Document:

Exhibit 4.9

 

EXECUTION
COPY

 

DATED October 12, 2009

 

 

SISTEMA
JOINT STOCK FINANCIAL CORPORATION

 

and

 

ECU GEST
HOLDING S.A.

 

and

 

SISTEMA TELECOM LLC

 

and

 

TELEKOMS OPERATOR LLC

 

 

 

AGREEMENT

 

for the acquisition of
155,310,126 shares of

 

Joint
Stock Company COMSTAR — United TeleSystems

 

and 6,715,140,080 shares of

 

Closed Joint Stock Company United
TeleSystems

 

 

 

 

CLEARY GOTTLIEB STEEN &
HAMILTON LLP

 

City Place House,

 

55 Basinghall Street,

 

London EC2V 5EH

 

 

THIS AGREEMENT is made on October 12, 2009

 

BETWEEN:-

 

(1)                                  Sistema Joint Stock Financial
Corporation, a
company incorporated in the Russian Federation with the main state registered
number 1027700003891, whose registered office is at Mokhovaya Street #13, Bldg
1, Moscow, Russian Federation (“Sistema”); and

 

(2)                                  ECU Gest Holding S.A., a
company incorporated in Luxembourg with the state registered number
199240010730, whose registered office is at L-1628 Luxembourg, 41 rue des
Glacis
(“ECU Gest”); and

 

(3)                                  Sistema Telecom  LLC, a
company incorporated in the Russian Federation with the main state registered
number 109774606, whose registered office is at 7 Bolshaya Pirogovskaya Street,
Moscow, Russian Federation (“Sistema Telecom”
and together with Sistema and ECU Gest the “Vendors”);
and

 

(4)                                  TELEKOMS OPERATOR LLC, a company incorporated in the Russian Federation
with the main state registered number 1097746395790, whose registered office is
at 8 Presnenskaya Naberezhnaya, bld. 1, 123100
Moscow, Russian Federation  (the “Purchaser”).

 

Each of the Vendors and the Purchaser shall
hereinafter be referred to individually as a “Party”
or collectively as the “Parties.”

 

WHEREAS:-

 

(A)                              Joint
Stock Company COMSTAR — United TeleSystems (“Comstar”) is a company incorporated in
the Russian Federation with the main state registered number 1027700003946,
whose registered office is at 27/2 Smolenskaya-Sennaya Ploschad, Moscow,
Russian Federation. At the Signing Date, Comstar has an authorised share
capital of RUR417,940,860 divided into 417,940,860 Comstar Ordinary Shares all
of which have been allotted and issued and are fully paid.

 

(B)                                Closed
Joint Stock Company United TeleSystems (“UTS” and together with Comstar the “Target Companies”) is a company
incorporated in the Russian Federation with the main state registered number
1047796779535, whose registered office is at 27/2 Smolenskaya-Sennaya Ploschad,
Moscow, Russian Federation. At the Signing Date,  UTS has an authorised share capital of
RUR6,715,140,080 divided into 6,715,140,080 UTS Ordinary Shares all of which
have been allotted and issued and are fully paid.

 

(C)                                Sistema is the owner and registered holder of 152,241,100
Comstar Ordinary Shares (the “Sistema Comstar Shares”) and 4,654,397,000 UTS
Ordinary Shares (the “Sistema UTS Shares”).

 

1

 

(D)                               ECU Gest is the owner and registered holder of
3,069,126 Comstar Ordinary Shares.

 

(E)                                 UTS is the
owner and registered holder of 57,446,760 Comstar Ordinary Shares.

 

(F)                                 Sistema Telecom is the owner and registered holder of
2,060,743,080 UTS Ordinary Shares.

 

(G)                                The Vendors have agreed to sell and the Purchaser has
agreed to purchase all of the Shares upon and subject to the terms and
conditions of this Agreement.

 

1.                                       INTERPRETATION

 

1.1                                 In this Agreement, the following words and expressions have the meanings
set opposite them:-

 

	
  “Access Put Payment”

  	
   

  	
  means
  the payments totaling US$463.6 million made by MGTS Finance S.A. to Access
  Telecommunications Cooperatief U.A. prior to the date of this Agreement in
  accordance with an agreement with Access Telecommunications Cooperatief U.A.
  dated December 6, 2006;

  
	
   

  	
   

  	
   

  
	
  “Accounts”

  	
   

  	
  the
  audited consolidated financial statements of Comstar for the years ended 31
  December 2006, 31 December 2007 and 31 December 2008 prepared
  in accordance with US GAAP;

  
	
   

  	
   

  	
   

  
	
  “Affiliate”

  	
   

  	
  means with respect to any body corporate, any
  other body corporate, directly or indirectly Controlling, Controlled by, or
  under direct or indirect common Control with, such body corporate;

  
	
   

  	
   

  	
   

  
	
  “Agreement”

  	
   

  	
  this Agreement including its recitals and
  Schedules;

  
	
   

  	
   

  	
   

  
	
  “Antimonopoly Approvals”

  	
   

  	
  meaning given to this term in Clause 4.1(f);

  
	
   

  	
   

  	
   

  
	
  “Business Day”

  	
   

  	
  any day (excluding a Saturday or Sunday) when
  commercial banks are open for business in Moscow and Luxembourg;

  
	
   

  	
   

  	
   

  
	
  “CallNet Option”

  	
   

  	
  means the put/call options granted under the
  Share Sale and Purchase Agreement signed on October 27, 2006 between and
  among Comstar, KOLKOM Limited, and Virtual Technology Limited regarding the
  purchase/sale of a 24.9% stake in CallNet Enterprises Limited;

  
	
   

  	
   

  	
   

  
	
  “capital expenditure”

  	
   

  	
  means any amounts spent on a cash basis on
  purchases of property, plant and equipment, or purchases of intangible
  assets;

  

 

2

 

	
  “Completion”

  	
   

  	
  completion of the sale and purchase of the
  Shares pursuant to Clause 7;

  
	
   

  	
   

  	
   

  
	
  “Comstar”

  	
   

  	
  meaning given to this term in recitals;

  
	
   

  	
   

  	
   

  
	
  “Comstar Ordinary Shares”

  	
   

  	
  ordinary shares with a nominal value of one
  ruble each in the charter capital of Comstar;

  
	
   

  	
   

  	
   

  
	
  “Comstar
  Regions”

  	
   

  	
  means
  Closed Joint Stock Company Comstar Regions, a company incorporated in the
  Russian Federation, with the main state registered number 1097746419913,
  whose registered office is at 27/2
  Smolenskaya-Sennya Square,
  Moscow, Russian Federation , established through the merger of (i) closed joint stock company
  Inter-TV Media, (ii) closed joint stock company Stream-TV,
  (iii) closed joint stock company Intersvyazservis, (iv) closed
  joint stock company Strategiya, (v) closed joint stock company Tsifroviye
  Telefonniye Seti Yug, (vi) closed joint stock company Teleradiotekhnika,
  and (vii) closed joint stock company Sendi Servis;

  
	
   

  	
   

  	
   

  
	
  “Comstar Regions Reorganization”

  	
   

  	
  means the on-going corporate reorganization
  resulting in the creation of Comstar Regions as indicated in Schedule 6
  hereto;

  
	
   

  	
   

  	
   

  
	
  “Comstar Regions Subsidiaries”

  	
   

  	
  the companies Controlled by Comstar Regions,
  all of which are set forth in Schedule 1;

  
	
   

  	
   

  	
   

  
	
  “Consideration”

  	
   

  	
  the total consideration payable to the
  Vendors for the purchase of all of the Shares hereunder, as set out in Clause
  3;

  
	
   

  	
   

  	
   

  
	
  “Control”

  	
   

  	
  means, with respect to any body corporate,
  the ability to direct the management or policies of such body corporate,
  directly or indirectly, whether through the ownership of shares or other
  securities, by contract or otherwise; provided, however, that in all events
  the direct or indirect ownership of, or the power to direct the vote of, more
  than fifty percent (50%) of the voting share capital of a body corporate or
  the power to appoint majority of the board of directors or majority of the
  management board or to appoint a general director (chief executive officer)
  of a body corporate shall be deemed to constitute Control of that body
  corporate (and “Controlling”
  and “Controlled” shall be construed
  accordingly);

  
	
   

  	
   

  	
   

  
	
  “Disclosed”

  	
   

  	
  fairly and specifically disclosed in this
  Agreement, the Disclosure Letter or any Post-Signing Disclosure;

  

 

3

 

	
  “Disclosure Letter”

  	
   

  	
  the letter in the agreed terms and of even
  date with this Agreement from the Vendors to the Purchaser, together with the
  bundle of documents annexed thereto;

  
	
   

  	
   

  	
   

  
	
  “Dispute”

  	
   

  	
  meaning given to this term in Clause 28.2;

  
	
   

  	
   

  	
   

  
	
  “Employee Option Program”

  	
   

  	
  means the employee option program adopted by
  the board of directors of Comstar on 28 March 2008;

  
	
   

  	
   

  	
   

  
	
  “Encumbrance”

  	
   

  	
  (a)                                 any mortgage, charge, lien, pledge or other
  encumbrance securing any obligation of any person;

   

  (b)                                any option, right to acquire, right of pre-emption,
  right of set-off or other arrangement under which money or claims to, or for
  the benefit of, any person may be applied or set off so as to effect
  discharge of any sum owed or payable to any person; or

   

  (c)                                 any equity, assignment, hypothecation, title
  retention, claim, restriction, power of sale or other type of preferential
  arrangement the effect of which is to give a creditor in respect of
  indebtedness a preferential position in relation to any asset of a person on
  any insolvency proceeding of that person; or

   

  (d)                                 any Third Party Right;

  
	
   

  	
   

  	
   

  
	
  “Governmental Entity”

  	
   

  	
  any supra national, national, state,
  municipal or local government (including any subdivision, court,
  administrative agency or commission or other authority thereof) or any quasi
  governmental or private body exercising any regulatory, taxing, importing or
  other governmental or quasi governmental authority;

  
	
   

  	
   

  	
   

  
	
  “failure notification”

  	
   

  	
  meaning given to
  this term in Clause 25.3(d);

  
	
   

  	
   

  	
   

  
	
  “FSMA 2000”

  	
   

  	
  the United Kingdom Financial Services and
  Markets Act 2000 (as amended); 

  
	
   

  	
   

  	
   

  
	
  “Group”

  	
   

  	
  together the Target
  Companies and the Subsidiaries; 

  
	
   

  	
   

  	
   

  
	
  “Group Company”

  	
   

  	
  each of the Target
  Companies and the Subsidiaries; 

  
	
   

  	
   

  	
   

  
	
  “Hardware”

  	
   

  	
  any and all
  computer, telecommunications and network equipment;

  

 

4

 

	
  “IFRS”

  	
   

  	
  the standards and interpretations adopted by
  the International Accounting Standards Board and known as the International
  Financial Reporting Standards;

  
	
   

  	
   

  	
   

  
	
  “Indebtedness”

   

  	
   

  	
  with respect to any person, (i) all
  obligations of such person for borrowed funds or funds in the nature of
  borrowings, (ii) all obligations of such person evidenced by bonds,
  debentures, notes or other similar instruments or arising from declared
  dividends, (iii) all obligations of such person for the subscription
  price of assets, (iv) all obligations of such person as lessee under
  leases which shall have been or should be, in accordance with US GAAP,
  recorded as capital leases, (v) all amounts available to be drawn and
  the amount of all unpaid drawings, under letters of credit issued for the account
  of such person, (vi) all receivables sold or discounted (other than to
  the extent sold on a non-recourse basis), (vii) all obligations for
  borrowed funds secured by any Encumbrance on any assets of such person
  whether or not such person has assumed or become liable for payment of such
  obligations for borrowed funds, (viii) such person’s net exposure
  pursuant to derivatives or interest rate caps, collar or swap agreements or
  other contracts or arrangements designed to protect against fluctuations in
  interest rates or currency exchange rates, (ix) all obligations of such
  person to pay deferred purchase price of property or services, and
  (x) all guarantees of such person in respect of Indebtedness of others
  of the kinds referred to in clauses (i) through (ix) above;

  
	
   

  	
   

  	
   

  
	
  “Intellectual Property”

   

  	
   

  	
  all rights in and in relation to patents,
  inventions, trade marks, trade or business names, domain names, utility
  models, copyrights (including copyright in Software) (and all extensions and
  renewals thereof), databases, Software, know-how and other confidential
  information and trade secrets (including, without limitation, customer and
  supplier lists) and other analogous rights of any description whatsoever, and
  all other intellectual or industrial property rights and forms of protection
  of similar nature in any part of the world in each case owned, used under
  license or otherwise used by the Group;

  
	
   

  	
   

  	
   

  
	
  “Interim Accounts”

  	
   

  	
  means,
  in respect of Comstar, the consolidated financial statements of Comstar as of
  and for the quarters ending 31 March 2009 and 30 June 2009 and
  prepared in accordance with US GAAP, and, in respect of UTS, the financial
  statements of UTS as of and for
  the  quarters ending 31 March 2009
  and 30 June 2009 and prepared in accordance with RAS; 

  

 

5

 

	
  “IP Licence”

  	
   

  	
  any licence, permission or consent in respect
  of the use or exploitation of any Intellectual Property;

  
	
   

  	
   

  	
   

  
	
  “Key Employees”

  	
   

  	
  means any person who, at the date of this
  Agreement or Completion, is a general director, chief accountant or any
  member of the management board of each of the Target Companies or any of the
  Material Subsidiaries.

  
	
   

  	
   

  	
   

  
	
  “LCIA Rules”

  	
   

  	
  meaning given to this term in Clause 28.2;

  
	
   

  	
   

  	
   

  
	
  “Leased Real Property”

  	
   

  	
  meaning given to this term in Clause 23.3 of
  Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “Leases”

  	
   

  	
  meaning given to this term in Clause 23.3 of
  Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “Licenses”

  	
   

  	
  licences (including statutory licences),
  registrations, consents, authorisations, permits, orders, authorities,
  warrants, permissions, confirmations, certificates and approvals (public or
  private); 

  
	
   

  	
   

  	
   

  
	
  “Management Accounts”

  	
   

  	
  means, in respect of
  Comstar, the unaudited, unreviewed
  US GAAP management accounts prepared by Comstar monthly on a consolidated
  basis since February 2009;

  
	
   

  	
   

  	
   

  
	
  “Material Adverse Change” 

  	
   

  	
  in relation to a Target Company or the Group
  as a whole, means any event, condition or circumstance that is, or can
  reasonably be expected to be, materially adverse to the business, financial
  condition, property, assets, liabilities, or operations of a Target Company
  or the Group as a whole;

  

 

6

 

	
  “Material
  Contract”

   

  	
   

  	
  each agreement, arrangement, instrument,
  bond, commitment, indemnity, indenture, lease, license or understanding,
  including all material amendments and modifications, to which any Group
  Company is a party or by which the assets held by any Group Company are bound
  other than any contracts with other Group Companies, MTS, or any subsidiaries
  of MTS, in the following categories: (i) contracts requiring expenditure
  or under which a liability would be incurred in any twelve-month period by
  the Group Companies in excess of US$5,000,000; (ii) contracts in an amount exceeding US$5,000,000 each that are not
  cancellable within 180 calendar days or that are cancellable but cancellation
  would entail a material penalty, cost or other liability;
  (iii) promissory notes, loans, agreements, indentures, guarantees,
  evidences of Indebtedness or other instruments related to Indebtedness,
  whether as a borrower, lender or guarantor and any currency exchange,
  interest rate, commodities or other hedging arrangement, in an amount
  exceeding US$5,000,000
  each; (iv) contracts containing covenants limiting in any material way
  the freedom of a Target Company or any Material Subsidiary to sell or
  otherwise dispose of assets, compete with any person, operate at any
  location, or in any other way restricting the manner and scope of the
  operations of the Group Company; (v) partnership, joint venture or shareholder
  agreements entered into by a Target Company or any Material Subsidiary;
  (vi) contracts relating to previous or planned mergers, consolidations,
  reorganizations or acquisitions, dispositions or divestitures of assets or
  otherwise, under which any Target Company or any Material Subsidiary or any
  other party thereto has material continuing rights or obligations;
  (vii) any other contract, agreement, arrangement or understanding that
  is material to a Group Company and the termination, or breach or default of
  which could, individually or in the aggregate, reasonably be expected to
  result in a Material Adverse Change;

  
	
   

  	
   

  	
   

  
	
  “Material
  Indebtedness”

  	
   

  	
  means Indebtedness of any Group Company in an
  amount exceeding US$5,000,000;

  
	
   

  	
   

  	
   

  
	
  “Material
  Licenses”

  	
   

  	
  means those Licences set out in Schedule 5;

  
	
   

  	
   

  	
   

  
	
  “Material
  Litigation”

  	
   

  	
  means any litigation, actions or proceedings
  which, if held adverse against the relevant Group Company, would or would be
  reasonably likely to result in amount payable by such Group Company in excess of US$ 1,000,000 or any litigation, actions or proceedings which is otherwise
  material for any Group Company;

  

 

7

 

	
  “Material
  Subsidiaries”

  	
   

  	
  means MGTS, Comstar-Direct, MGTS Finance S.A.
  and Comstar-Regions, each as more fully described in Schedule 1;

  
	
   

  	
   

  	
   

  
	
  “MTS”

  	
   

  	
  means OJSC Mobile Telesystems, 100%
  beneficial owner of the Purchaser;

  
	
   

  	
   

  	
   

  
	
  “New Century Holdings”

  	
   

  	
  means the investment funds managed by NCH
  Capital, Inc.;

  
	
   

  	
   

  	
   

  
	
  “notice”

  	
   

  	
  meaning given to this term in Clause 25.1;

  
	
   

  	
   

  	
   

  
	
  “Notice of Dispute”

  	
   

  	
  meaning given to this term in Clause 28.2;

  
	
   

  	
   

  	
   

  
	
  “Ordinary Course”

  	
   

  	
  action that is consistent with the past
  practices of the person and is taken in the ordinary course of the normal
  day-to-day operations of the person; 

  
	
   

  	
   

  	
   

  
	
  “Organizational Documents”

  	
   

  	
  with respect to any legal entity, the
  memorandum of association, articles of association, articles of
  incorporation, certificate of incorporation, bylaws and any charter,
  partnership agreements, joint venture agreements, trust deed, limited
  liability company agreement or other organizational documents of such entity
  and any amendments thereto; 

  
	
   

  	
   

  	
   

  
	
  “Owned Real Property”

  	
   

  	
  meaning given to this term in Clause 23.2 of
  Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “Party”

  	
   

  	
  meaning given to this term in recitals;

  
	
   

  	
   

  	
   

  
	
  “PLTD Rules”

  	
   

  	
  the Prospectus, Listing, and Transparency and
  Disclosure Rules adopted by the Financial Services Authority of the
  United Kingdom (as amended); 

  
	
   

  	
   

  	
   

  
	
  “Post-Signing Disclosure”

  	
   

  	
  means any fair and specific disclosure made
  pursuant to Clause 8.5, but only in relation to any fact, matter or thing
  occurring or having occurred after the Signing Date;

  
	
   

  	
   

  	
   

  
	
  “Purchaser”

  	
   

  	
  meaning given to this term in recitals;

  
	
   

  	
   

  	
   

  
	
  “Purchaser’s Share Accounts”

  	
   

  	
  means separate share accounts at the
  depository for Comstar Ordinary Shares, the register for Comstar Ordinary
  Shares  and the registrar for the UTS
  Ordinary Shares which details are set out in Schedule 8; ;

  
	
   

  	
   

  	
   

  
	
  “Purchaser’s Warranties”

  	
   

  	
  the warranties of the Purchaser set out in
  Schedule 3;

  

 

8

 

	
  “RAS”

  	
   

  	
  Russian accounting standards as required
  under Russian law or regulation, consistently applied;

  
	
   

  	
   

  	
   

  
	
  “Real
  Property”

  	
   

  	
  meaning given to this term in Clause 23.3 of
  Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “Related Party Transactions”

  	
   

  	
  meaning given to this term in paragraph 26.1
  of Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “Rented Real Property”

  	
   

  	
  meaning given to this term in Clause 23.3 of
  Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “RUR” or “ruble”

  	
   

  	
  the lawful currency of the Russian
  Federation; 

  
	
   

  	
   

  	
   

  
	
  “Russian Securities Regulation”

  	
   

  	
  Federal Law No. 39-FZ on Securities
  Market, which came into effect on April 22, 1996 and any regulations
  adopted thereunder (each as amended); 

  
	
   

  	
   

  	
   

  
	
  “Sensitive Payments”

  	
   

  	
  meaning given to this term in Clause 22 of Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “Sberbank Loan”

  	
   

  	
  means a loan agreement
  dated 8 June 2007 between OJSC Sberbank and Comstar relating to a loan
  facility in the amount of 26,000,000,000 rubles;

  
	
   

  	
   

  	
   

  
	
  “Sberbank Sistema Loan”

  	
   

  	
  means a loan agreement
  dated 12 March 2009 between OJSC Sberbank and Sistema relating to a loan
  facility in the amount of 20,000,000,000 rubles;

  
	
   

  	
   

  	
   

  
	
  “Sberbank Sistema Pledge”

  	
   

  	
  means the pledge of a
  total of 208,970,431 Comstar Ordinary Shares in favour of OJSC Sberbank
  pursuant to (i) a pledge agreement dated 12 March 2009 between OJSC
  Sberbank and Sistema (in relation to 151,523,671 Comstar Ordinary Shares) and
  (ii) a pledge agreement dated 12 March 2009 between OJSC Sberbank
  and UTS (in relation to 57,446,760 Comstar Ordinary Shares);

  
	
   

  	
   

  	
   

  
	
  “Shares”

  	
   

  	
  means any or all of the following, depending
  on the context:  (i) 152,241,100
  Comstar Ordinary Shares and 4,654,397,000 UTS Ordinary Shares to be acquired
  by the Purchaser from Sistema; (ii) 3,069,126 Comstar Ordinary Shares to
  be acquired by the Purchaser from ECU Gest; (iii) 2,060,743,080 UTS
  Ordinary Shares to be acquired by the Purchaser from Sistema Telecom — in
  each case, upon and subject to the terms and conditions of this Agreement;
  and (iv) 57,446,760 Comstar Ordinary Shares owned by UTS and being
  indirectly acquired by the Purchaser by virtue of acquisition of 100% of UTS
  Ordinary Shares upon and subject to the terms and conditions of this
  Agreement, which in aggregate constitute approximately 50.91% of issued share
  capital of Comstar and 100% of issued share capital of UTS;

  
	
   

  	
   

  	
   

  
	
  “Signing Date”

  	
   

  	
  the date of this Agreement;

  

 

9

 

	
   “Sistema’s Bank Account”

  	
   

  	
  bank account of Sistema set forth in Schedule
  7 or as Sistema may otherwise notify the Purchaser in writing at least one
  Business Days prior to Completion; 

  
	
   

  	
   

  	
   

  
	
  “Sistema Comstar Shares”

  	
   

  	
  meaning given to this term in recitals; 

  
	
   

  	
   

  	
   

  
	
  “Sistema UTS Shares”

  	
   

  	
  meaning given to this term in recitals; 

  
	
   

  	
   

  	
   

  
	
  “Software”

   

  	
   

  	
  any and all computer programs in source,
  object and executable form, including all modules, routines and sub-routines
  thereof and all source and other preparatory materials relating thereto,
  including user requirements, functional specifications and programming
  specifications, ideas, principles, programming languages, algorithms, flow
  charts, logic, logic diagrams, orthographic representations, file structures,
  coding sheets, coding and including any manuals or other documentation
  relating thereto and computer generated works;

  
	
   

  	
   

  	
   

  
	
  “Subsidiaries”

  	
   

  	
  the companies Controlled by Comstar, all of
  which are set forth in Schedule 1 hereto; 

  
	
   

  	
   

  	
   

  
	
  “Target Companies”

  	
   

  	
  meaning given to this term in recitals;

  
	
   

  	
   

  	
   

  
	
  “Taxation” or “Tax” or “tax”

  	
   

  	
  (a)                                 all forms of taxation, including any charge, tax,
  duty, levy, impost, withholding or liability wherever chargeable imposed for
  support of national, state, federal, municipal or local government or any
  other person; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                any penalty, fine, surcharge, interest, charges or
  costs payable in connection with any taxation within paragraph (a) above;

  
	
   

  	
   

  	
   

  
	
  “tax authority”

  	
   

  	
  any taxing or other authority competent to
  impose any tax liability or assess or collect any tax;

  
	
   

  	
   

  	
   

  
	
  “Tax Burden”

  	
   

  	
  any liability to tax, whether such tax is
  direct or indirect, and whether levied by reference to income, profits,
  gains, asset values, turnover, or added value, and whether statutory,
  governmental, state, provincial, local, governmental or municipal
  impositions, duties, contributions, rate and levies (including any penalties,
  charges and interest relating thereto);

  

 

10

 

	
  “Tax Return”

  	
   

  	
  a report, return or other information
  (including any amendments) supplied or required to be supplied to a
  Governmental Entity in the Russian Federation or the United States of America  with respect to taxes including, where permitted or
  required, combined or consolidated returns for any group of entities that
  includes any Target Company or any Material Subsidiary;

  
	
   

  	
   

  	
   

  
	
  “Third Party Rights”

  	
   

  	
  any interest or equity of any person
  (including any right to acquire an option or right of pre-emption or
  conversion) or any mortgage, charge, pledge, lien, assignment, hypothecation,
  security interest, title retention or any other security agreement or
  arrangement, or any agreement to create any of the above;

  
	
   

  	
   

  	
   

  
	
  “Trade Secrets”

  	
   

  	
  trade secrets, business, technical and
  know-how information, non-public information and confidential information and
  rights to limit the use or disclosure thereof by any person;

  
	
   

  	
   

  	
   

  
	
  “UTS”

  	
   

  	
  meaning given to this term in recitals;

  
	
   

  	
   

  	
   

  
	
  “UTS Ordinary Shares”

  	
   

  	
  ordinary shares with a nominal value of 1
  (one) ruble each in the charter capital of UTS:

  
	
   

  	
   

  	
   

  
	
  “US GAAP”

  	
   

  	
  means the United States of America generally
  accepted accounting principles; 

  
	
   

  	
   

  	
   

  
	
  “US$”

  	
   

  	
  the lawful currency of the United States of
  America; 

  
	
   

  	
   

  	
   

  
	
  “VAT”

  	
   

  	
  value added tax under any applicable law;

  
	
   

  	
   

  	
   

  
	
  “Vendors”

  	
   

  	
  meaning given to this term in recitals;

  
	
   

  	
   

  	
   

  
	
  “Vendors’ Bank Accounts”

  	
   

  	
  respective bank accounts of each of the
  Vendors set forth in Schedule 7 or as the Vendors may otherwise notify the
  Purchaser in writing at least one Business Days prior to Completion;

  
	
   

  	
   

  	
   

  
	
  “Vendors’ Share Accounts”

  	
   

  	
  meaning given to this term in Clause  7.2(d); 

  
	
   

  	
   

  	
   

  
	
  “Vendors’ Tax Warranties”

  	
   

  	
  those warranties set out in paragraph 19 of
  Schedule 2;

  
	
   

  	
   

  	
   

  
	
  “Vendors’ Warranties”

  	
   

  	
  the warranties of the Vendors set out in
  Schedule 2;

  

 

11

 

1.2                                 References in this Agreement to recitals, Schedules and Clauses are to
recitals and Schedules to and Clauses of this Agreement, and references in this
Agreement to numbered paragraphs are to numbered paragraphs of the Clause in
which such reference is made or otherwise of the Schedules to this Agreement,
unless specified otherwise.

 

1.3                                 The headings in this Agreement are inserted for convenience only and
shall not affect its construction.

 

1.4                                 References in this Agreement to any statute or statutory provision
include a reference to such statute or statutory provision as from time to time
amended, modified, re-enacted, extended, consolidated or replaced (whether
before or after the Signing Date) and to any subordinate regulation made from
time to time under such statute or statutory provision.

 

1.5                                 References to this Agreement or to any other document include a
reference to this Agreement or such other document as varied, amended,
modified, novated or supplemented from time to time.

 

1.6                                 References to any gender shall include all other genders.

 

1.7                                 References to persons include individuals, bodies corporate,
associations, partnerships, trusts or agencies, whether or not having a
separate legal personality.

 

1.8                                 References to the word “include” or “including” are to be construed
without limitation.

 

1.9                                 References to “true and complete” mean true, accurate, complete, correct
and not misleading at the Signing Date or at Completion, as the case may be.

 

1.10                           References to “writing” or “written” include any non-transient means of
representing or copying words legibly, including by facsimile or electronic
mail.

 

1.11                           References to times of day are to Moscow times and references to a day
are to a period of 24 hours running from midnight.

 

1.12                           References to a document in the agreed terms means in the form agreed
between the Vendors and the Purchaser signed by or on behalf of each of them
for the purposes of identification.

 

1.13                           Without prejudice to Clause 14, references in this Agreement to any
person shall include, or be deemed to be references to, (as may be appropriate)
its respective successors and permitted assignees or transferees.

 

1.14                           In this Agreement, any undertaking by a Party not to do or to omit to do
any act or thing includes an undertaking not to allow, cause or assist in the
doing of or omission of such act or thing.

 

12

 

1.15                           Any agreement, covenant, representation, warranty, undertaking or
obligation arising under this Agreement on the part of the Vendors shall be
deemed to be made or given by the Vendors jointly and severally.

 

2.                                       SALE AND PURCHASE OF SHARES

 

Sale and Purchase

 

2.1                                 Upon and subject to the terms and conditions of this Agreement, the
Vendors hereby agree to sell, and the Purchaser agrees to purchase, all of the
Shares owned by each of the Vendors free from all Encumbrances and together
with all rights and benefits which are at the Signing Date or at any time
hereafter attached to, or accruing in respect of, the respective Shares
(including the right to receive all dividends and distributions declared, made
or paid).

 

All of the Shares

 

2.2                                 The Purchaser shall not be obliged to complete the purchase of any of
the Shares unless the purchase by it of all of the Shares from all the Vendors
is completed, nor shall the Vendors be obliged to complete the sale of any of
the Shares unless the sale of all of the Shares from all of the Vendors is
completed.

 

3.                                       CONSIDERATION

 

3.1                                 The Consideration (inclusive of VAT and transfer taxes (if applicable)
and other applicable taxes) shall be the sum of (a) RUR 20,022,118,912.54, (b)
US$ 9,176,686.74, (c) the cash equivalent in RUR of US$ 626,966,701.4, to be
calculated based on the US$/RUR exchange rate published by the Russian Central
Bank at noon of the Business Day immediately prior to the Completion, and (d)
the cash equivalent in US$ of RUR 293,056,573.37, to be calculated based on
the  RUR / US$ exchange rate published by
the Russian Central Bank at noon of the Business Day immediately prior to the
Completion.

 

3.2                                 The Consideration shall be paid by the Purchaser to the Vendors on the
Completion in accordance with Clauses 7.5 and 7.7 in the following proportions:

 

(a)                                  RUR 14,536,794,870.13 plus
the cash equivalent in RUR of US$ 455,200,889
to be calculated based on the US$/RUR exchange rate published by the Russian
Central Bank at noon on the Business Day immediately prior to the Completion
shall be paid to Sistema for the Sistema Comstar Shares; and

 

(b)                                 RUR 3,801,987,071.50 plus
the cash equivalent in RUR of US$
119,054,297.07 to be calculated based on the US$/RUR exchange rate published by
the Russian Central Bank at noon on the Business Day immediately prior to the
Completion shall be paid to Sistema for the Sistema UTS Shares; and

 

13

 

(c)                                  RUR 1,683,336,970.91 plus
the cash equivalent in RUR of US$ 52,711,515.33
to be calculated based on the US$/RUR exchange rate published by the Russian
Central Bank at noon on the Business Day immediately prior to the Completion
shall be paid to Sistema Telecom; and

 

(d)                                 US$  9,176,686.74 plus  the
cash equivalent in US$ of RUR 293,056,573.37 to be calculated based on the RUR/
US$ exchange rate published by the Russian Central Bank at noon on the Business
Day immediately prior to the Completion shall be paid to ECU Gest.

 

4.                                       CONDITIONS

 

Conditions Precedent

 

4.1                                 The Purchaser’s obligations hereunder to purchase the Shares at
Completion shall be conditional upon satisfaction or waiver (by notice in
writing by the Purchaser to the Vendors, at the sole discretion of the
Purchaser) of the following conditions:

 

(a)                                  the accuracy in all material respects of the Vendors’ Warranties as at
the Signing Date and at Completion (but without taking into account any
Post-Signing Disclosure);

 

(b)                                 compliance by the Vendors with their obligations under this Agreement in
all material respects;

 

(c)                                  in the period prior to Completion, the business of the Group has been
carried on in the Ordinary Course in all material respects (unless the
Purchaser has expressly agreed otherwise in writing under Clause 5.1);

 

(d)                                 no action, suit, or proceeding shall have been determined or be pending
before any Governmental Entity or arbitrator wherein an unfavourable injunction,
judgment, order, decree, ruling, or charge would (A) prevent consummation of
any of the transactions contemplated by the Agreement, (B) cause any of the
transactions contemplated by the Agreement to be rescinded following
consummation, (C) affect adversely the right of the Purchaser to own the Shares
(or any part thereof) or the right of the Purchaser to own or control (directly
or indirectly) any Group Company, or (D) affect adversely the right of any
Group Company to own or control its assets or to operate its business (and no
such injunction, judgment, order, decree, ruling, or charge shall be in
effect), except for any such injunction, judgment, order, decree, ruling, or
charge that has been initiated or otherwise caused by the Purchaser;

 

14

 

(e)                                  no Material Adverse Change having occurred after the Signing Date (and
remaining unremedied) in respect of any of the Target Companies or the Group as
a whole;

 

(f)                                    the Purchaser’s receipt of consents granted by (i) the Russian Federal
Antimonopoly Service in accordance with the Federal Law No. 135-FZ dated 26
July 2006 (as amended) “On Protection of Competition”; and (ii) Ukrainian
antimonopoly authorities,  (together referred to herein, the “Antimonopoly
Approvals”) in each case in a form reasonably satisfactory to the
Purchaser in respect of the purchase of the Shares in accordance with this
Agreement and each of such Antimonopoly Approvals remains in full force and
effect and without any material amendment;

 

(g)                                 the Vendors have procured written confirmation, in a form reasonably
satisfactory to the Purchaser, from OJSC Sberbank that it will not enforce any
of its rights to declare a default or otherwise accelerate repayment of the
loan (in full or in part) under the Sberbank Loan, triggered by execution,
delivery or performance by the Vendors of this Agreement or otherwise in
connection with any events having occurred prior to the Completion.

 

4.2                                 The Vendors’ obligations hereunder to sell the Shares at Completion
shall be conditional upon satisfaction or waiver (by notice in writing by the
Vendors to the Purchaser, at the sole discretion of the Vendors) of the
following conditions:-

 

(a)                                  the accuracy of the Purchaser’s Warranties as at the Signing Date and at
Completion in all material respects;

 

(b)                                 compliance by the Purchaser with its respective obligations under this
Agreement in all material respects; and

 

(c)                                  no action, suit, or proceeding shall have been determined or be pending
before any Governmental Entity or arbitrator wherein an unfavourable
injunction, judgment, order, decree, ruling, or charge would (A) prevent
consummation of any of the transactions contemplated by the Agreement, or (B)
cause any of the transactions contemplated by the Agreement to be rescinded
following consummation, except for any such injunction, judgment, order,
decree, ruling, or charge that has been initiated or otherwise caused by the
Vendors or any of their Affiliates (other than MTS or its subsidiaries).

