account of the Lenders is able to
  purchase the relevant amount of the Judgement Currency on the Banking Day
  immediately before the day on which the judgement is given or on such earlier
  date as may be required by the procedural law of the court in which the
  judgement is sought (the “Agreed Conversion Date”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

 

30

 

	
  19.

  	
   

  	
  Applicable Law, Place of
  Performance and Jurisdiction

  
	
   

  	
   

  	
   

  
	
  19.1

  	
   

  	
  This Credit Agreement, as
  well as all the rights and obli­gations arising there­from, shall be governed
  by and construed in accor­dance with the laws of the Federal Republic of
  Germany.

  
	
   

  	
   

  	
   

  
	
  19.2

  	
   

  	
  Save as otherwise stipulated
  herein, place of performance is Frankfurt am Main, Federal Republic of
  Germany.

  
	
   

  	
   

  	
   

  
	
  19.3

  	
   

  	
  Any legal action or
  proceeding with regard to this Credit Agreement shall be brought in the
  District Court (Landgericht) at Frankfurt am Main, Federal Republic of
  Germany, the Lenders reserving to themselves the right to bring any such
  legal action or proceeding in any other court of law having or accepting
  jurisdiction as the Lenders may elect.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Without prejudice to and
  notwithstanding the above, the parties agree that subject to the option in
  favour of the Lenders, any dispute controversy or claim arising out of this
  Credit Agreement or related to its fulfilment, breach, termination, or
  invalidity shall be settled by three arbitrators under the arbitration rules
  of the UNCITRAL (UNCITRAL Arbitration Rules 1976). The arbitrators shall be
  appointed in accordance with those rules and be qualified to practise as a
  judge in the Federal Republic of Germany. Place of arbitration shall be at
  Frankfurt am Main, Federal Republic of Germany. The parties herewith
  irrevocably express their consent to have the hearing conducted in the
  English language.

  
	
   

  	
   

  	
   

  
	
  19.4

  	
   

  	
  For any service which may
  become necessary in connection with proceedings before the courts at
  Frankfurt/Main, Federal Republic of Germany, the Borrower hereby undertakes
  to irrevocably designate, appoint and empower, such appointment to be in form
  and substance as per Annex 5 to this Credit Agreement, Smeets, Haas, Wolff,
  Partnerschaft von Rechtsanwälten, Eschersheimer Landstrae 121, D-60322 Frankfurt am Main, Federal Republic
  of Germany, as its agent for service of process (the “Agent for Service of
  Process”) authorised to receive, for and on behalf of itself, service of
  process.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In the event that the legal
  capacity of the Agent for Service of Process to act as provided in this
  Clause 19.4 should cease for any reason whatsoever, the Borrower hereby
  undertakes in consultation with the Facility Agent to forthwith (but in no
  event later than 10 Banking Days) designate, appoint and empower another
  person who is acceptable to the Lenders to act as the Borrower’s Agent for
  Service of Process. Failing this, the Facility Agent may appoint another
  Agent for the Service of Process for this purpose.

  
	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  General Provisions

  
	
   

  	
   

  	
   

  
	
  20.1

  	
   

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

  
	
   

  	
   

  	
   

  
	
  20.2

  	
   

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

  
	
   

  	
   

  	
   

  
	
  20.3

  	
   

  	
  This Agreement shall be
  executed in the English language. 

  

 

 

31

 

 

 

	
   

  	
   

  	
   

  	
   

  	
  OJSC Mobile TeleSystems

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Moscow, 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (place, date and stamp)

  	
   

  	
   

  	
   

  	
  (legally binding
  signature(s))

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  HSBC Bank plc

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  London,

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (place, date)

  	
   

  	
   

  	
   

  	
  (legally binding
  signature(s))

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ING Bank Deutschland AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frankfurt an Main

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (place, date) 

  	
   

  	
   

  	
   

  	
  (legally binding
  signature(s)) 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Munich,

  	
   

  	
   

  	
   

  	
  Bayerische Landesbank  

  	
   

  
	
  (place, date)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (legally binding
  signature(s))

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

32

Annex 1a

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

For the attention of: [                    ]

 

 

Certificate
for Reimbursement

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827*] (the “Credit Agreement”)

 

 

We hereby confirm to you that we have paid to the Exporter an amount of
USD                    
representing the last 85% of the total value of equipment delivered/license
products provided* by the Exporter under the Amended Export Contract / Export
Contract / Export Contracts / Additional Export Contract* during the period
from                            (date)
to                     
(date).

 

 

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

 

We confirm that the Representations and Warranties mentioned under
Clause 13 of the Credit Agreement are true and correct in all material respect
as of the date hereof.

 

 

	
   

  	
   

  
	
  (place)(date)

  

 

 

OJSC Mobile TeleSystems

 

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Borrower)

  

 

 

We, the undersigned, herewith confirm having
delivered/provided* the above captioned equipment/license products and having
received the above-mentioned amount(s). We also confirm having received the 15%
down payment associated with the above captioned deliveries/provisions of
license products..

	
   

  	
   

  
	
  (place)(date)

  

 

 

Alcatel SEL AG

 

 

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Exporter)

  

 

* Please delete as appropriate

 

 

33

 

Annex 1b

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

For the attention of: [                               ]

 

 

 

Certificate
for Disbursement

 

 

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827*](the “Credit Agreement”)

 

 

We hereby confirm to you that during the period from                     
(date) to                     
(date) we have delivered equipment/provided license products* under the Amended
Export Contract / Export Contract / Export Contracts / Additional Export
Contract* in the total value of USD                        
and we have presented to you documents in conformity with Clause 3.2.b) of the
Credit Agreement.

 

At present, the amount due to us under the Export Contracts / Additional
Export Contract* on the basis of the aforementioned deliveries/provisions of
license products amounts to 85% of the deliveries/provisions of license
products*.

 

We confirm having received the 15% down payment
associated with the aforementioned deliveries/provisions of license products*.

 

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

 

 

 

 

	
   

  	
   

  	
   

  	
   

  
	
  (place)

  	
   

  	
  (date)

  	
   

  

 

 

 

 

Alcatel SEL AG

 

 

 

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Exporter)

  

 

 

 

 

* Please delete as appropriate

 

 

34

 

Annex 1c

 

To

OJSC Mobile TeleSystems

4 Marksistskaya Street

Moscow 109147

Russian Federation

 

 

 

Certificate for Disbursement

for the Insurance Premium

 

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827*](the “Credit Agreement”)

 

 

 

Dear Sirs,

 

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

 

Please remit the aforementioned amount to [                                             ].
Reimbursement to you will be made pursuant to Clause 3.4 of the Credit
Agreement.

 

 

 

 

 

	
  Frankfurt
  am Main, 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ING Bank Deutschland AG

  	
   

  

 

 

 

 

 

*
Please delete as appropriate

 

 

35

 

Annex 1d

 

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

 

For the attention of: [                          ]

 

 

Certificate
for Reimbursement

in
case of application of the Special Payment Procedure

 

 

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827*](the “Credit Agreement”)

 

 

We hereby confirm to you that the Exporter made deliveries/provided
license products* under the Amended Export Contract / Export Contract / Export
Contracts / Additional Export Contract* during the period from                             
(date) to                               
(date) in the total amount of USD                     
and that we have instructed the Passport Bank to effect payment of USD                
to the Exporter representing the last 85% of the total value of such deliveries
made/license products provided*.

 

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

 

We confirm that the Representations and Warranties mentioned under
Clause 13 of the Credit Agreement are true and correct in all material respect
as of the date hereof.

 

	
   

  	
   

  
	
  (place)(date)

  

 

 

OJSC Mobile TeleSystems

 

 

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Borrower)

  

 

 

 

 

 

 

* Please delete as appropriate

 

 

36

 

Annex 1e

 

To

OJSC Mobile TeleSystems

4 Marksistskaya Street

Moscow 109147

Russian Federation

 

 

 

 

 

Certificate for Disbursement for the Insurance Premium

in case of application of the Special Payment Procedure

 

 

 

 

Credit Agreement dated 25
November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827*](the “Credit Agreement”)

 

 

 

 

Dear Sirs,

 

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

 

 

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

 

Please instruct the Passport
Bank to remit the aforementioned amount to us in accordance with the terms and
conditions of the certain disbursement agreement entered into between you, us
and the Passport Bank, and which provides for the Special Payment Procedure.
Reimbursement to you will be made pursuant to Clause 3.4 of the Credit
Agreement.

 

 

	
  Frankfurt
  am Main, 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ING Bank Deutschland AG

  	
   

  

 

 

 

 

 

* Please delete as appropriate

 

 

37

 

Annex 1f

 

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

 

For the attention of: [                               ]

 

 

Request
for a fixed interest rate

 

 

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827*] (the “Credit Agreement”)

 

 

We refer to Clause 5.2 (d) of the Credit Agreement. We hereby request
the Lenders to offer us a fixed interest rate for all amounts outstanding under
the Credit Agreement and for the remaining amount and lifetime of the Credits.

 

We confirm that the Representations and Warranties mentioned under
Clause 13 of the Credit Agreement are true and correct in all material respect
as of the date hereof.

 

 

 

 

	
   

  	
   

  
	
  (place)(date)

  

 

 

OJSC Mobile TeleSystems

 

 

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Borrower)

  

 

 

38

 

Annex 2

 

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

 

For the attention of: [                              ]

 

 

 

 

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

 

 

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827*]

 

 

We
hereby confirm to you that the Amended Export Contract between OJSC Mobile
TeleSystems in the Russian Federation and Alcatel SEL AG for USD 150,000,000
000 has come into force on                                 
and the Export Contract between OJSC Mobile TeleSystems in the Russian
Federation and Alcatel SEL AG for USD 70,000,000 has come into force on                           .
/ We hereby confirm to you that the Additional Export Contract for USD
18,700,000 which forms part of the Export Contract between OJSC Mobile
TeleSystems in the Russian Federation and Alcatel SEL AG came into force on                                .

 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (place)

  	
   

  	
  (date)

  	
   

  	
  (place)

  	
   

  	
  (date)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Alcatel
  SEL AG

  	
   

  	
   

  	
   

  	
  OJSC
  Mobile TeleSystems

  
	
   

  	
   

  	
   

  	
   

  	
  in
  the Russian Federation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (legally
  binding signature(s) of the Exporter)

  	
   

  	
  (legally
  binding signature(s) of the Borrower)

  
									

 

 

 

* Please delete as appropriate

 

 

39

 

Annex 3a

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

 

For the attention of: [                     ]

 

 

Confirmation
of Mean-weighted Date of Delivery of Equipment and License Products in relation
to the Export Contracts

 

 

 

Credit Agreement dated 25 November 2005 in the amount of USD
123,797,863.

 

 

We hereby confirm to you that in respect of the Export Contracts as
mentioned in the Preamble of the above-mentioned Credit Agreement the
mean-weighted date of delivery of equipment and license products and for
operation in relation to the several operation units (starting point) took
place on                             .

 

 

 

 

	
   

  	
   

  	
   

  	
   

  
	
  (place)

  	
   

  	
  (date)

  	
   

  

 

 

 

 

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Exporter)

  

 

 

40

 

Annex 3b

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

 

For the attention of: [                           ]

 

 

 

Confirmation
of Mean-weighted Date of Delivery of Equipment and License Products

in
relation to the Additional Export Contract

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
as increased by USD 17,311,827

 

 

We hereby confirm to you that in respect of the Additional Export
Contract as mentioned in the Preamble of the above-mentioned Credit Agreement
the mean-weighted date of delivery of equipment and license products in
relation to the additional operation units (starting point) took place on                        .