 

Parties’ Responsibilities
for Conditions

 

4.3                                 The Purchaser shall use all reasonable endeavours to procure
satisfaction of the conditions set out in Clauses 4.1(d) and 4.1(f). The
Vendors shall use all reasonable endeavours to procure satisfaction of the
conditions set out in Clauses 4.1(d) and 4.1(g) and 4.2(c). Without prejudice
to the foregoing, all requests and enquiries to and from any Governmental
Entity shall be dealt with by the Vendors and the Purchaser in consultation 

 

15

 

with
each other and the Vendors and the Purchaser shall co-operate promptly with and
provide all information or assistance reasonably required by such Governmental
Entity (including, but not limited, for the purpose of obtaining Antimonopoly Approvals).

 

Notice of Satisfaction of
Conditions

 

4.4                                 Each Party shall promptly give notice to the other of the satisfaction
of any condition set out in Clauses 4.1 and 4.2.

 

Time Limit for Satisfaction
of Conditions

 

4.5                                 If the conditions set out in Clauses 4.1 and 4.2 have not been satisfied
or waived by midnight on 31 December 2009 (or by such later time and/or date as
may be agreed in writing between the Vendors and the Purchaser), this Agreement
shall terminate and have no further effect and Clause 6.1(a) shall apply.

 

5.                                       PERIOD BETWEEN SIGNING DATE AND
COMPLETION

 

Conduct of Business etc.

 

5.1                                 Between the Signing Date and Completion, the Vendors undertake to
procure that the businesses of each of the Group Companies are carried on in
the Ordinary Course in all material respects (unless the Purchaser otherwise
agrees in writing).

 

5.2                                 Between the Signing Date and Completion, the Vendors shall promptly
notify the Purchaser of:

 

(a)                                  any events materially and adversely affecting the business, financial
position, assets and/or affairs of the Group taken as a whole, providing, so
far as the Vendors are able, relevant details of such events;

 

(b)                                 any material assets (being those with a value in excess of US$5,000,000
(which includes any finance lease arrangements) or otherwise being material for
the operation of the business of the Group as a whole) being disposed of or
agreed to be disposed of or any grant or termination of any rights in respect
thereof;

 

(c)                                  any Material Contracts or Related Party Transactions being entered into,
amended in a material and adverse way, terminated (but not expired) or agreed
to be entered into, amended in a material and adverse way, or terminated by any
Group Company;

 

(d)                                 any Indebtedness or capital expenditure being incurred or agreed to be
incurred by any of the Group Companies, which Indebtedness or capital
expenditure is in excess of US$500,000 or which totals in aggregate
US$2,500,000;

 

16

 

(e)                                  any acquisition of share capital or any assets, properties, businesses
in other companies (including, but not limited to, subsidiaries) or purchase of
long-term investments which acquisition or purchase is in excess of US$ 500,000
or which totals in aggregate US$2,500,000; by any of the Group Company;

 

(f)                                    any Encumbrance being created over any of the assets or undertaking of
any of the Group Companies and any guarantee or indemnity is given by any of
the Group Companies in each case in excess of US$1,000,000 or which totals in
aggregate US$5,000,000;

 

(g)                                 any grant, material and adverse modification, or termination or
agreement to grant, modify in a material and adverse way, or terminate any
rights relating to material Intellectual Property; and

 

(h)                                 any commencement, settlement
or agreement to settle any Material Litigation.

 

5.3                                 Upon reasonable notice, the Purchaser and its directors, officers,
employees, agents and advisers shall be allowed reasonable access during
business hours to the properties and the directors, officers and Key Employees
of each of the Target Companies and of each of the Material Subsidiaries, and
to inspect the books and records of each of the Target Companies and each of
the Material Subsidiaries (whether held by the Target Companies, the respective
Material Subsidiary or their respective agents or advisers and whether stored
electronically or otherwise).

 

5.4                                 Any Management Accounts which have been prepared for the Target
Companies or any Material Subsidiary, whether pursuant to US GAAP, IFRS or RAS,
shall be promptly delivered to the Purchaser upon its request to the Vendors.

 

5.5                                 Without prejudice to the undertakings in Clause 5.1, the Vendors shall
co-operate and consult fully with the Purchaser in relation to the running of
each of the Target Companies and each of the Material Subsidiaries and their
respective businesses in the period prior to Completion and shall procure that
each of the Target Companies and each of the Material Subsidiaries shall not,
without the prior written consent of the Purchaser:

 

(a)                                  make any application to materially and adversely amend or modify, or
terminate, any of the Material Licenses or rights associated with them other
than those Material Licenses being re-registered in connection with the Comstar
Regions Reorganization (for the avoidance of doubt, it being understood that
all Material Licenses being re-registered in connection with the Comstar
Regions Reorganization are being re-registered in the name of either Comstar
Regions or Comstar Regions Subsidiaries);

 

(b)                                 create, allot or issue any shares other than as part of the Comstar
Regions Reorganization or grant or agree to grant any options over shares or
uncalled capital or issue any obligations convertible into shares or modify any
rights attached to shares of any of the Group Companies;

 

17

 

(c)                                  transfer any Shares or any shares in the capital of any Subsidiary or in
OJSC Svyazinvest, or as part of the Comstar Regions Reorganization;

 

(d)                                 declare, make or pay any dividend or other distribution other than to a
100% parent company (but excluding any such dividend or distribution by UTS);

 

(e)                                  amend any Group Company’s charter documents other than as part of the
Comstar Regions Reorganization;

 

(f)                                    initiate or perform any corporate reorganization or liquidation of any
Group Company other than as part of the Comstar Regions Reorganization;

 

(g)                                 amend or agree to amend the terms and conditions (including remuneration
and benefits) of employment or appointment of any of the Key Employees; or

 

(h)                                 agree, approve or resolve to do any of the matters referred to in
paragraphs (a) to (g) above.

 

6.                                       TERMINATION

 

6.1                                 If any of the matters referred to in Clause 6.2 shall arise and remains
un-remedied for 30 (thirty) days, the Purchaser shall be entitled by notice in
writing to the Vendors at any time prior to Completion, to elect at their sole
discretion to:-

 

(a)                                  terminate this Agreement, and this Agreement will, save in relation to
any rights accrued prior to such termination and for Clauses 1, 12 - 18 and 20
- 28 (which will continue in full force and effect) terminate and have no
further effect and neither Party shall have any claim against the other under
this Agreement; or

 

(b)                                 select a new date for Completion (being not later than 30 days after the
date set for Completion in accordance with Clause 7.1 and in any event prior to
31 December 2009) and the terms of this Agreement shall continue to apply as if
such new date were the original date for Completion,

 

for the avoidance of doubt failure to exercise
any such right shall not constitute a waiver of any other rights of the
Purchaser arising by reason of any of the matters referred to in Clause 6.2.

 

6.2                                 Clause 6.1 shall apply if at any time on or before Completion:-

 

(a)                                  a Material Adverse Change has occurred after the Signing Date (and
remains un-remedied for 30 days) in respect of any of the Target Companies or
the Group as a whole; or

 

(b)                                 the Vendors, or any Target Company, or any Material Subsidiary fail to
comply with the provisions of Clause 5 in any material respect.

 

18

 

7.                                       COMPLETION

 

Completion

 

7.1                                 Subject to the satisfaction or waiver of the conditions set out in
Clauses 4.1 and 4.2 and to the satisfaction of the obligations set out in this
Clause 7, and provided that no Party has elected to terminate this Agreement
pursuant to Clause 6, Completion shall take place at the offices of Sberbank on
the third (3rd) Business Day after the last of the conditions set out in
Clauses 4.1 and 4.2 is satisfied or waived or, if applicable, on such date as
is selected in accordance with Clause 6.1(b), or at such other place and/or on
such other date as the Parties may agree in writing.

 

Delivery of Documents etc.
by the Vendors

 

7.2                                 On or before Completion, the Vendors shall deliver or make available to
the Purchaser:-

 

(a)                                  certified copies of the minutes of the general shareholders’
(participants’) meeting of each of the Vendors at which this Agreement and the
transactions and documents referred to herein are approved;

 

(b)                                 certified copies of the minutes of the board of directors of the Vendors
at which this Agreement and the transactions and documents referred to herein
are pre-approved and recommended to the general shareholders’ (participants’) meetings
of the Vendors for approval;

 

(c)                                  originals or certified copies of the up-to-date extracts from the
Unified State Register of Legal Entities issued in respect of each Target
Company and each of the Material Subsidiaries (and in respect of MGTS Finance
S.A., an apostilled extract from the Luxembourg trade register dated August 20,
2009) ;

 

(d)                                 original extracts from the accounts of the Vendors in Comstar’s
depository or shareholder’s register (in respect of ECU Gest only) for the
Comstar Ordinary Shares owned by the Vendors and UTS’ shareholder registrar for
the UTS Ordinary Shares owned by the
Vendors (the “Vendors’ Share Accounts”),
confirming each Vendor’s title to their respective Shares, free from
Encumbrances, dated the date of Completion;

 

(e)                                  original extracts from the account of UTS in Sberbank’s depository for
the Comstar Ordinary Shares, confirming the UTS’ title to 57,446,760 Comstar
Ordinary Shares free from Encumbrances, dated the date of Completion;

 

(f)                                    in the case of Material Subsidiaries that are Russian joint stock
companies, originals of the extracts from the accounts in the registrars or
depositaries, as the 

 

19

 

case
may be, for such Material Subsidiaries’ shares, confirming that Comstar is the
registered or beneficial owner of respective number of shares in each of the
Material Subsidiaries as set forth in Schedule 1, dated not earlier than five
Business Days prior to the Completion;

 

(g)           in
the case of MGTS Finance S.A., an extract from the Luxembourg commercial
registry, confirming that Comstar is the registered or beneficial owner of
respective number of shares in MGTS Finance S.A. as set forth in Schedule 1, dated not earlier than
five Business Days prior to the Completion;

 

(h)           a
copy of the written confirmation, in a form reasonably satisfactory to the
Purchaser, from OJSC Sberbank that it will not enforce any of its rights to
declare a default or otherwise accelerate repayment of the loan (in full or in
part) under the Sberbank Loan, triggered by execution, delivery or performance
by the Vendors of this Agreement or otherwise in connection with any events
having occurred prior to the Completion);

 

(i)            each
power of attorney under which any document entered into by the Vendors, or to
be delivered by the Vendors to the Purchaser has been or will be executed;

 

(j)            an
original power of attorney duly executed by the Vendors in favour of the
Purchaser or its nominees as the Purchaser may direct in the form set out in
Schedule 4 providing that, in the event that the Shares are registered in the
name of the Purchaser after the date of compiling the list of persons entitled
to participate in a general shareholders’ meeting of the respective Target
Company, but before the date of such meeting, the Purchaser shall have the
power to exercise the voting and other rights attaching to the Shares of the respective Target Company at any
such general shareholders’ meeting.

 

Delivery of Documents etc.
by the Purchaser

 

7.3           On
or before Completion, the Purchaser shall deliver or make available to the
Vendors:-

 

(a)           certified
copies of the resolutions of the sole shareholder of the Purchaser at which the
relevant transactions referred to herein are approved;

 

(b)           certified
copy of the resolution of the
board of directors of MTS at which the relevant transactions referred to herein
are approved;

 

(c)           each
power of attorney or other document under which any document entered into by
the Purchaser, or to be delivered by the Purchaser to the Vendors has been or
will be executed.

 

Purchaser’s
Share Accounts

 

7.4           [DELIBERATELY
OMITTED]

 

20

 

First
tranche payment

 

7.5           Subject
to compliance with Clauses 7.2 and 7.4, the Purchaser shall forthwith by
electronic transfer for same day value, pay to Sistema in immediately available
funds the amounts of (i) RUR18,338,781,941.63 plus (ii) the cash equivalent in
RUR of US$61,888,202.07 to be calculated based on the US$/RUR exchange rate
published by the Russian Central Bank at noon on the Business Day immediately
prior to the Completion via electronic transfer into Sistema’s Bank Account or,
if so instructed by Sistema no later than two Business Days prior to the
Completion, another bank account full details of which are notified by Sistema
to the Purchaser no later than at the time such instruction is given, (whose
receipt in full thereof shall be an effective discharge of the Purchaser’s
obligation to pay such amounts) and shall promptly deliver confirmations of
such payment and transfer to Sistema.

 

Release
of the Sberbank Sistema Pledge and transfer of Shares

 

7.6           Subject
to fulfillment of the provisions of Clause 7.5, Sistema shall deliver to the Purchaser
a copy of the written confirmation of full and unconditional release of the
Sberbank Sistema Pledge, in a form reasonably satisfactory to the Purchaser,
and Vendors shall issue and deliver to the depository for the Comstar Ordinary
Shares, the registrar for Comstar Ordinary Shares, and to the registrar for the
UTS Ordinary Shares instructions with respect to the transfer of the Shares
from the Vendors’ Share Accounts to the respective Purchaser’s Share Account
and shall procure that depository or registrar for the Shares of Comstar or
UTS, as appropriate, delivers and transfers the Shares free from any
Encumbrance to the respective Purchaser’s Share Account and promptly confirms
such delivery and transfer to the Purchaser and the Vendors.

 

Second
tranche payment

 

7.7           Subject
to compliance with Clauses 7.2, 7.4 to 7.6 (inclusive), the Purchaser shall
forthwith by electronic transfer for same day value, pay in immediately
available funds the following amounts to the indicated Vendor, into the
respective Vendors’ Bank Accounts: (i) to Sistema, the cash equivalent in RUR
of US$512,366,984.00 to be calculated based on the US$/RUR exchange rate
published by the Russian Central Bank at noon on the Business Day immediately
prior to the Completion; (ii) to Sistema Telecom, the amounts indicated in
Clause 3.2(c); and (iii) to ECU Gest, the amounts indicated in Clause 3.2(d),
(receipt in full of the amounts indicated in this Clause 7.7 shall be an
effective discharge of the Purchaser’s obligation to pay the Consideration) and
shall promptly deliver  confirmations of
such payment and transfer to the Vendors.

 

7.8           On
receipt of the respective payments into the Vendors’ Bank Accounts pursuant to
Clause 7.7 in full, the Vendors shall promptly deliver confirmation of such
receipt of funds to the Purchaser.

 

21

 

Completion

 

7.9           The
delivery and performance of the documents, items and actions provided in
Clauses 7.1 - 7.8 shall be required to take place no later than the Completion
and the Completion shall not be deemed to have taken place until all such
delivery and performance are completed.

 

8.             VENDORS’
WARRANTIES

 

Vendors’ Warranties and
Repetition of Vendors’ Warranties

 

8.1           In
relation to themselves, each of the Target Companies and each of the specified
Subsidiaries, the Vendors warrant to the Purchaser (for itself and for its successors in title) that, except as Disclosed, the
Vendors’ Warranties are true and accurate in all material respects at the
Signing Date and further that the Vendors’ Warranties shall be true and
accurate in all material respects at the Completion as if they had been made or
given at Completion (on the basis that references in the Vendors’ Warranties to
any fact, matter or thing existing, occurring or having occurred at or on
and/or before or after (and similar terms) the Signing Date shall be construed
as references to it having so done at or on and/or before or after (and similar
terms) the Completion).

 

8.2           The
Purchaser has entered into this Agreement upon the basis of, and in reliance
upon, amongst other things, the Vendors’ Warranties and indemnities.

 

Knowledge

 

8.3           Where
any Vendors’ Warranty is made or given to the best of the Vendors’ knowledge or
is qualified by reference to the Vendors’ awareness (or to some other matter of
similar effect), such Warranty shall be deemed to be given to the best of the
knowledge, information and belief of the Vendors after making due, diligent and
careful enquiry with each of the Key Employees and the general director and
each member of the management board of Sistema.

 

Separate Vendors’
Warranties

 

8.4           Each
of the Vendors’ Warranties set out in Schedule 2 shall be separate and
independent and shall not be limited by reference to any other Vendors’
Warranty.

 

Notification of Breach or
Non-fulfilment

 

8.5           If
at any time on or before Completion any act, matter, thing or circumstance
shall, or shall not, occur or be impending or threatened which would or would
be reasonably likely to constitute a material breach or non-fulfilment of any
of the Vendors’ Warranties or mean that any of the Vendors’ Warranties is
untrue or inaccurate in any material respect at the Signing Date or at the
Completion, the Vendors shall promptly upon becoming aware of the same notify
the Purchaser in writing thereof, providing sufficient 

 

22

 

details
to enable the Purchaser accurately to assess the impact of the same. If so
requested by the Purchaser, the Vendors shall use reasonable endeavours
promptly to prevent or remedy the said occurrence or non-occurrence.

 

9.             PURCHASER’S
WARRANTIES

 

Purchaser’s Warranties and
Repetition of Purchaser’s Warranties

 

9.1           In
relation to itself the Purchaser warrants to the Vendors (for themselves and
for their successors or any of them or to all) that the Purchaser’s Warranties
are true and accurate in all material respects at the Signing Date and further
that the Purchaser’s Warranties shall be true and accurate in all material
respects at the Completion as if they had been made or given at Completion (on
the basis that references in the Purchaser’s Warranties to any fact, matter or
thing existing, occurring or having occurred at or on and/or before or after
(and similar terms) the Signing Date shall be construed as references to it
having so done at or on and/or before or after (and similar terms) the
Completion).

 

9.2           The
Vendors have entered into this Agreement upon the basis of, and in reliance
upon, amongst other things, the Purchaser’s Warranties.

 

Knowledge

 

9.3           Where
any Purchaser’s Warranty is made or given to the best of the Purchaser’s
knowledge or is qualified by reference to the Purchaser’s awareness (or to some
other matter of similar effect), such Purchaser’s Warranty shall be deemed to
be given to the best of the knowledge, information and belief of the Purchaser,
as the case may be, after making due, diligent and careful enquiry with each of
general director, members of the management board of MTS and the Purchaser.

 

Separate Purchaser’s Warranties

 

9.4           Each
of the Purchaser’s Warranties set out in Schedule 3 shall be separate and
independent and shall not be limited by reference to any other of them or any
other provision in this Agreement.

 

Notification of Breach or
Non-fulfilment

 

9.5           If
at any time on or before Completion any act, matter, thing or circumstance
shall, or shall not, occur which would or would be reasonably likely to
constitute a material breach or non-fulfilment of any of the Purchaser’s
Warranties or mean that any of the Purchaser’s Warranties is untrue or
inaccurate in any material respect at the Signing Date or at the Completion,
the Purchaser shall promptly upon becoming aware of the same, notify the
Vendors in writing thereof, providing sufficient details to enable the Vendors
accurately to assess the impact of the same. If so requested by the Vendors,
the Purchaser shall use reasonable endeavours promptly to prevent or remedy the
said occurrence or non-occurrence.

 

23

 

10.           LIMITATION
OF LIABILITY

 

Time Limitations

 

10.1         The
Vendors shall have no liability in respect of any claim under the Vendors’
Warranties unless:-

 

(a)           the
Purchaser shall have served on the Vendors a written notice of such claim on or
before

 

  i)            the date falling 15 (fifteen) months after the date of
Completion;

 

ii)          in the case only of any claim under the Vendors’ Tax
Warranties, the date falling 30 (thirty) months after the date of Completion,

 

which notice gives all material details of such
claim as are then known to the Purchaser together with the Purchaser’s bona fide estimate of the amount of such
claim; and

 

(b)           legal
proceedings in respect of such claim shall have been commenced against the
Vendors within 6 (six) months of such notice, or such claim shall have been
satisfied, settled or withdrawn prior to the expiry of such 6 (six) month
period, except in the case of a claim based upon a liability which is
contingent or otherwise not capable of being quantified, such 6 (six) month
period shall commence on the date that the contingent liability becomes an
actual liability or the liability is capable of being quantified.

 

Quantum

 

10.2         The
total aggregate liability of the Vendors under this Agreement shall in all
circumstances be limited to the Consideration.

 

10.3         Notwithstanding
clause 10.2 above, the Vendors shall have no liability in respect of any claim
under the Vendors’ Warranties:-

 

(a)           unless
and until the amount of such claim, when aggregated with the amount of any
other claim(s) made by the Purchaser under any of the Vendors’ Warranties
(which claims are based on essentially the same or similar facts) exceeds
US$1.5 million; and

 

(b)           unless
and until the amount of such claim, when aggregated with the amount of any
other permissible claim(s) made by the Purchaser under any of the Vendors’
Warranties (or which would have been made but for the provisions of this Clause
10.3(b)) exceeds US$20 million, in which event the Vendors’ liability in
respect of such claim(s) shall not be limited to the excess and the whole
amount of such claim(s) shall be recoverable in full.

 

24

 

10.4         The
Vendors will have no liability in respect of any claim under the Vendors’
Warranties:

 

(a)           to
the extent that it arises or is increased as a result of the passing of, or a
change after the Signing Date in, any law, rule, regulation, interpretation of
the law or administrative practice of a Governmental Entity (except where it is
already adopted at the Signing Date but came into force after the Signing
Date);

 

(b)           if
it would not have arisen but for any act, omission, transaction or arrangement
carried out at the request of the Purchaser before Completion;

 

(c)           if it would not have arisen but for any voluntary act, omission, transaction
or arrangement carried out after Completion by the Purchaser, any Group Company
or any of their respective directors, employees or agents or successors in
title, except where such action is required by applicable law;

 

(d)           except for matters specifically referred to in Clause 11.1, to the
extent that the subject matter of the claim is a matter specifically included
as a liability in the Accounts, provided that the scope and the extent of such
liability is reasonably clear on the face of the Accounts.

 

10.5         Where the relevant Group Company or the Purchaser is
entitled (whether by reason of insurance, indemnity or payment discount or
otherwise) to recover from some other person any sum in respect of any
liability, loss or damage that is the subject of a claim against the Vendors or
for which such a claim could be made (and whether before or after the Vendors,
as appropriate, have made payment hereunder), the Purchaser shall (or, as
appropriate, co-operate to procure that the relevant Group Company shall):

 

(i)            promptly notify the Vendors
and provide such information as the Vendors may reasonably request relating to
such liability or dispute and the steps taken or to be taken by the Purchaser
and/or the relevant Group Company in connection with it, provided that any
delay or failure in giving such notice to the Vendors shall not prejudice
Purchaser’s or the relevant Group Company’s right to make such claim except to
the extent that the Vendors can demonstrate that it has suffered actual damage
as a result of such delay or failure;

 

(ii)           if so requested by the
Vendors, either (1) itself take all steps (whether by way of a claim against
its insurers or otherwise including proceedings) as the Vendors may reasonably
request to enforce such recovery, in each case subject to the Vendors’ current
reimbursement of the costs and expenses reasonably incurred by the Purchaser
and/or the relevant Group Company in complying with such request by the
Vendors, or (2) in relation to such recovery by the Purchaser only (but, for
the avoidance of doubt, not by any Group Company), assign such Purchaser’s
right of recovery to the Vendors or the Vendors’ Affiliate and thereafter
provide such cooperation 

 

25

 

and assistance as Vendors
may reasonably request in pursuing such recovery; and

 

(iii)          shall keep the Vendors
informed of the progress of any action taken by the Purchaser or the relevant
Group Company;

 

provided that (i) the possibility of such
recovery against a third party in respect of a claim shall not justify delay in
the payment of such claim by the Vendors; (ii) in the event of an ultimate
recovery against a third party by the Vendors or their Affiliate, the amount of
such recovery in excess of the amount already paid in respect of the related
claim (and the costs of collection) shall be kept by the Vendors or their
respective Affiliate; (iii) in the event of an ultimate recovery by Purchaser,
the amount of such recovery up to the amount actually received from the Vendors
in respect of the related claim (less the costs of recovery) shall be paid over
to the Vendors; and (iv) in the event of an ultimate recovery by the relevant
Group Company, the amount of such recovery prorated to the interest directly or
indirectly held by the Purchaser in the relevant Group Company as of the date
of this Agreement, and up to the amount actually received from the Vendors in
respect of the related claim (less the costs of recovery), shall be paid over
to the Vendors.

 

10.6         If
any potential claim arises as a result of a contingent or unquantifiable
liability of any Group Company, the Vendors will not be obliged to pay any sum
in respect of the potential claim until the liability either ceases to be
contingent or becomes quantifiable.

 

Disclosure

 

10.7         The
Purchaser shall not be entitled to claim that any fact, matter or circumstance
causes any of the Vendors’ Warranties to be breached if it is Disclosed.

 

Fraud etc.

 

10.8         The
provisions of this Clause 10 shall not apply to any claim under any of the
Vendors’ Warranties if such claim is in respect of fraud on the part of the
Vendors.

 

11.           INDEMNITY

 

11.1         Each
of the Vendors, jointly and severally, agrees to indemnify, defend and hold the
Purchaser harmless from and, where relevant, covenants to pay the Purchaser
amounts in respect of, for itself and as trustee for its directors, officers,
and employees and its successors in title to the Shares, all actions, claims,
demands and proceedings of any nature made from time to time against such
persons or a Group Company and from all losses, damages, payments, awards,
diminutions in value, costs or expenses (including, for the avoidance of doubt,
but not limited to, any taxes) made, suffered or incurred by or existing in
respect of such persons or a Group Company, in each case as a consequence of,
or that would not have arisen but for (and such right shall not be limited or
affected by 

 

26

 

any
investigation conducted or notice or knowledge obtained by or on behalf of the
indemnified person) any breach of or inaccuracy in any of the Vendors’
Warranties or any breach of any covenant or undertaking by the Vendors under
Clause 5 of this Agreement or, which would not have been made, suffered,
incurred or arisen had the relevant Vendors’ Warranty been true.

 

11.2         The
Vendors’ obligations to the Purchaser under Clause 11.1 in respect of any
actions, claims, demands and proceedings of any nature made from time to time
against a Group Company and any losses, damages, payments, awards, diminutions
in value, costs or expenses made, suffered or incurred by or existing in
respect of a Group Company shall be limited to 65% of the relevant amount,
representing the effective economic interest in Comstar that is being acquired
by the Purchaser from the Vendors hereunder.

 

11.3         Any
amount payable by the Vendors under this Clause 11 shall be increased to ensure
that the net amount received by the indemnified persons shall, after Taxation,
be equal to that which would have been received if such payment (and any
increased payment) had not been subject to Taxation.

 

11.4         For
the avoidance of doubt, the provisions of Clause 10 shall apply to any right of
action the Purchaser (or any of its directors, officers, and employees and its
successors in title to the Shares) may have pursuant to Clause 11.1 above.

 

12.           ANNOUNCEMENTS

 

Restrictions on
Announcements

 

12.1         No
announcement, statement, press conference or other communication shall be (or
be authorised to be) made, released, issued or held by or on behalf of either
of the Parties hereto or their respective directors, officers, employees,
agents or advisers before, on or after Completion concerning this Agreement, or
the subject matter or provisions of, or transactions or matters referred to in
or contemplated by, or negotiations leading to, this Agreement, save as
provided in Clause 12.2.

 

12.2         Clause
12.1 shall not apply:-

 

(a)           as
may be agreed in writing by the other Party hereto (such agreement not to be
unreasonably withheld or delayed); or

 

(b)           to
any announcement required to be made by any applicable law or regulation or
court or governmental, administrative, regulatory or other authority (including
any securities exchange to whose rules a Party may be subject) provided that
such announcement is only made:-

 

(i)            to
the extent required by such law or regulation or court or authority or
securities exchange; and

 

27

 

(ii)           (unless
prohibited by such law or regulation or court, authority or securities
exchange) after being discussed and agreed with the non-disclosing Party (such
agreement not to be unreasonably withheld or delayed).

 

Announcements to Employees
etc.

 

12.3         Without
prejudice to Clauses 12.1 and 12.2, between the date hereof and Completion the
Parties hereto shall (subject to the requirements of any applicable law or
regulation or court or governmental, administrative, regulatory or other
authority) agree the terms and manner of, and the timetable for, any
announcement or circular or other communication to shareholders, employees,
customers, suppliers, distributors, sub-contractors and other interested
parties of the Parties hereto or of any of the Group Companies and to any
applicable authorities or other bodies and to the media or otherwise regarding
this Agreement and all such announcements or circulars or other communications
shall be made in accordance with such agreement.

 

13.           FURTHER
ASSURANCE

 

Further Assurance

 

13.1         At
any time after the Signing Date each Party shall, promptly upon being required
to do so by the other Party, and at the requesting Party’s expense, do or
procure that there shall be done all such acts and things and execute or
procure the execution of all such documents and instruments in a form
reasonably satisfactory to the requesting Party as the requesting Party may
from time to time reasonably require (before or after Completion) in order to
give full effect to this Agreement and to secure to the requesting Party the
full benefit of the rights, powers and remedies conferred upon it in this
Agreement.

 

13.2         Management

 

[INTENTIONALLY
OMITTED]Information

 

13.3         At
any time after the date hereof the Vendors shall, promptly upon being requested
to do so by the Purchaser, make or cause to be made available to the Purchaser
all information in their possession or under their control which the Purchaser
may from time to time reasonably require (before or after Completion) relating
to the business and affairs of any of the Group Companies and shall permit the
Purchaser and its directors, officers, employees, agents and advisers to have
access to any documents containing such information (whether in written or
electronic form or otherwise) and to take copies thereof.

 

13.4         Each
of the Parties hereto undertakes to provide all such information as may
reasonably be required by the other Party for the purpose of complying with the
requirements of law or of applicable regulatory authority.

 

28

 

14.           ASSIGNMENT

 

Prohibition on Assignment

 

14.1         Subject
to Clause 14.2, neither Party may, nor purport to, without the prior consent in
writing of the other Party hereto assign, transfer, delegate, sub-contract,
mortgage, charge, put into trust or otherwise deal with:-

 

(a)           this
Agreement;

 

(b)           all
or any of its rights or obligations arising under or out of this Agreement; or

 

(c)           the
benefit of all or any of the other Party’s obligations under this Agreement.

 

Each Party is entering into this Agreement for
its benefit and not for the benefit of another person.

 

Assignment to Affiliates

 

14.2         The
Purchaser shall not be entitled to assign all or any of its rights arising
under or out of this Agreement and the benefit of all or any of the Vendors’
obligations hereunder to any of its Affiliates except with the prior written
consent of the Vendors, such consent not to be unreasonably withheld.

 

Successors in Title

 

14.3         Subject
to the other provisions of this Clause 14, this Agreement shall be binding upon
and enure to the benefit of the successors in title and permitted assignees and
transferees of each of the Parties hereto.

 

15.           VARIATION

 

No variation of this Agreement shall be
effective unless made in writing and signed by or on behalf of each of the
Parties to this Agreement.

 

16.           WAIVER

 

No Waiver by Omission etc.

 

16.1         No
failure or delay by the Parties hereto to exercise any right, power or remedy
provided by law or hereunder shall operate as a waiver of the same or of some
other right, power or remedy nor shall any partial exercise thereof preclude
any further exercise of the same or of some other right, power or remedy. To
the extent permitted by applicable law, the rights and remedies provided under
this Agreement are cumulative and are not exclusive of any rights and remedies
provided by law or otherwise.

 

29

 

Waiver to be in Writing

 

16.2        Any waiver of any
right (to the extent such waiver may be permitted by applicable law), power or
remedy under this Agreement must be in writing and may be given subject to such
conditions as the grantor may in its absolute discretion decide. Any such
waiver (unless otherwise specified) shall only be a waiver in the particular
instance and for the particular purpose for which it was given.

 

17.          INVALIDITY

 

Modification of Provisions

 

17.1        The Parties hereto
confirm that they have each received independent legal advice relating to all
the matters provided for in this Agreement and that they consider the
provisions of this Agreement to be reasonable and necessary in all the
circumstances, but if for any reason one or more of such provisions or
undertakings shall be held to be invalid but would have been held to be valid
if part of the wording of the same was deleted or the period or scope of the
same reduced then the said provisions or undertakings shall apply with such
deletion or modification as may be necessary to make them valid and effective.

 

Illegality of Provisions

 

17.2        Without prejudice to
Clause 17.1, each of the provisions of this Agreement is severable. If any such
provision or undertaking or part thereof is or becomes illegal, invalid or
unenforceable in any respect, such provision or undertaking or part shall to
that extent be deemed not to form part of this Agreement but the legality,
validity and enforceability of the remaining provisions and undertakings
hereunder shall not in any way be affected or impaired thereby.

 

18.          REMEDIES

 

The Vendors acknowledge and agree that damages
alone would not provide an adequate remedy for any breach by them of the
provisions of this Agreement and therefore that, without prejudice to any and
all other rights and remedies the Purchaser may have (including, but not
limited to, damages), the Purchaser shall be entitled to specific performance
and other relief to the extent permitted by applicable law for any threatened
or actual breach of such provisions.

 

19.          CONTINUANCE
AFTER COMPLETION

 

The provisions of this Agreement, including the
Vendors’ Warranties, and of all other documents referred to herein, shall not
(save where the context otherwise requires) be extinguished or otherwise affected
by Completion but shall continue to have full force and effect.

 

30

 

20.          TIME OF
THE ESSENCE

 

Extension of Time

 

20.1        Any time, date or
period mentioned in this Agreement may be extended by agreement in writing
between the Parties hereto or otherwise as provided herein.

 

Time of the Essence

 

20.2        Save as extended as
set out in Clause 20.1, any time, date or period mentioned in this Agreement
shall be of the essence and, if such time, date or period is extended as
aforesaid then such extended time, date or period shall be of the essence.

 

21.          ENTIRE
AGREEMENT AND THIRD PARTY RIGHTS

 

21.1        This Agreement and
any documents entered into pursuant hereto constitute the entire agreement
between the Parties hereto in relation to the subject matter hereof and
supersede and extinguish, and each Party in entering into this Agreement and
such other documents agrees that it does not rely on and shall have no remedy
in respect of, all prior drafts and all prior agreements, understandings,
undertakings, arrangements, representations and warranties (of any nature
whatsoever, of any person whether Party to this Agreement or not and whether
written or oral) in relation to such subject matter other than as expressly set
out in this Agreement as a warranty, save that nothing in this Agreement shall
exclude or limit any liability or remedy arising as a result of fraud.

 

21.2        None of the terms of
this Agreement will be enforceable by any person not a party to it by virtue of
the Contracts (Rights of Third Parties) Act 1999 or otherwise, provided that
the Purchaser’s directors, employees and successors in title shall be entitled
to enforce their rights under Clause 11.1.

 

22.          COSTS

 

Save as otherwise provided in this Agreement and
without application to any arbitration hereunder, each Party shall pay its own
costs and expenses in relation to the negotiation, preparation, execution and
implementation of this Agreement and the documents referred to herein.  For the avoidance of doubt, the Purchaser
shall be responsible for the payment of all fees and expenses charged by the
relevant registrar or depository, as the case may be, and related to the
re-registration of the Shares in accordance with Clause 7.6.

 

23.          PAYMENTS

 

All payments to be made under this Agreement
shall be made in full without any set-off or counterclaim and free from any
deduction or withholding save as may be required by law in which event such
deduction or withholding shall not exceed the minimum amount which it is
required by law to deduct or withhold and the payer shall simultaneously pay to
the payee such additional amounts as will result in the receipt by the payee of
a net 

 

31

 

amount equal to the full amount which would
otherwise have been receivable had no such deduction or withholding been
required.

 

24.          CONFIDENTIALITY

 

24.1        Each of the Parties
undertakes that it will not at any time hereafter use, divulge or communicate
to any person, except to such Party’s Affiliates or professional
representatives or advisers or as may be required by law or rules and
regulations of the relevant stock exchange or any Governmental Authority, any
confidential information concerning the business or affairs of the other Parties
and all technical, financial and commercial information concerning this
Agreement and duly exchanged, in writing or otherwise, by and between the
Parties in performing any provision of this Agreement and each of the Parties
shall use its reasonable endeavours to prevent the publication or disclosure of
any confidential information concerning such matters.

 

25.          NOTICES

 

Addresses etc.

 

25.1        Any notice or other
communication (a “notice”) to be
given under this Agreement shall be in writing and shall be sent by inland
Russian pre-paid certified mail (or, if overseas, by pre-paid airmail) or by
courier, fax or electronic mail to:-

 

in the case of Sistema:-

 

Name: Anton Abugov

Address:

13 bld. 1, Mokhovaya st.

Moscow 125009

Russian Federation  

Fax no: +7.495.228.1514

e-mail address: abugov@sistema.ru

 

With a copy to, which shall not constitute
notice:

Christopher Allen

Latham & Watkins

Gasheka Street #6

123056, Moscow, Russia

Fax no: +7.495.785.1235

e-mail address: 
christopher.allen@lw.com

 

in the case of ECU Gest:-

 

Emile Wirtz

l-1628, Luxembourg, 41 rue des
Glacis

 

32

 

Fax no:  +352 45 59 10

e-mail address: [e-mail address]

 

in the case of Sistema Telecom:-

 

Irina Roslova

7 Bolshaya Pirogovskaya
Street

Moscow, Russian Federation

Fax no: [·]

e-mail address: [e-mail address]

 

and in the case of the Purchaser:-

 

 «TELEKOMS OPERATOR» LLC

 

Address

 

5, Vorontsovskaya Street,

 

Moscow, 109147

 

Russian Federation

 

Attn:
Michael Hecker, Ilya Kolesnikov, Alexei Kaurov

 

Fax no: (+7 495) 911-65-69

 

e-mail address: mhecker@mts.ru,
koim@mts.ru, aykaurov@mts.ru

 

or to such other address or fax number as
either Party may from time to time notify to the other (to be effective not
less than five Business Days from the date of deemed service under Clause
25.2).

 

Deemed Receipt

 

25.2        Notices sent as set
out in Clause 25.1 shall be deemed to have been received:-

 

(a)           if
sent by inland Russia pre-paid certified mail, on the tenth Business Day after
the date of posting;

 

(b)           if
sent by pre-paid airmail, on the fifth Business Day after the date of posting;

 

(c)           if
sent by fax or electronic mail, on the day that they are sent (if sent on a
Business Day before 4 p.m.) or otherwise on the next Business Day; and

 

(d)           if
sent by courier, at the time that their receipt is signed for, whether or not
the person signing for such receipt has authority so to do.

 

33

 

Proof of Service

 

25.3        In proving service of
the notice it shall be sufficient to show that:-

 

(a)           delivery
by hand was made;

 

(b)           the
envelope containing the notice was correctly addressed and posted;

 

(c)           in
the case of a fax, the fax was properly addressed to the correct number and a
transmission report was generated by the sender’s fax machine recording a
message from the recipient’s fax machine confirming that the fax was sent to
the number indicated above and that all pages were successfully transmitted;
and

 

(d)           in
the case of electronic mail, the electronic mail was correctly addressed and
sent and an automatically generated notification of delivery was requested by
the sender when sending the electronic mail, even if no such notification was
received by the sender, provided that no notification was received by the
sender that the electronic mail was undeliverable (a “failure notification”) and if a failure
notification was received the sender shall re-send a copy of the notice by
electronic mail and shall also send a copy of the notice by another method of
service set out in Clause 25.1, in which case it shall be deemed to have been
sent in accordance with Clause 25.2 as it applies to that other method of
service.

 

26.          COUNTERPARTS

 

This Agreement may be prepared in English
language and executed in any number of counterparts and by the Parties on
different counterparts, but shall not be effective until each Party has
executed at least one counterpart. Each counterpart shall be deemed an
original, but all the counterparts shall together constitute one and the same
agreement.

 

27.          LANGUAGE

 

27.1        All notices or formal
communications under or in connection with this Agreement shall be in English.

 

27.2        Schedules to the
Disclosure Letter may be made in Russian or English languages.

 

28.          GOVERNING
LAW AND JURISDICTION

 

28.1        This Agreement and
the transaction documents to be entered into in accordance with the principles
set out herein are intended to be legally binding and shall be governed by, and
construed in accordance with, English law, other than conflict of laws
provisions.

 

28.2        In the event of any
dispute, controversy or claim arising out of, or in connection with, this
Agreement, including the breach, termination or invalidity thereof (a “Dispute”), any 

 

34

 

Party
may serve written notice on the other Party that a Dispute has arisen (the “Notice of Dispute”).

 

The Parties shall
apply all commercially reasonable efforts to resolve any Dispute on an amicable
basis within thirty calendar days from the date on which the Notice of Dispute
is served by one Party on the other Party (or such shorter or longer period as
may be agreed in writing between the Parties).

 

If the Parties do not
resolve any Dispute by amicable negotiation within the above stated period,
such Dispute shall be referred to and finally and exclusively settled by
arbitration in accordance with the Arbitration Rules of the London Court of
International Arbitration (the LCIA Rules), which are deemed to be incorporated by reference
into this Clause 28. There shall be three arbitrators; the Vendors acting together
shall be entitled to nominate one arbitrator,
the Purchaser shall be entitled to nominate one arbitrator, and the two
arbitrators so appointed shall, within 14 (fourteen) days of the last of their
respective appointments, nominate the third arbitrator, who shall serve as
chairman (failing which the chairman shall be appointed by the London Court of International
Arbitration under the LCIA Rules).

 

The seat of the
arbitration shall be London, England. The language of the arbitration shall be
English. The arbitrators’ decision shall be final and binding upon the Parties,
and the Parties waive any rights of appeal or to seek a determination of a
preliminary point of law from the courts.

 

35

 

SCHEDULE 1

 

Subsidiaries

 

36

 

Schedule 1 as of October  5, 2009

Subsidiaries

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Open Joint Stock Company “COMSTAR-United TeleSystems”

  	
   

  	
  RF

  	
   

  	
  1027700003946 04.07.2002

  RF Tax Department for the City of Moscow

  	
   

  	
  835,881,720

  RUR

  	
   

  	
  417,940,860 RUR

  	
   

  	
  1. OJSC “AFK SISTEMA” (36.43)  

  2. United TeleSystems (13.75)  

  3. MGTS Finance S.A. (11.06)  

  4. OJSC “ MGTS ” (2.754)

  5. SA ECU GEST HOLDING (0.734)  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Limited Liability Company “UNITEL”

  	
   

  	
  RF

  	
   

  	
  1027700449204 
  21.11.2002

  RF Tax Department for the City of Moscow

  	
   

  	
  10,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Open Joint Stock Company “M-Telecom Holding”

  	
   

  	
  RF

  	
   

  	
  1057748870431 01.11.2005 Interdistrict
  Inspectorate of the Federal Tax Service No. 46 for the City of Moscow

  	
   

  	
  100,000 RUR

  	
   

  	
  100,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  AnTel Metrocom Limited

  	
   

  	
  BVI

  	
   

  	
  643659 24.02.2005 Registrar of Corporate Affairs

  	
   

  	
  75,849,246 USD

  	
   

  	
  75,849,246 USD

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Comstar One Limited

  	
   

  	
  BVI

  	
   

  	
  1052917
  22.09.2006 Registrar of Corporate Affairs

  	
   

  	
  75,050,000 USD

  	
   

  	
  75,050,000 USD

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Limited Liability Company “COMSTAR-UKRAINE”

  	
   

  	
  Ukraine

  	
   

  	
  22449427

  tax Inspectorate for Primorsky District for
  the City of Odessa (Ukraine)

  	
   

  	
  26,045,860

  UAH

  	
   

  	
  26,045,860

  UAH

  	
   

  	
  1. OJSC “COMSTAR-UTS” (99)  

  2. CJSC “UNITED TELESYSTEMS MGTS” (1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Limited Liability Company “Technological Communication Systems”

  	
   

  	
  Ukraine

  	
   

  	
  10691200000000610 21.12.2000

  Obolon District State Administration for the
  City of Kyiv

   (Ukraine) 

  	
   

  	
  816,000.00 UAH

  	
   

  	
  816,000.00 UAH

  	
   

  	
  1. OJSC “COMSTAR-UKRAINE” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Closed Joint Stock Company “COMSTAR-Direct”

  	
   

  	
  RF

  	
   

  	
  1027700288076 07.10.02

  Interdistrict Inspectorate of the Federal Tax
  Service No. 39 for the City of Moscow

  	
   

  	
  400,250 RUR

  	
   

  	
  107,285 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Limited Liability Company “ASTELIT”

   

  	
   

  	
  RF

  	
   

  	
  1027739233620

  23.09.02

  Interdistrict Inspectorate of the Federal Tax Service No. 39 for the City
  of Moscow

  	
   

  	
  10,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. OJSC “M-TELECOM HOLDING” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  MGTS Finance S.A.

  	
   

  	
  Luxembourg

  	
   

  	
  B 114348 02.02.2006 Luxembourg

  Commercial and Business Register

  	
   

  	
  159,029,290 EUR

  	
   

  	
  159,029,290 EUR

  	
   

  	
  1. CJSC “UNITED TELESYSTEMS MGTS” (99.99)  

  

 

2

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Closed Joint Stock Company “ESTEL”

  	
   

  	
  RF

  	
   

  	
  1026201257675

  18.09.2002 Interdistrict Inspectorate No.
  2 of RF Ministry for Taxes and Charges for the City of Ryazan

  	
   

  	
  9,000 RUR 

  	
   

  	
  9,000 RUR

  	
   

  	
  1. CJSC “COMSTAR DIRECT” (51)  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Callnet Enterprises Limited

  	
   

  	
  Great Britain

  	
   

  	
  4772230 20.05.2003 Registrar of Companies for
  England and Wales

  	
   

  	
  1,000 GBP

  	
   

  	
  1,000 GBP

  	
   

  	
  1. OJSC “COMSTAR-UTS” (75.10)  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Closed Joint Stock Company “CORNET-AM”

  	
   

  	
  Armenia

  	
   

  	
  286.120.03794 30.12.1999

  State Register of the Republic of Armenia

  	
   

  	
  100,000 AMD

  	
   

  	
  100,000 AMD

  	
   

  	
  1. CALLNET ENTERPRISES LIMITED (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Closed Joint Stock Company “COMSTAR-Regions”

  	
   

  	
  RF

  	
   

  	
  1097746419913

  03.08.09

  Interdistrict Inspectorate of the Federal Tax Service No. 46 for the City
  of Moscow

  	
   

  	
  616,183,376 RUR

  	
   

  	
  616,183,376 RUR*

  	
   

  	
  OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Open Joint Stock Company “Investment Communications Company”

  	
   

  	
  RF

  	
   

  	
  1027739875998 25.12.2002 Interdistrict
  Inspectorate of the Federal Tax Service No. 39 for the City of Moscow

  	
   

  	
  19,518,337,

  220 RUR

  	
   

  	
  19,518,337,

  220 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (17.31)  

  2. MGTS FINANCE S.A. (7.69 + 1 share)  

  

 

3

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Closed Joint Stock Company “City-Telecom”

  	
   

  	
  RF

  	
   

  	
  1037739360735 03.02.2003 Interdistrict
  Inspectorate of the Federal Tax Service No. 39 for the City of Moscow

  	
   

  	
  3,710,600 RUR

  	
   

  	
  3,710,600 RUR

  	
   

  	
  1. COMSTAR-UTS (45)

  2. OJSC “MGTS” (5)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Open Joint Stock Company “Moscow Auction House”

  	
   

  	
  RF

  	
   

  	
  1037739768340 06.03.2003 Inspectorate of the
  Federal Tax Service No. 4 for the City of Moscow

  	
   

  	
  200,000.00 RUR

  	
   

  	
  200,000.00 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Open Joint Stock Company “Regional Technical Center”

  	
   

  	
  RF

  	
   

  	
  1028600943425 17.09.2002 tax Inspectorate
  No. for the City of Tyumen

  	
   

  	
  95,162,292 RUR

   

  	
   

  	
  70,512,292 RUR

  	
   

  	
  OJSC “COMSTAR-UTS” (86.21)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Open Joint Stock Company “TS-Retail”

   

  	
   

  	
  RF

  	
   

  	
  1087746871453 23.07.2008 Interdistrict
  Inspectorate of the Federal Tax Service No.  46 for
  the City of Moscow

  	
   

  	
  344,400,000 RUR

  	
   

  	
  344,400,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (15)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Closed Joint Stock Company “Urals Telephone Company”

  	
   

  	
  RF

  	
   

  	
  1026604948260 23.10.2002 Tax Inspectorate for Kirovsky District of the
  City of Yekaterinburg

  	
   

  	
  45,000 RUR

  	
   

  	
  45,000 RUR

  	
   

  	
  1. CJSC “COMSTAR-Regions” (100)

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main State

  	
   

  	
  Share Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Open Joint Stock Company “Mass Media System”

  	
   

  	
  RF

  	
   

  	
  1037708003805 23.01.2003

  Tax Inspectorate No. 8 for the Central Administrative District of
  Moscow

  	
   

  	
  614,553,200 RUR

  	
   

  	
  614,553,200 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (3.14)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Open Joint Stock Company “Moscow City Telephone Network”

  	
   

  	
  RF

  	
   

  	
  1027739285265 30.09.02

  Interdistrict Inspectorate of the Federal Tax
  Service No. 39 for the City of Moscow

  	
   

  	
  3,831,802,000 RUR

  	
   

  	
  3,831,802,000 RUR

  	
   

  	
  1. OJSC COMSTAR OTC (55.732)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  Closed Joint Stock Company “AMT”

  	
   

  	
  RF

  	
   

  	
  1027739033772 01.08.2002

  Interdistrict Inspectorate of the Federal Tax
  Service No. 39 for the City of Moscow

  	
   

  	
  41,000,000 RUR

  	
   

  	
  20,500,000 RUR

  	
   

  	
  1. OJSC “MGTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Closed Joint Stock Company “Petrodvor”

  	
   

  	
  RF

  	
   

  	
  1027700011240 09.07.2002 Interdistrict
  Inspectorate of the Federal Tax Service No. 46 for the City of Moscow

  	
   

  	
  2,734,236,000 RUR

  	
   

  	
  1,367,118,000 RUR

  	
   

  	
  1. OJSC “MGTS” (100)

  

 

5

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Open Joint Stock Company “MS-Tel”

  	
   

  	
  RF

  	
   

  	
  1027700011041 09.07.2002

  Tax Department of Russia for the City of Moscow

  	
   

  	
  100,000 RUR

  	
   

  	
  100,000 RUR

  	
   

  	
  1. OJSC “MGTS” 100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Closed Joint Stock Company “United TeleSystems MGTS”

  	
   

  	
  RF

  	
   

  	
  1047796728638 01.10.2004

  Interdistrict Inspectorate of the Federal Tax
  Service No. 46 for the City of Moscow

  	
   

  	
  12,998,682

  260 RUR

  	
   

  	
  6,499,341,130 RUR

  	
   

  	
  1. OJSC “MGTS” 100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Joint Stock Commercial Bank “Moscow Bank for Reconstruction and
  Development”

  	
   

  	
  RF

  	
   

  	
  1027739053704 08.08.2002

  Interdistrict Inspectorate of the Federal Tax
  Service No. 39 for the City of Moscow

  	
   

  	
  883,000,000 RUR

  	
   

  	
  883,000,000 RUR

  	
   

  	
  1. OJSC “MGTS” 2.82)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  Joint Stock Commercial Bank “LINK-Bank” (Open Joint Stock Company)

  	
   

  	
  RF

  	
   

  	
  1027739064704 13.08.2002

  Interdistrict Inspectorate of the Federal Tax
  Service No. 39 for the City of Moscow

  	
   

  	
  9,164,390 RUR

  	
   

  	
  9,164,390 RUR

  	
   

  	
  1. OJSC “MGTS” 16.37)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  Closed Joint Stock Company “Rest House “Priazovye”

  	
   

  	
  RF

  	
   

  	
  1022301118663 14.10.2002

  Territorial Site for the City of Eisk, Krasnodar Krai

  	
   

  	
  6,080 RUR

  	
   

  	
  4,080 RUR

  	
   

  	
  1. OJSC “MGTS” 67.01)

   

  

 

6

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
  Open Joint Stock Company “ESTA” 

  	
   

  	
  RF

  	
   

  	
  1022900840346 27.11.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Severodvinsk,

  Arkhangelsk Region

  	
   

  	
  1,283,400 RUR

  	
   

  	
  1,283,400 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  Closed Joint Stock Company “Regional Cable Networks” 

  	
   

  	
  RF

  	
   

  	
  1022900842194 18.12.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Severodvinsk,

  Arkhangelsk Region

  	
   

  	
  6,010,000 RUR

  	
   

  	
  3,010,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
  Closed Joint Stock Company “ESTA TELECOM” 

  	
   

  	
  RF

  	
   

  	
  1024001181225 13.11.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Leninsky District of Kaluga

  	
   

  	
  3,090,000 RUR

  	
   

  	
  3,090,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  Closed Joint Stock Company “ESTA TV” 

  	
   

  	
  RF

  	
   

  	
  1022900840357 27.11.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Severodvinsk,

  Arkhangelsk Region

  	
   

  	
  8,710,000 RUR

  	
   

  	
  4,355,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  

 

7

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  Closed Joint Stock Company “Tversvyazinform” 

  	
   

  	
  RF

  	
   

  	
  1026900512330 07.08.2002 Tax Inspectorate No. 1 for  Tver Region.

  	
   

  	
  5,010,000 RUR

  	
   

  	
  3,010,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  Limited Liability Company “Management and Leasing” 

  	
   

  	
  RF

  	
   

  	
  1036603528202 08.08.2003 Tax Inspectorate for Kirovsky District of
  Yekaterinburg, Sverdlovsk Region

  	
   

  	
  10,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. CJSC “COMSTAR-Regions” (75)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
  Limited Liability Company “EuroTel” 

  	
   

  	
  RF

  	
   

  	
  1026602315541 09.09.2002 Tax Inspectorate for Verkh-Isetsk District of
  Yekaterinburg

  	
   

  	
  50,000 RUR

  	
   

  	
  50,000 RUR

  	
   

  	
  1. LLC “Management &
  Leasing” (80)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  Limited Liability Company “Sendee Info” 

  	
   

  	
  RF

  	
   

  	
  1025203016255 15.08.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Nizhny Novgorod

  	
   

  	
  12,000 RUR

  	
   

  	
  12,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
  Limited Liability Company “United Cable Net” 

  	
   

  	
  RF

  	
   

  	
  1027700095158 07.08.2002 Tax Inspectorate No.  39 for the City of
  Moscow 

  	
   

  	
  10,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (98,32)

  2. JIR Broadcast
  Management, Inc. (1.68)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
  Closed Joint Stock Company “Astro-Tel”

  	
   

  	
  RF

  	
   

  	
  1027700551306 19.12.2002 tax Department for the City of Moscow

  	
   

  	
  20,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. CJSC “TRUNK” (100)

  

 

8

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
  Closed Joint Stock Company Information and Marketing Agency “TRUNK-MEDIA”
  

  	
   

  	
  RF

  	
   

  	
  1023000826683 03.10.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Kirovsky District of Astrakhan

  	
   

  	
  20,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. CJSC “TRUNK” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
  Closed Joint Stock Company “INFOTEK” 

  	
   

  	
  RF

  	
   

  	
  1026604946004 01.10.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Kirovsky District of Yekaterinburg

  	
   

  	
  7,706,500 RUR

  	
   

  	
  216,500 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42.

  	
   

  	
  Closed Joint Stock Company “Integral Telecommunication Network”

  	
   

  	
  RF

  	
   

  	
  1025300782154 03.09.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Velikiy Novgorod

  	
   

  	
  10,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (70)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
  Closed Joint Stock Company “Integral Telecommunication Network +” 

  	
   

  	
  RF

  	
   

  	
  1025300782165 03.09.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Velikiy Novgorod

  	
   

  	
  3,500,000 RUR

  	
   

  	
  3,500,000 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (70)

   

  

 

9

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44.

  	
   

  	
  Closed Joint Stock Company “Canal-7” 

  	
   

  	
  RF

  	
   

  	
  1022401628237 15.11.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Norilsk, Krasnoyarsky Krai

  	
   

  	
  15,062,000 RUR

  	
   

  	
  6,202,000 RUR

  	
   

  	
  1. JIR  Broadcast, Inc. (90)

  2. CJSC “COMSTAR-Regions”  (10)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45.

  	
   

  	
  Closed Joint Stock Company “Canal VT” 

  	
   

  	
  RF

  	
   

  	
  1025901372826 22.11.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Motovilikha District, Perm

  	
   

  	
  2,753,100 RUR

  	
   

  	
  2,709,400 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (83.40)

  2. LLC “United Cable Net” (1.60)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46.

  	
   

  	
  Closed Joint Stock Company “Cascade-TV” 

  	
   

  	
  RF

  	
   

  	
  1026403340050 09.08.2002  Inspectorate
  of RF Ministry for Taxes and Charges for Oktyabrsky District, Saratov 

  	
   

  	
  10,000 RUR

  	
   

  	
  10,000 RUR

  	
   

  	
  1. JIR  Broadcast, Inc. (72.00)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47.

  	
   

  	
  Closed Joint Stock Company “Comtel-Kemerovo” 

  	
   

  	
  RF

  	
   

  	
  1024200677599 17.07.2002 Inspectorate of RF Ministry for Taxes and
  Charges for the City of Kemerovo, Kemerovo Region

  	
   

  	
  20,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. LLC “United Cable Net” (95)

  2. CJSC “COMSTAR-Regions”  (5)

  

 

10

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48.

  	
   

  	
  Closed Joint Stock Company “Cable TeleVision MARK” 

  	
   

  	
  RF

  	
   

  	
  1021801146696 10.09.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Oktyabrsky District of Izhevsk, Republic of Udmurtia

  	
   

  	
  20,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. JIR  Broadcast, Inc. (90)

  2. CJSC “COMSTAR-Regions” (10)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49.

  	
   

  	
  Closed Joint Stock Company “MPC “Canal-7” 

  	
   

  	
  RF

  	
   

  	
  1022401628336 15.11.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Norilsk, Krasnoyarsky Krai

  	
   

  	
  1,014,000 RUR  

  	
   

  	
  14,000 RUR  

  	
   

  	
  1. JIR Broadcast, Inc. (80)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50.

  	
   

  	
  Closed Joint Stock Company “Scientific and Production Amalgamation
  ‘VIDIS’” 

  	
   

  	
  RF

  	
   

  	
  1025201743445 07.10.2002 Tax Inspectorate No. 2 for Nizhegorodskaya
  Region

  	
   

  	
  16,800 RUR  

  	
   

  	
  8,400 RUR  

  	
   

  	
  1. JIR  Broadcast, Inc. (60)

  2. CJSC “COMSTAR-Regions” (40)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51.

  	
   

  	
  Closed Joint Stock Company “First Perm Internet Center” 

  	
   

  	
  RF

  	
   

  	
  1025900887418 21.08.2002 Tax Inspectorate for Sverdlovsky District of the
  City of Perm 

  	
   

  	
  15,000 RUR  

  	
   

  	
  15,000 RUR  

  	
   

  	
  1. JIR Broadcast, Inc. (100)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52.

  	
   

  	
  Closed Joint Stock Company “RusLan-TV” 

  	
   

  	
  RF

  	
   

  	
  1027700139334 20.08.2002 Tax Department for the City of Moscow 

  	
   

  	
  7,600 RUR  

  	
   

  	
  7,600 RUR  

  	
   

  	
  1. LLC “United Cable Net” (100)

  

 

11

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53.

  	
   

  	
  Closed Joint Stock Company “Simbirsk CTV” 

  	
   

  	
  RF

  	
   

  	
  1027301570889 26.09.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Zavolzhsky District of Ulyanovsk

  	
   

  	
  4,510,000 RUR

  	
   

  	
  2,255,000 RUR

  	
   

  	
  1. LLC “United Cable Net” (89)

  2. OJSC “COMSTAR-UTS” (11)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  54.

  	
   

  	
  Closed Joint Stock Company “Tagilteleseti” 

  	
   

  	
  RF

  	
   

  	
  1036601221470 20.01.2003 Inspectorate of RF Ministry for Taxes and
  Charges for Nizhny Tagil Sverdlovsk Region

  	
   

  	
  30,000 RUR  

  	
   

  	
  30,000 RUR  

  	
   

  	
  1. CJSC “INFOTEK” (74)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55.

  	
   

  	
  Closed Joint Stock Company “TELEVISION COMPANY TV-MAIDAN” 

  	
   

  	
  RF

  	
   

  	
  1026103159202 09.08.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Kirovsky District of Rostov-upon-Don

  	
   

  	
  7,590 RUR  

  	
   

  	
  7,590 RUR  

  	
   

  	
  1. JIR Broadcast, Inc. (100)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56.

  	
   

  	
  Closed Joint Stock Company “TV and Radio Broadcasting Astrakhan
  Independent Company ‘TRUNK’” 

  	
   

  	
  RF

  	
   

  	
  1023000826606 03.10.2002 Tax Inspectorate for Kirovsky District of
  Astrakhan

  	
   

  	
  7,740,000 RUR  

  	
   

  	
  5,160,000 RUR

  	
   

  	
  1. JIR  Broadcast, Inc. (80)

  2. CJSC “COMSTAR-Regions”  (20)

  

 

12

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57.

  	
   

  	
  Closed Joint Stock Company “TSN” 

  	
   

  	
  RF

  	
   

  	
  1025203724116 02.09.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Sovetsky District of Nizhny Novgorod

  	
   

  	
  42,508,500 RUR

  	
   

  	
  25,829,970 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (100)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58.

  	
   

  	
  Open Joint Stock Company “Teleservice” 

  	
   

  	
  RF

  	
   

  	
  1023601530270 13.08.2002 Tax Inspectorate for Zheleznodorozhny District
  of Voronezh

  	
   

  	
  1,090,800 RUR

  	
   

  	
  1,090,800 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (49.50)

  2. LLC “United Cable Net” (4.785)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59.

  	
   

  	
  Limited Liability Company “SALLAK Group of Companies” 

  	
   

  	
  RF

  	
   

  	
  1022301969843 13.08.2002 Tax Inspectorate No.  5 for the City of
  Krasnodar

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. LLC “United Cable Net” (91.60)

  2. OJSC “COMSTAR-UTS” (8.4)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  60.

  	
   

  	
  Limited Liability Company “Dudinka-InterCom” 

  	
   

  	
  RF

  	
   

  	
  1038400004488 05.09.2003 Interdistrict 
  Tax Inspectorate No. 2 for Taimyr (Dolgano-Nenetsky) Autonomous
  Circuit 

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. LLC “Norilsk InterCom” (70)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  61.

  	
   

  	
  Closed Joint Stock Company “Canal-7 plus” 

  	
   

  	
  RF

  	
   

  	
  1092457001570

  14.08.2009

  Federal Tax Service Inspectorate for the City of Norilsk,

  Krasnoyarsky Krai

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000  RUR*  

  	
   

  	
  1. CJSC “Canal-7” (100)

  

 

13

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  62.

  	
   

  	
  Closed Joint Stock Company “Comtel-Vologda” 

  	
   

  	
  RF

  	
   

  	
  1093525012998

  25.09.2009

  Interdistrict Inspectorate No.  11
  of the Federal Tax Service for Vologodskaya region

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. LLC “United Cable Net” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  63.

  	
   

  	
  Closed Joint Stock Company “COMTEL-TAGANROG” 

  	
   

  	
  RF

  	
   

  	
  1096154003329 31.08.2009 Federal Tax Service Inspectorate for the City of
  Taganrog,  Rostov Region

  	
   

  	
  90,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. LLC “United Cable Net” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  64.

  	
   

  	
  Limited Liability Company “KUZNETSK-TELEMOST” 

  	
   

  	
  RF

  	
   

  	
  1024201754730 30.10.2002 Tax Insectorate for the Central District of
  Novokuznetsk, Kemerovo Region 

  	
   

  	
  8,400 RUR  

  	
   

  	
  8,400 RUR  

  	
   

  	
  1. JIR  Broadcast, Inc. (85)

  2. CJSC “COMSTAR-Regions” (15)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  65.

  	
   

  	
  Limited Liability Company “Norilsk-InterCom” 

  	
   

  	
  RF

  	
   

  	
  1032401501330 15.08.2003 Tax Inspectorate for the City of Norilsk,
  Krasnoyarsky Krai

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. CJSC “Canal-7” (74)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  66.

  	
   

  	
  Limited Liability Company “Novgorod Telephone Networks”

  	
   

  	
  RF

  	
   

  	
  1025300782044 02.09.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Velikiy Novgorod

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. CJSC “ITS+” (24)

   

  

 

14

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  67.

  	
   

  	
  Limited Liability Company “Production and Commercial Firm “TRUNK-SERVICE”

  	
   

  	
  RF

  	
   

  	
  1023000827134 04.10.2002 Tax Inspectorate of the Kirovsky District of the
  City of Astrakhan

  	
   

  	
  8,400 RUR  

  	
   

  	
  8,400 RUR  

  	
   

  	
  1. CJSC “TRUNK” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  68.

  	
   

  	
  Closed Joint Stock Company “TV Networks” 

  	
   

  	
  RF

  	
   

  	
  1096623007128 01.09.2009 Interdistrict Tax Inspectorate No.  16 for Sverdlovsk Region

  	
   

  	
  416,000 RUR  

  	
   

  	
  416,000 RUR*

  	
   

  	
  1. JIR Broadcast, Inc. (100)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  69.

  	
   

  	
  Limited Liability Company Telecommunication Company “Elecom-service” 

  	
   

  	
  RF

  	
   

  	
  1043600035148 11.05.2004 Interdistrict Tax Inspectorate for Voronezh
  Region Major Taxpayers

  	
   

  	
  20,000 RUR  

  	
   

  	
  20,000 RUR  

  	
   

  	
  1. LLC “United Cable Net” (52)

  2. CJSC “COMSTAR-Regions”  (48)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  70.

  	
   

  	
  Limited Liability Company “Elecom-service “ 

  	
   

  	
  RF

  	
   

  	
  1063667241923 30.06.2006 Interdistrict Tax Inspectorate for Voronezh
  Region Major Taxpayers 

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. LLC “United Cable Net” (52)

  2. CJSC “COMSTAR-Regions” (48)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  71.

  	
   

  	
  Closed Joint Stock Company “ELECTRONICS” 

  	
   

  	
  RF

  	
   

  	
  1096439001603

  23.07.2009

  Interdistrict Tax Inspectorate  No.  2 for Saratov Region

  	
   

  	
  304,920 RUR

  	
   

  	
  304,920 RUR*

  	
   

  	
  1. LLC “United Cable Net” (55)

  2. CJSC “COMSTAR-Regions”

  (45)

  

 

15

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  72.

  	
   

  	
  Closed Joint Stock Company “Telesat” 

  	
   

  	
  RF

  	
   

  	
  1096623007139 01.09.2009 Interdistrict Tax Inspectorate No.  16 for Sverdlovsk Region

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. LLC “United Cable Net” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  73.

  	
   

  	
  Closed Joint Stock Company “Inter TV-Shuya” (CJSC “Inter TV-Shuya”) 

  	
   

  	
  RF

  	
   

  	
  1093706000805 04.09.2009 Interdistrict Tax Inspectorate No. 3 for Ivanovo
  Region

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR* 

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  74.

  	
   

  	
  Limited Liability Company “Inter-Net” 

  	
   

  	
  RF

  	
   

  	
  1023700562852 25.12.2002

  Tax Inspectorate of the Federal Tax Service for the City of Ivanovo 

  	
   

  	
  8,500 RUR  

  	
   

  	
  8,500 RUR  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75.

  	
   

  	
  Closed Joint Stock Company “Inter-Telecom” 

  	
   

  	
  RF

  	
   

  	
  1093702021610

  16.09.2009

  Tax Inspectorate of the Federal Tax Service for the City of Ivanovo

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  76.

  	
   

  	
  Closed Joint Stock Company “Cable Networks ‘Inter TV’” 

  	
   

  	
  RF

  	
   

  	
  1093702021632

  16.09.2009

  Tax Inspectorate of the Federal Tax Service for the City of Ivanovo

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  

 

16

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  77.

  	
   

  	
  Limited Liability Company “TV and Radio Company “Inter TV” 

  	
   

  	
  RF

  	
   

  	
  1023700561081 19.12.2002 Inspectorate of RF Ministry for Taxes and
  Charges for the City of Ivanovo 

  	
   

  	
  2,208,400 RUR

  	
   

  	
  2,208,400 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  78.

  	
   

  	
  Limited Liability Company “Teleradiotekhnika” 

  	
   

  	
  RF

  	
   

  	
  1026701451303 05.12.2002 Inspectorate of RF Ministry for Taxes and
  Charges for Industrial District of the City of Smolensk

  	
   

  	
  50,000 RUR  

  	
   

  	
  50,000 RUR  

  	
   

  	
  1. CJSC “COMSTAR-Regions” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  79.

  	
   

  	
  Closed Joint Stock Company “Grazhdan-Service” 

  	
   

  	
  RF

  	
   

  	
  1091831004935 27.08.2009 Federal Tax Service Inspectorate for Oktyabsky
  District of the City of Izhevsk 

  	
   

  	
  8,000,000 RUR

  	
   

  	
  8,000,000 RUR*

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  80.

  	
   

  	
  Closed Joint Stock Company “Maxima Engineering” 

  	
   

  	
  RF

  	
   

  	
  1095321004470

  11.09.2009 Interdistrict Tax Inspectorate No.  9 for Novgorod Region

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR * 

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  81.

  	
   

  	
  Closed Joint Stock Company “Ivanovo Cable Networks”

  	
   

  	
  RF

  	
   

  	
  1023700557484 06.12.2002 Inspectorate of RF Ministry for Taxes and
  Charges for the City of Ivanovo

  	
   

  	
  3,938,000 RUR

  	
   

  	
  3,938,000 RUR

  	
   

  	
  1. LLC TRK “Inter TV” (100)

  

 

17

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  82.

  	
   

  	
  Closed Joint Stock Company “Curant”

  	
   

  	
  RF

  	
   

  	
  1094632008338 27.08.2009 Inspectorate of the Federal Tax Service for the
  City of Kursk

  	
   

  	
  500,000 RUR

  	
   

  	
  500,000 RUR*

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  83.

  	
   

  	
  Closed Joint Stock Company “TVC-Soyuznaya”

  	
   

  	
  RF

  	
   

  	
  1094632008316 27.08.2009 Inspectorate of the Federal Tax Service for the
  City of Kursk

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  84.