 

 

 

 

	
   

  	
   

  	
   

  	
   

  
	
  (place)

  	
   

  	
  (date)

  	
   

  

 

 

 

 

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Exporter)

  

 

 

41

 

Annex 4

 

 

 

ING Bank Deutschland AG

Hahnstrasse 49

Frankfurt am Main

Federal Republic of Germany

 

 

For the attention of: [                          ]

 

 

 

Specimen Signature List

 

 

 

 

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
[as increased by USD 17,311,827.*]

 

 

 

Dear Sirs,

 

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

 

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

 

 

42

 

A. Persons (if any) authorised to sign singly:

 

	
  Person

  	
   

  	
  First Name

  	
   

  	
  Surname

  	
   

  	
  Position

  	
   

  	
  Date of Birth

  	
   

  	
  Place of Birth

  	
   

  	
  Nationality

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Person

  	
   

  	
  Address

  	
   

  	
  Sort
  and Number

  of Identity Card

  	
   

  	
  Identity
  Card

  Issuing Authority

  	
   

  	
  Specimen
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B. Persons authorised to sign jointly with any
person from Group A or B:

 

	
  Person

  	
   

  	
  First Name

  	
   

  	
  Surname

  	
   

  	
  Position

  	
   

  	
  Date of Birth

  	
   

  	
  Place of Birth

  	
   

  	
  Nationality

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Person

  	
   

  	
  Address

  	
   

  	
  Sort and Number

  of Identity Card

  	
   

  	
  Identity Card

  Issuing Authority

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

43

 

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

 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (place)

  	
   

  	
  (date)

  	
  (legally
  binding signature of

  
	
   

  	
   

  	
   

  	
  )

  	
   

  
						

 

 

 

 

I/We,                              
(ING Bank Eurasia ZAO), hereby certify the authenticity of the above signature
of                        .

 

 

	
   

  	
   

  	
   

  	
   

  	
  (
  ING Bank Eurasia ZAO)

  	
   

  
	
  (place)

  	
   

  	
  (date)

  	
   

  

 

 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (legally
  binding signature(s), with name(s) and
  position(s))

  

 

 

44

 

Annex 5

 

[on the letterhead of the Borrower]

 

Smeets, Haas, Wolff

Partnerschaft von Rechtsanwälten

Eschersheimer Landstraβe 121

D-60322 Frankfurt am Main

Federal Republic of Germany

 

Credit Agreement dated 25 November 2005 in the amount of USD 123,797,863
(the “Credit Agreement”)

 

Dear Sirs,

 

On 25 November 2005 OJSC Mobile TeleSystems, 4
Marksistskaya Street, Moscow 109147

Russian Federation entered into a Credit
Agreement with HSBC Bank plc, 8 Canada Square, London E14 5HQ, United Kingdom,
ING Bank Deutschland AG, Hahnstrasse 49, Frankfurt am Main, Federal Republic of
Germany and Bayerische Landesbank, Department 6422, Brienner Strasse 18,
D-80333 München , Federal Republic of Germany. The provisions of the Credit
Agreement provide for that we shall appoint an agent of process for the purpose
of accepting service of process in the Federal Republic of Germany. We hereby
appoint you as our authorised agent of process for that purpose, limited solely
to service of process in connection with actions which might arise under the
Credit Agreement. We hereby irrevocably authorise you to accept all services of
process in connection with those actions in our name and to receive all
correspondence, documents and declarations related thereto until 25 November
2015 (“Termination Date”). You have agreed a compensation of € 5,000.00 (Euro
five thousand) plus VAT, if any, for the period until the Termination Date.

 

Upon receipt of any process served on you or of
any correspondence, document and declaration related thereto, you are hereby instructed
to notify us at the above mentioned address unless we notify you in writing of
another address. If it is deemed necessary by you to do so in the best of our
interest, you are hereby authorised to notify us in your discretion by telex,
telefax or telephone of the contents of the process served on you and of
correspondence, documents or declarations received by you. Once each such
notice has been made, you have fulfilled your obligations under this agreement.

 

Your liability as our authorised agent of
process will be restricted to cases of wilful misconduct and gross negligence.
The relationship between you and our company is governed by the laws of the
Federal Republic of Germany. Your liability as our authorised agent of process
is limited to € 1,000,000.00 (Euro one million) except for cases of wilful
misconduct and gross negligence. Sec. 254 German Civil Code applies.

 

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

 

 

Yours sincerely,

 

	
   

  	
   

  
	
  (legally
  binding signature(s) of the Borrower)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Smeets,
  Haas, Wolff

  	
   

  
	
   

  
	
   

  	
   

  
	
  (legally
  binding signature(s)Exihibit
4.51

EXECUTION
COPY

CREDIT AGREEMENT

Dated 14 December 2005

between

OJSC Mobile TeleSystems, Russian Federation

as Borrower

and

Citibank, N.A.

ING Bank N.V.

as Mandated Lead
Arrangers

Citibank International plc

ING Bank N.V.

as Lenders

and

ING Bank N.V.

as Facility Agent

and

Citibank
International plc.

as EKN Agent

 1
 

 

 

Table
of Contents

Preamble

Clause

	
  1.

  	
  Definitions
  and Interpretations

  	
  5

  
	
  2.

  	
  Amount and Purpose of the Credits

  	
  8

  
	
  3.

  	
  Disbursements / Reimbursements

  	
  11

  
	
  4.

  	
  Conditions Precedent to Disbursements /
  Reimbursements

  	
  13

  
	
  5.

  	
  Interest Periods,
  Interest, Increased Costs

  	
  15

  
	
  6.

  	
  Fees

  	
  18

  
	
  7.

  	
  Calculation of
  Periods

  	
  18

  
	
  8.

  	
  Repayment and
  Prepayment

  	
  18

  
	
  9.

  	
  Payments

  	
  19

  
	
  10.

  	
  Taxes, Levies, Duties
  and Other Costs

  	
  20

  
	
  11.

  	
  Guarantee of
  Exportkreditnamnden for tied Buyer’s Credits

  	
  23

  
	
  12.

  	
  Suspension of
  Disbursement, Payments Immediately Due (Events of Default)

  	
  24

  
	
  13.

  	
  Representations and
  Warranties

  	
  26

  
	
  14.

  	
  Financial
  Statements, Information and Undertakings (Covenants)

  	
  27

  
	
  15.

  	
  Assignability

  	
  29

  
	
  16.

  	
  Statements and Notices

  	
  30

  
	
  17.

  	
  Miscellaneous

  	
  30

  
	
  18.

  	
  Currency Indemnity

  	
  31

  
	
  19.

  	
  Applicable Law and
  Jurisdiction

  	
  31

  
	
  20.

  	
  General Provisions

  	
  32

  

 

 2
 

 

Annexes
to the Credit Agreement

 

	
  1a – 1f

  	
  Certificates
  for Disbursement and Reimbursement and Request for a fixed interest rate

  
	
  2a – 2b

  	
  Confirmation of Mean Delivery of Equipment
  and Software in relation to the Export Contracts / in relation to the
  Additional Export Contract

   

  
	
  3

  	
  Specimen Signature List of the Borrower

  

 

 3
 

 

This Agreement is made by and between:

OJSC Mobile TeleSystems, Moscow, Russian
Federation (the “Borrower”)

And

Citibank, N.A., 33 Canada Square, Canary
Wharf, London E14 5LB

and

ING Bank N.V., Bijlmerplein 888, 1102 MG
Amsterdam, The Netherlands

(each a “Mandated Lead Arranger” and together
the “Mandated Lead Arrangers”)

Citibank International plc,  33 Canada Square, Canary Wharf, London E14
5LB

and

ING Bank N.V., Bijlmerplein 888, 1102 MG
Amsterdam, The Netherlands

(each a “Lender” and together the “Lenders”)

 

and

ING Bank N.V., Bijlmerplein 888, 1102 MG
Amsterdam, The Netherlands as Facility Agent (“the Facility Agent”)

and

Citibank International plc Citigroup Centre,
33 Canada Square, Canary Wharf, London E14 5LB as EKN Agent (the “EKN Agent”).

Preamble

	
  A.    

  	
  On 20 December 2004 the Borrower
  concluded an amendment to the supply contract number FCP 1035153 dated 15 July 2004
  and on 31 March 2005 the Borrower concluded a supply contract number FCP
  1035458 (together the “Export Contracts”) with Ericsson AB, 164 80, Stockholm,
  Sweden (the “Exporter”) for the delivery of telecommunication equipment. 

  
	
   

  	
   

  
	
  B.    

  	
  The total contract value of the deliveries
  that may be made under the Export Contracts amounts to USD 143,012,522 (the “Total
  Contract Value”).

  
	
   

  	
   

  
	
  C.    

  	
  According to the Export Contracts the
  deliveries were/shall be made through the placement of individual purchase
  orders issued between 07 December 2004 and 30 September 2006.
  Installation and commissioning work was/will be carried out by Ericsson
  Corporatia AO, Moscow, Russian Federation, and is not subject of financing
  hereunder.

  

 4
 

 

 

	
  D.    

  	
  The value of the orders expected to be made
  by the Borrower under the Export Contracts until 30 September 2006 or
  such later date as may be agreed between the Borrower and the Exporter
  amounts to USD 143,012,522 and is to be paid, according to the terms of the
  Export Contracts, as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
  (1)

  (2)

  	
  15% down payments

  85% of the value of each delivery or service
  (the “Partial Contract Value”)

  pro rata to deliveries made within 30 days
  of such deliveries/services. 

  
	
   

  	
   

  
	
  E.

  	
  The Borrower and the Exporter may also agree
  to enter into a further contract for the supply of additional
  telecommunications equipment or to make additional orders under the Export
  Contracts (in either case the “Additional Export Contract”) up to the Total
  Additional Contract Value, the financing terms of which may provide for
  additional payments partially being made under the terms of this Credit
  Agreement. 

  
	
   

  	
   

  
	
  F.

  	
  The total additional contract value of
  further deliveries to be made under the Additional Export Contract (if such
  Additional Export Contract is agreed) is expected to amount up to USD
  40,000,000 (the “Total Additional Contract Value”).

  
	
   

  	
   

  
	
  G.

  	
  The terms of the Additional Export Contract
  (if agreed) are expected to enable deliveries to be made through a series of
  purchase orders beginning 01 November 2005.

  
	
   

  	
   

  
	
  H.

  	
  The Total Additional Contract Value (if the
  Additional Export Contract is agreed) is expected to  consist of 15% down payments and a portion
  of 85% as partial additional contract value (the “Partial Additional Contract
  Value”) to be financed hereunder at the option of the Borrower, subject to
  the agreement of EKN (as defined below) and the Lenders. 