  	
   

  	
  Closed Joint Stock Company “TVC-Center” 

  	
   

  	
  RF

  	
   

  	
  1094632008327 27.08.2009
  Inspectorate of the Federal Tax Service for the City of Kursk

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85.

  	
   

  	
  Limited Liability Company “TVC-Kursk” 

  	
   

  	
  RF

  	
   

  	
  1074632002411 22.02.2007 Inspectorate of the Federal Tax Service for the City of Kursk

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  86.

  	
   

  	
  Closed Joint Stock Company “TVC-CeBep” 

  	
   

  	
  RF

  	
   

  	
  1094632008294 27.08.2009 Inspectorate of the Federal Tax Service for the City of Kursk

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  87.

  	
   

  	
  Closed Joint Stock Company “TVC-Same” 

  	
   

  	
  RF

  	
   

  	
  1094632008305 27.08.2009 Inspectorate of the Federal Tax Service for the City of Kursk

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  

 

18

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  88.

  	
   

  	
  Closed Joint Stock Company “TVC-Internet” 

  	
   

  	
  RF

  	
   

  	
  1094632008283 27.08.2009 Inspectorate of the Federal Tax Service for the City of Kursk

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  89.

  	
   

  	
  Limited Liability Company “SKIF-ORYOL” 

  	
   

  	
  RF

  	
   

  	
  1047796313102 05.05.2004 Interdistrict Tax Inspectorate No. 46 for the
  City of Moscow

  	
   

  	
  87,500,000 RUR  

  	
   

  	
  87,500,000 RUR  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90.

  	
   

  	
  Closed Joint Stock Company “TVC” 

  	
   

  	
  RF

  	
   

  	
  1095742001464 01.09.2009 Interdistrict Inspectorate of RF Federal Tax
  Service No.  2 for Oryol Region

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  91.

  	
   

  	
  Closed Joint Stock Company “CTV” 

  	
   

  	
  RF

  	
   

  	
  1095753002531 01.09.2009 Inspectorate of Federal Tax Service for Sovetsky
  District of the City of Oryol

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  92.

  	
   

  	
  Limited Liability Company “SKIF-TAMBOV” 

  	
   

  	
  RF

  	
   

  	
  1067746368140 13.03.2006 Interdistrict Inspectorate of the Federal Tax
  Service No. 46 for the City of Moscow

  	
   

  	
  27,000,000 RUR

  	
   

  	
  27,000,000 RUR

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  

 

19

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  93.

  	
   

  	
  Closed Joint Stock Company “Tambov-Telecom” 

  	
   

  	
  RF

  	
   

  	
  1096829005624 02.09.2009 Inspectorate of Federal Tax Service for the City
  of Tambov

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  94.

  	
   

  	
  Limited Liability Company “Skif-Line” 

  	
   

  	
  RF

  	
   

  	
  1037739186980 23.01.2003 Interdistrict Inspectorate of the Federal Tax
  Service No. 39 for the City of Moscow

  	
   

  	
  56,000,000 RUR  

  	
   

  	
  56,000,000 RUR  

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  95.

  	
   

  	
  Closed Joint Stock Company “TVC-Kursk” 

  	
   

  	
  RF

  	
   

  	
  1094632008382 27.08.2009 Inspectorate of the Federal Tax Service for the
  City of Kursk

  	
   

  	
  10,100 RUR

  	
   

  	
  10,100 RUR*

  	
   

  	
  1. LLC “Skif-Line” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  96.

  	
   

  	
  Closed Joint Stock Company “Ivanovo Cable Networks” 

  	
   

  	
  RF

  	
   

  	
  1093702020598 03.09.2009 Inspectorate of Federal Tax Service for Ivanovo

  	
   

  	
  10,000 RUR  

  	
   

  	
  10,000 RUR*

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  97.

  	
   

  	
  Limited Liability Company “Informservice” 

  	
   

  	
  RF

  	
   

  	
  1025203730925 16.10.2002 Tax Inspectorate for Sovetksy District of Nizhny
  Novgorod

  	
   

  	
  16,340,000 RUR

  	
   

  	
  16,340,000 RUR

  	
   

  	
  1. JIR Broadcast, Inc. (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  98.

  	
   

  	
  JIR Broadcast, Inc. 

  	
   

  	
  USA

  	
   

  	
  2868291 06.03.1998 Secretary of State, the State of Delaware

  	
   

  	
  148,106 USD

  	
   

  	
  148,106 USD

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  

 

20

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99.

  	
   

  	
  JIR  Broadcast  Management, Inc.

  	
   

  	
  USA

  	
   

  	
  2873860 19.03.1998 Secretary of State, the State of Delaware

  	
   

  	
  100 USD

  	
   

  	
  100 USD

  	
   

  	
  1. JIR Broadcast, Inc. (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100.

  	
   

  	
  JIR, Inc. 

  	
   

  	
  USA

  	
   

  	
  2847028 15.01.1998 Secretary of State, the State of Delaware

  	
   

  	
  100,000 USD

  	
   

  	
  100,000 USD

  	
   

  	
  1. OJSC “COMSTAR-UTS” (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  101.

  	
   

  	
  JIR Management, Inc. 

  	
   

  	
  USA

  	
   

  	
  2788530 31.03.1998 Secretary of State, the State of Delaware

  	
   

  	
  100 USD

  	
   

  	
  100 USD

  	
   

  	
  1. JIR, Inc. (100)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  102.

  	
   

  	
  Closed Joint Stock Company “RADIOPAGE”**

  	
   

  	
  RF

  	
   

  	
  1027739273990 27.09.2002 Interdistrict
  Inspectorate of the Federal Tax Service No. 39 for the City of Moscow

  	
   

  	
  100,000 RUR

  	
   

  	
  100,000 RUR

  	
   

  	
  1. OJSC “MGTS” (40)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  103.

  	
   

  	
  Closed Joint Stock Company “Expo-Telecom”**

  	
   

  	
  RF

  	
   

  	
  1027739476313 29.10.2002 MHC Interdistrict Inspectorate of the Federal
  Tax Service No. 39 for the City of Moscow

  	
   

  	
  644,000 RUR

  	
   

  	
  644,000 RUR

  	
   

  	
  1. OJSC “MGTS” (5.43)

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  104.

  	
   

  	
  Limited Liability Company “PTT-Stroy”**

  	
   

  	
  RF

  	
   

  	
  1027700503291 06.12.2002 Tax Department for the City of Moscow

  	
   

  	
  701,644,37 RUR

  	
   

  	
  701,644,37 RUR

  	
   

  	
  1. CJSC “COMSTAR DIRECT” (100)

  

 

21

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Main
  State

  	
   

  	
  Share
  Capital

  	
   

  	
  Held by (Shareholder/Participant)

  
	
  No.

  	
   

  	
  Name of
  Entity

  	
   

  	
  Jurisdiction

  	
   

  	
  Registration Number

  	
   

  	
  Authorized

  	
   

  	
  Issued

  	
   

  	
  (Shareholding/Interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  105.

  	
   

  	
  Limited Liability Company “Comtel”**

  	
   

  	
  RF

  	
   

  	
  1022301216057 16.12.2002 Tax Inspectorate No.  1 for the City of Krasnodar

  	
   

  	
  5,000 RUR

  	
   

  	
  5,000 RUR

  	
   

  	
  1. CJSC “COMSTAR-Regions” (99.90)

   

  

 

Note:

*  
Documents required for the registration of share issuance have been
delivered to the FSFM of Russia

** Companies listed under Nos.
102-105 are not carrying out financial and business activities and are subject
to dissolution/sale.

 

22

 

SCHEDULE 2

 

Vendors’ Warranties

 

Each
of the Vendors warrants as follows:

 

1.             Title

 

1.1           Sistema is the sole legal
and beneficial owner of, and has good and valid title directly to, the Sistema
Comstar Shares and the Sistema UTS Shares , free and clear of all Encumbrances
(other than as of the Signing Date,and not as of the Completion, such Sistema
Comstar Shares are encumbered by the Sberbank Sistema Pledge), all such Sistema
Comstar Shares and Sistema UTS Shares being fully paid.

 

1.2           ECU Gest is the sole legal
and beneficial owner of, and has good and valid title directly to, the number
of the Comstar Ordinary Shares set forth in recital (D) of this Agreement,
free and clear of all Encumbrances, all such Comstar Ordinary Shares being
fully paid.

 

1.3           UTS is the sole legal and
beneficial owner of, and has good and valid title directly to, the number of
the Comstar Ordinary Shares set forth in recital (E) of this Agreement,
free and clear of all Encumbrances (other than as of the Signing Date only (and
not as of the Completion) such Comstar Ordinary Shares are encumbered by the
Sberbank Sistema Pledge), all such Comstar Ordinary Shares being fully paid.

 

1.4           Sistema Telecom is the sole
legal and beneficial owner of, and has good and valid title directly to, the
number of the UTS Ordinary Shares set forth in recital (F) of this
Agreement, free and clear of all Encumbrances, all such UTS Ordinary Shares
being fully paid.

 

1.5           The Shares to be delivered
and transferred to the Purchaser pursuant to this Agreement shall, at and
subject to Completion, be delivered and transferred free and clear of any
Encumbrances.

 

1.6           The Shares comprise 50.91%
of the total authorised and issued share capital of Comstar and 100% of the
total authorized and issued share capital of UTS.

 

1.7           Subject to pledges granted
to secure the Sberbank Loan, Comstar is the sole legal and beneficial owner of,
and has good and valid title to, 3,378,173,750 common shares of OJSC
Svyazinvest (approximately 17.3% of outstanding capital), and MGTS Finance is
the sole legal and beneficial owner of, and has good and valid title to,
1,501,410,556 common shares of OJSC Svyazinvest (approximately 7.7% of
outstanding capital).

 

2.             Information

 

2.1           All information contained
herein, in any Schedule hereto and in the Disclosure Letter in relation to the
Vendors and the Group Companies was when given and remains now true 

 

37

 

and accurate in all material respects and, as far as the Vendors are
aware, there is no material fact or matter relevant to the Group which has not
been disclosed to the Purchaser, disclosure of which might reasonably be
expected to affect the willingness of the Purchaser to purchase the Shares on
the terms herein set out.

 

3.             The
Vendors

 

3.1           Each of the Vendors is a
company duly incorporated and validly existing under the laws of its
jurisdiction of incorporation.

 

3.2           Each of the Vendors has full
requisite legal right, power and authority and has obtained all consents,
licences, authorisations, waivers or exemptions required to enable it to enter
into and perform its obligations under this Agreement.

 

3.3           Each person signing this
Agreement on behalf of the Vendors is duly authorised to do so.

 

4.             No
Conflict

 

4.1           The execution, delivery and
performance by the Vendors of this Agreement:

 

4.1.1        does not and will not
violate any laws or regulations applicable to the Vendors’ or Group’s business,
or result in a breach of any order, judgment or decree of any Governmental
Entity to which the Vendors or any Group Company is a party or by which any of
them is bound;

 

4.1.2        does not and will not (or
would not with the giving of notice, the lapse of time or the happening of any
other event or condition) allow any other person to exercise any rights under
any of the terms or provisions of the Organizational Documents of the Vendors
or any Group Company or create any Encumbrance in respect of the Shares;

 

4.1.3        does not and will not (or
would not with the giving of notice, or lapse of time, or the happening or any
other event or condition) constitute or result in a material breach or material
violation of, or allow any other person to exercise any rights under, any of
the terms or provisions of the Material Contracts (other than of the Sberbank
Loan and Sberbank Sistema Loan as of the Signing Date only, and not as of the
Completion);

 

4.1.4        does not and will not result
in or cause the termination or revocation of any Material Licenses;

 

4.1.5        does not and will not result
in the creation of any Encumbrance pursuant to, or cause or permit acceleration
prior to maturity of any amounts owing under, any mortgage, security agreement,
deed of trust or other financing agreement to which any Group Company is, on or
prior to the Completion, or to which any of the assets of any Group Company is
subject, on or prior to the Completion (other than 

 

38

 

of the Sberbank Loan as of the Signing Date only, and not as of the
Completion); and

 

4.1.6        does not require that the
Vendors or any of the Group Companies obtain any consent, approval or
authorization by any third party or any Governmental Entity approval.

 

4.2           This Agreement
constitutes valid and binding obligations of the Vendors enforceable in
accordance with its terms.

 

5.             Dividends

 

Except as disclosed in Schedule 5 to the
Disclosure Letter, since 31 December 2008, none of the Group Companies
which is not wholly-owned by another Group Company has, directly or indirectly,
declared or paid any dividends or declared or made any other distribution on
any of its shares of any class or, as the case may be, participatory interest,
or has, directly or indirectly, redeemed, purchased or otherwise acquired any
of its shares of any class or participatory interest, or agreed to do so.

 

6.             Corporate
Records

 

Since June 30, 2006 each Target Company and each Material Subsidiary has
maintained all corporate records as are required to be kept by applicable law
and all corporate proceedings and actions reflected in such corporate records
have been conducted or been taken in compliance with all applicable laws and
with the relevant Organizational Documents of the Group. The Vendors have
delivered to the Purchaser true, correct and complete copies of the
Organizational Documents of each Target Company and each Material Subsidiary,
as attached in Schedule 6 to the Disclosure Letter.

 

7.             The
Target Companies

 

7.1           Each of the Target Companies
is a company duly established and validly existing under the laws of the
Russian Federation. Each of the Target Companies has requisite power and
authority to own the assets it now owns and conduct its business as is now
being conducted.

 

7.2           All of the issued shares of
each of the Target Companies have been properly and validly registered, issued
and placed and are fully paid up. No person has the right (exercisable now or
in the future and whether contingent or not) to call for the issue of any share
capital in the Target Companies. There are no pending or authorized share
capital increases or decreases or issues of shares in any Target Company’s
share capital and no outstanding instrument convertible into or exchangeable
for any interest in any of the Target Companies’ share capital.

 

7.3           Each of the Target Companies
is the legal and beneficial owner of shares in each of the respective
Subsidiaries as are set forth in Schedule 1, free from any Encumbrances, and, 

 

39

 

save for the Comstar’s direct or indirect ownership of the
Subsidiaries, each of the Target Companies:

 

7.3.1        is not and has not agreed to
become the holder or beneficial owner of or have any interest (legal or
beneficial) in any class of any shares, debentures or other capital or
securities of any other body corporate, firm, association, venture, person or
entity (whether in the Russian Federation or elsewhere); and

 

7.3.2        is not and has not agreed to
become a member of any partnership, joint venture, consortium or party to any
agreement or arrangement for sharing commissions or other income other than
Comstar’s participation in the 2007 Coral/Sistema Strategic Fund.

 

7.4           The only assets held by UTS
are 57,446,760 Comstar Ordinary Shares. Except as disclosed in Schedule 7.4
to the Disclosure Letter, UTS has no liabilities or capital commitments whether
actual, contingent, quantified, disputed or otherwise.

 

8.             Subsidiaries

 

8.1           Each Material Subsidiary is
a company duly established and validly existing under the laws of its
respective jurisdiction as set out in Schedule 1. Each Material Subsidiary has
the requisite power and authority to own or lease (as the case may be) its Real
Property and own or lease (as the case may be) and operate the assets it now
owns or leases and operates, and to carry on its business as it is now being
conducted.

 

8.2           All of the issued shares of
each of the Material Subsidiaries have been properly and validly registered,
issued and placed and are fully paid up.

 

8.3           No person has the right
(exercisable now or in the future and whether contingent or not) to call for
the issue of any share capital in any of the Subsidiaries.

 

8.4           There are no pending or
authorized share capital increases or decreases or issues of shares of any of
the Subsidiaries and no outstanding instrument convertible into or exchangeable
for shares of any of the Subsidiaries other than the CallNet Option or in
connection with the Comstar Regions Reorganization.

 

9.             No
Default; Compliance with Applicable Laws

 

9.1           Neither any Target Company
nor any Material Subsidiary is in material default or violation of any term,
condition or provision of its Organizational Documents.

 

9.2           Each Target Company and each
Material Subsidiary has complied in all material respects with applicable law,
including (where applicable) obligations under Russian Securities Law, FSMA
2000 and PLTD Rules and is not currently delaying the disclosure of any
inside information (as defined in such rules).

 

40

 

9.3           None of the Target Companies
nor any of the Material Subsidiaries has received any notice in any form that
would indicate that any Group Company is not currently in material compliance
with all applicable laws or judgments given by Governmental Entity or
arbitrator.

 

9.4           Except as would not cause a
Material Adverse Change, each Target Company and each Material Subsidiary has
taken all corporate actions required by applicable law and its Organizational
Documents with respect to any Material Contract or Related Party Transaction to
which it is a party.

 

10.          No
Other Agreements or Rights

 

10.1         Save as set out in the
Organizational Documents or on the basis of the Vendors’ Control over the
Target Companies solely by virtue of the ownership of the Shares and exercise
of associated voting rights (including, for the avoidance of doubt, the
election of members of the board of directors and such members’ performance as
board members) , there are no agreements, arrangements or understandings
(whether oral or written) of the Vendors or, so far as the Vendors are aware,
any Affiliate thereof with any other person with respect to: (i) the
holding, voting or transfer of any securities of any Group Company other than
to another Group Company; (ii) the right of any person other than a Group
Company to nominate members of the board of directors of any Group Company.

 

10.2         Save as set out in the
Organizational Documents or as disclosed under paragraph 10.1, no person has
any right of first refusal or pre-emptive rights in connection with the Shares.

 

11.          Conduct
of Business in Ordinary Course

 

11.1         Since 31 December 2008
to the Completion, each Target Company, each Material Subsidiary and the Group
as a whole has carried out its business in the Ordinary Course in all material
respects, except as disclosed in Schedule 11.1 to the Disclosure Letter.
Without limiting the generality of the foregoing, no Group Company has:

 

11.1.1      sold, transferred or
otherwise disposed of or diminished the value of any of its material assets,
other than in the Ordinary Course or to other Group Companies;

 

11.1.2      made any capital expenditure
or commitments to do so (regardless of whether the expenditure itself is to be
made before or after the Completion) which individually or in the aggregate
resulted in the capital expenditure or commitment to do so (regardless of
whether the expenditure itself is to be made before or after the Completion) by
the Group as a whole exceeding (i) RUR2.525 million in the first six
months of 2009; or (ii) RUR826 million in the third quarter of 2009 and
until Completion (inclusive);

 

11.1.3      discharged any secured or
unsecured obligation or liability (whether accrued, absolute, contingent or
otherwise) other than the Access Put which individually or in the aggregate
exceeded US$5,000,000;

 

41

 

11.1.4      [DELIBERATELY OMITTED]

 

11.1.5

 

(a)           created or assumed any
material Encumbrance on any of its assets,

 

(b)           made capital contribution
to, or investment in, any other person which individually or in aggregate
exceeded US$5 million;

 

(c)           or entered into any Material
Contract;

 

(d)           increased its Indebtedness,
or assumed, guaranteed or otherwise become liable with respect to the
liabilities or obligation of any person and of any nature (whether accrued,
absolute, contingent or otherwise) which individually or in the aggregate
resulted in the Indebtedness of the Group as a whole exceeding (i) RUR32
billion as of the end of the first quarter of 2009; or (ii) RUR31.2
billion as of the end of the second quarter of 2009; or (iii) RUR31.2
billion plus $5million as of the end of the third quarter of 2009 and until
Completion (inclusive);

 

11.1.6      made any acquisition of
share capital or any assets, properties, businesses in other companies
(including, but not limited to, subsidiaries) or any purchase of long-term
investments or commitments to do any such acquisition or purchase with a value
in excess of US$5 million;

 

11.1.7      made any loan or advance
(other than to another Group Company in the Ordinary Course) which individually
exceeded US$500,000 or in aggregate exceeded US$5 million;

 

11.1.8      made any bonus or profit
sharing distribution or similar payment of any kind which individually exceeded
US$1,000,000 or in aggregate exceeded US US$5,000,000;

 

11.1.9      removed any auditor or
director or terminated any Key Employee;

 

11.1.10    granted any material
increase in the rate of wages, salaries, bonuses or other remuneration of any
of its Key Employees;

 

11.1.11    made any material change in
any method of accounting practice;

 

11.1.12    been subject to a vote in
favor of or consented to any merger, reorganization, amalgamation, transfer of
Group assets, recapitalization or other transaction which would change the
beneficial ownership or control of any Target Company or any Material
Subsidiary (excluding, for the avoidance of doubt, any such change resulting
from the transaction contemplated by this Agreement or the Comstar Regions
Reorganization);

 

42

 

11.1.13    failed to make, or
materially delayed in making, any Ordinary Course maintenance expenditures in a
timely manner;

 

11.1.14    changed or made any tax
election, settled or compromised any Tax Burden, consented to any extension of
waiver of the statute of limitations period applicable to any taxes, Tax Return
or claim for taxes, made any material amendment to any Tax Return or entered
into any agreement to do any of the foregoing;

 

11.1.15    entered into any Related
Party Transaction;

 

11.1.16    entered into any agreement
with New Century Holdings relating to any shares in MGTS;

 

11.1.17    sold, transferred or
otherwise disposed of any part of the Comstar’s stake in the charter capital of
OJSC Svyazinvest; or

 

11.1.18    authorized, agreed or
otherwise committed, whether or not in writing, to do any of the foregoing.

 

11.2         [DELIBERATELY OMITTED]

 

11.3         Since 31 December 2008
to the Signing Date, there has been no Material Adverse Change with respect to
any of the Target Companies or the Group as a whole.

 

12.          Licences

 

12.1         All Material Licences have
been obtained and are held by the relevant Group Company and are valid and
subsisting. True, correct and complete copies of all such Material Licenses are
attached to the Disclosure Letter. To the knowledge of the Vendors, there is no
reason to believe that any Group Company will not, going forward, be able to
obtain any Material License required to be obtained under applicable law in
connection with the carrying out of the business of each Group Company as now
expected to be carried out.

 

12.2         As far as the Vendors are
aware, no event has occurred that would entitle a Governmental Entity to
revoke, rescind, avoid, repudiate, amend or terminate any Material License. No
written notice has been given to any Group Company by any Governmental Entity
of any intention to revoke, rescind, avoid, repudiate, amend or terminate any
Material License.

 

12.3         No Group Company is in the
course of surrendering any Material License in whole or in part.

 

12.4         All accrued (as of the date
of this Agreement and of the Completion) obligations and liabilities imposed by
the Material Licenses on any Group Company have been duly fulfilled and
discharged or set forth in the Accounts and all compulsory work obligations
contained in each of the Licences that are (subject to extensions granted by
the relevant 

 

43

 

authorities) required to have been performed for commencement of
services have been performed in all material respects.

 

12.5         As far as the Vendors are
aware, the Group has obtained all the licences required for carrying on its
business as currently conducted effectively in the places and in the manner in
which it is carried on. The Group has not received any written notice from a
Governmental Entity alleging that a Group Company has not obtained any licence
required for carrying on its business effectively in the places and in the
manner in which it is carried on in accordance with all applicable laws and
regulations, where the absence of which would result in a Material Adverse
Change.

 

13.          Accounts

 

13.1         The Accounts present a true
and fair view of the financial position, results of operations and cash flow of
the Group for the period to which they relate. The Accounts and the stand-alone
RAS accounts of UTS and each Material Subsidiary for the years ended 31 December 2006,
31 December 2007 and 31 December 2008, true, correct and complete
copies of which have been provided to the Purchaser, have been prepared in
conformity with US GAAP or RAS, as appropriate, applied consistently throughout
the period covered thereby and contain full provisions for or adequate details
of all liabilities and capital commitments as at the end date thereof whether
actual, contingent, quantified, disputed or otherwise.

 

13.2         The Vendors have delivered
to the Purchaser the Interim Accounts and the Interim Accounts present a true
and fair view of the financial position, results of operations and cash flow of
the respective Target Companies on a consolidated basis as of and for the
relevant period and end date, have been prepared in conformity with US GAAP (in
case of Comstar) or RAS (in case of UTS) applied consistently throughout the
period covered thereby and contain full provisions for or adequate details of
all liabilities and capital commitments of the respective Target Companies on a
consolidated basis as at the end date thereof whether actual, contingent,
quantified, disputed or otherwise.

 

13.3         Prior to the Completion, the
Vendors have delivered to the Purchaser the Management Accounts that are not
misleading in any material respect, do not materially overstate the trading
profit or loss of Comstar in respect of the period to which they relate and
were prepared in all material respects, on the same basis and in accordance
with the same accounting principles and practices, consistently applied, as the
Accounts.

 

14.          Bank
Accounts and Powers of Attorney

 

14.1         Schedule 14.1 to the
Disclosure Letter sets forth a true, correct and complete list showing the name
of each bank in which any Group Company has an account on which the balance is
greater than US$1,000,000 and the names of all persons authorized to draw on
the account.

 

44

 

14.2         Save as Disclosed in Schedule
14.2 to the Disclosure Letter, none of the Target Companies or the Material
Subsidiaries has any outstanding powers of attorney to any person to enter into
any contract or commitment or otherwise to bind or commit any Group Company to
any obligations other than Ordinary Course purchases of goods and services in
the amount of less than US$100,000.

 

15.          Material
Contracts

 

15.1         Schedule 15.1 to the
Disclosure Letter sets forth a complete and accurate list of all Material
Contracts other than contracts among Group Companies or the Related Party
Transactions set forth on Schedule 26.1 to the Disclosure Letter.

 

15.2         Each Material Contract has
been duly authorized, is in full force and effect, has not been subject to any
material and adverse amendment not specifically disclosed to the Purchaser and
is valid, binding and enforceable by the relevant Group Company, in accordance
with its terms. No Group Company has breached, or is in default in the
observance or the performance of any term or obligation to be performed by it
under, any Material Contract, nor has any event occurred or not occurred
through a Group Company’s or, as far as the Vendors are aware, a third party’s
action or inaction which, with the giving of notice or the lapse of time or
both, would constitute a default by any Group Company under any Material
Contract, nor has any Group Company received any notices or claims concerning
any of the foregoing, in each case where such breach or default could lead to
an acceleration of rights, termination or material liability for damages or
other legal or equitable relief under the terms of such Material Contract.

 

15.3         Except as disclosed in Schedule
15.3 to the Disclosure Letter, no tender, quotation or offer made by any
Group Company is capable of giving rise to a Material Contract merely by an
order or acceptance by or other action of any third party.

 

16.          Suppliers

 

16.1         Schedule 16.1 to the
Disclosure Letter sets forth a true, correct and complete list of the five (5) largest
suppliers of each of the Target Companies and each of the Material Subsidiaries
other than other Group Companies (the “Major Suppliers”)
by dollar amount of the supplies or services provided for the eighteen-month
period ending 30 June 2009. No such Major Supplier has indicated in
writing to any Target Company or Material Subsidiary (as the case may be) that
it will cease or substantially reduce its business with such company. The
Vendors have no other reason to believe that the benefits of any relationship
with any of the major suppliers of any Group Company will not continue in
substantially the same manner as prior to the Signing Date.

 

16.2         There are no material claims
pending or threatened by any of the Target Companies or Material Subsidiaries
against any of its Major Suppliers or, so far as the Vendors is aware, by any
Major Supplier against any of the Target Companies or Material Subsidiaries.

 

45

 

17.          Indebtedness

 

17.1         Save as Disclosed in Schedule
17.1 to the Disclosure Letter, as of September 30, 2009 there is no
Material Indebtedness to any person or entity other than another Group Company.

 

17.2         No Material Indebtedness is
overdue for payment.

 

17.3         No Group Company is a
guarantor or otherwise liable to any person which is not a Group Company for
any liability or obligation (including Indebtedness) of any other person (other
than a Group Company or MTS or its subsidiaries) with a value in excess of
US$1,000,000 (individually or in aggregate), other than those set out in Schedule
17.3 to the Disclosure Letter.

 

17.4         Total Indebtedness of the
Group is not in excess of RUR31.2 billion plus US$5 million.

 

18.          Insurance

 

18.1         Each Target Company and each
Material Subsidiary other than Comstar Regions has adequate insurance coverage
in respect of risks normally insured against by persons carrying on the same
business as the relevant company.

 

18.2         Schedule 18.2 to the
Disclosure Letter sets forth a list of material insurance policies (identify
subject matter of the insurance, scope and amount of the coverage provided
thereunder, the identity of the insurer issuing such policies and the
particulars of any outstanding claims made thereunder) in force relating to the
properties (including Real Property), facilities, equipment and machinery
(including equipment) owned and leased, and the operations conducted, by
Material Subsidiaries. Such
material insurance policies are in full force and effect; all premiums with
respect thereto have been paid.

 

18.3         The Group maintains
insurance policies that are required by applicable laws or customer contracts.
No Group Company is in material default with respect to any of the provisions
contained in the material insurance policies and with respect to any
outstanding claims, no Group Company has failed to give any notice or to
present any claim under any material insurance policy in a due and timely
fashion. There are no claims by any Group Company against any of the material
insurance policies as to which any insurance company is denying liability or
defending under a reservation of rights clause. No Group Company has received
notice of, and there are no outstanding requirements or recommendations by any
insurance company that issued a material insurance policy, requiring or
recommending repairs or other work to be done and requiring or recommending any
equipment or facility to be installed or any other action, in each case with
respect to the real or personal property of any Group Company.

 

46

 

19.          Taxation

 

19.1         Each of the Target
Companies, the Material Subsidiaries and the Comstar Regions Subsidiaries has
filed (taking into account all available extensions) all Tax Returns concerning
taxes (or such Tax Returns have been filed on behalf of such entity) required
to be filed by it under applicable law and has paid all amounts due from it in
respect of taxes (whether or not actually shown on  such Tax
Returns).

 

19.2         So far as the Vendors are
aware, all such Tax Returns are true, correct and complete and accurately set
forth all items to the extent required to be reflected or included in such Tax
Returns by any tax laws, regulations or rules of any applicable jurisdiction or
Governmental Entity.

 

19.3         Each of the Target
Companies, the Material Subsidiaries and the Comstar Regions Subsidiaries has
made, without limitation, proper and punctual payments of all Tax which it has
become liable to pay; none of the Target Companies or the Material Subsidiaries
or the Comstar Regions Subsidiaries has deferred the payment of any tax
obligation such as would give rise to any obligation after the Completion.

 

19.4         No material tax deficiencies
in excess of US$500,000 are currently being asserted or assessed by a
Governmental Entity in writing against any of the Target Companies or the
Material Subsidiaries or the Comstar Regions Subsidiaries.  Neither Vendors nor any of the Target
Companies, nor any of the Material Subsidiaries, nor any of the Comstar Regions
Subsidiaries are  aware of any facts or
circumstances which could give rise to such assessment or claim.

 

19.5         No tax authority has agreed
to operate any special arrangement in relation to any of the Target Companies
or the Material Subsidiaries or the Comstar Regions Subsidiaries  other than an arrangement which is in
accordance with applicable laws, published statements of practice or published
extra-statutory concessions of a relevant tax authority.

 

19.6         None of the Target Companies
or the Material Subsidiaries or the Comstar Regions Subsidiaries  is liable to pay any penalty, fine, surcharge
or interest in respect of taxes or is otherwise subject to any outstanding
claims by any tax authority for any penalty, fine, surcharge or interest in
respect of taxes with a value in excess of US$500,000.

 

19.7         Each of the Target
Companies, the Material Subsidiaries and the Comstar Regions Subsidiaries is
resident only in the jurisdiction in which it was formed for all purposes of
taxes and no claim is outstanding from any Governmental Entity in a
jurisdiction that any of the Target Companies or the Material Subsidiaries or
the Comstar Regions Subsidiaries is subject to a tax in that jurisdiction but
with respect to which such Target Company or the Material Subsidiary or the
Comstar Regions Subsidiaries , respectively, has not previously filed a Tax
Return.

 

47

 

19.8         As far as the Vendors are
aware, no tax claim with a value in excess of US$500,000 is outstanding at the
date of this Agreement against any of the Target Companies or the Material
Subsidiaries or the Comstar Regions Subsidiaries by any tax authority in any
jurisdiction other than the Russian Federation.

 

19.9         None of the Target Companies
or the Material Subsidiaries or the Comstar Regions Subsidiaries has any
outstanding waivers or comparable consents regarding the extension of the
statute of limitations with respect to any taxes or Tax Returns.

 

19.10       There are no Encumbrances
with respect to any taxes upon any of the assets and properties of any of the
Target Companies or the Material Subsidiaries or the Comstar Regions
Subsidiaries.

 

19.11       So far as the Vendor is
aware, there are no tax (or foreign currency) audits or administrative or judicial
proceedings being conducted with respect to any of the Target Companies or the
Material Subsidiaries or the Comstar Regions Subsidiaries in any jurisdiction
by any Governmental Entity in which any of the Target Companies or the Material
Subsidiaries or the Comstar Regions Subsidiaries has filed Tax Returns (or
conducted transactions in foreign currency or foreign currency denominated
assets).

 

19.12       No withholding Tax is due on
the repayment of existing Indebtedness by any of the Target Companies, the Material
Subsidiaries or the Comstar Regions Subsidiaries upon Completion.

 

19.13       No Tax charges payable by
any Group Company should arise in relation to compensation/incentives/benefits
provided to employees or management as a result of or linked to the Completion
and sale of the Shares.

 

19.14       None of the Target Companies
or the Material Subsidiaries or the Comstar Regions Subsidiaries has entered
into any transactions and is not aware of any other facts or circumstances that
may give rise to Tax being assessed after Completion but with respect to the
periods prior to Completion.

 

19.15       Each of the Target
Companies, the Material Subsidiaries and the Comstar Regions Subsidiaries has
maintained complete and up-to-date records in respect of taxation as required
by law to deliver correct Tax Returns (either present or future) or to claim
Tax Relief and proper and sufficient Tax provisions have been made in the
Accounts (including the deferred tax) and the stand-alone RAS accounts of UTS,
as the case may be.

 

48

 

20.          Litigation

 

20.1         Except as disclosed in Schedule
20.1 to the Disclosure Letter, no Group Company is involved as a party in
any Material Litigation and, so far as the Vendors are aware, no such proceedings
have been threatened in writing by or against any Group Company.

 

20.2         Except as disclosed in Schedule
20.2 to the Disclosure Letter, so far as the Vendors are aware, there are
no material investigations or other circumstances, matters or facts in existence
which might reasonably be expected to give rise to material proceedings, and no
Group Company has received written notice of any current or pending
investigation by a Governmental Entity concerning any Group Company.

 

20.3         No Group Company has given any
material undertaking to, nor (so far as the Vendors are aware) is subject to
any material order given by, any Governmental Entity or arbitrator arising out
of any proceedings which is still extant.

 

20.4         Except as disclosed in Schedule
20.4 to the Disclosure Letter, the Group Company has not received any
written notification of any material dispute which, if pursued, may give rise
to any Material Litigation.

 

21.          Competition

 

21.1         Except as disclosed in Schedule
21.1 to the Disclosure Letter, so far as the Vendors are aware none of the
Group Companies is or has been a party to or directly or indirectly concerned
in any agreement, arrangement, understanding or practice (whether legally
binding or not, and whether by omission or otherwise) which:-

 

21.1.1      infringes any applicable
anti-trust or similar legislation in any jurisdiction in which any of the Group
Companies has assets or carries or intends to carry on business or where its
activities may have an effect; or

 

21.1.2      is unenforceable or void
(whether in whole or in part) or renders any Group Company liable to civil or
administrative proceedings by virtue of any anti-trust or similar legislation
in any jurisdiction in which any of the Group Companies has assets or carries
on or intends to carry on business or where its activities may have an effect.

 

22.          Sensitive
Payments

 

22.1         So far as the Vendors are
aware, no officer or employee of any Group Company has made or received any
Sensitive Payment in connection with any contract or otherwise. For the purposes
of this paragraph 22.1 “Sensitive Payments” means:-

 

22.1.1      bribes, influence payments
or kickbacks paid to any person, firm or company including central or local
government officials or employees;

 

49

 

22.1.2      amounts received with an
understanding that rebates or refunds will be made in contravention of any laws
of any jurisdiction either directly or through a third party;

 

22.1.3      political contributions; or

 

22.1.4      payments or commitments made
with the understanding or under circumstances that would indicate that all or
part thereof is to be paid by the recipient as a bribe, influence payment or
kickback to any person, firm or company including central or local government
officials or employees.

 

23.          Assets,
Property, Plant and Equipment

 

23.1         (a)    Except as set forth in
Schedule 23.1 to the Disclosure Letter, all assets which are necessary for the
operation of business of the Group Companies in all material respects in the
manner in which it is currently operated are legally and beneficially owned by
the relevant company, are in the possession and control of the relevant
company, or are used by the relevant company pursuant to an enforceable
contractual right

 

(b)   Each
Group Company has full legal and beneficial title to, or has valid leases in
respect of, and is in possession and control of, all assets of such Group
Company included as assets or investments in the Accounts (in case of Comstar)
and the stand-alone RAS accounts (in case of Group Companies, other than
Comstar) or which were acquired by such Group Company since 31 December 2008,
except for assets disposed of, for the full value or realized, in the Ordinary
Course.

 

(c)    Save
as Disclosed in Schedule 23.1 to the Disclosure Letter, none of the Group
Companies has created or agreed to create any Encumbrance over or entered into
any factoring arrangement in relation to its interest in any of assets,
otherwise than in the Ordinary Course.

 

23.2         Schedule 23.2 to the
Disclosure Letter contains a true, correct and complete list of all real
property owned by each of the Group Companies with a book value in excess of
US$2,500,000 (the “Owned
Real Property”) and the following information with respect to each
such property: (i) the correct street address of the Owned Real Property; (ii)
the owner of the Owned Real Property; (iii) the square meters of the Owned Real
Property (both of land plots and buildings thereon); (iv) the date of the
primary instrument pursuant to which the Group Company has acquired its title
to the Owned Real Property; (v) a brief description of the current use of such
Owned Real Property; (vi) a brief description of any Encumbrance on the Owned
Real Property. Each Group Company has good title to and ownership of, and is
the owner of record of, its Owned Real Property free of all Encumbrances. Each
relevant company’s rights to its Owned Real Property are properly registered in
accordance with applicable law.

 

50

 

23.3         (a)    Schedule 23.3 to the
Disclosure Letter contains a true, correct and complete (i) list of all leases
and subleases involving payments of at least US$100,000 per year under which
the a Group Company has the right to use or occupy any real property other than
those with other Group Companies or with subsidiaries of MTS (the “Leased Real Property” and, together with
the “Owned Real Property”, the “Real Property”) and (ii) all lease and
sublease agreements involving total annual rent payments of at least US$200,000
under which a Group Company leases or subleases to any third party the use of
any of the Real Property other than those with other Group Companies or with
subsidiaries of MTS (the “Rented Real
Property”), to which in either case the relevant company is a party
or is bound (including any material ancillary documents, amendments,
supplements, modifications or side agreements, if any) (the “Leases”); and

 

(b)   so
far as the Vendors are aware, each of the Leases is valid and legally binding
and enforceable against the counterparty(ies) thereto in accordance with its
terms, and there is no material default or event of default (or any event that
with notice or lapse of time or both would become a material default or event
of default) that would permit termination, modification or acceleration of a
Lease by the relevant Group Company or by any relevant counterparty;

 

(c)    neither
the Vendors nor any Group Company have received written notice from the
counterparty to any Lease specifying an intention not to renew such Lease upon
its expiration, on substantially the same terms and conditions as the current
Lease, aside from the adjustment of rent to levels prevailing in the market(s)
concerned.

 

23.4         So far as the Vendors are
aware, there exist no unexpired option agreements, rights of first refusal or
other unexpired rights benefiting any third parties with respect to the
purchase or lease of any Owned Real Property. Other than the Leases, none of
the Owned Real Property is subject to any lease, sublease or other agreement
granting to any third party any right to the use, occupancy or enjoyment of
such Owned Real Property.

 

23.5         So far as the Vendors are
aware, each applicable Group Company has obtained all material land and
building permits necessary for the present use and operation of each part of
the Real Property.

 

24.          Labor
Matters; Employees

 

24.1         Each Group Company is in
material compliance with all applicable laws relating to labor matters,
including those laws respecting terms and conditions of employment and
termination of employment.

 

24.2         The execution, delivery or
performance of this Agreement nor the consummation of the transactions
contemplated hereby will not: (i) entitle any current or former employee,
consultant, director or shareholder of any Group Company to any payment; (ii)
increase the amount of compensation due to any Key Employee; (iii) accelerate
the vesting or funding of any compensation, stock incentive or other benefit
due to any current or 

 

51

 

former employee, consultant, director or shareholder of any Group
Company; or (iv) cause any compensation to fail to be deductible under any
applicable laws.

 

24.3         Each Group Company: (i)
makes all payments (of any kind) to their respective employees as salary
payments pursuant to labor contracts in accordance with their terms; and (ii)
all taxes payable by any Group Company in connection with employee compensation
have been fully paid.

 

24.4         Except for pension payments
required to be paid to the state under applicable law, no Group Company
maintains or contributes to, or has any obligation to contribute to, or has any
liability under any pension plan, retirement plan, benefit plan, severance or
termination plan, or like plan providing benefits to any current or former employee,
consultant or director of any Group Company or any current or former employee,
consultant or director of any entity with respect to which any Group Company is
a successor, or with respect to which any Group Company has any liability,
direct or indirect. Each Group Company has timely made full payment of all
pension payments required to be paid to the state under the laws of its
jurisdiction.

 

24.5         No Group Company has any
share incentive, share option or profit sharing scheme other than the Employee
Option Program, nor has any Group Company entered into any agreement to
establish such scheme.

 

24.6         There are no employees
employed by, or directors or officers of, any Group Company with an annual
salary in excess of US$500,000, or who (excluding annual salary) are otherwise
eligible pursuant to their employment arrangements (including by virtue of
arrangements relating to performance, severance or retirement) to receive
potential remuneration on the annual basis in excess of US$500,000, whether in
cash or in kind, other than as provided by the Company’s HR department to MTS’
head of HR department in writing prior to the date hereof.

 

24.7         Compensation paid to the
members of the boards of directors and management boards of the Company, MGTS,
and Comstar Regions in 2009 shall not exceed US$2,500,000.

 

25.          Intellectual
Property

 

25.1         Schedule 25.1 to the
Disclosure Letter contains a complete and accurate list of all material
registered Intellectual Property of the Group.

 

25.2         The Group owns, licenses or
otherwise possesses the necessary rights, free and clear of all Encumbrances,
to use the Intellectual Property necessary for the conduct of the business of
the Group as currently conducted.

 

25.3         The Intellectual Property
that is owned by the Group is valid and enforceable. There is no material
action, suit, proceeding or investigation, or, to the knowledge of the Vendors,
pending or threatened assertion or claim, challenging the validity or
enforceability of, or 

 

52

 

contesting the Group’s rights with respect to, any of the material
Intellectual Property that is owned by the Group or any agreements relating
thereto.

 

25.4         No material Intellectual
Property that is owned by the Group is subject to any order, judgment,
determination or award by any Governmental Entity restricting the use of such
Intellectual Property or that would impair the validity or enforceability of
such Intellectual Property.

 

26.          Related
Party Transactions

 

26.1         As far as the Vendors are
aware, Schedule 26.1 to the Disclosure Letter is a complete and accurate
list and brief description of each shareholder, partner, director, officer,
employee, or other Affiliate of any Group Company who or which is, directly or
indirectly, a party to, or a beneficiary of, any transaction with any Group
Company with a market value in excess of US$1,000,000 or is otherwise material
for any Group Company (other than (i) employment compensation in the Ordinary
Course, (ii) any transaction between the Group Companies themselves,  (iii) any transaction between any Group
Company and MTS, its subsidiaries, Vendors and Vendors’ Affiliates in the
Ordinary Course), and (iv) any transactions described in Note 26 of the
Accounts entered into since 31 December 2008 or effective as of the Signing
Date (a “Related Party Transaction”).

 

27.          Insolvency

 

27.1         Each Group Company owns
property and assets having a fair valuation of not less than the aggregate
amount of its debts (including Indebtedness and contingent liabilities). As calculated
by reference to its quarterly balance sheets prepared under RAS, each of Target
Company’s and each Material Subsidiary’s net assets exceed its charter capital.

 

27.2         No Group Company: (i) has
been liquidated or dissolved, or is subject to a resolution to be liquidated or
dissolved, and so far as the Vendors are aware, there is no action or request
pending to accomplish such liquidation or dissolution; (ii) has been declared
bankrupt or insolvent, and so far as the Vendors are aware there is no action
or request pending to declare it bankrupt or insolvent; or (iii) so far as the
Vendors are aware, is the subject to any order, petition or resolution with
respect to insolvency or bankruptcy proceedings, appointment of a receiver or
administrator, appointment of a trustee, or any similar actions or proceedings.

 

27.3         There is not, in respect of
a Group Company or any part of its business, any unfulfilled or unsatisfied
judgment or court order outstanding or any delay in the payment of any
obligation due for payment, or any circumstance that might, in each case, lead
to any of the foregoing.

 

53

 

SCHEDULE 3

 

Purchaser’s Warranties

 

The
Purchaser warrants as follows:

 

1.             The Purchaser is a company duly incorporated and
validly existing under the laws of the Russian Federation.

 

2.             Subject to Clause 4.1 of the Agreement, the Purchaser
has full requisite legal right, power and authority and has obtained all
consents, licences, authorisations, waivers or exemptions required to enable it
to enter into and perform its obligations under this Agreement.

 

3.             The execution, delivery and performance of this
Agreement by the Purchaser will:

 

(a)   not breach any provision of its charter or other
Organizational Documents;

 

(b)   not violate any laws or regulations applicable to its
business, or result in a breach of any order, judgment or decree of any court
or governmental agency to which it is a party or by which it is bound;

 

(c)   not result in a breach of, or constitute a default
under, any agreement, arrangements or instrument to which it is a party or by
which it is bound; and

 

(d)   when executed, constitute valid and binding
obligations of the Purchaser enforceable in accordance with its respective
terms.

 

4.             Each person signing this Agreement on behalf of the
Purchaser is duly authorised to do so.

 

5.             The Purchaser has sufficient financial resources,
whether as a result of committed third party financing or otherwise, to meet
its obligation to pay the Consideration at Completion.

 

6.             As of the Signing Date and Completion, the Purchaser
is a wholly-owned (directly and indirectly) subsidiary of MTS, with legal and
beneficial title held by MTS and/or its wholly-owned subsidiary free and clear
of any Encumbrances.

 

54

 

SCHEDULE 4

 

Power Of Attorney

 

[on the letterhead of the
respective Target Company]

 

Power of
Attorney

 

This POWER OF ATTORNEY is made on [·] day of [·] in
[·].

 

[Joint
Stock Financial Corporation Sistema,
a company incorporated in the Russian Federation with the main state registered
number 1027700003891, whose registered office is at 17/8/9/1 Prechistenka
Street, Moscow, Russian Federation (the “Company”),
represented by [·], acting on
the basis of [·],] OR

 

[Second vendor], a company incorporated in [•] with the state
registered number [·], whose registered office is at [·] (“Company”),
represented by [·], acting on
the basis of [·],] OR

 

[Third vendor], a company incorporated in [•] with the state
registered number [·], whose registered office is at [·] (“Company”),
represented by [·], acting on
the basis of [·],] OR

 

IN CONNECTION WITH the transfer by the Company of [·]  ordinary shares
in the issued share capital of [Joint Stock Company COMSTAR — United
TeleSystems] OR [Closed Joint Stock Company United Telesystems] (the “Shares”) to [Purchaser] (the “Purchaser”),
on the terms and conditions set out in the share purchase agreement between the
Company, [second vendor], [third vendor] and the Purchaser, dated [•]
(the “SPA”),

 

IN CONNECTION WITH any general shareholders’ meeting of [Joint Stock Company COMSTAR — United TeleSystems] OR
[Closed Joint Stock Company United Telesystems],
where the Company has the right to participate pursuant to the list of persons
entitled to participate in a general shareholders’ meeting of [Joint Stock
Company COMSTAR — United TeleSystems] OR [Closed Joint Stock Company
United Telesystems] compiled prior to the registration of the Shares in the
name of the Purchaser pursuant to the SPA, (the
“Meeting”)

 

HEREBY AUTHORIZES the Purchaser, to exercise the Company’s voting
rights attaching to the Shares, including (but not limited to) the right to
attend and vote on the Company’s behalf at the Meeting; to submit items to be
placed to the agenda of the Meeting and to propose candidates for appointment
to the governing bodies of [Joint Stock Company COMSTAR — United TeleSystems] OR
[Closed Joint Stock Company United Telesystems]; to review any and all
documents, materials, notices, draft documents, voting ballots and information
being provided to persons entitled to participate in the Meeting and to
exercise any other rights and privileges in connection with the above.

 

The Purchaser shall have the right to delegate part or all of the
powers listed herein to another person.

 

This Power of Attorney shall be effective from
the date hereof for the period of three years.

 

                                                               , represented by                                                   

 

[Signatory] [Stamp]

 

55

 

SCHEDULE 5

 

Material Licenses

 

56

 

Schedule 5

Material Licenses

 

	
  No.

  	
   

  	
  Company Name

  	
   

  	
  Service

  	
   

  	
  Territory

  	
   

  	
  License No.

  	
   

  	
  Term of Validity

  	
   

  
	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  7

  	
   

  
	
  1

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Communication
  services for voice data transfers

  	
   

  	
  Moscow
  Region

  	
   

  	
  37387

  	
   

  	
  10/26/2010

  	
   

  
	
  2

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Communication
  services on the assignment of communication channels

  	
   

  	
  Moscow
  Region

  	
   

  	
  48650

  	
   

  	
  4/28/2012

  	
   

  
	
  3

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Local
  telephony services, save for local telephony with the use of coin-box
  telephones and multi-user access means

  	
   

  	
  Moscow

  	
   

  	
  48595

  	
   

  	
  3/30/2012

  	
   

  
	
  4

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Local
  telephony services for communication through coin-box telephones

  	
   

  	
  Moscow

  	
   

  	
  48596

  	
   

  	
  3/30/2012

  	
   

  
	
  5

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Telematic
  communication services

  	
   

  	
  Moscow

  	
   

  	
  48594

  	
   

  	
  3/30/2012

  	
   

  
	
  6

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Moscow

  	
   

  	
  37279

  	
   

  	
  12/12/2010

  	
   

  
	
  7

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Intrazone
  telephony services

  	
   

  	
  Moscow

  	
   

  	
  38981

  	
   

  	
  2/16/2011

  	
   

  
	
  8

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Moscow

  	
   

  	
  48598

  	
   

  	
  3/30/2012

  	
   

  
	
  9

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Communication
  services on the assignment of communication channels

  	
   

  	
  Moscow
  Region

  	
   

  	
  48650

  	
   

  	
  4/28/2012

  	
   

  
	
  10

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
   

  	
   

  	
  Moscow
  Region

  	
   

  	
  48597

  	
   

  	
  3/30/2012

  	
   

  
	
  11

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Intrazone
  telephony services

  	
   

  	
  Moscow
  Region

  	
   

  	
  36516

  	
   

  	
  11/21/2010

  	
   

  
	
  12

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Moscow
  Region

  	
   

  	
  37279

  	
   

  	
  12/12/2010

  	
   

  
	
  13

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Telematic
  communication services

  	
   

  	
   

  	
   

  	
  37386

  	
   

  	
  10/26/2010

  	
   

  
	
  14

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Data
  communication services , save for voice data transfer

  	
   

  	
  Moscow
  Region

  	
   

  	
  37391

  	
   

  	
  10/26/2010

  	
   

  
	
  15

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Communication
  services on voice data transfer

  	
   

  	
  Moscow

  	
   

  	
  48593

  	
   

  	
  12/30/2012

  	
   

  
	
  16

  	
   

  	
  OJSC
  “Comstar-UTS”

  	
   

  	
  Long-distance
  and international telephony services

  	
   

  	
  RF

  	
   

  	
  39141

  	
   

  	
  2/16/2013

  	
   

  

 

 

	
  No.

  	
   

  	
  Company Name

  	
   

  	
  Service

  	
   

  	
  Territory

  	
   

  	
  License No.

  	
   

  	
  Term of Validity

  	
   

  
	
  17

  	
   

  	
  OJSC
  “MGTS”

  	
   

  	
  Local
  telephony services

  	
   

  	
  Moscow
  and protective park belt

  	
   

  	
  30000

  	
   

  	
  12/11/2013

  	
   

  
	
  18

  	
   

  	
  OJSC
  “MGTS”

  	
   

  	
  Intrazone
  telephony services

  	
   

  	
  Moscow

  	
   

  	
  33531

  	
   

  	
  7/28/2010

  	
   

  
	
  19

  	
   

  	
  OJSC
  “MGTS”

  	
   

  	
  Lease-out
  of communication channels

  	
   

  	
  Moscow
  and protective park belt

  	
   

  	
  29336

  	
   

  	
  12/11/2013

  	
   

  
	
  20

  	
   

  	
  OJSC
  “MGTS”

  	
   

  	
  Data
  communication services

  	
   

  	
  Moscow

  	
   

  	
  61511

  	
   

  	
  12/11/2013

  	
   

  
	
  21

  	
   

  	
  OJSC
  “MGTS”

  	
   

  	
  Communication
  services on voice data transfer

  	
   

  	
  Moscow

  	
   

  	
  38994

  	
   

  	
  2/16/2011

  	
   

  
	
  22

  	
   

  	
  OJSC
  “MGTS”

  	
   

  	
  Telematic
  communication services

  	
   

  	
  Moscow
  and Moscow Region

  	
   

  	
  44670

  	
   

  	
  12/11/2011

  	
   

  
	
  23

  	
   

  	
  CJSC
  “Comstar-Direct”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  St.
  Petersburg

  	
   

  	
  43498

  	
   

  	
  8/30/2011

  	
   

  
	
  24

  	
   

  	
  CJSC
  “Comstar-Direct”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Moscow
  and Moscow Region

  	
   

  	
  44052

  	
   

  	
  9/21/2011

  	
   

  
	
  25

  	
   

  	
  CJSC
  “Comstar-Direct”

  	
   

  	
  Data
  communication services , save for voice data transfers

  	
   

  	
  Moscow
  and Moscow Region

  	
   

  	
  34119

  	
   

  	
  8/25/2010

  	
   

  
	
  26

  	
   

  	
  CJSC
  “Comstar-Direct”

  	
   

  	
  Telematic
  communication services

  	
   

  	
  Moscow

  	
   

  	
  53196

  	
   

  	
  8/1/2012

  	
   

  
	
  27

  	
   

  	
  CJSC
  “Comstar-Direct”

  	
   

  	
  Local
  telephony services

  	
   

  	
  Moscow

  	
   

  	
  26501

  	
   

  	
  6/5/2013

  	
   

  
	
  28

  	
   

  	
  CJSC
  “Comstar-Direct”

  	
   

  	
  Communication
  services on the assignment of communication channels

  	
   

  	
  Moscow
  and Moscow Region

  	
   

  	
  53197

  	
   

  	
  8/29/2012

  	
   

  
	
  29

  	
   

  	
  OJSC
  “ESTA”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Arkhangelsk
  Region

  	
   

  	
  38419

  	
   

  	
  40570

  	
   

  
	
  30

  	
   

  	
  OJSC
  “ESTA”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Arkhangelsk
  Region

  	
   

  	
  43594

  	
   

  	
  40785

  	
   

  
	
  31

  	
   

  	
  CJSC
  “TRUNK”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Astrakhan

  	
   

  	
  35550

  	
   

  	
  40456

  	
   

  
	
  32

  	
   

  	
  CJSC
  “ITS+”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  V.
  Novgorod

  	
   

  	
  36840

  	
   

  	
  40524

  	
   

  
	
  33

  	
   

  	
  CJSC
  “ITS+”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  V.
  Novgorod

  	
   

  	
  37282

  	
   

  	
  40524

  	
   

  
	
  34

  	
   

  	
  CJSC
  “ITS+”

  	
   

  	
  Local
  telephony services

  	
   

  	
  V.
  Novgorod

  	
   

  	
  16317

  	
   

  	
  40464

  	
   

  
	
  35

  	
   

  	
  LLC
  “Comtel-Vologda”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Vologda

  	
   

  	
  33579

  	
   

  	
  40387

  	
   

  
	
  36

  	
   

  	
  LLC
  “Comtel-Vologda”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Vologda

  	
   

  	
  44456

  	
   

  	
  40807

  	
   

  
	
  37

  	
   

  	
  LLC
  “Comtel-Vologda”

  	
   

  	
  TV-broadcasting
  (cable television)

  	
   

  	
  Vologda

  	
   

  	
  8807

  	
   

  	
  40060

  	
   expired

  
	
  38

  	
   

  	
  LLC
  “Elecom-service”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Voronezh

  	
   

  	
  44035

  	
   

  	
  40785

  	
   

  
	
  39

  	
   

  	
  LLC
  “Elecom-service”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Voronezh

  	
   

  	
  43919

  	
   

  	
  40785

  	
   

  
	
  40

  	
   

  	
  OJSC
  “Teleservice”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Voronezh

  	
   

  	
  37373

  	
   

  	
  40533

  	
   

  

 

 

	
  No.

  	
   

  	
  Company Name

  	
   

  	
  Service

  	
   

  	
  Territory

  	
   

  	
  License No.

  	
   

  	
  Term of Validity

  	
   

  
	
  41

  	
   

  	
  OJSC
  “Teleservice”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Voronezh

  	
   

  	
  38505

  	
   

  	
  40617

  	
   

  
	
  42

  	
   

  	
  CJSC
  “NPO Vidis”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Dzerzhinsk

  	
   

  	
  34321

  	
   

  	
  40384

  	
   

  
	
  43

  	
   

  	
  LLC
  “Dudinka-InterCom”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Dudinka

  	
   

  	
  31246

  	
   

  	
  40273

  	
   

  
	
  44

  	
   

  	
  LLC
  “EuroTel”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Ekaterinburg

  	
   

  	
  44565

  	
   

  	
  40799

  	
   

  
	
  45

  	
   

  	
  LLC
  “EuroTel”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Ekaterinburg

  	
   

  	
  35639

  	
   

  	
  40482

  	
   

  
	
  46

  	
   

  	
  LLC
  “EuroTel”

  	
   

  	
  Local
  telephony services

  	
   

  	
  Ekaterinburg

  	
   

  	
  19602

  	
   

  	
  40820

  	
   

  
	
  47

  	
   

  	
  LLC
  “TRK ‘Inter TV’“

  	
   

  	
  Data
  communication services, save for voice data transfer services

  	
   

  	
  Ivanovo

  	
   

  	
  43887

  	
   

  	
  40785

  	
   

  
	
  48

  	
   

  	
  LLC
  “TRK ‘Inter TV’“

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Ivanovo

  	
   

  	
  36276

  	
   

  	
  40446

  	
   

  
	
  49

  	
   

  	
  LLC
  “TRK ‘Inter TV’“

  	
   

  	
  Communication
  services on voice data transfer

  	
   

  	
  Ivanovo

  	
   

  	
  46973

  	
   

  	
  40904

  	
   

  
	
  50

  	
   

  	
  LLC
  “‘InterTelecom”

  	
   

  	
  Data
  communication services, save for voice data transfer services

  	
   

  	
  Ivanovo

  	
   

  	
  43147

  	
   

  	
  40782

  	
   

  
	
  51

  	
   

  	
  LLC
  “‘InterTV-Shuya”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Ivanovo

  	
   

  	
  34977

  	
   

  	
  40435

  	
   

  
	
  52

  	
   

  	
  LLC
  “‘InterTV-Shuya”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Shuya

  	
   

  	
  34977

  	
   

  	
  40435

  	
   

  
	
  53

  	
   

  	
  LLC
  “‘InterTV Cable Networks”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Ivanovo

  	
   

  	
  36121

  	
   

  	
  40482

  	
   

  
	
  54

  	
   

  	
  CJSC
  “‘Ivanovo Cable Networks”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Ivanovo

  	
   

  	
  46078

  	
   

  	
  40926

  	
   

  
	
  55

  	
   

  	
  CJSC
  “‘MARK TV”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Izhevsk

  	
   

  	
  33216

  	
   

  	
  40387

  	
   

  
	
  56

  	
   

  	
  CJSC
  “‘MARK TV”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Izhevsk

  	
   

  	
  47528

  	
   

  	
  40982

  	
   

  
	
  57

  	
   

  	
  CJSC
  “ESTA TELECOM”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Kaluga

  	
   

  	
  45475

  	
   

  	
  40864

  	
   

  
	
  58

  	
   

  	
  CJSC
  “ESTA TELECOM”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kaluga

  	
   

  	
  33858

  	
   

  	
  40510

  	
   

  
	
  59

  	
   

  	
  CJSC
  “Comtel-Kemerovo”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Kemerovo

  	
   

  	
  35237

  	
   

  	
  40456

  	
   

  
	
  60

  	
   

  	
  CJSC
  “Comtel-Kemerovo”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kemerovo

  	
   

  	
  53351

  	
   

  	
  41186

  	
   

  
	
  61

  	
   

  	
  LLC
  “TVC-North”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kursk

  	
   

  	
  47063

  	
   

  	
  40904

  	
   

  
	
  62

  	
   

  	
  LLC
  “TVC-Soyuznaya”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kursk

  	
   

  	
  47066

  	
   

  	
  40904

  	
   

  

 

 

	
  No.

  	
   

  	
  Company Name

  	
   

  	
  Service

  	
   

  	
  Territory

  	
   

  	
  License No.

  	
   

  	
  Term of Validity

  	
   

  
	
  63

  	
   

  	
  LLC
  “TVC-Same”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kursk

  	
   

  	
  47065

  	
   

  	
  40904

  	
   

  
	
  64

  	
   

  	
  LLC
  “TVC-Center”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kursk

  	
   

  	
  47064

  	
   

  	
  40904

  	
   

  
	
  65

  	
   

  	
  LLC
  “TVC-Kursk”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kursk

  	
   

  	
  35019

  	
   

  	
  40435

  	
   

  
	
  66

  	
   

  	
  LLC
  “TVC-Kursk”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Kursk

  	
   

  	
  35293

  	
   

  	
  40456

  	
   

  
	
  67

  	
   

  	
  LLC
  “TVC-Kursk”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Kursk

  	
   

  	
  50743

  	
   

  	
  41050

  	
   

  
	
  68

  	
   

  	
  LLC
  “TVC-Internet”

  	
   

  	
  Data
  communication services, save for voice data transfer services

  	
   

  	
  Kursk

  	
   

  	
  45835

  	
   

  	
  40864

  	
   

  
	
  69

  	
   

  	
  LLC
  “TVC-Internet”

  	
   

  	
  Communication
  services on voice data transfer

  	
   

  	
  Kursk

  	
   

  	
  45836

  	
   

  	
  40864

  	
   

  
	
  70

  	
   

  	
  CJSC
  “Sendee Service”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Nizhny
  Novgorod

  	
   

  	
  33783

  	
   

  	
  40386

  	
  *

  
	
  71

  	
   

  	
  CJSC
  “Sendee Service”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Nizhny
  Novgorod

  	
   

  	
  40182

  	
   

  	
  40644

  	
  *

  
	
  72

  	
   

  	
  CJSC
  “Sendee Service”

  	
   

  	
  Communication
  services on voice data transfer

  	
   

  	
  Nizhny
  Novgorod

  	
   

  	
  39844

  	
   

  	
  40644

  	
  *

  
	
  73

  	
   

  	
  CJSC
  “TSN”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Nizhny
  Novgorod

  	
   

  	
  47530

  	
   

  	
  40982

  	
   

  
	
  74

  	
   

  	
  LLC
  “TV Nets”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Nizhny
  Tagil

  	
   

  	
  34688

  	
   

  	
  40435

  	
   

  
	
  75

  	
   

  	
  LLC
  “TV Nets”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Nizhny
  Tagil

  	
   

  	
  35520

  	
   

  	
  40456

  	
   

  
	
  76

  	
   

  	
  LLC
  “Telesat”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Nizhny
  Tagil

  	
   

  	
  34190

  	
   

  	
  40415

  	
   

  
	
  77

  	
   

  	
  LLC
  “Kuznetsktelemost”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Novokuznetsk

  	
   

  	
  40978

  	
   

  	
  40681

  	
   

  
	
  78

  	
   

  	
  LLC
  “Kuznetsktelemost”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Osinniki

  	
   

  	
  46510

  	
   

  	
  40885

  	
   

  
	
  79

  	
   

  	
  CJSC
  “Canal-7”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Norilsk

  	
   

  	
  40949

  	
   

  	
  40715

  	
   

  
	
  80

  	
   

  	
  CJSC
  “Canal-7”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Norilsk

  	
   

  	
  40303

  	
   

  	
  40782

  	
   

  
	
  81

  	
   

  	
  LLC
  “TVC”

  	
   

  	
  Communication
  services for cable broadcasting Communication services for cable broadcasting

  	
   

  	
  Oryol

  	
   

  	
  41447

  	
   

  	
  40688

  	
   

  
	
  82

  	
   

  	
  LLC
  “TVC”

  	
   

  	
  Data
  communication services, save for voice data transfer services

  	
   

  	
  Oryol

  	
   

  	
  41229

  	
   

  	
  40688

  	
   

  
	
  83

  	
   

  	
  LLC
  “TVC”

  	
   

  	
  Communication
  services on voice data transfer

  	
   

  	
  Oryol

  	
   

  	
  45837

  	
   

  	
  40864

  	
   

  

 

 

	
  No.

  	
   

  	
  Company Name

  	
   

  	
  Service

  	
   

  	
  Territory

  	
   

  	
  License No.

  	
   

  	
  Term of Validity

  	
   

  
	
  84

  	
   

  	
  LLC
  “TVC”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Oryol

  	
   

  	
  45338

  	
   

  	
  40878

  	
   

  
	
  85

  	
   

  	
  LLC
  “TVC”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Oryol

  	
   

  	
  32435

  	
   

  	
  40346

  	
   

  
	
  86

  	
   

  	
  CJSC
  “Canal-TV”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Perm

  	
   

  	
  33502

  	
   

  	
  40387

  	
   

  
	
  87

  	
   

  	
  CJSC
  “Canal-TV”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Perm

  	
   

  	
  36166

  	
   

  	
  40482

  	
   

  
	
  88

  	
   

  	
  CJSC
  “Frist Perm Internet Center”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Perm

  	
   

  	
  35108

  	
   

  	
  40497

  	
   

  
	
  89

  	
   

  	
  CJSC
  “Frist Perm Internet Center”

  	
   

  	
  Communication
  services for voice data transfers

  	
   

  	
  Perm

  	
   

  	
  36252

  	
   

  	
  40477

  	
   

  
	
  90

  	
   

  	
  CJSC
  “Frist Perm Internet Center”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Perm

  	
   

  	
  50650

  	
   

  	
  41050

  	
   

  
	
  91

  	
   

  	
  CJSC
  “TV Company TV-Maidan”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Rostov

  	
   

  	
  41456

  	
   

  	
  40688

  	
   

  
	
  92

  	
   

  	
  CJSC
  “TV Company TV-Maidan”

  	
   

  	
  Data
  communication services, save for voice data transfer services

  	
   

  	
  Rostov

  	
   

  	
  42698

  	
   

  	
  40752

  	
   

  
	
  93

  	
   

  	
  CJSC
  “Cascade-TV”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Saratov,
  Engels of Saratov Region

  	
   

  	
  34503

  	
   

  	
  40435

  	
   

  
	
  94

  	
   

  	
  CJSC
  “Cascade-TV”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Saratov,
  Engels of Saratov Region

  	
   

  	
  37410

  	
   

  	
  40568

  	
   

  
	
  95

  	
   

  	
  CJSC
  “Teleradiotekhnika”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Smolensk

  	
   

  	
  52820

  	
   

  	
  41170

  	
  *

  
	
  96

  	
   

  	
  CJSC
  “Teleradiotekhnika”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Smolensk

  	
   

  	
  39078

  	
   

  	
  40590

  	
  *

  
	
  97

  	
   

  	
  LLC
  “Comtel-Taganrog”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Taganrog

  	
   

  	
  38162

  	
   

  	
  40570

  	
   

  
	
  98

  	
   

  	
  LLC
  “Comtel-Taganrog”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Taganrog

  	
   

  	
  34153

  	
   

  	
  40415

  	
   

  
	
  99

  	
   

  	
  Tambov
  Telecom

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Tambov

  	
   

  	
  40236

  	
   

  	
  40644

  	
   

  
	
  100

  	
   

  	
  Tambov
  Telecom

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Tambov

  	
   

  	
  41369

  	
   

  	
  40688

  	
   

  
	
  101

  	
   

  	
  CJSC
  “Simbirsk CTV”

  	
   

  	
  Data
  communication services, save for voice data transfers

  	
   

  	
  Ulyanovsk

  	
   

  	
  31409

  	
   

  	
  40290

  	
   

  
	
  102

  	
   

  	
  CJSC
  “Simbirsk CTV”

  	
   

  	
  Communication
  services for cable broadcasting

  	
   

  	
  Ulyanovsk

  	
   

  	
  42532

  	
   

  	
  40736

  	
   

  

 

 

	
   

  	
  *
  - Licenses are being reregistered 
  as part of ZAO “Comstar-Regions” reorganization

  

 

 

 

SCHEDULE
6

 

Comstar
Regions Reorganization

 

57

 

SCHEDULE 6

 

COMSTAR REGIONS REORGANIZATION

 

	
  Stage

  	
   

  	
  Timing

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage
  I

  	
   

  	
  Aug
  2009

  	
   

  	
  The
  creation of closed joint stock company “Comstar-Regions” via the merger of
  (i) closed joint stock company Inter-TV Media, (ii) closed joint
  stock company Stream-TV, (iii) closed joint stock company
  Intersvyazservis, (iv) closed joint stock company Strategiya,
  (v) closed joint stock company Tsifroviye Telefonniye Seti Yug,
  (vi) closed joint stock company Teleradiotekhnika, and (vii) closed
  joint stock company Sendi Servis (indicated by red boxes on the attached
  corporate organizational chart labeled “Comstar Regions Reorganization Stage
  I”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage
  II

  	
   

  	
  Q1
  2010

  	
   

  	
  Merger
  into CJSC Comstar-Regions of CJSC Ural Telephone Company, CJSC Ivanovskiye
  Cable Networks, CJSC Cable Networks Inter TV, CJSC Inter-Telecom, CJSC KTV,
  CJSC TVK, CJSC Inter TV-Shuya, CJSC TVK-North, CJSC TVK-Union, CJSC TVK-Seym,
  CJSC Tambov-Telecom, CJSC TVK-Kursk, CJSC TVK-Center, CJSC Kurant CJSC
  TVK-Internet, CJSC Grajdan-Service, CJSC Maxima Engeneering, CJSC TVK-Kursk
  (indicated by green boxes on the attached corporate organizational chart
  labeled “Comstar Regions Reorganization Stages II-V”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage
  III

  	
   

  	
  Q2
  2010

  	
   

  	
  Merger
  into CJSC Comstar-Regions of CJSC Regional Cable Networks, CJSC P.P.I.
  Center, CJSC Mark-TV, CJSC NPO Vidis, CJSC Electronica (indicated by purple
  boxes on the attached corporate organizational chart labeled “Comstar Regions
  Reorganization Stages II-V”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage
  IV

  	
   

  	
  Q3
  2010

  	
   

  	
  Merger
  into CJSC Comstar-Regions of CJSC Skif-Line, CJSC Skif-Orel, CJSC
  Skif-Tambov, CJSC Esta-Telecom, CJSC Tversviazinform, CJSC RusLan-TV, CJSC
  Infotech, CJSC Networks-TV, CJSC Telesat, CJSC Comtel-Taganrog, CJSC
  TV-Maydan, CJSC Astro-Tel, CJSC Esta, CJSC Esta-TV, CJSC TSN, CJSC Sandy
  Info, CJSC Channel-7, CJSC Channe-7 Plus, CJSC Kuznetsktelemost (indicated by
  orange boxes on the attached corporate organizational chart labeled “Comstar Regions
  Reorganization Stages II-V”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stage
  V

  	
   

  	
  Q4
  2010

  	
   

  	
  Merger
  into CJSC Comstar-Regions of CJSC TRC Inter-TV CJSC United Cable Network,
  CJSC Elecom-Service, CJSC TKK Elecom-Service, CJSC Inter-Net, CJSC GoC
  SALLAC, CJSC Trank, CJSC Trank-Media, CJSC Trank-Service, CJSC
  Comtel-Vologda, CJSC Comtel-Kemerovo, CJSC Simbirsk KTV, OJSC RTC (indicated
  by blue boxes on the attached corporate organizational chart labeled “Comstar
  Regions Reorganization Stages II-V”).