  

 

This being premised, it is hereby agreed as
follows:

1.                             Definitions and
Interpretations

	
  Additional Export Contract

  	
  means an additional contract which may be
  entered into between the Borrower and the Exporter or additional deliveries
  or services rendered under the Export Contracts as defined in Article E
  of the Preamble

  
	
   

  	
   

  
	
  Additional Insurance
  Premium

  	
  means the premium as
  defined in Clause 11.3

  
	
   

  	
   

  
	
  Additional Repayment
  Date

  	
  means the date(s) as
  defined in Clause 5.1 d)

  
	
   

  	
   

  
	
  Affiliate

   

  	
  means, in relation to any person a
  Subsidiary of that person, or a Holding Company of that person, or any other
  Subsidiary of that Holding Company 

  
	
   

  	
   

  
	
  Agent for Service of
  Process

  	
  means the person or entity as defined in
  Clause 19.4

  
	
   

  	
   

  
	
  Agreed Currency

  	
  means the currency as defined
  in Clause 18

  
	
   

  	
   

  
	
  Availability Period

  	
  Means the period
  commencing on the date of this Agreement and ending on the date ten months
  thereafter

  
	
   

  	
   

  
	
  Banking Day

  	
  means a day (other than Saturday or Sunday)
  on which banks are generally open for business in New York, London, Amsterdam
  and Moscow

  

 5
 

 

 

	
  Borrower

  	
  means OJSC Mobile TeleSystems, 4
  Marksistskaya Street, Moscow 109147, Russian Federation

  Payment
  details: foreign currency account No. 40702840500001001817 with ING Bank
  (Eurasia) ZAO, 36, Krasnoproletarskaya Ulitsa, Moscow, 127473, Russian
  Federation, SWIFT code INGBRUMM.

  
	
   

  	
   

  
	
  Credit A

  	
  means the principal amount as specified in
  Clause 2.1 already disbursed and/or still to be disbursed as the context
  requires and shall include each of Tranche 1 and Tranche 2

  
	
   

  	
   

  
	
  Credit B

  	
  means the principal amount as specified in
  Clause 2.1 already disbursed and/or still to be disbursed as the context
  requires and shall include each of Tranche 3 and Tranche 4

  
	
   

  	
   

  
	
  Credit or Credits

  	
  means the aggregate principal amount as
  specified in Clause 2.1 already disbursed and/or still to be disbursed as the
  context requires and “Credits” shall include Credit A and Credit B  

  
	
   

  	
   

  
	
  Credit Agreement

  	
  means this agreement

  
	
   

  	
   

  
	
  Export Contracts

  	
  means the contracts between the Borrower and
  the Exporter defined in Article A of the Preamble

  
	
   

  	
   

  
	
  EKN

  	
  Exportkreditnamnden,
  the Swedish Export Credits Guarantee Board, Sweden

  
	
   

  	
   

  
	
  EKN Starting Point

  	
  Means the mean delivery
  date under the Export Contracts being August 31st, 2005, or the Additional
  Export Contract, as applicable, or such other date as may be approved by EKN.

  
	
   

  	
   

  
	
  Exporter

  	
  means Ericsson AB, 164 80
  Stockholm, Sweden

  
	
   

  	
   

  
	
  Facility Agent

  	
  means ING Bank N.V.,
  Bijlmerplein 888, 1102 MG Amsterdam, The Netherlands

  
	
   

  	
   

  
	
  Holding Company

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

  
	
   

  	
   

  
	
  Insurance Agreement

  	
  means the agreement as per
  Clause 11.1

  
	
   

  	
   

  
	
  Insurance Premium

  	
  means the premium as
  defined in Clause 11.2

  
	
   

  	
   

  
	
  Interest Payment Date

  	
  means the date as defined
  in Clause 5.2.e)

  
	
   

  	
   

  
	
  Interest
  Period(s)

  	
  means the period(s) as
  defined in Clause 5.1

  
	
   

  	
   

  
	
  Judgement
  Currency

  	
  means the currency as
  defined in Clause 18

  
	
   

  	
   

  
	
  Lender(s)

  	
  ING Bank N.V., Bijlmerplein 888, 1102 MG
  Amsterdam, The Netherlands

  Payment details: SWIFT CHASUS33, account number 001.1.643293 held with
  JPMorgan Chase, New York, for further credit to INGBNL2A 

  

 6
 

 

 

	
  

  	
  quoting ref. SF&AS/HE03.01/MTS-Ericsson

  and

  Citibank International plc,  33 Canada Square, Canary Wharf, London E14
  5LB, United Kingdom

  Payment
  details: SWIFT CITIUS33, Citibank, N.A., New York, for further credit to
  Citibank International plc, SWIFT CITTGB2L, account number 10963054, Attn UK
  loans dept, quoting ref: MTS-Ericsson  

  
	
   

  	
   

  
	
  LIBOR

  	
  means the interest rate as defined in Clause
  5.2.a)

  
	
   

  	
   

  
	
  Margin

  	
  means the margin as defined in Clause 5.2.a)

  
	
   

  	
   

  
	
  Partial Contract Value

  	
  means the part of the value of the
  deliveries made or services rendered as defined in Article D of the
  Preamble

  
	
   

  	
   

  
	
  Partial Additional Contract
  Value

  	
  means the part of the value of the
  deliveries made or services rendered as defined in Article H of the
  Preamble

  
	
   

  	
   

  
	
  Reference Banks

   

  	
  means the London offices of ING Bank N.V.
  and Citibank, N.A.

  
	
   

  	
   

  
	
  Repayment Date(s)

  	
  means the date(s) as defined in Clause
  5.1.d)

  
	
   

  	
   

  
	
  Passport Bank

  	
  means ING Bank (Eurasia) ZAO, 36, Krasnoproletarskaya
  Ulitsa, Moscow 127473, Russian Federation or such other bank as
  approved by the Facility Agent

  
	
   

  	
   

  
	
  Special Payment Procedure

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

  
	
   

  	
   

  
	
  Subsidiary

  	
  means an entity from time to time of which a
  person has direct or indirect control or owns directly or indirectly more
  than 50% of the share capital or similar right of ownership

  
	
   

  	
   

  
	
  Supplemental Insurance Agreement

  	
  means the supplemental agreement as per
  Clause 11.1

  
	
   

  	
   

  
	
  Total Assets

  	
  means the book value of the consolidated
  total assets of the Borrower as determined by reference to the Borrower’s
  most recent annual consolidated balance sheet delivered in accordance with
  Clause 14 a) 

  
	
   

  	
   

  
	
  Total Contract Value

  	
  means the aggregate price agreed upon in the
  Export Contracts for deliveries made and services rendered thereunder as
  defined in Article B of the Preamble

  
	
   

  	
   

  
	
  Total Additional
  Contract Value

  	
  means the aggregate price agreed upon in the
  Additional Ex­port Contract for deliveries to be made and services to be
  rendered thereunder as defined in Article F of the Preamble

  
	
   

  	
   

  
	
  Tranche 1

  	
  means the part of Credit A as defined in
  Clause 2.2.a) hereof

  

 7
 

 

 

	
  Tranche 2

  	
  means the part of Credit A as defined in
  Clause 2.2.b) hereof

  
	
   

  	
   

  
	
  Tranche 3

  	
  means the part of Credit B as defined in Clause
  2.2.c) hereof

  
	
   

  	
   

  
	
  Tranche 4

  	
  means the part of Credit B as defined in
  Clause 2.2.d) hereof

  
	
   

  	
   

  
	
  Tranches

   

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

  
	
   

  	
   

  
	
  UMC

   

  	
  Means Closed Joint Stock Company “Ukrainian
  Mobile Communications”, 15 Leiptsyzka Street, Kyiv, Ukraine

  
	
   

  	
   

  
	
  UMC Litigation

  	
  means any of the claims, proceedings
  (present of future) and causes of action involving the Borrower, and/or any
  Affiliate thereof (including UMC) relating to or arising out of the sale of
  UMC to the Borrower, or the acquisition, reorganization or ownership of UMC
  by the Borrower.

  
	
   

  	
   

  
	
   

  	
   

  
	
  USD

  	
  means the lawful currency of the United
  States of America

  
	
   

  	
   

  

2.                             Amount and Purpose of
the Credits

	
  2.1   

  	
  The Lenders grant to the Borrower a credit
  in an aggregate amount of up to: 

  
	
   

  	
  USD
  130,752,548

  (in
  words: United States Dollars one hundred and thirty million seven hundred and
  fifty two thousand five hundred and forty eight)

  (“Credit
  A”)

   

  
	
   

  	
   

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

  
	
   

  	
   

  USD
  36,570,937

  (in
  words: United States Dollars thirty six million, five hundred and seventy
  thousand, nine hundred and thirty seven)

  (“Credit
  B”)

   

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

   

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

   

  

 8
 

 

 

	
  2.2   

  	
  Credits shall consist of: 

  
	
   

  	
   

  
	
   

  	
  a)        Tranche
  1 in an amount of USD 121,560,644 (in words: United States Dollars one
  hundred and twenty one million five hundred and sixty thousand six hundred
  and forty four) which shall be available for the financing of the Partial
  Contract Value either (i) still due and payable to the Exporter
  resulting from deliveries made/services rendered under the Export Contracts,
  or (ii) payable to the Borrower resulting from deliveries made /
  services rendered under the Export Contracts for which payment has been made,
  directly by the Borrower to the Exporter; and

  b)       Tranche
  2 in an amount of USD9,191,904 (in words: United States Dollars nine million
  one hundred and ninety one thousand nine hundred and four) which shall be
  available for the financing of up to 100% of the Insurance Premium for cover
  of the Lenders’ payment claims under the Insurance Agreement as per Clause
  11.1 paid or payable by the Lenders through the Facility Agent to EKN; and if
  so applicable

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

  d)       Tranche 4 in an amount of up to USD
  2,570,937 (in words: United States Dollars two million five hundred and
  seventy thousand nine hundred and thirty seven) which shall be available for
  the financing of up to 100% of the Additional Insurance Premium for cover of
  the Lenders’ payment claims under the Supplemental Insurance Agreement as per
  Clause 11.1 paid or payable by the Lenders through the Facility Agent to EKN;

  
	
   

  	
   

  
	
   

  	
  unless otherwise stipulated hereinafter, any
  reference in this Credit Agreement to the Credit shall include the Tranches
  applicable to that Credit, and to Credits or to credit amounts or to any
  other similar term shall include the Tranches. 

  

 9
 

 

 

	
  2.3

  	
  The amounts borrowed under this Credit
  Agreement are exclusively available (i) provided that payment of the
  Partial Contract Value for deliveries made/services rendered has been
  effected by the Borrower to the Exporter prior to fulfilment of all
  conditions precedent to disbursements / reimbursements under Clause 4 of this
  Credit Agreement or waiver thereof by the Lenders by means of payment from
  sources other than this Credit Agreement, for reimbursement thereof to the
  Borrower; (ii) with effect from the date of fulfilment of all conditions
  precedent to disbursements / reimbursements under this Credit Agreement or
  waiver thereof by the Lenders, for reimbursement to the Borrower in the
  amount of the Partial Contract Value resulting from deliveries made/services
  rendered under the Export Contracts for which payment  has been made directly by the Borrower to
  the Exporter; (iii) with effect from the date of fulfilment of all
  conditions precedent to disbursements / reimbursements under this Credit
  Agreement or waiver thereof by the Lenders, for the payment of sums due to
  the Exporter in the amount of the Partial Contract Value resulting from
  deliveries made/services rendered under the Export Contracts; (iv) for
  reimbursement to the Borrower of up to 100% of the Insurance Premium paid by
  the Borrower to the Lenders through the Facility Agent and the EKN Agent to
  EKN; (v) in respect of the additional financing of Credit B if so
  required by the Borrower, and subject to the agreement of EKN and the
  Lenders, for reimbursement to the Borrower in the amount of the Partial
  Additional Contract Value resulting from further deliveries made/services
  rendered under the Additional Export Contract for which payment has been made
  directly by the Borrower to the Exporter; (vi) in respect of the
  optional financing of Credit B if so required by the Borrower, and subject to
  the agreement of EKN and the Lenders, for the payment of sums due to the
  Exporter in the amount of the Partial Additional Contract Value resulting
  from deliveries made/services rendered under the Additional Export Contract;
  and (vii) in respect of the additional financing of Credit B if so
  required by the Borrower, and subject to the agreement of EKN and the
  Lenders, for reimbursement to the Borrower of up to 100% of the Additional
  Insurance Premium paid by the Borrower to the Lenders through the Facility
  Agent.