  

 

 

COMSTAR
REGIONS REORGANIZATION STAGE I

 

 

COMSTAR
REGIONS REORGANIZATION STAGES II -V

 

 

 

SCHEDULE 7

 

VENDORS BANK ACCOUNTS

 

Sistema’s Bank Account:

 

Beneficiary:    OJSC  “Sistema” Joint Stock Financial Corporation

 (TIN/KPP
7703104630 / 774850001)

125 009, Moscow, 13 Mokhovaya St.,, bld. 1

Sett./acc-t  No. 40702810100020007951 with OJSC “Sberbank of
Russia”

BIC 044525225

Corr./acc-t  No. 30101810400000000225

 

ECU
Gest’s Bank Account:

Beneficiary:    ECU GEST HOLDING S.A.

41
Rue des Glacis, L-1628, Luxembourg

Account
No. LU720824100008401001 with East-West United Bank S.A., Luxembourg

SWIFT:  EWUBLULL

 

Sistema
Telecom’s Bank Account:

RUR  Account:

LLC  “Sistema  Telecom” (TIN
7704721040 KPP 770401001)

Sett./acc-t
No. 40702810900020008309

with
OJSC “Sberbank of Russia”, Moscow

Corr./acc-t  No 30101810400000000225

BIC 044525225

 

58

 

SCHEDULE 8

 

PURCHASER’S SHARE ACCOUNTS

 

1) Shareholders’
Register of  OJSC “Comstar-UTS” (Registrar  OJSC “Reestr”)

 

Registered
entity: Limited Liability Company “Telekoms
Operator”

Personal
Account No.:
10114-B

 

2) Shareholders’
Register of  CJSC “United TeleSystems” (Registrar  OJSC “Reestr”)

 

Registered
entity: Limited Liability Company “Telekoms
Operator”

Personal
Account No.: 4-B

 

3) Depositary
of the Joint Stock Commercial Savings Bank of the Russian Federation (open
joint stock company) — “Sberbank”

 

Account
holder: Limited Liability Company “Telekoms
Operator”

Custody account No.: 00 02 019156 01

 

59Exhibit 4.4

 

IRON MOUNTAIN INCORPORATED

 

SENIOR INDENTURE

 

Dated as of [                  ],
20[    ]

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
  1

  
	
   

  	
   

  
	
  Section 1.1. Definitions

  	
  1

  
	
  Section 1.2. Other
  Definitions

  	
  6

  
	
  Section 1.3. Incorporation
  by Reference of Trust Indenture Act

  	
  7

  
	
  Section 1.4. Rules of
  Construction

  	
  7

  
	
   

  	
   

  
	
  ARTICLE II THE SECURITIES

  	
  8

  
	
   

  	
   

  
	
  Section 2.1. Issuable in
  Series

  	
  8

  
	
  Section 2.2. Establishment
  of Terms of Series of Securities

  	
  8

  
	
  Section 2.3. Execution
  and Authentication

  	
  10

  
	
  Section 2.4. Registrar
  and Paying Agent

  	
  11

  
	
  Section 2.5. Paying Agent
  to Hold Money in Trust

  	
  12

  
	
  Section 2.6. Securityholder
  Lists

  	
  12

  
	
  Section 2.7. Transfer and
  Exchange

  	
  12

  
	
  Section 2.8. Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  13

  
	
  Section 2.9. Outstanding
  Securities

  	
  13

  
	
  Section 2.10. Treasury
  Securities

  	
  14

  
	
  Section 2.11. Temporary
  Securities

  	
  14

  
	
  Section 2.12. Cancellation

  	
  14

  
	
  Section 2.13. Defaulted
  Interest

  	
  15

  
	
  Section 2.14. Record Date

  	
  15

  
	
  Section 2.15. Global
  Securities

  	
  15

  
	
  Section 2.16. CUSIP
  Numbers

  	
  16

  
	
   

  	
   

  
	
  ARTICLE III REDEMPTION

  	
  17

  
	
   

  	
   

  
	
  Section 3.1. Notice to
  Trustee

  	
  17

  
	
  Section 3.2. Selection of
  Securities to be Redeemed

  	
  17

  
	
  Section 3.3. Notice of
  Redemption

  	
  17

  
	
  Section 3.4. Effect of
  Notice of Redemption

  	
  18

  
	
  Section 3.5. Deposit of
  Redemption Price

  	
  18

  
	
  Section 3.6. Securities
  Redeemed in Part

  	
  19

  
	
   

  	
   

  
	
  ARTICLE IV COVENANTS

  	
  19

  
	
   

  	
   

  
	
  Section 4.1. Payment of
  Principal and Interest

  	
  19

  
	
  Section 4.2. Reports

  	
  19

  
	
  Section 4.3. Compliance
  Certificate

  	
  19

  
	
  Section 4.4. Stay,
  Extension and Usury Laws

  	
  20

  
	
  Section 4.5. Corporate
  Existence

  	
  20

  
	
  Section 4.6. Taxes

  	
  20

  
	
  Section 4.7. Maintenance
  of Office or Agency

  	
  21

  

 

i

 

	
  ARTICLE V SUCCESSORS

  	
  21

  
	
   

  	
   

  
	
  Section 5.1. Mergers,
  Consolidations or Sale of Assets

  	
  21

  
	
  Section 5.2. Successor
  Corporation Substituted

  	
  22

  
	
   

  	
   

  
	
  ARTICLE VI DEFAULTS AND
  REMEDIES

  	
  23

  
	
   

  	
   

  
	
  Section 6.1. Events of
  Default

  	
  23

  
	
  Section 6.2. Acceleration
  of Maturity

  	
  24

  
	
  Section 6.3. Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  25

  
	
  Section 6.4. Trustee
  May File Proofs of Claim

  	
  26

  
	
  Section 6.5. Trustee
  May Enforce Claims Without Possession of Securities

  	
  27

  
	
  Section 6.6. Application
  of Money Collected

  	
  27

  
	
  Section 6.7. Limitation
  on Suits

  	
  27

  
	
  Section 6.8. Unconditional
  Right of Holders to Receive Principal and Interest

  	
  28

  
	
  Section 6.9. Restoration
  of Rights and Remedies

  	
  28

  
	
  Section 6.10. Rights and
  Remedies Cumulative

  	
  28

  
	
  Section 6.11. Delay or
  Omission Not Waiver

  	
  29

  
	
  Section 6.12. Control by
  Holders

  	
  29

  
	
  Section 6.13. Waiver of
  Past Defaults

  	
  29

  
	
  Section 6.14. Undertaking
  for Costs

  	
  29

  
	
   

  	
   

  
	
  ARTICLE VII TRUSTEE

  	
  30

  
	
   

  	
   

  
	
  Section 7.1. Duties of
  Trustee

  	
  30

  
	
  Section 7.2. Rights of
  Trustee

  	
  31

  
	
  Section 7.3. Individual
  Rights of Trustee

  	
  32

  
	
  Section 7.4. Trustee’s
  Disclaimer

  	
  32

  
	
  Section 7.5. Notice of
  Defaults

  	
  33

  
	
  Section 7.6. Reports by
  Trustee to Holders

  	
  33

  
	
  Section 7.7. Compensation
  and Indemnity

  	
  33

  
	
  Section 7.8. Replacement
  of Trustee

  	
  34

  
	
  Section 7.9. Successor
  Trustee by Merger, etc.

  	
  35

  
	
  Section 7.10. Eligibility;
  Disqualification

  	
  35

  
	
  Section 7.11. Preferential
  Collection of Claims Against Company

  	
  35

  
	
   

  	
   

  
	
  ARTICLE VIII LEGAL
  DEFEASANCE AND COVENANT DEFEASANCE

  	
  36

  
	
   

  	
   

  
	
  Section 8.1. Option to
  Effect Legal Defeasance or Covenant Defeasance

  	
  36

  
	
  Section 8.2. Legal
  Defeasance and Discharge

  	
  36

  
	
  Section 8.3. Covenant
  Defeasance

  	
  36

  
	
  Section 8.4. Conditions
  to Legal or Covenant Defeasance

  	
  37

  
	
  Section 8.5. Deposited
  Money and Government Securities to be Held in Trust; Other Miscellaneous
  Provisions

  	
  38

  
	
  Section 8.6. Repayment to
  Company

  	
  39

  
	
  Section 8.7. Reinstatement

  	
  39

  
	
   

  	
   

  
	
  ARTICLE IX AMENDMENTS AND
  WAIVERS

  	
  39

  
	
   

  	
   

  
	
  Section 9.1. Without
  Consent of Holders

  	
  39

  
	
  Section 9.2. With Consent
  of Holders

  	
  40

  
	
  Section 9.3. Limitations

  	
  41

  
	
  Section 9.4. Compliance
  with Trust Indenture Act

  	
  42

  

 

ii

 

	
  Section 9.5. Revocation
  and Effect of Consents

  	
  42

  
	
  Section 9.6. Notation on
  or Exchange of Securities

  	
  42

  
	
  Section 9.7. Trustee to
  Sign Amendments; Trustee Protected

  	
  42

  
	
   

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
  43

  
	
   

  	
   

  
	
  Section 10.1. Trust
  Indenture Act Controls

  	
  43

  
	
  Section 10.2. Notices

  	
  43

  
	
  Section 10.3. Communication
  by Holders with Other Holders

  	
  44

  
	
  Section 10.4. Certificate
  and Opinion as to Conditions Precedent

  	
  44

  
	
  Section 10.5. Statements
  Required in Certificate or Opinion

  	
  44

  
	
  Section 10.6. Rules by
  Trustee and Agents

  	
  45

  
	
  Section 10.7. Legal
  Holidays

  	
  45

  
	
  Section 10.8. No Personal
  Liability of Directors, Officers, Employees and Stockholders

  	
  45

  
	
  Section 10.9. Counterparts

  	
  45

  
	
  Section 10.10. Governing
  Laws

  	
  45

  
	
  Section 10.11. No Adverse
  Interpretation of Other Agreements

  	
  46

  
	
  Section 10.12. Successors

  	
  46

  
	
  Section 10.13. Severability

  	
  46

  
	
  Section 10.14. Table of
  Contents, Headings, Etc.

  	
  46

  
	
  Section 10.15. Securities
  in a Foreign Currency or in Euro

  	
  46

  
	
  Section 10.16. Judgment
  Currency

  	
  47

  
	
  Section 10.17. WAIVER OF
  JURY TRIAL

  	
  47

  
	
  Section 10.18. Submission
  to Jurisdiction; Venue

  	
  48

  
	
   

  	
   

  
	
  ARTICLE XI SINKING FUNDS

  	
  48

  
	
   

  	
   

  
	
  Section 11.1. Applicability
  of Article

  	
  48

  
	
  Section 11.2. Satisfaction
  of Sinking Fund Payments with Securities

  	
  48

  
	
  Section 11.3. Redemption
  of Securities for Sinking Fund

  	
  49

  
	
   

  	
   

  
	
  ARTICLE XII SUBSIDIARY
  GUARANTEES

  	
  49

  
	
   

  	
   

  
	
  Section 12.1. Subsidiary
  Guarantee

  	
  49

  
	
  Section 12.2. Limitation
  of Guarantor’s Liability

  	
  51

  

 

iii

 

IRON MOUNTAIN INCORPORATED

 

Reconciliation and tie between Trust Indenture Act
of 1939 and

Indenture, dated as of [      ],
20[    ]

 

	
  § 310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  Not
  Applicable

  
	
  (a)(4)

  	
   

  	
  Not
  Applicable

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  § 310(c)

  	
   

  	
  Not
  Applicable

  
	
  § 311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  Not
  Applicable

  
	
  § 312(a)

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
  10.3

  
	
  (c)

  	
   

  	
  10.3

  
	
  § 313(a)

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
  7.6

  
	
  (c)

  	
   

  	
  7.6,
  10.2

  
	
  (c)(1)

  	
   

  	
  7.6

  
	
  (c)(2)

  	
   

  	
  7.6

  
	
  (c)(3)

  	
   

  	
  7.6

  
	
  (d)

  	
   

  	
  7.6

  
	
  § 314(a)

  	
   

  	
  4.2,
  4.3, 10.5

  
	
  (b)

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
  10.4

  
	
  (c)(2)

  	
   

  	
  10.4

  
	
  (c)(3)

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
  10.5

  
	
  (f)

  	
   

  	
  Not
  Applicable

  
	
  § 315(a)

  	
   

  	
  7.1(b)

  
	
  (b)

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
  6.14

  
	
  § 316(a)

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
  6.12

  
	
  (a)(1)(B)

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
  6.8

  
	
  § 316(c)

  	
   

  	
  2.14

  
	
  § 317(a)(1)

  	
   

  	
  6.3

  
	
  (a)(2)

  	
   

  	
  6.4

  

 

 

	
  (b)

  	
   

  	
  2.5

  
	
  § 318(a)

  	
   

  	
  10.1

  
	
  (b)

  	
   

  	
  Not
  Applicable

  
	
  (c)

  	
   

  	
  Not
  Applicable

  

 

Note:  This reconciliation and tie shall not, for
any purpose, be deemed to be part of the Indenture.

 

 

Senior
Indenture dated as of
                                ,
20[    ] among Iron Mountain Incorporated, a Delaware
corporation (“Company”), [the guarantors party hereto] and [ ], a [ ], as
Trustee (“Trustee”).

 

Each
party agrees as follows for the benefit of the other party and for the equal
and ratable benefit of the Holders of the Securities issued under this
Indenture.

 

ARTICLE I

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

Section 1.1. 
DEFINITIONS.

 

“Additional
Amounts” means any additional amounts which are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the
Company in respect of certain taxes imposed on Holders specified therein and
which are owing to such Holders.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person.  For purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by agreement or otherwise;
PROVIDED, HOWEVER, that beneficial ownership of 10% or more of the voting
securities of a Person shall be deemed to be control.

 

“Agent”
means any Registrar, Paying Agent or Service Agent.

 

“Authorized
Newspaper” means a newspaper in an official language of the country of
publication customarily published at least once a day for at least five days in
each calendar week and of general circulation in the place in connection with
which the term is used.  If it shall be
impractical in the opinion of the Trustee to make any publication of any notice
required hereby in an Authorized Newspaper, any publication or other notice in
lieu thereof that is made or given by the Trustee shall constitute a sufficient
publication of such notice.

 

“Bearer
Security” means any Security, including any interest coupon appertaining thereto,
that does not provide for the identification of the Holder thereof.

 

“Board
of Directors” means the Board of Directors of the Company or any duly
authorized committee thereof.

 

“Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been adopted by the Board of
Directors or pursuant to authorization by the Board of Directors and to be in
full force and effect on the date of the certificate and delivered to the
Trustee.

 

1

 

“Business
Day” means, unless otherwise provided by Board Resolution, Officers’
Certificate or supplemental indenture hereto for a particular Series, any day
except a Saturday, Sunday or a legal holiday in The City of New York or at a
place of payment on which banking institutions are authorized or required by
law, regulation or executive order to close.

 

“Capital
Lease Obligation” means, at the time any determination thereof is to be made,
the amount of the liability in respect of a capital lease that would at such
time be so required to be capitalized on the balance sheet in accordance with
GAAP.

 

“Capital
Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock, including, without
limitation, with respect to partnerships, partnership interests (whether
general or limited) and any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, such partnership.

 

“Company”
means the party named as such above until a successor replaces it and
thereafter means the successor.

 

“Company
Order” means a written order signed in the name of the Company by two Officers.

 

“Corporate
Trust Office” means a principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof
is located at [ ], Attention: Corporate Trust Administration, or such other
address as the Trustee may designate from time to time by notice to the Holders
and the Company, or the principal corporate trust office of any successor
Trustee (or such other address as a successor Trustee may designate from time
to time by notice to the Holders and the Company).

 

“Default”
means any event that is or with the passage of time or the giving of notice or
both would be an Event of Default.

 

“Depository”
means, with respect to the Securities of any Series issuable or issued in
whole or in part in the form of one or more Global Securities, the Person
designated as Depository for such Series by the Company, which Depository
shall be a clearing agency registered under the Exchange Act; and if at any
time there is more than one such Person, “Depository” as used with respect to
the Securities of any Series shall mean the Depository with respect to the
Securities of such Series.

 

“Discount
Security” means any Security that provides for an amount less than the stated
principal amount thereof to be due and payable upon declaration of acceleration
of the maturity thereof pursuant to Section 6.2.

 

“Disqualified
Stock” means any Capital Stock which, by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable), or upon
the happening of any event, matures or is mandatorily redeemable, for cash or
other property (other than Capital Stock that is not Disqualified Stock)
pursuant to a sinking fund obligation or otherwise, or is redeemable at the
option of the Securityholder thereof, in whole or in part, in each case on or
prior to the stated maturity of the Securities.

 

2

 

“Dollars”
and “$” mean lawful money of the United States of America.

 

“Euro”
means the single currency of participating member states of the economic and
monetary union as contemplated in the Treaty on European Union.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Foreign
Currency” means any currency or currency unit issued by a government other than
the government of the United States of America.

 

“GAAP”
means accounting principles generally accepted in the United States of America
which are in effect on the date set forth in a supplemental indenture for a
particular Series.

 

“Global
Security” or “Global Securities” means a Security or Securities, as the case
may be, in the form established pursuant to Section 2.2 evidencing all or
part of a Series of Securities, issued to the Depository for such Series or
its nominee, and registered in the name of such Depository or nominee.

 

“Government
Securities” means direct obligations of, or obligations guaranteed by, the
United States of America for the payment of which guarantee or obligations the
full faith and credit of the United States of America is pledged.

 

“Guarantee”
means, as applied to any obligation, (a) a guarantee (other than by
endorsement of negotiable instruments for collection in the ordinary course of
business), direct or indirect, in any manner, of any part or all of such
obligation and (b) an agreement, direct or indirect, contingent or
otherwise, the practical effect of which is to assure in any way the payment or
performance (or payment of damages in the event of non-performance) of all or
any part of such obligation, including, without limiting the foregoing, the
obligation to reimburse amounts drawn down under letters of credit securing
such obligations.

 

“Hedging
Obligations” means, with respect to any specified Person, the obligations of
such Person under:

 

(a)                                  interest rate
swap agreements (whether from fixed to floating or from floating to fixed),
interest rate cap agreements and interest rate collar agreements;

 

(b)                                 other
agreements or arrangements designed to manage interest rates or interest rate
risk; and

 

(c)                                  other agreements
or arrangements designed to protect such Person against fluctuations in
currency exchange rates or commodity prices.

 

“Holder”
or “Securityholder” means a Person in whose name a Security is registered or
the holder of a Bearer Security.

 

“Indebtedness”
means (without duplication), with respect to any Person, whether recourse is to
all or a portion of the assets of such Person, and whether or not contingent, (a) every
obligation of such Person for money borrowed, (b) every obligation of such
Person 

 

3

 

evidenced
by bonds, debentures, notes or other similar instruments, (c) every
reimbursement obligation of such Person with respect to letters of credit,
bankers’ acceptances or similar facilities issued for the account of such
Person, (d) every obligation of such Person issued or assumed as the
deferred purchase price of property or services, (e) every Capital Lease
Obligation and every obligation of such Person in respect of Sale and Leaseback
Transactions that would be required to be capitalized on the balance sheet in
accordance with GAAP, (f) all Disqualified Stock of such Person valued at
the greater of its voluntary or involuntary maximum fixed repurchase price,
plus accrued and unpaid dividends (unless included in such maximum repurchase
price), (g) all obligations of such Person under or with respect to
Hedging Obligations which would be required to be reflected on the balance
sheet as a liability of such Person in accordance with GAAP and (h) every
obligation of the type referred to in clauses (a) through (g) of
another Person and dividends of another Person the payment of which, in either
case, such Person has guaranteed.  For
purposes of this definition, the “maximum fixed repurchase price” of any Disqualified
Stock that does not have a fixed repurchase price will be calculated in
accordance with the terms of such Disqualified Stock as if such Disqualified
Stock were repurchased on any date on which Indebtedness is required to be
determined pursuant to this Indenture, and if such price is based upon, or
measured by, the fair market value of such Disqualified Stock, such fair market
value will be determined in good faith by the board of directors of the issuer
of such Disqualified Stock. 
Notwithstanding the foregoing, trade accounts payable and accrued
liabilities arising in the ordinary course of business and any liability for
federal, state or local taxes or other taxes owed by such Person will not be
considered Indebtedness for purposes of this definition.  The amount outstanding at any time of any
Indebtedness issued with original issue discount is the aggregate principal
amount at maturity of such Indebtedness, less the remaining unamortized portion
of the original issue discount of such Indebtedness at such time, as determined
in accordance with GAAP.  Indebtedness
shall be calculated without giving effect to the effects of Statement of
Financial Accounting Standards No. 133 and related interpretations to the
extent such effects would otherwise increase or decrease an amount of
Indebtedness for any purpose under the Indenture as a result of accounting for
any embedded derivatives created by the terms of such Indebtedness.

 

“Indenture”
means this Indenture as amended and supplemented from time to time and shall
include the form and terms of particular Series of Securities established
as contemplated hereunder and any related supplemental indenture.

 

“interest”
with respect to any Discount Security which by its terms bears interest only
after Maturity, means interest payable after Maturity.

 

“Maturity,”
when used with respect to any Security or installment of principal thereof,
means the date on which the principal of such Security or such installment of
principal becomes due and payable as therein or herein provided, whether at the
Stated Maturity or by declaration of acceleration, call for redemption, notice
of option to elect repayment or otherwise.

 

“Officer”
means the Executive Chairman of the Board, the Chief Executive Officer, the
President, the Chief Operating Officer, the Chief Financial Officer, any
Vice-President, the Treasurer, the Controller, the Secretary, any Assistant
Treasurer or any Assistant Secretary of any Person.

 

4

 

“Officers’
Certificate” means a certificate signed, unless otherwise specified, by any two
of the Executive Chairman of the Board, a Vice Chairman of the Board, the Chief
Executive Officer, the President, the Chief Financial Officer, the Controller
or an Executive Vice President of the Company, and delivered to the Trustee.

 

“Opinion
of Counsel” means a written opinion of legal counsel, which opinion is
reasonably acceptable to the Trustee. 
The counsel may be an employee of or counsel to the Company.

 

“Person”
means any individual, corporation, limited liability company, partnership,
joint venture, association, joint-stock company, trust, unincorporated
organization, or any government or any agency or political subdivision thereof.

 

“principal”
of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Responsible
Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any managing director,
director, vice president, assistant vice president, assistant treasurer, trust
officer, associate or any other officer of the Trustee who customarily performs
functions similar to those performed by the persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

 

“Restricted
Subsidiary” shall have the meaning set forth in the applicable supplemental
indenture as to each Series of Securities. 
If not defined in the applicable supplemental indenture, then there
shall be no Restricted Subsidiaries as to such Series.

 

“Sale
and Leaseback Transaction” means any transaction or series of related
transactions pursuant to which a Person sells or transfers any property or
asset in connection with the leasing, or the resale against installment
payments, of such property or asset to the seller or transferor.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities”
means the debentures, notes or other instruments of Indebtedness of the Company
of any Series authenticated and delivered under this Indenture.

 

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

 

“Series”
or “Series of Securities” means each series of debentures, notes or other
debt instruments of the Company created pursuant to Sections 2.1 and 2.2
hereof.

 

“Significant
Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such regulation is in effect on the date
hereof.

 

5

 

“Stated
Maturity” when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such
Security as the fixed date on which the principal of such Security or such
installment of principal or interest is due and payable.

 

“Subsidiary”
means, with respect to any Person, any corporation, association or other
business entity of which more than 50% of the total voting power of shares of
Capital Stock entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by such Person or one or more of
the other Subsidiaries of such Person or a combination thereof.

 

“Subsidiary
Guarantee” means a Guarantee of a Guarantor pursuant to Article XII
hereof.

 

“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as
in effect on the date of this Indenture; PROVIDED, HOWEVER, that in the event
the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the
extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee”
means the Person named as the “Trustee” in the first paragraph of this
instrument until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Trustee” shall mean or
include each Person who is then a Trustee hereunder, and if at any time there
is more than one such Person, “Trustee” as used with respect to the Securities
of any Series shall mean the Trustee with respect to Securities of that
Series.

 

Section 1.2. 
OTHER DEFINITIONS.

 

	
  TERM

  	
   

  	
  DEFINED IN SECTION

  
	
   

  	
   

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  
	
  “Benefited Party”

  	
   

  	
  12.1

  
	
  “Covenant Defeasance”

  	
   

  	
  8.3

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
  “Event of Default”

  	
   

  	
  6.1

  
	
  “Guarantor”

  	
   

  	
  12.1

  
	
  “Journal”

  	
   

  	
  10.15

  
	
  “Judgment Currency”

  	
   

  	
  10.16

  
	
  “Legal Defeasance”

  	
   

  	
  8.2

  
	
  “Legal Holiday”

  	
   

  	
  10.7

  
	
  “mandatory sinking fund payment”

  	
   

  	
  11.1

  
	
  “Market Exchange Rate”

  	
   

  	
  10.15

  
	
  “New York Banking Day”

  	
   

  	
  10.16

  
	
  “optional sinking fund payment”

  	
   

  	
  11.1

  
	
  “Paying Agent”

  	
   

  	
  2.4

  
	
  “Registrar”

  	
   

  	
  2.4

  
	
  “Required Currency”

  	
   

  	
  10.16

  
	
  “Service Agent”

  	
   

  	
  2.4

  
	
  “Successor Person”

  	
   

  	
  5.2

  

 

6

 

Section 1.3. 
INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

 

Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

 

“Commission”
means the SEC.

 

“indenture
securities” means the Securities and the Subsidiary Guarantees, if any.

 

“indenture
security holder” means a Holder or a Securityholder.

 

“indenture
to be qualified” means this Indenture.

 

“indenture
trustee” or “institutional trustee” means the Trustee.

 

“obligor”
on the indenture securities means the Company, the Guarantors, if any, and any
successor obligor upon the Securities or any Subsidiary Guarantee, as the case
may be.

 

All
other terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA and not
otherwise defined herein are used herein as so defined.

 

Section 1.4. 
RULES OF CONSTRUCTION.

 

Unless
the context otherwise requires:

 

(a)                                  a term has the
meaning assigned to it;

 

(b)                                 an accounting
term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

 

(c)                                  “or” is not
exclusive;

 

(d)                                 words in the
singular include the plural, and in the plural include the singular;

 

(e)                                  provisions
apply to successive events and transactions; and

 

(f)                                    references to
sections of or rules under the Securities Act or the Exchange Act shall be
deemed to include substitute, replacement or successor sections or rules adopted
by the SEC from time to time.

 

7

 

ARTICLE II

THE SECURITIES

 

Section 2.1. 
ISSUABLE IN SERIES.

 

The
aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited. 
The Securities may be issued in one or more Series.  All Securities of a Series shall be
identical except as may be set forth in a Board Resolution, a supplemental
indenture or an Officers’ Certificate detailing the adoption of the terms
thereof pursuant to the authority granted under a Board Resolution.  In the case of Securities of a Series to
be issued from time to time, the Board Resolution, Officers’ Certificate or
supplemental indenture may provide for the method by which specified terms
(such as interest rate, maturity date, record date or date from which interest
shall accrue) are to be determined. 
Securities may differ between Series in respect of any matters,
provided that all Series of Securities shall be equally and ratably
entitled to the benefits of the Indenture.

 

Section 2.2. 
ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES.

 

At
or prior to the issuance of any Securities within a Series, the following shall
be established (as to the Series generally, in the case of Subsection
2.2.1 and either as to such Securities within the Series or as to the Series generally
in the case of Subsections 2.2.2 through 2.2.21) by a Board Resolution, a
supplemental indenture or an Officers’ Certificate pursuant to authority
granted under a Board Resolution:

 

2.2.1.  the
title of the Series (which shall distinguish the Securities of that
particular Series from the Securities of any other Series);

 

2.2.2.  the
price or prices (expressed as a percentage of the principal amount thereof) at
which the Securities of the Series will be issued;

 

2.2.3.  any
limit upon the aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the Series pursuant to Section 2.7,
2.8, 2.11, 3.6 or 9.6, or any applicable provision of a supplemental
indenture);

 

2.2.4.  the
date or dates on which the principal of the Securities of the Series is
payable;

 

2.2.5.  the
rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any
commodity, commodity index, stock exchange index or financial index) at which
the Securities of the Series shall bear interest, if any, the date or
dates from which such interest, if any, shall accrue, the date or dates on
which such interest, if any, shall commence and be payable and any regular
record date for the interest payable on any interest payment date;

 

2.2.6.  the
place or places where the principal of and interest, if any, on the Securities
of the Series shall be payable, or the method of such payment, if by wire
transfer, mail or other means;

 

8

 

2.2.7.  if applicable,
the period or periods within which, the price or prices at which and the terms
and conditions upon which the Securities of the Series may be redeemed, in
whole or in part, at the option of the Company;

 

2.2.8.  the
obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant
to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices at which
and the terms and conditions upon which Securities of the Series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

 

2.2.9.  the
dates, if any, on which and the price or prices at which the Securities of the Series will
be repurchased by the Company at the option of the Holders thereof and other
detailed terms and provisions of such repurchase obligations;

 

2.2.10.  if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be issuable;

 

2.2.11.  the
forms of the Securities of the Series in bearer or fully registered form
(and, if in fully registered form, whether the Securities will be issuable as
Global Securities);

 

2.2.12.  if
other than the principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration of
acceleration of the maturity thereof pursuant to Section 6.2;

 

2.2.13.  the
currency of denomination of the Securities of the Series, which may be Dollars
or any Foreign Currency, including, but not limited to, the Euro, and if such
currency of denomination is a composite currency other than the Euro, the
agency or organization, if any, responsible for overseeing such composite
currency;

 

2.2.14.  the
designation of the currency, currencies or currency units in which payment of
the principal of and interest, if any, on the Securities of the Series will
be made;

 

2.2.15.  if
payments of principal of or interest, if any, on the Securities of the Series are
to be made in one or more currencies or currency units other than that or those
in which such Securities are denominated, the manner in which the exchange rate
with respect to such payments will be determined;

 

2.2.16.  the
manner in which the amounts of payment of principal of or interest, if any, on
the Securities of the Series will be determined, if such amounts may be
determined by reference to an index based on a currency or currencies or by
reference to a commodity, commodity index, stock exchange index or financial index;

 

2.2.17.  the
provisions, if any, relating to any security provided for the Securities of the
Series;

 

2.2.18.  any
addition to or change in the Events of Default which applies to any Securities
of the Series and any change in the right of the Trustee or the requisite
Holders of such Securities to declare the principal amount thereof due and
payable pursuant to Section 6.2;

 

9

 

2.2.19.  any
addition to or change in the covenants set forth in Articles IV or V which
applies to Securities of the Series;

 

2.2.20.  any
other terms of the Securities of the Series (which may modify or delete
any provision of this Indenture insofar as it applies to such Series); and

 

2.2.21.  any
depositories, interest rate calculation agents, exchange rate calculation
agents or other agents with respect to Securities of such Series if other
than those appointed herein.

 

All
Securities of any one Series need not be issued at the same time and may
be issued from time to time, consistent with the terms of this Indenture, if so
provided by or pursuant to the Board Resolution, supplemental indenture or
Officers’ Certificate referred to above, and the authorized principal amount of
any Series may not be increased to provide for issuances of additional
Securities of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers’ Certificate.

 

Section 2.3. 
EXECUTION AND AUTHENTICATION.

 

Two
Officers shall sign the Securities for the Company by manual or facsimile
signature.  An Officer of each Guarantor
shall sign the Subsidiary Guarantee for the Guarantor by manual or facsimile
signature.

 

If
an Officer whose signature is on a Security or Subsidiary Guarantee no longer
holds that office at the time the Security is authenticated, the Security or
Subsidiary Guarantee shall nevertheless be valid.

 

A
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.  Such
signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.

 

The
Trustee shall at any time, and from time to time, authenticate Securities for
original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the
Trustee of a Company Order.  Such Company
Order may authorize authentication and delivery pursuant to written or
electronic signed instructions from the Company or its duly authorized agent or
agents.  Each Security shall be dated the
date of its authentication unless otherwise provided by a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate.

 

The
aggregate principal amount of Securities of any Series outstanding at any
time may not exceed any limit upon the maximum principal amount for such Series set
forth in the Board Resolution, supplemental indenture hereto or Officers’
Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

Prior
to the issuance of Securities of any Series, the Trustee shall have received
and (subject to Section 7.2) shall be fully protected in relying on: (a) the
Board Resolution, supplemental indenture hereto or Officers’ Certificate
establishing the form of the Securities of that Series or of Securities
within that Series and the terms of the Securities of that Series or
of 

 

10

 

Securities
within that Series, (b) an Officers’ Certificate complying with Sections
10.4 and 10.5, and (c) an Opinion of Counsel complying with Sections 10.4
and 10.5.

 

The
Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if the
Trustee in good faith by any of the following: its board of directors or
trustees, executive committee or a trust committee of Responsible Officers,
directors and/or vice-presidents shall determine that such action would
reasonably be expected to expose the Trustee to personal liability to Holders
of any then outstanding Series of Securities.

 

The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities.  Unless limited
by the terms of such appointment, an authenticating agent may authenticate
Securities whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent. 
An authenticating agent has the same rights as an Agent to deal with the
Company or an Affiliate.