  

 10
 

 

 

	
  2.4   

  	
  Upon and subject to the terms and conditions
  of this Credit Agreement each of the Lenders shall participate in each
  disbursement or reimbursement of the Credits in the proportion of its maximum
  liability mentioned in this Clause 2.4 as percentage of the maximum credit
  amounts mentioned in Clause 2.1 hereof.

   

  
	
   

  	
   

  	
   

  
	
   

  	
  ING Bank N.V.

  	
  Credit A

  
	
   

  	
  Bijlmerplein 888

  	
  50%, max. USD 65,376,274

  
	
   

  	
  1102 MG Amsterdam

  	
  (in words: United States Dollars sixty five million
  three hundred and seventy six thousand two hundred and seventy four)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit B (optional financing)

  
	
   

  	
   

  	
  50%, up to max. USD 18,285,468.50

  
	
   

  	
   

  	
  (in words: United States Dollars eighteen million,
  two hundred and eighty five thousand, four hundred and sixty eight point
  fifty)

  
	
   

  	
   

  	
   

  
	
   

  	
  Citibank International plc

  	
  Credit A

  
	
   

  	
  33 Canada Square

  	
  50%, max. USD 65,376,274

  
	
   

  	
  Canary Wharf , London, E14 5LB

  	
  (in words: United States Dollars sixty five million
  three hundred and seventy six thousand two hundred and seventy four)

  
	
   

  	
   

  	
   

  
	
  2.5

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

   

  

3.                             Disbursements
/ Reimbursements

	
  3.1   

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

  The Borrower hereby irrevocably agrees that
  - under Clause 3.2.b) below - only the Exporter shall have the exclusive
  right to request payments under Tranche 1 (and if applicable, Tranche 3) and
  that such direct payments to the Exporter will constitute disbursements of
  Tranche 1 (and if applicable, Tranche 3) to the Borrower under this Credit
  Agreement.

  
	
   

  	
   

  
	
  3.2   

  	
  a)        In
  the event that prior to or after fulfilment of the conditions precedent to
  disbursements / reimbursements under the Credit Agreement or the waiver
  thereof by the Facility Agent acting on behalf of the Lenders, payments are
  made by the Borrower to the Exporter in the amount or amounts of the
  respective Partial Contract Value (or Partial Additional Contract 

  

 11
 

 

 

	
  

  	
             Value)
  out of funds other than out of this Credit Agreement in and towards
  satisfaction and fulfilment of sums due to the Exporter resulting from the
  Export Contracts, then reimbursements under Tranche 1 (and if applicable,
  Tranche 3) will be made by the Lenders through the Facility Agent against
  presentation by the Borrower to the Facility Agent of a certificate as per
  Annex 1a or 1d hereto in an amount or amounts equal to the aggregate
  principal amount or amounts of such payments in the maximum amount of the
  respective Partial Contract Value (or Partial Additional Contract Value) to
  the Borrower to such account as specified by the Borrower to the Facility
  Agent.

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

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

  

  In case of equipment deliveries

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

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

  In case of licenses

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

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

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

   

  
	
  3.3    

  	
  Disbursements / reimbursements under Tranche
  1 (and if applicable, Tranche 3) as per Clause 3.2 shall be made in minimum
  amounts of USD 1,000,000.00 provided, however, that, in the event that 85% of
  the value of any documents presented to the Facility Agent during a calendar
  month for disbursements under Tranche 1 (and if applicable, Tranche 3) or the
  amount mentioned in a reimbursement certificate as per Annex 1a or 1d, as the
  case may be, is less than the aforementioned minimum amount, disbursements or
  reimbursements under Tranche 1 (and if applicable, Tranche 3) will be made at
  the end of the relevant calendar month in one amount equal to 85% of the
  aggregate value of all documents or equal to the aggregate value of all
  certificates, as 

  

 12
 

 

 

	
  

  	
  the case may be, received by the Lenders
  during that month in relation to which disbursement or reimbursement under
  Tranche 1 (and if applicable, Tranche 3) has not previously been made.

  
	
   

  	
   

  
	
  3.4   

  	
  Disbursement under Tranche 2 (and if
  applicable, Tranche 4) for the financing of up to 100% of the Insurance
  Premium (or as the case may be, the Additional Insurance Premium) shall in
  either event,  whether the Insurance
  Premium has become due and payable prior to or after the fulfilment of all
  conditions precedent to disbursements / reimbursements under this Credit
  Agreement or the waiver thereof by the Facility Agent, acting on behalf of
  the Lenders, and provided that the Borrower has paid the total amount of the
  Insurance Premium (or the Additional Insurance Premium) to the Facility Agent
  as per Clause 11.2 hereof, be made without any request or action by the
  Borrower upon fulfilment of the conditions precedent to disbursements /
  reimbursements or waiver thereof by the Lenders through the Facility Agent to
  the Borrower to such account as will be specified by the Borrower to the
  Facility Agent. 

  
	
   

  	
   

  
	
  3.5

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

   

  
	
   

  	
   

  
	
  3.6

  	
  The Borrower may - in case of disbursements
  according to Clause 3.2.b) - only waive disbursement of the Credits, in full
  or in part, with the prior written consent of the Lenders and the Exporter.

   

  

4.                             Conditions Precedent
to Disbursements / Reimbursements

	
  4.1

  	
  In relation
  to Credit A

  The first disbursement or reimbursement
  under Credit A of this Credit Agreement shall be conditional upon the
  Facility Agent having received the following documents free of expense in
  form and substance satisfactory to the Lenders:

  

 13
 

 

 

	
  

  	
  a)        an
  English legal opinion and a Russian legal opinion to be issued by Freshfields
  Bruckhaus Deringer, Moscow, Russian Federation;

  b)       a legal opinion by Wistrand, Stockholm,
  Sweden

  c)        a written confirmation in accordance
  with Annex 2 hereof certifying that the Export Contracts have come into
  force;

  d)       a specimen signatures list as per Annex
  3 hereof with the specimen signatures of such persons authorised by the
  Borrower to act on its behalf in connection with this Credit Agreement;

  e)        a copy of the executed Export
  Contracts;

  f)        a certificate as per Annex 1a, 1b, 1c,
  1d or 1e , as the case may be;

  g)       confirmation
  issued by the Passport Bank certifying its appointment by the Borrower as
  Passport Bank;

  h)       evidence that the down payment referred
  to in Article D of the Preamble has been made to the Exporter by the
  Borrower; and

  i)         such other certificates and
  documentation and other evidence reasonably requested by the Lenders in order
  for them to carry out and be satisfied with the results of all necessary “know
  your customer” or similar requirements, including those reasonably required
  to ensure compliance with money laundering procedures in their relevant
  jurisdictions.

  
	
   

  	
   

  
	
   

  	
  In relation to
  Credit B (if applicable)

  The first disbursement or reimbursement
  under Credit B of this Credit Agreement shall be conditional upon the
  Facility Agent having received the following documents free of expense in
  form and substance satisfactory to the Lenders:

  a)        a written confirmation issued by
  Freshfields Bruckhaus Deringer, Moscow, as Lenders’ counsel confirming that
  the original legal opinion rendered under Clause 4.1.a) above is applicable
  mutatis mutandis to this Credit Agreement as increased by Credit B, such
  confirmation stating inter alia that all necessary permits, authorisations
  and registrations in the Russian Federation have been obtained;

  b)       a written confirmation issued by Wistrand,
  Stockholm, as Lenders’ counsel confirming that the original legal opinion
  rendered under Clause 4.1.b) above is applicable mutatis mutandis to this
  Credit Agreement as increased by Credit B;

  c)        a
  copy of the executed Additional Export Contract;

  d)       a
  written confirmation in accordance with Annex 2 hereof certifying that the
  Additional Export   Contract has come
  into force; and

  e)        an
  undertaking by the Exporter in favour of the Lenders with regard to certain
  risks and obligations not covered by the Supplemental Insurance Agreement as
  per Clause 11.1 hereof.

  
	
   

  	
   

  
	
  4.2

  	
  Furthermore, the first disbursement or
  reimbursement under Credit A or, if applicable Credit B, is conditional upon
  receipt by the Lenders of the following payments:

  

 14
 

 

 

	
  

  	
  a) payment of the fee as per Clause 6.2 hereof in
  the case of Credit A and, payment of 
  additional fees pursuant to Clause 6.4 hereof in the case of Credit B;
  and

  b) payment of 100% of the Insurance Premium
  and, as the case may be, 100% of the Additional Insurance Premium.

  
	
   

  	
   

  
	
  4.3

  	
  Moreover, the
  first disbursement under this Credit Agreement by way of direct disbursement
  to the Exporter as per Clause 3.2.b) is subject to such disbursement
  procedure being in full and strict compliance with the Russian laws (in
  particular but not limited to the Law on Currency Regulation and Currency
  Control dated 10 December 2003); such compliance to be evidenced to the
  Lenders in form and substance satisfactory to the Lenders.

  
	
   

  	
   

  
	
  4.4

  	
  Each
  reimbursement under Tranche 1 or Tranche 3 as per Clause 3.2. a) hereof is
  furthermore subject to evidence satisfactory to the Lenders that payments
  were made by the Borrower for deliveries made/services rendered under the
  Export Contracts or the Additional Export Contract, as the case may be, and
  have been received by the Exporter in amounts corresponding to those
  mentioned in the relevant reimbursement certificate in form and substance as
  per Annex 1a or 1d, as the case may be, hereto.

  
	
   

  	
   

  
	
  4.5

  	
  Each
  disbursement or reimbursement under this Credit Agreement is subject to the
  condition that the Insurance Agreement and, as the case may be, the
  Supplemental Insurance Agreement, as per Clause 11.1 is in full force and
  effect and covers the Lenders’ claims under this Credit Agreement.

  
	
   

  	
   

  
	
  4.6

  	
  The Lenders
  through the Facility Agent shall together be entitled to waive any one or
  more of the aforementioned conditions precedent to disbursements /
  reimbursements as the Lenders at their sole discretion deem fit, whereupon —
  unless otherwise notified in writing by the Facility Agent to the Borrower -
  any such condition precedent shall be deemed to constitute a condition
  subsequent which the Borrower undertakes to satisfy within such period of
  time which the Facility Agent may reasonably determine.

  
	
   

  	
   

  
	
  4.7

  	
  The Facility
  Agent will notify the Borrower, the Lenders and the Exporter without delay in
  writing of the fulfilment of the conditions precedent to first disbursement
  or reimbursement and, if applicable, 
  conditions subsequent.

   

  

5.                             Interest
Periods, Interest, Increased Costs

	
  5.1

  	
  For the purpose of
  periodical calculation of interest and its pay­ment by the Borrower as
  determined hereinafter, each interest period (the “Interest Period”) shall be
  of a duration of 6 months, provided that:

  a)        the first Interest Period in respect
  of the first disburse­ment or reimbursement shall commence on the date of
  that disburse­ment or reimbursement and end 6 months after the date of that
  disburse­ment or reimbursement subject to 5.1 d and 5.1 e below;

  b)       the first Interest Period in respect of
  any subsequent disbursement or reimbursement shall commence on the date of
  that disbursement or reimbursement and end upon expiry of the then current
  Interest Period relating to the respective Credit A or Credit B, as the case
  may be;

  c)        each subsequent Interest Period shall
  commence on the expiry of the preceding Interest Period;

  d)       any Interest Period which would otherwise
  extend be­yond the due date of any repayment instalment pursu­ant to Clause
  8.1 of this Credit Agreement (any such repayment date hereinafter re­ferred
  to as a “Repayment Date” or “Additional Repayment Date”, if applicable) shall
  be shortened to the extent necessary to end upon such Repayment Date or
  Additional 

   

  

 15
 

 

 

	
  

  	
             Repayment Date, as the case may be;

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
  5.2

  	
  a)        Subject to Clause 5.2 d) below, for as
  long as any principal amounts repayable under this Credit Agreement remain
  outstanding, the Borrower shall pay to the Lenders through the Facility Agent
  for each Interest Period on each credit amount outstanding interest at a rate
  per annum to be the aggregate of (i) a margin of 0.30% p.a. (in words
  zero point three per cent per annum) (the “Margin”) and (ii) the London
  Interbank Offered Rate (“LIBOR”) relating to such Interest Period (rounded
  upwards - if necessary - to a full month).

             LIBOR shall mean, in relation to such Interest Period,
  the rate per annum determined by the Facility Agent to be equal to the
  arithmetic mean (rounded upwards, if necessary, to five decimal places) of
  the London interbank offered rates for deposits of USD for a period equal to
  such period as are displayed at or about 11.00 a.m. (London time) on the
  second Banking Day prior to the commencement of such period on the relevant page on
  the Reuter Monitor Money Rates Services (or such other page as may
  replace such page on such service for the purpose of displaying London
  interbank offered rates of leading banks for deposits of USD) or, if on such
  date the offered rates for the relevant period of fewer banks than two
  leading banks are so displayed, as quoted to the Facility Agent by each of
  the Reference Banks at the request of the Facility Agent and calculated on
  the above mentioned basis. Interest (Margin plus LIBOR), as specified under
  this Clause 5.2(a) is due from the Borrower exclusively against delivery
  to the Borrower of the related invoices (originals) and the original
  (apostilled and with notarised translation into Russian) residency
  certificate for the Lenders and/or the Facility Agent, depending on the
  Borrower’s request. Each Lender and the Facility Agent hereby undertake prior
  to issuance of the relevant invoices to the Borrower for the purposes of this
  Clause 5.2(a) to agree with the Borrower in written correspondence on
  whether the Russian VAT shall apply to a receipt by, or payment to the Lender(s) and/or
  the Facility Agent due from the Borrower under this Clause 5.2(a), as may be
  required under the Russian law.

  b)       The Facility Agent shall promptly
  advise the Borrower in writing by letter or means of tele­communication of
  the rate of interest determined from time to time as per Clause 5.2.a) hereof
  and of the amount of interest to be paid at the end of the respective
  Interest Period, provided that in cases where the interest rate is determined
  by the Facility Agent on the basis of quotes from the Reference Banks, as
  specified in Clause 5.2.a), is reasonable, proven and objective no failure by
  the Facility Agent to so advise the Borrower shall relieve the Borrower from
  its payment obligations here­under.

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

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

  (i)       the last disbursement or reimbursement
  under the Credit Agreement has been effected, in the case of either Credit A
  or Credit B,

  (ii)      the exact Repayment Dates for the
  repayment instal­ments of the Credits stand firm in the case of either Credit
  A or Credit B,

  

 16
 

 

 

	
  

  	
  (iii)       the Borrower’s request in the form of
  Annex 1 f hereto has been received by the Facility Agent at the latest 15
  Banking Days prior to the next Repayment Date and,

  (iv)       corresponding funds in like amounts and
  for a duration equivalent to the term of the Credits under this Agreement are
  available to the Lenders.

  Such fixed interest rate takes binding effect for
  the period starting with the next Repayment Date and ending on the last
  Repayment Date for the Credits, in the case of either Credit A or Credit B,
  as may be the case, provided that the Facility Agent has received the
  Borrower’s agreement to the fixed rate offered by the Lenders through the
  Facility Agent within the validity period of such offer.

  e)        Interest on any credit amounts
  outstanding shall accrue from day to day and be calculated on a per annum
  basis from the date of each disbursement or reimbursement until the date on
  which the respective repayment instalment is unconditionally credited on the
  account specified in or to be indicated by the Facility Agent in accordance
  with Clause 9.1 hereof. Interest on any credit amounts outstanding shall be
  paid by the Borrower in arrears on each Interest Payment Date (each “Interest
  Payment Date” being, (i) in the case of an interest rate applicable as
  per Clause 5.2 a), the last day of any and each Interest Period; and
  (ii) in case of  a fixed interest
  rate applicable as per Clause 5.2 d) hereof each Repayment Date).

  f)        The parties agree that they shall, following the execution of this
  Credit Agreement, enter into discussions regarding amending the Credit
  Agreement to provide for the interest on a portion of Credit A and/or Credit
  B to be charged at a fixed rate (the “SEK CIRR Rate”) which shall be provided
  by AB Svensk Exportkredit (“SEK”), subject to SEK and EKN approval. 

   

  
	
   

  	
   

  
	
  5.3

  	
  Subject
  to Clause 5.5 (Exceptions), if by reason of any change occurring after the
  date of this Credit Agreement in any law, regulation, treaty or official
  directive (whether or not having the force of law) or the interpretation or
  application thereof (including but not limited to any reserve, deposit or
  similar requirements) and for compliance by the Lenders and/or the Facility
  Agent with any legally binding requirement of any central bank or other
  governmental or monetary authority arising after the date of this Credit
  Agreement any of the Lenders incur any Increased Costs (as defined
  hereinafter), then, in any such case, the Borrower shall pay to the Facility
  Agent for account of the Lenders within thirty days of a demand by the
  Facility Agent such amounts of the Increased Costs as the Lenders through the
  Facility Agent shall specify to be necessary to compensate the Lenders for
  such increase or such reduction.

  In this Agreement “Increased
  Costs” means:

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

  (ii)             an
  additional or increased cost; or

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

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

  
	
   

  	
   

  
	
  5.4.

  	
  A Lender
  intending to make a claim pursuant to Clause 5.3 (Increased Costs) shall notify
  the Facility Agent of the event giving rise to the claim, following which the
  Facility Agent shall promptly notify the Borrower. Each Lender shall, as soon
  as practicable after a demand by the Facility Agent, provide a certificate
  confirming the amount of its Increased Costs and the circumstances giving
  rise to the claim.

   

  
	
   

  	
   

  
	
  5.5

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

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

  

 17
 

 

 

	
  

  	
        that Clause;

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

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

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

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

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

         required pursuant to Clause 10); or

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

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

   

  

6.                             Fees

	
  6.1

  	
  From the date of
  this Credit Agreement until disbursement of Credit A in full, the Borrower
  shall pay to the Lenders through the Facility Agent a commitment fee at a
  rate of 0.10% p.a. (in words: zero point one per cent per annum) calculated
  on a daily basis on such portion of the maximum amount of Credit A not yet
  disbursed at any time. The commitment fee is payable pro rata in arrears (i) prior
  to the first disbursement or reimbursement on June 30 and December 30
  of each year; and (ii) with effect from the first disbursement or
  reimbursement on each Interest Payment Date.

  
	
   

  	
   

  
	
  6.2

  	
  The Borrower
  will pay to the Mandated Lead Arrangers through the Facility Agent an
  arrangement fee of 0.20% flat (in words: zero point two per cent flat)
  calculated on the maximum amount of Credit A mentioned in Clause 2.1 hereof.

  The arrangement
  fee is due prior to the first disbursement or reimbursement under the Credit
  Agreement, at the latest however, within 30 days after the date of this
  Credit Agreement.

  
	
   

  	
   

  
	
  6.3

  	
  From the date of
  this Credit Agreement until all monies owing by the Borrower are fully repaid
  to the Lenders, the Borrower shall pay to the Facility Agent an agency fee of
  USD 10,000 per annum on the date of signature of this Credit Agreement and
  annually thereafter on the anniversary date of this Credit Agreement.

  
	
   

  	
   

  
	
  6.4

  	
  Clauses 6.1 and
  6.2 shall apply mutatis mutandis in case of Credit B being made available by
  the Lenders to the Borrower whereas calculation of the additional commitment
  fee shall start on the date on which the Lenders will have approved the
  granting of Credit B to the Borrower in writing; the additional arrangement
  fee shall be paid within 30 days after the date of such approval, at the
  latest, however, prior to disbursement or reimbursement under Credit B. 

   

  

7.                             Calculation
of Periods

	
  

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

   

  

8.                             Repayment
and Prepayment

	
  8.1

  	
  Credit A

  The credit
  amounts disbursed under Credit A are to be repaid in 17 equal and consecutive
  semi-annual repayment instalments each in an amount equal to 1/17th of Credit A or such other amount as agreed
  between the Lenders and the Borrower and approved by EKN; the first of which
  will be due on the earlier of (i) 28 February 2006 and (ii) the
  date falling 6 months after the EKN Starting Point to be evidenced
  concurrently to the Borrower and the Lenders (by delivery as specified in
  Clause 16.1 hereunder) by a certificate in accordance with Annex 2a hereof_

  

 

 18
 

 

 

	
  

  	
  Credit B

  If
  applicable, the credit amounts disbursed under Credit B will be repaid in 17
  equal and consecutive semi-annual repayment instalments each in an amount
  equal to 1/17th of Credit B or such other amount as agreed
  between the Lenders and the Borrower and approved by EKN; the first of which
  will, depending on the respective EKN approval, be due on the date falling 6
  months after the EKN Starting Point, to be evidenced by a certificate in
  accordance with Annex 2b hereof 

   

  
	
  8.2

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

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

  Any amount prepaid
  in accordance with this Clause 8.2 may not be reborrowed.

   

  
	
  8.3

  	
  Where the
  interest rate in Clause 5.2 d) applies, prepayment of any amounts not yet due
  according to this Credit Agreement is not permitted.

   

  
	
  8.4

  	
  Prior to the
  first Repayment Date the Facility Agent shall furnish the Borrower with a
  repayment schedule which sets out the Repayment Dates and the amount of
  repayment instalments to be paid on each such Repayment Date or Additional
  Repayment Date, if applicable, provided that no failure by the Facility Agent
  to so advise the Borrower shall relieve the Borrower from its obligations
  hereunder. In case of the granting of Credit B and if a repayment schedule in
  relation to Credit A has already been delivered at such time, the Lenders
  shall furnish the Borrower with a revised repayment schedule or an additional
  repayment schedule, as the case may be. All other stipulations of the
  preceding sentence shall apply mutatis mutandis to such revised or additional
  schedule.