 

Section 2.4. 
REGISTRAR AND PAYING AGENT.

 

The
Company shall maintain, with respect to each Series of Securities, at the
place or places specified with respect to such Series pursuant to Section 2.2,
an office or agency where Securities of such Series may be presented or
surrendered for payment (“Paying Agent”), where Securities of such Series may
be surrendered for registration of transfer or exchange (“Registrar”) and where
notices and demands to or upon the Company in respect of the Securities of such
Series and this Indenture may be served (“Service Agent”).  The Registrar shall keep a register with
respect to each Series of Securities and to their transfer and
exchange.  The Company will give prompt
written notice to the Trustee of the name and address, and any change in the
name or address, of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to
maintain any such required Registrar or Paying Agent or shall fail to furnish
the Trustee with the name and address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee as its agent to receive
all such presentations, surrenders, notices and demands.

 

The
Company may also from time to time designate one or more co-registrars,
additional paying agents or additional service agents and may from time to time
rescind such designations; PROVIDED, HOWEVER, that no such designation or rescission
shall in any manner relieve the Company of its obligations to maintain a
Registrar, Paying Agent and Service Agent in each place so specified pursuant
to Section 2.2 for Securities of any Series for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
name or address of any such co-registrar, additional paying agent or additional
service agent.  The term

 

“Registrar”
includes any co-registrar; the term “Paying Agent” includes any additional
paying agent; and the term “Service Agent” includes any additional service
agent.  The Company or any Guarantor may
act as Paying Agent, Registrar or Service Agent.  The Company shall enter into an appropriate
agency agreement with any Agent not a party to this 

 

11

 

Indenture,
which shall be subject to any obligations imposed by the provisions of the
TIA.  The agreement shall implement the
provisions of this Indenture that relate to such Agent.

 

The
Company hereby appoints the Trustee the initial Registrar and Paying Agent for
each Series unless another Registrar and Paying Agent, as the case may be,
is appointed prior to the time Securities of that Series are first issued.

 

Section 2.5. 
PAYING AGENT TO HOLD MONEY IN TRUST.

 

The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money
held by the Paying Agent for the payment of principal of or premium, if any, or
interest on the Series of Securities, and will notify the Trustee of any
default by the Company or the Guarantors in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money delivered to the Trustee.  If the Company or a Subsidiary acts as Paying
Agent, it shall segregate and hold in a separate trust fund for the benefit of
Securityholders of any Series of Securities all money held by it as Paying
Agent.

 

Section 2.6. 
SECURITYHOLDER LISTS.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA Section 312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least ten days before each interest
payment date and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Securityholders of each Series of
Securities.

 

Section 2.7. 
TRANSFER AND EXCHANGE.

 

Where
Securities of a Series are presented to the Registrar or a co-registrar
with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register
the transfer or make the exchange if its requirements for such transactions are
met.  To permit registrations of
transfers and exchanges, the Trustee shall authenticate Securities at the
Registrar’s request.  No service charge
shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum
sufficient to cover any transfer tax or similar governmental charge payable in
connection therewith (other than any such transfer tax or similar governmental
charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

 

Neither
the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning
at the opening of business fifteen days immediately preceding the mailing of a
notice of redemption of Securities of that Series selected for redemption
and ending at the close of business on the day of such mailing, or (b) to
register the transfer of or exchange Securities of any Series selected,
called or 

 

12

 

being
called for redemption as a whole or the portion being redeemed of any such
Securities selected, called or being called for redemption in part.

 

Section 2.8. 
MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

 

If
any mutilated Security is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same Series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

 

If
there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

 

In
case any such mutilated, destroyed, lost or stolen Security has become or is
about to become due and payable, the Company in its discretion may, instead of
issuing a new Security, pay such Security.

 

Upon
the issuance of any new Security under this Section, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee) connected therewith.

 

Every
new Security of any Series issued pursuant to this Section in lieu of
any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that Series duly issued hereunder.

 

The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.9. 
OUTSTANDING SECURITIES.

 

The
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest on a Global Security effected by
the Trustee in accordance with the provisions hereof and those described in
this Section as not outstanding.

 

If
a Security is replaced pursuant to Section 2.8, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

 

13

 

If
the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
thereof) holds on the Maturity of Securities of a Series money sufficient
to pay such Securities payable on that date, then on and after that date such
Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

 

A
Security does not cease to be outstanding because the Company, a Guarantor or
an Affiliate of the Company or a Guarantor holds the Security.

 

In
determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as
of the date of such determination upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.2.

 

Section 2.10. 
TREASURY SECURITIES.

 

In
determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver, Securities of a Series owned by the
Company or an Affiliate shall be disregarded, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities of a Series that a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded. 
Notwithstanding the foregoing, Securities of a Series that are to
be acquired by the Company, any Guarantor, any Subsidiary of the Company or any
Guarantor or an Affiliate of the Company or any Guarantor pursuant to an
exchange offer, tender offer or other agreement shall not be deemed to be owned
by the Company, such Guarantor, a Subsidiary of the Company or such Guarantor
or an Affiliate of the Company or such Guarantor until legal title to such
Securities passes to the Company, such Guarantor, such Subsidiary or such
Affiliate, as the case may be.

 

Section 2.11. 
TEMPORARY SECURITIES.

 

Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Securities upon a Company Order.  Temporary Securities shall be substantially
in the form of definitive Securities but may have variations that the Company
considers appropriate for temporary Securities. 
Without unreasonable delay, the Company shall prepare and the Trustee
upon request shall authenticate definitive Securities of the same Series and
date of maturity in exchange for temporary Securities.  Until so exchanged, temporary securities
shall have the same rights under this Indenture as the definitive Securities.

 

Section 2.12. 
CANCELLATION.

 

The
Company at any time may deliver Securities to the Trustee with written
instructions for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities
surrendered for transfer, exchange, payment, replacement or cancellation and
shall dispose of such canceled Securities in accordance with the Trustee’s 

 

14

 

customary
practice as instructed by the Company. 
The Company may not issue new Securities to replace Securities that it
has paid or delivered to the Trustee for cancellation.

 

Section 2.13. 
DEFAULTED INTEREST.

 

If
the Company and the Guarantors default in a payment of interest on a Series of
Securities, the Company or any such Guarantor (to the extent of its obligations
under its Subsidiary Guarantee) shall pay the defaulted interest in any lawful
manner plus, to the extent lawful, interest payable on the defaulted interest,
to the Persons who are Securityholders of the Series on a subsequent
special record date, which date shall be at the earliest practicable date but
in all events at least five Business Days prior to the payment date, in each
case at the rate provided for with respect to the applicable Securities.  The Trustee shall fix or cause to be fixed
each such special record date and payment date, and shall, promptly thereafter,
notify the Trustee of any such date.  At
least 15 days before the special record date, the Company (or the Trustee, in
the name of and at the expense of the Company) shall mail to Securityholders of
the Series a notice that states the special record date, the related
payment date and the amount of such interest to be paid.  The Company and the Guarantors may pay
defaulted interest in any other lawful manner.

 

Section 2.14. 
RECORD DATE.

 

The
record date for purposes of determining the identity of Securityholders of the Series entitled
to vote or consent to any action by vote or consent authorized or permitted
under this Indenture shall be determined as provided for in TIA Section 316(c).

 

Section 2.15. 
GLOBAL SECURITIES.

 

2.15.1.  Terms
of Securities.  A Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate shall establish
whether the Securities of a Series shall be issued in whole or in part in
the form of one or more Global Securities and the Depository for such Global
Security or Securities.

 

2.15.2.  Transfer
and Exchange.  Notwithstanding any
provisions to the contrary contained in Section 2.7 of the Indenture and
in addition thereto, and except as otherwise set forth in a supplemental
indenture with regard to a Series of Securities, any Global Security shall
be exchangeable pursuant to Section 2.7 of the Indenture for Securities
registered in the names of Holders other than the Depository for such Security
or its nominee only if (i) such Depository notifies the Company that it is
unwilling or unable to continue as Depository for such Global Security or if at
any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor
Depository within 90 days of such event, (ii) the Company executes and
delivers to the Trustee an Officers’ Certificate to the effect that such Global
Security shall be so exchangeable or (iii) an Event of Default with
respect to the Securities represented by such Global Security shall have
happened and be continuing.  Any Global
Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Securities registered in such names as the Depository shall
direct in writing in an aggregate principal amount equal to the principal
amount of the Global Security with like tenor and terms.

 

15

 

Except
as provided in this Section 2.15.2 or as may be set forth in a
supplemental indenture with regard to a Series of Securities, a Global
Security may not be transferred except as a whole by the Depository with
respect to such Global Security to a nominee of such Depository, by a nominee
of such Depository to such Depository or another nominee of such Depository or
by the Depository or any such nominee to a successor Depository or a nominee of
such a successor Depository.

 

2.15.3.  Legend.  Any Global Security issued hereunder shall
bear a legend in substantially the following form:

 

“This
Security is a Global Security within the meaning of the Indenture hereinafter
referred to and is registered in the name of the Depository or a nominee of the
Depository.  This Security is
exchangeable for Securities registered in the name of a Person other than the
Depository or its nominee only in the limited circumstances described in the
Indenture, and may not be transferred except as a whole by the Depository to a
nominee of the Depository, by a nominee of the Depository to the Depository or
another nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such a successor Depository.”

 

2.15.4.  Acts
of Holders.  The Depository, as a
Holder, may appoint agents and otherwise authorize participants to give or take
any request, demand, authorization, direction, notice, consent, waiver or other
action which a Holder is entitled to give or take under the Indenture.

 

2.15.5.  Payments.  Notwithstanding the other provisions of this
Indenture, unless otherwise specified as contemplated by Section 2.2,
payment of the principal of and interest, if any, on any Global Security shall
be made to the Holder thereof.

 

2.15.6.  Consents,
Declaration and Directions.  Except
as provided in Section 2.15.5, the Company, the Trustee and any Agent
shall treat the Holder of such principal amount of outstanding Securities of
such Series represented by a Global Security as the owner thereof, as
shall be specified in a written statement of the Depository with respect to
such Global Security, for purposes of obtaining any consents, declarations,
waivers or directions required to be given by the Holders pursuant to this
Indenture.

 

Section 2.16. 
CUSIP NUMBERS.

 

The
Company in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; PROVIDED that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and
that reliance may be placed only on the other identification numbers printed on
the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers.  The Company
will promptly notify the Trustee of any change in the CUSIP number.

 

16

 

ARTICLE III

REDEMPTION

 

Section 3.1. 
NOTICE TO TRUSTEE.

 

The
Company may, with respect to any Series of Securities, reserve the right
to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated
Maturity thereof at such time and on such terms as provided for in such
Securities.  If a Series of
Securities is redeemable and the Company wants or is obligated to redeem prior
to the Stated Maturity thereof all or part of the Series of Securities
pursuant to the terms of such Securities, it shall notify the Trustee of the
redemption date and the principal amount of Series of Securities to be
redeemed.  The Company shall give the
notice at least 45 days before the redemption date (or such shorter notice as
may be acceptable to the Trustee), which notice shall be in the form of an
Officers’ Certificate setting forth (i) the Section of this Indenture
pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the
principal amount of Securities of a Series to be redeemed and (iv) the
redemption price.

 

Section 3.2. 
SELECTION OF SECURITIES TO BE REDEEMED.

 

If
less than all of any Series of Securities are to be redeemed at any time,
the Trustee shall select the Securities of the Series to be redeemed among
the applicable Holders on a pro rata basis
(or, in the case of any Series of Securities issued in global form as
discussed in Section 2.15, based on a method that most nearly approximates
a pro rata selection as the Trustee deems
fair and appropriate) unless otherwise required by law or applicable stock
exchange or depositary requirements, provided that
no Securities of $2,000 or less shall be redeemed in part.

 

The
Trustee shall promptly notify the Company in writing of the Securities of the Series selected
for redemption and, in the case of any Security selected for partial
redemption, the principal amount thereof to be redeemed. Securities and
portions of Securities selected shall be in amounts of $2,000 or whole multiples
of $1,000; except that if all of the Securities of a Holder are to be redeemed,
the entire outstanding amount of Securities held by such Holder, even if not a
multiple of $1,000, shall be redeemed. Except as provided in the preceding
sentence, provisions of this Indenture that apply to Securities of a Series called
for redemption also apply to portions of Securities of that Series called
for redemption.

 

Section 3.3. 
NOTICE OF REDEMPTION.

 

Unless
otherwise indicated for a particular Series by Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, at least 10 days but
not more than 60 days before a redemption date, the Company shall mail or cause
to be mailed a notice of redemption by first-class mail to each Holder whose
Securities are to be redeemed and if any Bearer Securities are outstanding,
publish on one occasion a notice in an Authorized Newspaper.

 

The
notice shall identify the Securities of the Series to be redeemed
(including the CUSIP numbers, if any) and shall state:

 

(a)                                  the redemption
date;

 

17

 

(b)                                 the redemption
price (including accrued interest to, but excluding, the redemption date);

 

(c)                                  if any Security
of the Series called for redemption is being redeemed in part, the portion
of the principal amount of such Security to be redeemed and that, after the
redemption date upon surrender of such Security, a new Security or Securities
in principal amount equal to the unredeemed portion shall be issued upon
cancellation of the original Security;

 

(d)                                 the name and
address of the Paying Agent;

 

(e)                                  that Securities
of the Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

 

(f)                                    that, unless
the Company defaults in the making of such redemption payment, interest on
Securities of the Series called for redemption ceases to accrue on and
after the redemption date; and

 

(g)                                 any other
information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.

 

At
the Company’s request, the Trustee shall give the notice of redemption to the
Holders in the Company’s name and at its expense; provided that the Company
gives the Trustee written notice of such request at least 10 days prior to the
date of the giving of such notice (or such shorter notice as may be acceptable
to the Trustee).

 

Section 3.4. 
EFFECT OF NOTICE OF REDEMPTION.

 

Once
notice of redemption is mailed or published as provided in Section 3.3,
Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. 
A notice of redemption may not be conditional.  On and after the redemption date, unless the
Company defaults in the payment of the redemption price, interest will cease to
accrue on the Securities of a Series called for called for redemption and
all rights of Holders with respect to such Securities will terminate except for
the right to receive payment of the redemption price upon surrender for
redemption.  Upon surrender to the Paying
Agent, such Securities shall be paid at the redemption price plus accrued
interest to but excluding the redemption date.

 

Section 3.5. 
DEPOSIT OF REDEMPTION PRICE.

 

Prior
to 11:00 a.m. Eastern Standard Time on the redemption date, the Company shall
deposit with the Paying Agent money sufficient to pay the redemption price of
and accrued interest, if any, on all Securities to be redeemed on that
date.  If the Company complies with the
provisions of the preceding sentence, on and after the redemption date,
interest shall cease to accrue on the Securities or the portions of Securities
called for redemption, whether or not such Securities are presented for
payment.  If any Security called for
redemption shall not be so paid upon surrender for redemption because of the
failure of the Company to comply with the first sentence of this paragraph,
interest shall be paid on the unpaid principal, from the redemption 

 

18

 

date
until such principal is paid, and to the extent lawful on any interest not paid
on such unpaid principal, in each case at the rate provided with respect to
such Security.

 

Section 3.6. 
SECURITIES REDEEMED IN PART.

 

Upon
surrender of a Security that is redeemed in part, the Trustee shall authenticate
for the Holder a new Security of the same Series and the same maturity
equal in principal amount to the unredeemed portion of the Security
surrendered.

 

ARTICLE IV

COVENANTS

 

Section 4.1. 
PAYMENT OF PRINCIPAL AND INTEREST.

 

The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will duly and punctually pay the principal of and interest,
if any, on the Securities of that Series in accordance with the terms of
such Securities and this Indenture.

 

Section 4.2. 
REPORTS.

 

The
Company shall file with the Trustee and the SEC, and transmit to Holders of
Securities, such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the TIA at the times and in the manner
provided pursuant thereto; provided that any such information, documents or
reports required to be filed with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act shall be filed with the Trustee within 15 days after the same
is so required to be filed with the Commission. 
Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to conclusively rely exclusively on the Officers’ Certificates).

 

Notwithstanding the foregoing, if at any time
the Securities are guaranteed by any direct or indirect parent company of the
Company, the indenture will permit the Company to satisfy its obligations under
this covenant with respect to financial information relating to the Company by
furnishing financial information relating to such direct or indirect parent
company; PROVIDED, HOWEVER, that the
same is accompanied by consolidating information that explains in
reasonable detail the differences between the information relating to such
direct or indirect parent company and any of its Subsidiaries other than the
Company and its Subsidiaries, on the one hand, and the information relating to
the Company, the Guarantors and the other Subsidiaries of the Company on a
standalone basis, on the other hand.

 

Section 4.3. 
COMPLIANCE CERTIFICATE.

 

The
Company shall deliver to the Trustee, within 90 days after the end of each
fiscal year of the Company, an Officers’ Certificate complying with TIA Section 314(a)(4) stating
that a review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to 

 

19

 

determining
whether the Company has kept, observed, performed and fulfilled its obligations
under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his knowledge the Company has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and
is not in default in the performance or observance of any of the terms,
provisions and conditions hereof (or, if a Default or Event of Default shall
have occurred, describing all such Defaults or Events of Default of which he
may have knowledge).

 

The
Company will, so long as any of the Securities are outstanding, deliver to the
Trustee, forthwith upon any Officer becoming aware of any Default or Event of
Default, an Officers’ Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.4. 
STAY, EXTENSION AND USURY LAWS.

 

Each
of the Company and the Guarantors covenants (to the extent that it may lawfully
do so) that it will not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or
usury law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture or the Securities;
and each of the Company and the Guarantors (to the extent it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law and
covenants that it will not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law has been
enacted.

 

Section 4.5. 
CORPORATE EXISTENCE.

 

Subject
to Article V of the Indenture and any covenants included in a supplemental
indenture relating to the release of Guarantors or the consolidation or merger
of Restricted Subsidiaries, the Company and each of the Restricted Subsidiaries
shall do or cause to be done all things necessary to preserve and keep in full
force and effect (i) its corporate existence in accordance with the
respective organizational documents (as the same may be amended from time to
time) of the Company and any such Restricted Subsidiary, as the case may be,
and (ii) the rights (charter and statutory), licenses and franchises of
the Company and the Restricted Subsidiaries; PROVIDED, HOWEVER, that the
Company and the Restricted Subsidiaries shall not be required to preserve any
such right, license or franchise if an officer of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company, the Restricted Subsidiaries and their Subsidiaries,
taken as a whole, and that the loss thereof is not adverse in any material
respect to the Holders of the Securities.

 

Section 4.6. 
TAXES.

 

The
Company shall, and shall cause each of its Subsidiaries to, pay prior to
delinquency all material taxes, assessments and governmental levies, except (i) as
contested in good faith and by appropriate proceedings or (ii) the
nonpayment of which would not materially 

 

20

 

adversely
affect the business, condition (financial or otherwise), operations,
performance or properties of the Company and its Subsidiaries, taken as a
whole.

 

Section 4.7. 
MAINTENANCE OF OFFICE OR AGENCY.

 

The
Company shall maintain in the Borough of Manhattan, the City of New York, an
office or agency (which may be an office of the Trustee or an affiliate of the
Trustee, Registrar or co-registrar) where the Securities of any Series may
be surrendered for registration of transfer or for exchange and where notices
and demands to or upon the Company in respect of such Securities and this
Indenture may be served.  The Company
shall give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. 
If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee.

 

The
Company may also from time to time designate one or more other offices or
agencies where the Securities of any Series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; PROVIDED, HOWEVER, that no such designation or rescission shall
in any manner relieve the Company of its obligation to maintain an office or
agency in the Borough of Manhattan, the City of New York for such
purposes.  The Company shall give prompt
written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency.

 

The
Company hereby designates the Corporate Trust Office of the Trustee as one such
office or agency of the Company in accordance with Section 2.4 hereof.

 

ARTICLE V

SUCCESSORS

 

Section 5.1. 
MERGERS, CONSOLIDATIONS OR SALE OF ASSETS.

 

The
Company may not consolidate or merge with or into (whether or not the Company
is the surviving corporation), or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its properties or assets in
one or more related transactions, to another Person unless:

 

(a)                                  either (i) the
Company is the surviving corporation or (ii) the Person formed by or
surviving any such consolidation or merger (if other than the Company) or to
which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made is a corporation organized or existing under the laws of
the United States, any state thereof or the District of Columbia (provided
that, if such entity is not a corporation, a co-obligor of the applicable Series of
Securities issued hereunder is a corporation organized or existing under the laws
of the United States, any state thereof or the District of Columbia);

 

(b)                                 the Person
formed by or surviving any such consolidation or merger (if other than the
Company) or the Person to which such sale, assignment, transfer, lease,
conveyance or other disposition shall have been made assumes all the
obligations of the 

 

21

 

Company under the Securities of a Series, the
supplemental indentures applicable to such Series and the Indenture
(pursuant to a supplemental indenture in a form reasonably satisfactory to the
Trustee);

 

(c)                                  immediately
after such transaction no Default or Event of Default exists;

 

(d)                                 the Company or
any Person formed by or surviving any such consolidation or merger, or to which
such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made, will, at the time of such transaction and after giving pro
forma effect thereto, be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the test set forth in the applicable supplemental
indenture, if any, without regard to any enumerated exceptions; and

 

(e)                                  the Company (or
the Person formed by or surviving any such consolidation or merger or to which
such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made) shall have delivered an Officers’ Certificate and an Opinion of
Counsel, both stating that such consolidation, merger or transfer and such
supplemental indenture complies with the Indenture.

 

This
Section 5.1 will not apply to any sale, assignment, transfer, conveyance,
lease or other disposition of assets between or among the Company and its
Restricted Subsidiaries. Clauses (c) and (d) of the first paragraph
of this Section 5.1 will not apply to any merger or consolidation of the
Company (i) with or into one of its Restricted Subsidiaries for any
purpose or (ii) with or into an Affiliate solely for the purpose of
reincorporating the Company in another jurisdiction in the United States.

 

Section 5.2. 
SUCCESSOR CORPORATION SUBSTITUTED.

 

Upon
any consolidation or merger, or any sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance or other disposition is made (the “Successor Person”)
shall succeed to, and be substituted for (so that from and after the date of
such consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the “Company” shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of, the Company under this Indenture with the same effect as if such
Successor Person has been named as the Company herein; PROVIDED, HOWEVER, that
the predecessor Company in the case of a sale, lease, conveyance or other
disposition shall not be released from the obligation to pay the principal of
and interest, if any, on the Securities, except in the case of a sale of all
the Company’s assets that meets the requirements of Section 5.1 hereof.

 

22

 

ARTICLE VI

DEFAULTS AND REMEDIES

 

Section 6.1. 
EVENTS OF DEFAULT.

 

“Event
of Default,” wherever used herein with respect to Securities of any Series,
means any one of the following events, unless in the establishing Board
Resolution, supplemental indenture or Officers’ Certificate, it is provided
that such Series shall not have the benefit of said Event of Default:

 

(a)                                  default for 30
days in the payment when due of interest on any Security of that Series;

 

(b)                                 default in
payment when due of the principal of or premium, if any, on any Security of
that Series;

 

(c)                                  failure by the
Company to comply with any “Change of Control” covenant included in a
supplemental indenture with respect to any Security of that Series;

 

(d)                                 failure by the
Company or any Guarantor for 60 days after written notice from the Trustee or
Holders of not less than 25% of the aggregate principal amount of the
Securities of that Series then outstanding to comply with any of its other
agreements in the Indenture, any supplemental indenture relating to such
Series, the Securities or the Subsidiary Guarantees (in order to be effective,
such notice must be in writing, specify the Default, demand that it be remedied
and state that the notice is a “Notice of Default”);

 

(e)                                  default under
any mortgage, indenture or instrument under which there may be issued or by
which there may be secured or evidenced any Indebtedness for money borrowed by
the Company or any of its Restricted Subsidiaries (or the payment of which is
guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee exists on the date of the supplemental indenture
relating to such Series or is created thereafter, if:

 

(i)                                     such default
results in the acceleration of such Indebtedness prior to its express maturity
or shall constitute a default in the payment of such Indebtedness at final
maturity of such Indebtedness and

 

(ii)                                  the principal
amount of any such Indebtedness that has been accelerated or not paid at
maturity, when added to the aggregate principal amount of all other such
Indebtedness that has been accelerated or not paid at maturity, exceeds $50.0
million;

 

(f)                                    a final
judgment or final judgments for the payment of money are entered by a court or
courts of competent jurisdiction against the Company or any of its Restricted
Subsidiaries and such judgments remain unpaid, undischarged or unstayed for a
period of 60 days, provided that the aggregate of all such unpaid, undischarged
or unstayed judgments exceeds $50.0 million;

 

(g)                                 the Company or
any of its Restricted Subsidiaries that is a Significant Subsidiary:

 

(i)                                     commences a
voluntary case,

 

23

 

(ii)                                  consents to the
entry of an order for relief against it in an involuntary case,

 

(iii)                               consents to the
appointment of a Custodian of it or for all or substantially all of its
property,

 

(iv)                              makes a general
assignment for the benefit of its creditors, or

 

(v)                                 admits in
writing that it generally is unable to pay its debts as the same become due; in
each case, pursuant to or within the meaning of any Bankruptcy Law; or

 

(h)                                 a court of
competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i)                                     is for relief
against the Company or any of its Restricted Subsidiaries that is a Significant
Subsidiary in an involuntary case,

 

(ii)                                  appoints a
Custodian of the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or for all or substantially all of its property, or

 

(iii)                               orders the
liquidation of the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary, and such order or decree remains unstayed and in effect
for 60 days;

 

(i)                                     except as
permitted by the Indenture, any supplemental indenture relating to such Series or
the Subsidiary Guarantees, any Subsidiary Guarantee issued by a Restricted Subsidiary
shall be held in any judicial proceeding to be unenforceable or invalid or
shall cease for any reason to be in full force and effect, or any Restricted
Subsidiary or any Person acting on behalf of any Restricted Subsidiary shall
deny or disaffirm in writing its obligations under its Subsidiary Guarantee; or

 

(j)                                     any other Event
of Default provided with respect to Securities of that Series, which is
specified in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.2.18.

 

The
term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State
law for the relief of debtors.  The term “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

 

Section 6.2. 
ACCELERATION OF MATURITY.

 

If
any Event of Default (other than an Event of Default specified in clauses (g) and
(h) of Section 6.1 of the Indenture relating to the Company or any of
its Restricted Subsidiaries that is a Significant Subsidiary) occurs and is
continuing, the Trustee by notice to the Company or the Holders of at least 25%
in principal amount of the then outstanding Securities of a Series by
notice to the Company and the Trustee may declare the unpaid principal 

 

24

 

of
and any interest on all the Securities of that Series (or, if any
Securities of that Series are Discount Securities, such portion of the
principal amount as may be specified in the terms of such Securities) to be due
and payable immediately.

 

In
the event of a declaration of acceleration of the Securities of that Series because
an Event of Default has occurred and is continuing as a result of the
acceleration of any Indebtedness described in clause (e) of Section 6.1
of the Indenture, the declaration of acceleration of the Securities of that Series shall
be automatically annulled if the holders of any Indebtedness described in such
clause have rescinded the declaration of acceleration in respect of such
Indebtedness within 30 days from the date of such declaration and if:

 

(a)                                  the annulment
of the acceleration of the Securities of that Series would not conflict
with any judgment or decree of a competent jurisdiction, and

 

(b)                                 all existing
Events of Default, except non-payment of principal or interest on the
Securities of that Series that became due solely because of the
acceleration of such Securities, have been cured or waived.

 

In
the case of any Event of Default occurring by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of the Company with the
intention of avoiding payment of any make whole price or premium, as
applicable, that the Company would have had to pay if the Company then had
elected to redeem the Securities of a Series pursuant to the optional
redemption provisions of the Indenture, if any, the applicable make whole
price, or an equivalent premium, as the case may be, shall become and be
immediately due and payable to the extent permitted by law upon the
acceleration of the Securities of that Series.

 

Section 6.3. 
COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

 

The
Company covenants that if

 

(a)                                  default is made
in the payment of any interest on any Security when such interest becomes due
and payable and such default continues for a period of 30 days, or

 

(b)                                 default is made
in the payment of principal of any Security at the Maturity thereof, or

 

(c)                                  default is made
in the deposit of any sinking fund payment when and as due by the terms of a
Security,

 

THEN,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and interest and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal or any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

25

 

If
the Company fails to pay such amounts forthwith upon such demand, the Trustee,
in its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such
proceeding to judgment or final decree and may enforce the same against the
Company or any other obligor upon such Securities and collect the moneys
adjudged or deemed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon such Securities, wherever
situated.

 

If
an Event of Default with respect to any Securities of any Series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such Series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

 

Section 6.4. 
TRUSTEE MAY FILE PROOFS OF CLAIM.

 

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Securities shall then be
due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,

 

(a)                                  to file and
prove a claim for the whole amount of principal and interest owing and unpaid
in respect of the Securities and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding, and

 

(b)                                 to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same,

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.7.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

26

 

Section 6.5. 
TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.

 

All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

 

Section 6.6. 
APPLICATION OF MONEY COLLECTED.

 

Any
money collected by the Trustee pursuant to this Article shall be applied
in the following order, at the date or dates fixed by the Trustee and, in case
of the distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

 

First:
To the payment of all amounts due the Trustee under Section 7.7;

 

Second:
To the payment of the amounts then due and unpaid for principal of and interest
on the Securities in respect of which or for the benefit of which such money
has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for principal and
interest, respectively; and

 

Third:
To the Company.

 

Section 6.7. 
LIMITATION ON SUITS.

 

No
Holder of any Security of any Series shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

 

(a)                                  such Holder has
previously given written notice to the Trustee of a continuing Event of Default
with respect to the Securities of that Series;

 

(b)                                 the Holders of
not less than 25% in principal amount of the outstanding Securities of that Series shall
have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;

 

(c)                                  such Holder or
Holders have offered to the Trustee indemnity satisfactory to it against the
costs, expenses and liabilities to be incurred in compliance with such request;

 

(d)                                 the Trustee for
60 days after its receipt of such notice, request and offer of indemnity has
failed to institute any such proceeding; and

 

27

 

(e)                                  no direction
inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the
outstanding Securities of that Series;

 

it
being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

 

Section 6.8. 
UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL AND INTEREST.

 

Subject
to Article XII hereof, notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal of and premium and
interest, if any, on such Security on the Stated Maturity or Stated Maturities
expressed in such Security (or, in the case of redemption, on the redemption
date) and to institute suit for the enforcement of any such payment, and such
rights shall not be impaired without the consent of such Holder.

 

Section 6.9. 
RESTORATION OF RIGHTS AND REMEDIES.

 

If
the Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

Section 6.10. 
RIGHTS AND REMEDIES CUMULATIVE.

 

Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.8, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

 

28

 

Section 6.11. 
DELAY OR OMISSION NOT WAIVER.

 

No
delay or omission of the Trustee or of any Holder of any Securities to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein.  Every right and
remedy given by this Article or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders, as the case may be.

 

Section 6.12. 
CONTROL BY HOLDERS.

 

The
Holders of a majority in principal amount of the outstanding Securities of any Series shall
have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee, with respect to the Securities of such Series,
provided that:

 

(a)                                  such direction
shall not be in conflict with any rule of law or with this Indenture,

 

(b)                                 the Trustee may
take any other action deemed proper by the Trustee which is not inconsistent
with such direction, and

 

(c)                                  subject to the
provisions of Section 6.1, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith shall, by a Responsible
Officer of the Trustee, determine that the proceeding so directed would
reasonably be expected to expose the Trustee to personal liability.

 

Section 6.13. 
WAIVER OF PAST DEFAULTS.

 

The
Holders of not less than a majority in principal amount of the outstanding
Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to
such Series and its consequences, except a continuing Default or Event of
Default in the payment of the principal of or interest on any Security of such Series (PROVIDED,
HOWEVER, that the Holders of a majority in principal amount of the outstanding
Securities of any Series may rescind an acceleration and its consequences,
including any related payment default that resulted from such
acceleration).  Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

 

Section 6.14. 
UNDERTAKING FOR COSTS.

 

All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys’ fees
and expenses, against any 

 

29

 

party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall
not apply to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the outstanding Securities of any Series, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
or interest on any Security on or after the Stated Maturity or Stated
Maturities expressed in such Security (or, in the case of redemption, on the
redemption date).

 

ARTICLE VII

TRUSTEE

 

Section 7.1. 
DUTIES OF TRUSTEE.

 

(a)                                  If an Event of
Default has occurred and is continuing, the Trustee shall exercise the rights
and powers vested in it by this Indenture and use the same degree of care and
skill in their exercise as a prudent Person would exercise or use under the
circumstances in the conduct of such Person’s own affairs.

 

(b)                                 Except during
the continuance of an Event of Default:

 

(i)                                     The Trustee
need perform only those duties that are specifically set forth in this
Indenture and no others; and

 

(ii)                                  In the absence
of bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon
Officers’ Certificates or Opinions of Counsel furnished to the Trustee and
conforming to the requirements of this Indenture; HOWEVER, in the case of any
such Officers’ Certificates or Opinions of Counsel which by any provisions
hereof are specifically required to be furnished to the Trustee, the Trustee
shall examine such Officers’ Certificates and Opinions of Counsel to determine
whether or not they conform to the requirements of this Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other facts
stated therein).

 

(c)                                  The Trustee may
not be relieved from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that:

 

(i)                                     This paragraph
does not limit the effect of paragraph (b) of this Section;

 

(ii)                                  The Trustee
shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts;

 

(iii)                               The Trustee
shall not be liable with respect to any action taken, suffered or omitted to be
taken by it with respect to Securities of any Series in good faith in
accordance with the direction of the Holders of a majority in principal amount
of the outstanding Securities of such Series relating to the time, 

 

30

 

method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture with respect to the Securities of such
Series;

 

(d)                                 Every provision
of this Indenture that in any way relates to the Trustee is subject to
paragraph (a), (b) and (c) of this Section;

 

(e)                                  The Trustee may
refuse to perform any duty or exercise any right or power unless it receives
indemnity satisfactory to it against any loss, liability or expense;

 

(f)                                    The Trustee
shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. 
Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law;

 

(g)                                 No provision of
this Indenture shall require the Trustee to risk its own funds or otherwise
incur any financial liability in the performance of any of its duties, or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk is not reasonably assured to it; and

 

(h)                                 The Paying
Agent, the Registrar and any authenticating agent shall be entitled to the
protections, immunities and standard of care as are set forth in paragraphs
(b), (c), (e), (f) and (g) of this Section with respect to the
Trustee.

 

Section 7.2. 
RIGHTS OF TRUSTEE.

 

(a)                                  The Trustee may
conclusively rely on and shall be protected in acting or refraining from acting
upon any document believed by it to be genuine and to have been signed or
presented by the proper Person.  The
Trustee need not investigate any fact or matter stated in the document.

 

(b)                                 Before the Trustee
acts or refrains from acting, it may require an Officers’ Certificate or an
Opinion of Counsel.  The Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel.

 

(c)                                  The Trustee may
act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care.  No Depository shall be deemed an agent of the
Trustee and the Trustee shall not be responsible for any act or omission by any
Depository.

 

(d)                                 The Trustee
shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers.