   

  

9.          Payments

	
  9.1

  	
  All payments to be made
  by the Borrower to the Lenders through the Facility Agent under this Credit
  Agreement shall be made in USD without any deduction not later than 10.00 a.m.
  London time on the respective due date at the Facility Agent’s free disposal
  to the account of the Facility Agent held with JPMorgan Chase, New York,
  SWIFT CHASUS33, account number 001.1.643293, for further credit to INGBNL2A
  quoting ref. SF&AS/HE03.01/MTS-Ericsson or such other account with such
  other financial institution as notified by the Facility Agent to the
  Borrower.

   

  
	
  9.2

  	
  The Borrower
  shall not be entitled to exercise any right of reten­tion or to set off any
  counterclaims against claims arising from this Credit Agreement against any
  Lender unless such counterclaims exist against the Lender that the Borrower
  exercises the right of retention or set off against, and such counterclaims
  have been accepted by that Lender in writing or have otherwise been adopted
  or consistently relied upon. 

   

  
	
  9.3

  	
  If the Facility
  Agent receives a payment insufficient to discharge all the amounts then due
  and payable by the Borrower under this Credit Agreement, the Facility Agent
  on behalf of the Lenders shall, notwithstanding any converse instruction
  given by the Borrower, apply incoming payments in the following order:

   

  
	
   

  	
  (i)

  	
  firstly, in or towards any costs and expenses due
  and payable hereunder;

  
	
   

  	
  (ii)

  	
  secondly, in or towards payment of any fees due and
  payable hereunder;

  
	
   

  	
  (iii)

  	
  thirdly, in or towards payment of any default
  interest and/ or indemnification then due and payable as provided for in
  Clauses 9.4 and 9.5;

  
	
   

  	
  (iv)

  	
  fourthly, in or towards payment of any contractual
  interest due and payable hereunder;

  

 

 19
 

 

 

	
  

  	
  (v)      fifthly, in or towards repayment of any
  principal amount due and payable hereunder;

  (vi)     sixthly, in or towards payment of any
  other amount (including any indemnification other than such as under Clause
  9.5) due and payable hereunder.

   

  
	
  9.4

  	
  The Lenders
  through the Facility Agent shall be entitled to demand on repayment
  instalments overdue default interest at a rate which is the sum of 2% p.a.
  (in words: two per cent per annum) and the rate which would have been payable
  if such overdue amount had, during the period of non payment, constituted a
  Credit for successive periods of any duration as the Lenders (acting
  reasonably) through the Facility Agent may determine from time to time.

   

  
	
  9.5

  	
  The Lenders
  through the Facility Agent shall be entitled to demand on amounts overdue
  other than repayment instalments, a lump sum indemnification which is the sum
  of 2% p.a. (in words: two per cent per annum) and the rate which would have
  been payable if such overdue amount had, during the period of non payment,
  constituted a Credit for successive periods of any duration as the Lenders
  (acting reasonably) through the Facility Agent may determine from time to
  time.

   

  
	
  9.6

  	
  All payments
  owed by the Borrower as per Clauses 9.4 and 9.5 shall be made immediately
  upon the Facility Agent’s first demand except when under the applicable Russian currency regulations the
  Borrower is required to reserve a particular amount of payment at a special
  account prior to proceeding with a transfer of such amounts to the benefit of
  the Facility Agent. In the latter case the delay in payment shall not exceed
  the particular reservation period specified in the Russian currency
  regulations applicable to the Borrower. 

   

  
	
  9.7

  	
  If a due date on
  which a payment of the Borrower must have been received at the free disposal
  of the Facility Agent is not a Bank­ing Day, the next succeeding Banking Day
  shall be the due date, unless such Banking Day falls into a new calendar
  month in which event the due date shall be the preceding Banking Day. The
  obligations of the Borrower to pay interest and fees shall accrue
  accordingly.

   

  

10.                       Taxes,
Levies, Duties and Other Costs

10.1                          Definitions

a)                                      In
this Credit Agreement

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

“Qualifying Lender” means a Lender, which is situated
for tax purposes in (i) the Russian Federation, (ii) in a Tax Treaty
Jurisdiction or (iii) in the United Kingdom or Sweden.

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

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

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

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

“Tax Treaty Jurisdiction” means a jurisdiction, which
has in force a double tax treaty with the Russian Federation (or with the Union
of Soviet Socialist Republics to which the Russian 

 20
 

 

Federation has succeeded), which provides for full
exemption from Russian withholding tax on interest derived from a source within
the Russian Federation payable to a resident of such jurisdiction.

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

 

	
  10.2

  	
  Tax Gross up

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

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

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

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

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

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

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

   

  
	
  10.3

   

  	
  Tax Indemnity

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

  b)            Paragraph (a) above shall not
  apply:

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

  

 21
 

 

 

	
  

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

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

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

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

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

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

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

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

   

  
	
  10.4

  	
  Tax Credit

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

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

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

  the Lender shall once
  it has irrevocably obtained, utilised and retained that Tax Credit on an
  affiliated group basis, promptly pay through the Facility Agent an amount to
  the Borrower which that Lender determines will leave the Lender (after that
  payment) in the same after-tax position as it would have been in had the Tax
  Payment not been made by the Borrower.

  However, if the
  relevant Lender should be obliged by any law, regulation or court or any
  other official decision to repay any Tax Credit obtained by such Lender and
  paid to the Borrower pursuant to the preceding paragraph, or if any such Tax
  Credit should otherwise be officially revoked, the Borrower shall promptly
  upon demand of such Lender and against reasonable evidence of such repayment
  obligation or revocation, as the case may be, refund the respective Lender
  through the Facility Agent of such amount.

   

  
	
  10.5

  	
  Without
  prejudice to the Borrower’s obligations/the Lenders’ rights accord­ing to
  Clause 10.2 and 10.3, in the event of withholding taxes being imposed in the
  Russian Federation on payments due under this Credit Agreement that are
  eligible for exemption and provided that the Borrower and/or the Lenders can
  claim such exemption with the result that they are released from any
  obligation to pay such taxes, the Borrower hereby undertakes to apply with
  the competent authorities in the Russian Federation to be exempted and
  released from such taxes and to provide the Facility Agent with a tax
  exemption certificate or any other evidence of such tax exemption, all in
  form and substance as reasonably may be required by the Lenders through the
  Facility Agent. In turn, in order to enjoy the benefits of an applicable
  convention on avoidance of double taxation each Lender undertakes to do
  everything within its sole control to submit to the Borrower a certificate of
  its residence in the form and in the manner required by Russian Law, provided
  that any expenses incurred by a Lender in doing so shall be borne by the
  Borrower. The form of the certificate as well 

  

 22
 

 

 

	
  

  	
  as its main
  items shall be advised by the Borrower to the Facility Agent and the Lenders
  in writing reasonably in advance.

  
	
   

  	
   

  
	
  10.6

  	
  Without
  prejudice to the Lenders’ rights under this Credit Agreement, in particular
  under this Clause 10, the Borrower shall pay to, or reimburse the Lenders
  through the Facility Agent upon demand for (i) any stamp duties,
  registration fees and similar taxes and charges in connection with this
  Credit Agreement and (ii) all legal fees (including VAT) and
  out-of-pocket expenses incurred by the Lenders and/or the Facility Agent in
  connection with the negotiation, preparation, documentation and execution of
  this Credit Agreement provided that in relation to Credit A only all such
  fees and expenses shall not exceed USD 47,000.00 (plus VAT and disbursements,
  plus costs for required translation of any of the finance documents related
  to this Credit Agreement into the Russian language) and (iii) any costs,
  including lawyer’s fees and taxes arising thereon, in connection with the
  preservation and enforcement of the Lenders’ rights under this Credit
  Agreement. 

  
	
   

  	
   

  
	
  10.7

  	
  Each Lender and
  the Facility Agent hereby undertake prior to issuance of any invoices to the
  Borrower to discuss the invoicing procedure with the Borrower in written
  correspondence and further undertake to provide the Borrower upon its written
  request as soon reasonably practicable with the original invoices and an
  original (updated) residency certificate (apostilled and together with a
  translation into Russian)

  
	
   

  	
   

  
	
  10.8

  	
  No provision of this Credit Agreement will:

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

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

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

   

  

11.                       Guarantee
of EKN for tied Buyer’s Credits

	
  11.1

  	
  The EKN Agent on
  behalf of the Lenders has applied for insurance cover of 95% of the Lenders’
  claims arising from this Credit Agreement by EKN by means of an insurance
  agreement (the “Insurance Agreement”). Credit A will be made available on the
  basis of such Insurance Agreement and the terms and conditions governing it.
  In the event that additional insurance cover is provided by EKN for the
  purposes of financing being made available for Credit B hereunder, then
  Credit B will be made available on the basis of such supplemental insurance (“Supplemental
  Insurance Agreement”) and the terms and conditions governing it.

  The
  LenThe Lender The Lenders are entitled to give informa­tion on the Credit
  Agreement and the transactions contemplated thereby to EKN, the competent
  authorities of Sweden and the European Union and to allow such authorities
  perusal of all records that may be connected with this Credit Agreement and
  to furnish them with copies thereof.

   

  
	
  11.2

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

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

   

  

 23
 

 

 

	
  11.3

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

  
	
   

  	
   

  
	
  11.4

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

  If the aggregate amount reimbursed by the Borrower is more than the
  respective Insurance Premium (or if applicable, the Additional Insurance
  Premium), on the Interest Payment Date following the date on which the
  Lenders have received the excess amount from EKN the Lenders through the
  Facility Agent will refund the excess amount to the Borrower. Payment of the
  excess amount to the Borrower as per the preceding sentence shall be made by
  the Lenders through the Facility Agent by application of the amounts thus to
  be refunded to the Borrower towards partial prepayment of the Credit
  disbursed and then still outstanding under this Credit Agreement. In order to
  achieve the purpose laid down in this paragraph on the due date thereof the
  excess amount to be paid to the Borrower shall - at the option of the Lenders
  either equally and proportionally or in the inverse order of maturities - be
  set off by the Lenders against repayment installments then still outstanding
  under this Credit Agreement without any prior notice by the Lenders to the
  Borrower with regard thereto. The Lenders through the Facility Agent will
  inform the Borrower without delay of any such set-off.

  If the aggregate amount paid by the Borrower towards reimbursement
  against the respective Insurance Premium (or if applicable, the Additional
  Insurance Premium) was less than the Insurance Premium (or if applicable, the
  Additional Insurance Premium) payable by the Lenders, the Borrower undertakes
  upon request of the Facility Agent within 30 calendar days to pay to the
  Facility Agent the balance in favor of the Lenders. 

   

  

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

	
  12.1

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

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

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

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

  or

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

   

  

 24
 

 

 

	
  

  	
  or

  c)        any representation, warranty or
  statement in this Credit Agreement or any other document provided by the
  Borrower under the terms of this Credit Agreement  is or proves to be or to have been
  incorrect or untrue in any material respect at any time during the term of
  this Credit Agreement and in case that such incorrectness is capable of being
  remedied - whereas the determination of such capability shall be upon the
  sole but reasonable discretion of the Lenders - such incorrectness is not
  cured within 15 Banking Days after the Facility Agent has notified the
  Borrower in writing of such incorrectness;

  or

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

  or

  e)        at any time it shall become unlawful
  for the Borrower (provided that such event, if capable of being cured in the
  reasonable opinion of the Lenders, is not cured within 30 Business Days from
  the date it became unlawful) to perform any or all of its obligations under
  this Credit Agreement (including, without limitation, any governmental or
  other consent, licence or authorisation required to make this Credit
  Agreement legal, valid, binding and enforceable, or required at any time to
  enable the Borrower to perform its obligations under this Credit Agreement,
  ceasing to be in full force and effect);

  or

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

  or

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

  or

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

   

  

 25
 

 

 

	
  

  	
             payments,
  or the Borrower admits - towards any of the Lenders - its unwillingness with
  regard to any of the aforementioned actions;

  or

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

  provided,
  however, that in case of the occurrence of any of the events as stipulated in
  sub-clauses a), b), c) and d) of this Clause 12.1, for so long as such events
  are continuing the Lenders through the Facility Agent shall be entitled to
  suspend disbursements / reimbursements under this Credit Agree­ment prior to
  the expiry of the grace period for remedy of the relevant events of default.

  
	
   

  	
   

  
	
  12.2

  	
  Insofar as any
  statements made by the Facility Agent according to Clause 12.1 are sent by
  airmail (with a copy by fax), these state­ments shall be deemed to have been
  received not later than on the 10th Banking Day after their dispatch. If such
  statements are made by means of telecommunication, the day following their
  dispatch shall be deemed as the date of receipt.

   

  

13.                       Representations
and Warranties

The Borrower hereby represents and warrants to the
Lenders that

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

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

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

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

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

f)                              each
action necessary under the statutes of the Borrower or under any other
agreement or instrument binding on the Borrower to authorise the execution,
delivery and/or performance of this Credit Agreement has been duly taken and
the execution, delivery and performance of this Credit Agreement will not
conflict with, or constitute a breach of the statutes of the Borrower or any
such agreement or instrument binding upon the Borrower;

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

h)                           other
than the UMC Litigation no litigation, administration or insolvency proceedings
are pending or, to the knowledge of the Borrower are threatened, which
adversely determined, would reasonably be expected to have a material adverse
effect on the assets or financial 

 26
 

 

 

                                      condition
of the Borrower or on its right or ability to perform its obligations hereunder
or would affect the legality, validity or enforceability of this Credit
Agreement; and

i)                               all
its payment obligations in connection with this Credit Agreement rank at least
pari passu in point of preference and security with all other unsecured and
unsubordinated existing and future indebtedness owed to any creditor other than
the Lenders, except for any preference being due to mandatory law.

14.        Financial Statements, Information and
Undertakings (Covenants)

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

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

b)                           inform
the Facility Agent without delay of the occurrence of any of the events
mentioned in Clause 12 hereof and in the event any of the Representations and
Warranties mentioned in Clause 13 hereof ceases to be true or correct in any
material respect;

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

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

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

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

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

h)                           ensure
that neither in a single transaction nor in a series of transactions, whether
related or not, all or any substantial part of its assets are sold,
transferred, granted or leased or 

 27
 

 

 

                                      otherwise
disposed of unless such sale, transfer, grant, lease or disposal is:

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

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

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

(iv)                              for
cash or cash equivalents;

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

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

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

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

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

“Permitted Lien” means:

(i)          any
lien on any property or assets of any person existing at the time such person
is merged or consolidated with or into the Borrower and not created in
contemplation of such event;

(ii)       any
lien existing on any property or assets prior to the acquisition thereof by the
Borrower and not created in contemplation of such acquisition;

(iii)           any lien on any property or assets securing
indebtedness of the Borrower incurred or assumed for the purpose of financing
all or part of the cost of acquiring or constructing or refurbishing any
property or assets, provided that the aggregate principal amount of all
indebtedness secured by liens under this sub-Clause (iii) shall not exceed
the lower 

 28
 

 

 

                     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, or construction or
refurbishment;

(iv)          any netting or set-off
arrangement entered into in the ordinary course of the Borrower’s banking
arrangements for the purpose of netting debit and credit balances;

(v)         any lien arising by operation of law either (a) in
the ordinary course of business; or (b) in respect of 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 the
Borrower securing inter-company indebtedness;

(vii)       any extension, renewal or replacement of any
lien described in sub-Clauses (i) to (vi) 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 indebtedness secured by
such lien is not increased and (c) if the property, income or assets
securing the indebtedness subject to such lien are changed in connection with
such refinancing, extension or replacement, the fair market value of the
property, income or assets is not increased;

(viii)    any other lien, pledge, mortgage or other type
of encumbrance, provided that immediately after giving effect to such lien,
pledge, mortgage or other type of encumbrance the Borrower’s secured
indebtedness in the aggregate do not exceed 10% of the book value of the
aggregate amount of the Borrower’s total assets, determined by reference to its
most recent quarterly or, as the case may be, audited  annual unconsolidated balance sheet;

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

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

15.                       Assignability

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

15.2                 Unless (i) the
assignment is to an Affiliate of a Lender or to another Lender or to EKN or SEK
or (ii) an Event of Default has occurred, any assignment occurring after
the date of this Credit Agreement by any Lender shall require the consent of
the Borrower, provided that (x) such consent shall not be unreasonably
withheld or delayed; and (y) unless the Borrower has notified the Facility
Agent to the contrary within 5 Banking Days of receiving notice of the intended
assignment, the Borrower will be deemed to have given consent to that
assignment.

15.3                 Any Lender may
also disclose to any person to whom it assigns or intends to assign its rights
and obligations hereunder such information about the Borrower and the Credit
Agreement, as such Lender shall consider necessary.

 

 29
 

 

 

16.                       Statements
and Notices

	
  16.1

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

  

 

	
  Borrower:

  	
  OJSC Mobile TeleSystems

  
	
   

  	
  4 Marksistskaya Street

  
	
   

  	
  Moscow 109147

  
	
   

  	
  Russian Federation

  
	
   

  	
   

  
	
   

  	
  Telefax: + 7 095 223-2168 

  Attention of Ms. Marina V. Zabolotneva 

  Head of the Treasury Department

  
	
   

  	
   

  
	
  Facility Agent:

  	
  ING Bank N.V.

  
	
  (for and on behalf of

  	
  Syndicated Loans / Agency HD 01.05

  
	
  the Lenders)

  	
  Bijlmerplein 888

  
	
   

  	
  1102 MG Amsterdam

  
	
   

  	
  The Netherlands

  
	
   

  	
   

  
	
   

  	
  Telephone:+31 20 563 5140 

  Telefax:+31 20 576 8785 

  Attention of: Mr Kenneth 

  van Coblijn, Senior Officer 

  Syndicated Loans

  

 

	
  16.2

  	
  The Borrower shall
  provide the Facility Agent with specimen signatures in form and substance as
  per Annex 4 of those persons who are authorised to act on its behalf.

  
	
   

  	
   

  
	
  16.3

  	
  Any alteration
  in the above-mentioned companies’ names, addresses and power of
  representation shall be binding upon the other contracting party only upon
  receipt by such other party of written notification or documents evidencing
  such alteration.

  
	
   

  	
   

  
	
  16.4

  	
  All correspondence between the parties hereto shall
  be conducted and carried out in the English lan­guage. Should the wording of
  any document be in a language other than English such document shall be
  accompanied by a translation certified to be true and accurate that is either
  authorised by the person who produced it or by a sworn translator.

  

17.                     Miscellaneous

	
  17.1

  	
  The Borrower shall
  perform its obligations under this Credit Agreement notwithstanding any
  failure by the Exporter to fulfil its obligations under the Export Contracts,
  or any Additional Export Contract or otherwise and the Borrower shall not use
  any such failure as an excuse, defence, set-off or counterclaim in respect of
  the Borrower’s obligations under this Credit Agreement.

  
	
   

  	
   

  
	
  17.2

  	
  In satisfaction of the
  Lenders’ respective obligations under the Money Laundering Act, to record the
  economical beneficiary of borrowing hereunder, the Borrower hereby confirms
  that the borrowing of the Credits is made on its own behalf and for its own
  account.

   

  

18.                       Currency
Indemnity

In the event that for the
purpose of obtaining judgement in any court of any country or enforcement of
any judgement by the Lenders it becomes necessary to convert an amount of the
currency due hereunder (the “Agreed Currency”), into an amount of another
currency (the “Judgement 

 30
 

 

 

Currency”), then the
amount due hereunder, expressed in the Judgement Currency, shall be determined
on the basis of the rate of exchange at which the Facility Agent for account of
the Lenders is able to purchase the relevant amount of the Judgement Currency
on the Banking Day immediately before the day on which the judgement is given
or on such earlier date as may be required by the procedural law of the court
in which the judgement is sought (the “Agreed Conversion Date”).

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

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

19.                       Applicable
Law and Jurisdiction

	
  19.1

  	
  This Credit Agreement,
  as well as all the rights and obli­gations arising there­from, shall be
  governed by and construed in accor­dance with the laws of England.

  
	
   

  	
   

  
	
  19.2

  	
  Any
  dispute, claim or controversy arising out of or in connection with this
  Credit Agreement including any question regarding its existence, validity or
  termination, shall be referred to and finally resolved by arbitration under
  the London Court of International Arbitration (LCIA) Rules (for the
  purpose of this subclause, the Rules).

   

  The
  Rules are incorporated by reference into this subclause and capitalised
  terms used in this Subclause which are not otherwise defined in this
  Agreement, have the meaning given to them in the Rules.

   

  Such
  arbitration shall be conducted by three arbitrators, one of whom shall be
  nominated by the claimant(s), one by the defendant(s) and the third to
  be agreed between the two arbitrators so appointed and, if the two
  arbitrators cannot appoint the third arbitrator within 30 days of their
  appointment, the third arbitrator shall be appointed by the President of the
  LCIA. If no arbitrator is appointed by either of the parties within 30 days
  of a party electing to use arbitration under paragraph (a) above, all
  three arbitrators will be appointed by the President of the LCIA. If all
  disputing parties agree, the President of the LCIA may appoint a sole
  arbitrator.

   

  The seat, or legal
  place of any arbitration shall be London and the language to be used in the
  proceedings English.

   

  

20.        General Provisions

	
  20.1

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

  
	
   

  	
   

  
	
  20.2

  	
  In the event of any
  provisions laid down in this Credit Agreement being or becoming wholly or
  partially ineffective in law, the other provi­sions of this Credit Agreement
  shall remain in force. 

  

 31
 

 

 

	
  

  	
  Any insuffi­ciency
  thus created shall be filled by a corresponding provision consistent with the
  spirit and purpose of this Credit Agreement.

   

  
	
  20.3

  	
  This Agreement
  shall be executed in the English language. 

  

 

	
  

  	
  OJSC Mobile TeleSystems

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (legally binding signature(s))

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Citibank, N.A., in its capacity as Mandated Lead
  Arranger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (legally binding signature(s))

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ING Bank N.V., in its capacity as Mandated Lead
  Arranger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (legally binding signature(s))

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ING Bank N.V., in its capacity as Facility Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (legally binding signature(s))

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ING Bank N.V., in its capacity as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (legally binding signature(s))

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Citibank International plc in its capacity as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (legally binding signature(s))

  

 32
 

 

 

	
  

  	
  Citibank International plc. in its capacity as EKN
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (legally binding signature(s))

  

 

 33
 

 

 

Annex 1a

 

	
  ING Bank N.V.

  
	
  Syndicated Loans
  / Agency HD 01.05

  
	
  Bijlmerplein 888

  
	
  1102 MG
  Amsterdam

  
	
  The Netherlands

  
	
   

  
	
  Attention of: Mr
  Kenneth van Coblijn, Senior Officer Syndicated Loans

  

 

Certificate for
Reimbursement

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548

 [as increased by USD 36,570,937 *](the “Credit
Agreement”)

We
hereby confirm to you that we have paid to the Exporter an amount of USD _____________
representing the last 85% of the total value of deliveries made by the Exporter
under the Export Contracts / Additional Export Contract* during the period from
______________(date) to ___________(date).

According
to Clause 3.2.a) of the Credit Agreement, the amount of USD__________ is thus
to be paid to us to our account no. _________ with _______________

We
confirm that the Representations and Warranties mentioned under Clause 13 of
the Credit Agreement are true and correct in all material respect as of the
date hereof.

____________________________________

(place)(date)

OJSC Mobile TeleSystems

____________________________________

(legally binding signature(s) of the Borrower)

We,
the undersigned, herewith confirm that:

(i) We
have made the above captioned deliveries and have received the above-mentioned
amount(s)

(ii) We
have received the 15% down payment associated with the above captioned
deliveries.

(iii) The
goods delivered are eligible for financing under this Credit Agreement and are
eligible for support under the terms of the [Insurance Agreement] /  [the Supplemental Insurance Agreement] *

___________________________________

(place)(date)

Ericsson AB

___________________________________

(legally binding signature(s) of the Exporter)

* Please delete as appropriate

 34
 

 

 

Annex 1b

 

	
  ING Bank N.V.

  
	
  Syndicated Loans
  / Agency HD 01.05

  
	
  Bijlmerplein 888

  
	
  1102 MG
  Amsterdam

  
	
  The Netherlands

  
	
   

  
	
  Attention of: Mr
  Kenneth van Coblijn, Senior Officer Syndicated Loans

  

 

Certificate for
Disbursement

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD [36,570,937]*](the “Credit
Agreement”)

We
hereby confirm to you that during the period from ______________(date) to ___________(date)
we have made deliveries of _____________ under the Export Contracts /
Additional Export Contract* in the total value of USD ____________ and we have
presented to you documents in conformity with Clause 3.2.b) of the Credit
Agreement.

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

We
confirm having received the 15% down payment associated with the aforementioned
deliveries.

According
to Clause 3.2.b) of the Credit Agreement, the amount of USD _________ is thus
to be paid to us. Please effect payment to us to our account no. _______ with ____________
..

We,
the undersigned, herewith confirm that:

(i) We
have made the above captioned deliveries and have received the above-mentioned
amount(s)

(ii) We
have received the 15% down payment associated with the above captioned
deliveries.

(iii) The
goods delivered are eligible for financing under this Credit Agreement and are
eligible for support under the terms of the [Insurance Agreement] /  [the Supplemental Insurance Agreement] *

______________           ________________

(place)                                (date)

Ericsson
AB

___________________________________

(legally binding signature(s) of the Exporter)

* Please delete as appropriate

 35
 

 

 

Annex 1c

To

OJSC
Mobile TeleSystems

4
Marksistskaya Street

Moscow
109147

Russian
Federation

__________________

Certificate for Disbursement

for the Insurance Premium

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD [36,570,937]*](the “Credit
Agreement”)

Dear
Sirs,

As
per the attached copy of the EKN Guarantee offer dated ___________ the
Insurance Premium / Additional Insurance Premium* in the amount of USD __________
was/will become due and payable to EKN on _______________ . According to
Clause 11.2 / 11.3* of the Credit Agreement, the amount of USD _____________ is
payable to us/ In order to achieve fulfilment of the condition precedent as per
Article 4.2.b) and your obligations as per Article 11.2 / 11.3*
please pay to us the Insurance Premium / Additional Insurance Premium*
calculated by the Facility Agent to amount to USD _____________ which will
become due and payable to EKN shortly*.

Please
remit the aforementioned amount to [ ]. Reimbursement to you will be made
pursuant to Clause 3.4 of the Credit Agreement.

Amsterdam,
_____________                                                             __________________________
                                                                                                                 ING
Bank N.V.

* Please delete as appropriate

 36
 

 

 

Annex 1d

 

	
  ING Bank N.V.

  
	
  Syndicated Loans
  / Agency HD 01.05

  
	
  Bijlmerplein 888

  
	
  1102 MG
  Amsterdam

  
	
  The Netherlands

  
	
   

  
	
  Attention of: Mr
  Kenneth van Coblijn, Senior Officer Syndicated Loans

  

 

Certificate for
Reimbursement

in case of application of the Special Payment Procedure

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD [36,570,937]*](the “Credit
Agreement”)

We
hereby confirm to you that the Exporter made deliveries/rendered services*
under the Export Contracts / Additional Export Contract* during the period from
______________(date) to ___________(date) in the total amount of USD __________
and that we have instructed the Passport Bank to effect payment of USD ____________
to the Exporter representing the last 85% of the total value of such deliveries
made/services rendered*.

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

We
confirm that the Representations and Warranties mentioned under Clause 13 of
the Credit Agreement are true and correct in all material respect as of the
date hereof.

___________________________________

(place)(date)

OJSC Mobile TeleSystems

___________________________________

(legally binding signature(s) of the Borrower)

* Please delete as appropriate

 37
 

 

 

Annex 1e

To

OJSC
Mobile TeleSystems

4
Marksistskaya Street

Moscow
109147

Russian
Federation

__________________

Certificate for Disbursement for the Insurance Premium

in case of application of the Special Payment Procedure

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD 36,570,937*](the “Credit
Agreement”)

Dear
Sirs,

As
per the attached copy of the EKN guarantee offer dated ___________ the
Insurance Premium in the amount of USD __________ was/will become due and
payable to EKN in connection with the first Drawdown as specified by EKN

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

Please
instruct the Passport Bank to remit the aforementioned amount to us in
accordance with the terms and conditions of the certain disbursement agreement
entered into between you, us and the Passport Bank, and which provides for the
Special Payment Procedure. Reimbursement to you will be made pursuant to Clause
3.4 of the Credit Agreement.

Amsterdam,
_____________                                                             __________________________
                                                                                                                 ING
Bank N.V.

* Please delete as appropriate

 38
 

 

 

Annex 1f

 

	
  ING Bank N.V.

  
	
  Syndicated Loans /
  Agency HD 01.05

  
	
  Bijlmerplein 888

  
	
  1102 MG Amsterdam

  
	
  The Netherlands

  
	
   

  
	
  Attention of: Mr
  Kenneth van Coblijn, Senior Officer Syndicated Loans

  

 

Request for a
fixed interest rate

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD [36,570,937]*](the “Credit
Agreement”)

We
refer to Clause 5.2 (d) of the Credit Agreement. We hereby request the
Lenders to offer us a fixed interest rate for all amounts outstanding under the
Credit Agreement and for the remaining amount and lifetime of the Credits.

We
confirm that the Representations and Warranties mentioned under Clause 13 of
the Credit Agreement are true and correct in all material respect as of the
date hereof.

___________________________________

(place)(date)

OJSC Mobile TeleSystems

___________________________________

(legally binding signature(s) of the Borrower)

 39
 

 

 

Annex 2a

	
  ING Bank N.V.

  
	
  Syndicated Loans /
  Agency HD 01.05

  
	
  Bijlmerplein 888

  
	
  1102 MG Amsterdam

  
	
  The Netherlands

  
	
   

  
	
  Attention of: Mr
  Kenneth van Coblijn, Senior Officer Syndicated Loans

  

 

Confirmation of
Mean delivery of Equipment and Software

in relation to the Export Contracts

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD [36,570,937]*](the “Credit
Agreement”)

We hereby confirm to you
that in respect of the Export Contracts as mentioned in the Preamble of the
above-mentioned Credit Agreement the mean delivery of equipment and software
and for operation in relation to the several operation units (starting point)
took place on ______________ .

_____________              _____________

(place)                                (date)

_________________

___________________________________

(legally binding signature(s) of the Exporter)

*
Please delete as appropriate

 40
 

 

 

Annex 2b

 

	
  ING Bank N.V.

  
	
  Syndicated Loans /
  Agency HD 01.05

  
	
  Bijlmerplein 888

  
	
  1102 MG Amsterdam

  
	
  The Netherlands

  
	
   

  
	
  Attention of: Mr
  Kenneth van Coblijn, Senior Officer Syndicated Loans

  

 

Confirmation of
Mean delivery of Equipment and Software

in relation to the Additional Export Contract

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD [36,570,937]*](the “Credit
Agreement”)

We hereby confirm to you
that in respect of the Additional Export Contract as mentioned in the Preamble
of the above-mentioned Credit Agreement the mean delivery of equipment and
software in relation to the additional operation units (starting point) took
place on ______________ .

_____________              _____________

(place)                                (date)

_________________

___________________________________

(legally binding signature(s) of the Exporter)

*
Please delete as appropriate

 41
 

 

 

Annex 3

 

	
  ING Bank N.V.

  
	
  Syndicated Loans /
  Agency HD 01.05

  
	
  Bijlmerplein 888

  
	
  1102 MG Amsterdam

  
	
  The Netherlands

  
	
   

  
	
  Attention of: Mr
  Kenneth van Coblijn, Senior Officer Syndicated Loans

  

 

Specimen Signature List

Credit
Agreement dated [date],
2005 in the amount of USD 130,752,548 [as increased by USD [36,570,937]*](the “Credit
Agreement”)

Dear Sirs,

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

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

 42
 

 

 

A. Persons (if any) authorised to sign singly:

	
  Person

  	
   

  	
  First Name

  	
   

  	
  Surname

  	
   

  	
  Position

  	
   

  	
  Date of Birth

  	
   

  	
  Place of Birth

  	
   

  	
  Nationality

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Person

  	
   

  	
  Address

  	
   

  	
  Sort and Number

  of Identity Card

  	
   

  	
  Identity Card

  Issuing Authority

  	
   

  	
  Specimen Signature

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B. Persons authorised to sign jointly with any person from Group A or
B:

	
  Person

  	
   

  	
  First Name

  	
   

  	
  Surname

  	
   

  	
  Position

  	
   

  	
  Date of Birth

  	
   

  	
  Place of Birth

  	
   

  	
  Nationality

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Person

  	
   

  	
  Address

  	
   

  	
  Sort and Number

  of Identity Card

  	
   

  	
  Identity Card

  Issuing Authority

  	
   

  	
  Specimen Signature

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

I, ____________________________(please specify title), hereby certify
that the specimen signatures listed above are the authentic signatures of
persons authorised to act on the Borrower’s behalf in connection with the
Credit Agreement in the amount of USD ___________

______________           ________________                                ____________________________

(place)                                (date)                                                           (legally
binding signature of

                                                                                                ______________________)

I/We, ___________________________(ING Bank (Eurasia) ZAO, Moscow),
hereby certify the authenticity of the above signature of

 43
 

 

_________________    _________________                               ___________________
                                                                                                                 (ING
Bank (Eurasia) ZAO, Moscow)
                                                                                                                 (place)                                (date)

_____________________________

(legally binding signature(s))

*
Please delete as appropriate

 

 44

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]