 

(e)                                  The Trustee may
consult with counsel of its selection and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon.

 

31

 

(f)                                    The Trustee
shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders of
Securities unless such Holders shall have offered to the Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction.

 

(g)                                 The Trustee
shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney at the sole cost of the
Company and shall incur no liability or additional liability of any kind by
reason of such inquiry or investigation.

 

(h)                                 The Trustee
shall not be deemed to have notice of any Default or Event of Default (other
than a payment default under Sections 6.1(a) or 6.1(b)) unless a
Responsible Officer of the Trustee has received written notice of any event
which is in fact such a default in accordance with Section 10.2.

 

(i)                                     The Trustee may
request that the Company deliver an Officers’ Certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any Person authorized to sign an Officers’ Certificate, including
any Person specified as so authorized in any such certificate previously
delivered and not superseded.

 

(j)                                     The rights,
privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

 

Section 7.3. 
INDIVIDUAL RIGHTS OF TRUSTEE.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee
of Securities and may otherwise deal with the Company or an Affiliate with the
same rights it would have if it were not Trustee.  However, in the event that the Trustee
acquires any conflicting interest it must eliminate such conflict within 90
days, apply to the SEC for permission to continue as trustee or resign.  Any Agent may do the same with like
rights.  The Trustee is also subject to
Sections 7.10 and 7.11.

 

Section 7.4. 
TRUSTEE’S DISCLAIMER.

 

The
Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company’s use
of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its authentication.

 

32

 

Section 7.5. 
NOTICE OF DEFAULTS.

 

If
a Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if it is actually known to a Responsible
Officer of the Trustee as described in Section 7.2(h) hereof, the
Trustee shall mail to each Securityholder of the Securities of that Series and,
if any Bearer Securities are outstanding, publish on one occasion in an
Authorized Newspaper, notice of a Default or Event of Default within 90 days
after it occurs or, if later, after a Responsible Officer of the Trustee has
actual knowledge of such Default or Event of Default.  Except in the case of a Default or Event of
Default in payment of principal of or interest on any Security of any Series,
the Trustee may withhold the notice if and so long as its corporate trust
committee or a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Securityholders of that Series.

 

Section 7.6. 
REPORTS BY TRUSTEE TO HOLDERS.

 

Within
60 days after May 15 in each year, the Trustee shall transmit by mail to
all Securityholders, as their names and addresses appear on the register kept
by the Registrar and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in
accordance with, and to the extent required under, TIA Section 313.

 

A
copy of each report at the time of its mailing to Securityholders of any Series shall
be filed with the SEC and each stock exchange on which the Securities of that Series are
listed.  The Company shall promptly
notify the Trustee when Securities of any Series are listed on any stock
exchange or any delisting thereof.

 

Section 7.7. 
COMPENSATION AND INDEMNITY.

 

The
Company shall pay to the Trustee from time to time such compensation for its
services as the Company and the Trustee shall agree in writing.  The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable
compensation and expenses of the Trustee’s agents and counsel.

 

The
Company shall fully indemnify the Trustee or any predecessor Trustee and their
agents (including the cost of defending itself against any claim (whether
asserted by the Company, or any Holder or any other Person)) against any and
all loss, damages, claims, liability or expense, including taxes (other than
taxes based upon, measured by or determined by the income of the Trustee)
incurred by it except as set forth in the next paragraph in the performance of
their duties under this Indenture as Trustee or Agent.  The Trustee shall notify the Company promptly
of any claim of which a Responsible Officer has received notice for which it
may seek indemnity.  The Company shall
defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld.  This indemnification shall apply to officers,
directors, employees, shareholders and agents of the Trustee and any Agent.

 

33

 

The
Company need not reimburse any expense or indemnify against any loss or
liability incurred by the Trustee or by any officer, director, employee,
shareholder or agent of the Trustee caused by its own negligence or bad faith.

 

To
secure the Company’s payment obligations in this Section, the Trustee shall
have a lien prior to the Securities of any Series on all money or property
held or collected by the Trustee, except that held in trust to pay principal
and interest on particular Securities of that Series.

 

When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.1(g) or (h) (or any comparable provisions
set forth in a supplemental indenture) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

 

The
Trustee shall comply with the provisions of TIA Section 313(b)(2) to
the extent applicable.

 

The
provisions of this Section shall survive the termination of this Indenture
and the resignation or removal of the Trustee.

 

Section 7.8. 
REPLACEMENT OF TRUSTEE.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

 

The
Trustee may resign with respect to the Securities of one or more Series by
so notifying the Company in writing.  The
Holders of a majority in principal amount of the Securities of any Series may
remove the Trustee with respect to that Series by so notifying the Trustee
and the Company in writing.

 

The
Company may remove the Trustee with respect to Securities of one or more Series if:

 

(a)                                  the Trustee
fails to comply with Section 7.10;

 

(b)                                 the Trustee is
adjudged a bankrupt or an insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;

 

(c)                                  a Custodian or
public officer takes charge of the Trustee or its property; or

 

(d)                                 the Trustee
becomes incapable of acting.

 

If
the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason, the Company shall promptly appoint a successor
Trustee.  Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Securities may appoint a successor Trustee to replace
the successor Trustee appointed by the Company.

 

34

 

If
a successor Trustee with respect to the Securities of any one or more Series does
not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of at least 10% in
principal amount of the Securities of the applicable Series may petition
any court of competent jurisdiction at the expense of the Company for the
appointment of a successor Trustee.

 

If
the Trustee with respect to the Securities of any one or more Series fails
to comply with Section 7.10, any Securityholder of the applicable Series,
who has been a Securityholder for at least six months, may petition any court
of competent jurisdiction for the removal of the Trustee and the appointment of
a successor Trustee.

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. 
Promptly after that, the retiring Trustee shall, upon payment of its
charges hereunder, transfer all property held by it as Trustee to the successor
Trustee subject to the lien provided for in Section 7.7, the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee with
respect to each Series of Securities for which it is acting as Trustee
under this Indenture.  A successor
Trustee shall mail a notice of its succession to each Securityholder of each
such Series and, if any Bearer Securities are outstanding, publish such
notice on one occasion in an Authorized Newspaper.

 

Notwithstanding
replacement of the Trustee pursuant to this Section 7.8, the Company’s
obligations under Section 7.7 hereof shall continue for the benefit of the
retiring trustee with respect to expenses and liabilities incurred by it prior
to such replacement.

 

Section 7.9. 
SUCCESSOR TRUSTEE BY MERGER, ETC.

 

If
the Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee.

 

Section 7.10. 
ELIGIBILITY; DISQUALIFICATION.

 

This
Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1),
(2) and (5).  The Trustee shall
always have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition.  The Trustee shall comply with TIA Section 310(b).

 

Section 7.11. 
PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

 

The
Trustee is subject to TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). 
A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to
the extent indicated.

 

35

 

ARTICLE VIII

LEGAL DEFEASANCE AND
COVENANT DEFEASANCE

 

Section 8.1. 
OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE.

 

The
Company may, at the option of its Board of Directors evidenced by a resolution
set forth in an Officers’ Certificate, at any time, elect to have either Section 8.2
or 8.3 hereof be applied to all outstanding Securities of a Series upon
compliance with the conditions set forth below in this Article VIII.

 

Section 8.2. 
LEGAL DEFEASANCE AND DISCHARGE.

 

Upon
the Company’s exercise under Section 8.1 hereof of the option applicable
to this Section 8.2, each of the Company and the Guarantors, if any,
shall, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, be deemed to have been discharged from its obligations with respect to
all outstanding Securities of such Series and related Subsidiary
Guarantees on the date the conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”).  For
this purpose, Legal Defeasance means that the Company shall be deemed to have
paid and discharged the entire Indebtedness represented by the outstanding
Securities of such Series, which shall thereafter be deemed to be “outstanding”
only for the purposes of Section 8.5 hereof and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all
its other obligations under such Securities and this Indenture as it relates to
such Securities (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Securities
of such Series to receive solely from the trust fund described in Section 8.4
hereof, and as more fully set forth in such section, payments in respect of the
principal of, premium, if any, and interest on such Securities when such
payments are due, (b) the Company’s and Guarantors’ obligations with
respect to such Securities under Article II hereof, (c) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and the Company’s
and the Guarantors’ obligations in connection therewith and (d) this Article VIII.  Subject to compliance with this Article VIII,
the Company may exercise its option under this Section 8.2 notwithstanding
the prior exercise of its option under Section 8.3 hereof.

 

Section 8.3. 
COVENANT DEFEASANCE.

 

Upon
the Company’s exercise under Section 8.1 hereof of the option applicable
to this Section 8.3, each of the Company and the Guarantors, if any,
shall, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, be released from its obligations under the covenants specified pursuant
to Section 2.2 hereof and Article V hereof with respect to the
outstanding Securities of such Series and related Subsidiary Guarantees on
and after the date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and such Securities shall thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Securities shall not be deemed
outstanding for accounting purposes). 
For this purpose, Covenant Defeasance means that, with respect to the
outstanding Securities of such Series, the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or

 

36

 

indirectly,
by reason of any reference elsewhere herein to any such covenant or by reason
of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply shall not constitute a Default or an
Event of Default under Section 6.1 hereof, but, except as specified above,
the remainder of this Indenture, such Securities and the related Subsidiary
Guarantees, if any, shall be unaffected thereby.  In addition, upon the Company’s exercise
under Section 8.1 hereof of the option applicable to this Section 8.3
hereof, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, Sections 6.1(c) through 6.1(f) and 6.1(i) hereof (or any
comparable provisions set forth in a supplemental indenture) shall not
constitute Events of Default.

 

Section 8.4. 
CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.

 

The
following shall be the conditions to the application of either Section 8.2
or 8.3 hereof to the outstanding Securities of such Series:

 

In
order to exercise either Legal Defeasance or Covenant Defeasance:

 

(a)                                  the Company
must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders, cash in United States dollars, non-callable Government Securities, or
a combination thereof, in such amounts as will be sufficient, in the opinion of
a nationally recognized firm of independent public accountants, to pay the
principal of, premium, if any, and interest on the outstanding Securities of
such Series on the Stated Maturity or on the applicable redemption date,
as the case may be, of such principal or installment of principal of, premium,
if any, or interest on the outstanding Securities of such Series;

 

(b)                                 in the case of
an election under Section 8.2 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States (which counsel may be an
employee of the Company or any Subsidiary of the Company) reasonably acceptable
to the Trustee confirming that (A) the Company has received from, or there
has been published by, the Internal Revenue Service a ruling or (B) since
the date hereof, there has been a change in the applicable federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of the outstanding Securities of such Series will
not recognize income, gain or loss for federal income tax purposes as a result
of such Legal Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such Legal Defeasance had not occurred;

 

(c)                                  in the case of
an election under Section 8.3 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States (which counsel may be an
employee of the Company or any Subsidiary of the Company) reasonably acceptable
to the Trustee confirming that the Holders of the outstanding Securities of
such Series will not recognize income, gain or loss for federal income tax
purposes as a result of such Covenant Defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Covenant Defeasance had not occurred;

 

37

 

(d)                                 no Default or Event
of Default shall have occurred and be continuing on the date of such deposit
or, insofar as Sections 6.1(g) and 6.1(h) hereof (or any comparable
provisions set forth in a supplemental indenture) are concerned, at any time in
the period ending on the 91st day after the date of deposit (or greater period
of time in which any such deposit of trust funds may remain subject to
Bankruptcy Law insofar as those apply to the deposit by the Company);

 

(e)                                  such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under, any material agreement or instrument (other than
this Indenture) to which the Company or any of its Subsidiaries is a party or
by which the Company or any of its Subsidiaries is bound;

 

(f)                                    the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that
after the 91st day following the deposit, the trust funds will not be subject
to the effect of any applicable bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally;

 

(g)                                 the Company
shall have delivered to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders
of such Securities over any other creditors of the Company with the intent of
defeating, hindering, delaying or defrauding creditors of the Company or
others; and

 

(h)                                 the Company
shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to
the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.5. 
DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER
MISCELLANEOUS PROVISIONS.

 

Subject
to Section 8.6 hereof, all money and non-callable Government Securities
(including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.5, the “Trustee”)
pursuant to Section 8.4 hereof in respect of the outstanding Securities of
a Series subject to a Legal Defeasance or a Covenant Defeasance shall be
held in trust and applied by the Trustee, in accordance with the provisions of
such Securities and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as Paying Agent) as the Trustee
may determine, to the Holders of such Securities of all sums due and to become
due thereon in respect of principal, premium, if any, and interest, but such
money need not be segregated from other funds except to the extent required by
law.

 

The
Company and the Guarantors shall pay and indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against the cash or non-callable
Government Securities deposited pursuant to Section 8.4 hereof or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
outstanding Securities of a Series subject to a Legal Defeasance or a
Covenant Defeasance.

 

38

 

Anything
in this Article VIII to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon the request of the Company
any money or non-callable Government Securities held by it as provided in Section 8.4
hereof which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 8.4(a) hereof),
are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.6. 
REPAYMENT TO COMPANY.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of, premium, if any, or
interest, if any, on any Securities of a Series subject to a Legal
Defeasance or a Covenant Defeasance and remaining unclaimed for two years after
such principal, and premium, if any, or interest, if any, have become due and
payable shall be paid to the Company on its request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in The New York Times and
The Wall Street Journal (national edition), notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such notification or publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

 

Section 8.7. 
REINSTATEMENT.

 

If
the Trustee or Paying Agent is unable to apply any United States dollars or
non-callable Government Securities in accordance with Section 8.2 or 8.3
hereof, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company’s obligations under this Indenture, the
Securities of such Series and the related Subsidiary Guarantees, if any,
shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.2
or 8.3 hereof until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with Section 8.2 or 8.3 hereof, as the
case may be; PROVIDED, HOWEVER, that, if the Company make any payment of principal
of, premium, if any, or interest, if any, on any such Security following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money held
by the Trustee or Paying Agent.

 

ARTICLE IX

AMENDMENTS AND WAIVERS

 

Section 9.1. 
WITHOUT CONSENT OF HOLDERS.

 

Notwithstanding
Section 9.2 of the Indenture, without the consent of any Securityholder,
the Company, the Guarantors and the Trustee may amend or supplement the Indenture
or the Securities:

 

39

 

(a)                                  to cure any ambiguity,
defect or inconsistency, that would not result in a material adverse effect on
the rights of the Holders,

 

(b)                                 to provide for
uncertificated Securities in addition to or in place of certificated
Securities,

 

(c)                                  to provide for
the assumption of the Company’s or any Guarantor’s obligations to Holders of a
Security in the case of a merger or consolidation,

 

(d)                                 to make any
change that would provide any additional rights or benefits to the Holders of a
Security (including providing for additional Subsidiary Guarantees) or that
does not materially adversely affect the legal rights under the Indenture of
any such Securityholder, or

 

(e)                                  to comply with
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA.

 

Upon
the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental Indenture,
and upon receipt by the Trustee of the documents described in Section 7.2
of the Indenture, the Trustee shall join with the Company and the Guarantors in
the execution of any amended or supplemental Indenture authorized or permitted
by the terms of this Indenture and to make any further appropriate agreements
and stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.2. 
WITH CONSENT OF HOLDERS.

 

Except
as provided in Section 9.1 and Section 9.3 of the Indenture, the
Indenture or the Securities of a Series may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of
the Securities of each Series then outstanding affected by the
supplemental indenture implementing such amendment or supplement (including
consents obtained in connection with a tender offer or exchange offer for
Securities), and, subject to Sections 6.8 and 6.12 of the Indenture, any
existing Default or Event of Default (other than a Default or Event of Default
in the payment of the principal of, premium, if any, or interest on the
Securities of such Series, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of the
Indenture or the Securities of such Series may be waived with the consent
of the Holders of a majority in principal amount of the then outstanding Securities
of each Series affected by such supplemental indenture implementing such
amendment or supplement (including consents obtained in connection with a
tender offer or exchange offer for Securities).

 

It
shall not be necessary for the consent of the Holders of Securities under this Section 9.2
to approve the particular form of any proposed amendment or waiver, but it
shall be sufficient if such consent approves the substance thereof.  After a supplemental indenture or waiver
under this Section 9.2 becomes effective, the Company shall mail to the
Holders of Securities affected thereby and, and if any Bearer Securities
affected thereby are outstanding, publish on one occasion in an Authorized
Newspaper, a notice briefly describing the supplemental indenture or waiver.
Any failure by the Company to mail or publish such notice, or 

 

40

 

any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture or waiver.

 

Upon
the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental
Indenture, and upon the filing with the Trustee of evidence reasonably
satisfactory to the Trustee of the consent of the Holders of Securities as
aforesaid, and upon receipt by the Trustee of the documents described in Section 7.2
hereof, the Trustee shall join with the Company and the Guarantors in the
execution of such amended or supplemental Indenture unless such amended or
supplemental Indenture affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such amended or
supplemental Indenture.

 

Section 9.3. 
LIMITATIONS.

 

Without
the consent of each Securityholder affected, an amendment or waiver may not
(with respect to any Securities held by a non-consenting Holder of Securities):

 

(a)                                  reduce the
principal amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

 

(b)                                 reduce the
principal of or change the fixed maturity of any Security or alter any of the
provisions with respect to the redemption of any Security in a manner adverse
to the Holders of such Security;

 

(c)                                  reduce the rate
of or change the time for payment of interest on any Security;

 

(d)                                 waive a Default
or Event of Default in the payment of principal of or premium, if any, or
interest on any Security (except a rescission of acceleration of the Securities
of any Series by the Holders of at least a majority in aggregate principal
amount of the then outstanding Securities of such Series and a waiver of
the payment default that resulted from such acceleration);

 

(e)                                  make any
Security payable in money other than that stated in such Security;

 

(f)                                    make any change
in the provisions of the Indenture relating to waivers of past Defaults or the
rights of Holders of Securities of any Series to receive payments of
principal of or premium, if any, or interest on the Securities;

 

(g)                                 waive a
redemption payment with respect to any Security (other than a payment required
by any “Change of Control” or “Asset Sale” covenant set forth in a supplemental
indenture relating to Securities of a Series);

 

(h)                                 except pursuant
to the Indenture, release any Guarantor from its obligations under its
Subsidiary Guarantee, or change any Subsidiary Guarantee in any manner that
would materially adversely affect the Securityholders; or

 

41

 

(i)                                     make any change
in the foregoing amendment and waiver provisions.

 

It
shall not be necessary for the consent of the Holders of Securities under this Section 9.3
to approve the particular form of any proposed amendment or waiver, but it
shall be sufficient if such consent approves the substance thereof.

 

Section 9.4. 
COMPLIANCE WITH TRUST INDENTURE ACT.

 

Every
amendment to this Indenture or the Securities of one or more Series shall
be set forth in a supplemental indenture hereto that complies with the TIA as
then in effect.

 

Section 9.5. 
REVOCATION AND EFFECT OF CONSENTS.

 

Until
an amendment or waiver becomes effective, a consent to it by a Holder of a
Security is a continuing consent by the Holder and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent is not made on
any Security.  However, any such Holder
or subsequent Holder may revoke the consent as to his Security or portion of a
Security if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective.

 

Any
amendment or waiver once effective shall bind every Securityholder of each Series affected
by such amendment or waiver unless it is of the type described in any of
clauses (a) through (h) of Section 9.3.  In that case, the amendment or waiver shall
bind each Holder of a Security who has consented to it and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security.

 

Section 9.6. 
NOTATION ON OR EXCHANGE OF SECURITIES.

 

The
Trustee may place an appropriate notation about an amendment or waiver on any
Security of any Series thereafter authenticated.  The Company in exchange for Securities of
that Series may issue and the Trustee shall authenticate upon request new
Securities of that Series that reflect the amendment or waiver.

 

Section 9.7. 
TRUSTEE TO SIGN AMENDMENTS; TRUSTEE PROTECTED.

 

The
Trustee shall sign any amended or supplemental Indenture authorized pursuant to
this Article IX if the amendment or supplement does not adversely affect
the rights, duties, liabilities or immunities of the Trustee.  In executing, or accepting the additional
trusts created by, any supplemental indenture permitted by this Article or
the modifications thereby of the trusts created by this Indenture, the Trustee
shall be provided with, and (subject to Section 7.1) shall be fully
protected in relying upon, an Opinion of Counsel and Officers’ Certificate
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture, complying with the requirements of Sections 10.4
and 10.5 hereof, and covering such other matters as the Trustee may reasonably
require.

 

Promptly
after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of this Section, the Trustee shall
transmit a copy of such supplemental indenture or a notice provided by the
Company to the Trustee setting forth in general terms the substance of such
supplemental indenture, to the Securityholders of all series affected thereby.
In the case of certificated Securities, such notice shall be sent by mail,
first class postage prepaid, to the Securityholders of all series affected
thereby as their names and addresses appear upon the Security Register.  Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

 

42

 

ARTICLE X

MISCELLANEOUS

 

Section 10.1. 
TRUST INDENTURE ACT CONTROLS.

 

If
any provision of this Indenture limits, qualifies, or conflicts with another
provision which is required or deemed to be included in this Indenture by the
TIA, such required or deemed provision shall control.

 

Section 10.2. 
NOTICES.

 

Any
notice or communication by the Company, any Guarantor or the Trustee to the
others is duly given if in writing and delivered in Person or mailed by first
class mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the others’ address:

 

If
to the Company or any Guarantor:

 

Iron
Mountain Incorporated

745
Atlantic Avenue

Boston,
MA 02111

Attention:
Chief Financial Officer

Telecopier
No.: (617) 350-7881

 

With
a copy to:

 

Sullivan &
Worcester LLP

One
Post Office Square

Boston,
MA 02109

Telecopier
No.: (617) 338-2880

Attention:
William J. Curry, Esq.

 

If
to the Trustee:

 

[      ]

 

The
Company, any Guarantor or the Trustee, by notice to the others may designate
additional or different addresses for subsequent notices or communications.

 

All
notices and communications (other than those sent to Securityholders) must
reference the Securities and this Indenture and shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when receipt acknowledged, if telecopied; and the next 

 

43

 

Business
Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

 

Any
notice or communication to a Securityholder shall be mailed by first class
mail, or by overnight air courier guaranteeing next day delivery to its address
shown on the register kept by the Registrar. 
Any notice or communication shall also be so mailed to any Person
described in TIA Section 313(c), to the extent required by the TIA.  Failure to mail a notice or communication to
a Securityholder or any defect in it shall not affect its sufficiency with
respect to other Securityholders.

 

If
a notice or communication is mailed in the manner provided above within the
time prescribed, it is duly given, whether or not the addressee receives it.

 

If
the Company or any Guarantor mails a notice or communication to
Securityholders, it shall mail a copy to the Trustee and each Agent at the same
time.

 

Section 10.3. 
COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

 

Securityholders
of any Series may communicate pursuant to TIA Section 312(b) with
other Securityholders of that Series or any other Series with respect
to their rights under this Indenture or the Securities of that Series or
all Series.  The Company, the Guarantors,
the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 10.4. 
CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

 

Upon
any request or application by the Company or any Guarantor to the Trustee to
take any action under this Indenture, the Company or such Guarantor shall
furnish to the Trustee:

 

(a)                                  an Officers’
Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

(b)                                 an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

 

Section 10.5. 
STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

 

Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and
shall include:

 

(a)                                  a statement
that the Person making such certificate or opinion has read such covenant or
condition;

 

(b)                                 a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based;

 

44

 

(c)                                  a statement
that, in the opinion of such Person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

 

(d)                                 a statement as
to whether or not, in the opinion of such Person, such condition or covenant
has been complied with.

 

Section 10.6. 
RULES BY TRUSTEE AND AGENTS.

 

The
Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. 
Any Agent may make reasonable rules and set reasonable requirements
for its functions.

 

Section 10.7. 
LEGAL HOLIDAYS.

 

Unless
otherwise provided by Board Resolution, Officers’ Certificate or supplemental
indenture for a particular Series, a “Legal Holiday” is any day that is not a
Business Day.  If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue
for the intervening period.

 

Section 10.8. 
NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND
STOCKHOLDERS.

 

No
director, officer, employee, incorporator or stockholder of the Company or any
Restricted Subsidiary, as such, shall have any liability for any obligations of
the Company or any Restricted Subsidiary under the Securities of any Series,
the Subsidiary Guarantees or the Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each Holder of Securities of any Series by
accepting the Security and the Subsidiary Guarantees waives and releases all
such liability.  The waiver and release
are part of the consideration for issuance of the Securities of any Series and
the Subsidiary Guarantees.

 

Section 10.9. 
COUNTERPARTS.

 

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

 

Section 10.10. 
GOVERNING LAWS.

 

THIS
INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT
REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

 

45

 

Section 10.11. 
NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

 

This
Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or a Subsidiary. 
Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

 

Section 10.12. 
SUCCESSORS.

 

All
agreements of the Company and the Guarantors in this Indenture and the
Securities and the Subsidiary Guarantees shall bind their respective
successors.  All agreements of the
Trustee in this Indenture shall bind its successors.

 

Section 10.13. 
SEVERABILITY.

 

In
case any provision in this Indenture, the Securities or the Subsidiary
Guarantees, if any, shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

Section 10.14. 
TABLE OF CONTENTS, HEADINGS, ETC.

 

The
Table of Contents, Cross Reference Table, and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or
restrict any of the terms or provisions hereof.

 

Section 10.15. 
SECURITIES IN A FOREIGN CURRENCY OR IN EURO.

 

Unless
otherwise specified in a Board Resolution, a supplemental indenture hereto or
an Officers’ Certificate delivered pursuant to Section 2.2 of this
Indenture with respect to a particular Series of Securities, whenever for
purposes of this Indenture any action may be taken by the Holders of a
specified percentage in aggregate principal amount of Securities of all Series or
all Series affected by a particular action at the time outstanding and, at
such time, there are outstanding Securities of any Series which are
denominated in a coin or currency other than Dollars (including Euros), then
the principal amount of Securities of such Series which shall be deemed to
be outstanding for the purpose of taking such action shall be that amount of
Dollars that could be obtained for such amount at the Market Exchange Rate at
such time.  For purposes of this Section 10.15,
“Market Exchange Rate” shall mean the noon Dollar buying rate in New York City
for cable transfers of that currency as published by the Federal Reserve Bank
of New York; PROVIDED, HOWEVER, in the case of Euros, Market Exchange Rate
shall mean the rate of exchange determined by the Commission of the European
Union (or any successor thereto) as published in the Official Journal of the
European Union (such publication or any successor publication, the “Journal”).  If such Market Exchange Rate is not available
for any reason with respect to such currency, the Trustee or such foreign
exchange agent appointed by the Company shall use, in its sole discretion and
without liability on its part, such quotation of the Federal Reserve Bank of
New York or, in the case of Euros, the rate of exchange as published in the
Journal, as of the most recent available date, or quotations or, in the case of
Euros, rates of exchange from one or more major banks in The City of New York
or in the country of issue of the currency in question or, in the case of
Euros, in Luxembourg or such other quotations or, in the case of Euros, rates
of exchange as such foreign exchange agent appointed by the Company, upon
consultation with the Company, shall deem appropriate.  The provisions of

 

46

 

this
paragraph shall apply in determining the equivalent principal amount in respect
of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms
of this Indenture.

 

All
decisions and determinations of such foreign exchange agent appointed by the
Company regarding the Market Exchange Rate or any alternative determination
provided for in the preceding paragraph shall be in its sole discretion and
shall, in the absence of manifest error, be conclusive to the extent permitted
by law for all purposes and irrevocably binding upon the Company and all
Holders.

 

Section 10.16. 
JUDGMENT CURRENCY.

 

The
Company agrees, to the fullest extent that it may effectively do so under applicable
law, that (a) if for the purpose of obtaining judgment in any court it is
necessary to convert the sum due in respect of the principal of or interest or
other amount on the Securities of any Series (the “Required Currency”)
into a currency in which a judgment will be rendered (the “Judgment Currency”),
the rate of exchange used shall be the rate at which in accordance with normal
banking procedures such foreign exchange agent appointed by the Company could
purchase in The City of New York the Required Currency with the Judgment
Currency on the day on which final unappealable judgment is entered, unless
such day is not a New York Banking Day, then, the rate of exchange used shall
be the rate at which in accordance with normal banking procedures such foreign
exchange agent appointed by the Company could purchase in The City of New York
the Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall
not be discharged or satisfied by any tender, any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause
of action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be
affected by judgment being obtained for any other sum due under this
Indenture.  For purposes of the
foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a
legal holiday in The City of New York on which banking institutions are
authorized or required by law, regulation or executive order to close.

 

Section 10.17. 
WAIVER OF JURY TRIAL.

 

EACH
OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION
CONTEMPLATED HEREBY.

 

47

 

Section 10.18. 
SUBMISSION TO JURISDICTION; VENUE.

 

THE
COMPANY AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF
ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW
YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF
NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE GUARANTEES AND THE NOTES, AND IRREVOCABLY
ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS.  THE COMPANY AND EACH GUARANTOR IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT THAT IT MAY EFFECTIVELY DO SO UNDER
APPLICABLE LAW, AND ANY OBJECTION WHICH MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
TRUSTEE OR ANY HOLDER OF THE NOTES TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
THE COMPANY OR GUARANTOR IN ANY OTHER JURISDICTION.

 

ARTICLE XI

SINKING FUNDS

 

Section 11.1. 
APPLICABILITY OF ARTICLE.

 

The
provisions of this Article shall be applicable to any sinking fund for the
retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this
Indenture.

 

The
minimum amount of any sinking fund payment provided for by the terms of the
Securities of any Series is herein referred to as a “mandatory sinking
fund payment” and any other amount provided for by the terms of Securities of
such Series is herein referred to as an “optional sinking fund payment.”
If provided for by the terms of Securities of any Series, the cash amount of
any sinking fund payment may be subject to reduction as provided in Section 11.2.  Each sinking fund payment shall be applied to
the redemption of Securities of any Series as provided for by the terms of
the Securities of such Series.

 

Section 11.2. 
SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

 

The
Company may, in satisfaction of all or any part of any sinking fund payment
with respect to the Securities of any Series to be made pursuant to the
terms of such Securities (1) deliver outstanding Securities of such Series to
which such sinking fund payment is applicable (other than any of such
Securities previously called for mandatory sinking fund redemption) and (2) apply
as credit Securities of such Series to which such sinking fund payment is
applicable and which have been redeemed either at the election of the Company
pursuant to the terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted optional
sinking fund payments or other optional 

 

48

 

redemptions
pursuant to the terms of such Securities, provided that such Securities have
not been previously so credited.  Such
Securities shall be received by the Trustee, together with an Officers’ Certificate
with respect thereto, not later than 15 days prior to the date on which the
Trustee begins the process of selecting Securities for redemption, and shall be
credited for such purpose by the Trustee at the price specified in such
Securities for redemption through operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly.  If as a result of the delivery or credit of
Securities in lieu of cash payments pursuant to this Section 11.2, the
principal amount of Securities of such Series to be redeemed in order to
exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such Series for redemption, except upon
receipt of a Company Order that such action be taken, and such cash payment
shall be held by the Trustee or a Paying Agent and applied to the next
succeeding sinking fund payment, PROVIDED, HOWEVER, that the Trustee or such
Paying Agent shall from time to time upon receipt of a Company Order pay over
and deliver to the Company any cash payment so being held by the Trustee or
such Paying Agent upon delivery by the Company to the Trustee of Securities of
that Series purchased by the Company having an unpaid principal amount
equal to the cash payment required to be released to the Company.

 

Section 11.3. 
REDEMPTION OF SECURITIES FOR SINKING FUND.

 

Not
less than 45 days (unless otherwise indicated in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate in respect of a
particular Series of Securities) prior to each sinking fund payment date
for any Series of Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing mandatory
sinking fund payment for that Series pursuant to the terms of that Series,
the portion thereof, if any, which is to be satisfied by payment of cash and
the portion thereof, if any, which is to be satisfied by delivering and
crediting of Securities of that Series pursuant to Section 11.2, and
the optional amount, if any, to be added in cash to the next ensuing mandatory
sinking fund payment, and the Company shall thereupon be obligated to pay the
amount therein specified.  Not less than
30 days (unless otherwise indicated in the Board Resolution, Officers’
Certificate or supplemental indenture in respect of a particular Series of
Securities) before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 3.2 and cause notice of the redemption thereof to be
given in the name of and at the expense of the Company in the manner provided
in Section 3.3.  Such notice having
been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

ARTICLE XII

SUBSIDIARY GUARANTEES

 

Section 12.1. 
SUBSIDIARY GUARANTEE.

 

Each
Subsidiary that is a signatory hereto and each Subsidiary of the Company that
in accordance with the terms of any Securities of a Series issued
hereunder pursuant to any supplement indenture relating to such Securities is
required to become party to this Indenture as a guarantor (each, a “Guarantor”),
upon execution of a supplemental indenture, hereby jointly and severally
unconditionally guarantees to each Securityholder of a Security of a Series that
is to be guaranteed and that has been authenticated and delivered by the
Trustee irrespective of the 

 

49

 

validity
or enforceability of this Indenture, the Securities or the obligations of the
Company under this Indenture or the Securities, that: (i) the principal of
and interest on the Securities will be paid in full when due, whether at the
maturity or interest payment or mandatory redemption date, by acceleration,
call for redemption or otherwise, and interest on the overdue principal of and
interest, if any, on the Securities and all other obligations of the Company to
the Securityholders or the Trustee under this Indenture or the Securities will
be promptly paid in full or performed, all in accordance with the terms of this
Indenture and the Securities; and (ii) in case of any extension of time of
payment or renewal of any Securities or any of such other obligations, they
will be paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at maturity, by acceleration or otherwise.  Failing payment when due of any amount so
guaranteed for whatever reason, each Guarantor will be obligated to pay the
same whether or not such failure to pay has become an Event of Default which
could cause acceleration pursuant to Section 6.2 hereof.  Each Guarantor agrees that this is a
guarantee of payment not a guarantee of collection.

 

Each
Guarantor hereby agrees that its obligations with regard to this Subsidiary
Guarantee shall be joint and several and unconditional, irrespective of the
validity or enforceability of the Securities or the obligations of the Company
under this Indenture, the absence of any action to enforce the same, the
recovery of any judgment against the Company or any other obligor with respect
to this Indenture, the Securities or the obligations of the Company under this
Indenture or the Securities, any action to enforce the same or any other
circumstances (other than complete performance) which might otherwise
constitute a legal or equitable discharge or defense of a Guarantor.  Each Guarantor further, to the extent
permitted by law, waives and relinquishes all claims, rights and remedies
accorded by applicable law to guarantors and agrees not to assert or take
advantage of any such claims, rights or remedies, including but not limited to:
(a) any right to require the Trustee, the Securityholders or the Company
(each, a “Benefited Party”) to proceed against the Company or any other Person
or to proceed against or exhaust any security held by a Benefited Party at any
time or to pursue any other remedy in any Benefited Party’s power before
proceeding against such Guarantor; (b) the defense of the statute of limitations
in any action hereunder or in any action for the collection of any Indebtedness
or the performance of any obligation hereby guaranteed; (c) any defense
that may arise by reason of the incapacity, lack of authority, death or
disability of any other Person or the failure of a Benefited Party to file or
enforce a claim against the estate (in administration, bankruptcy or any other
proceeding) of any other Person; (d) demand, protest and notice of any
kind including but not limited to notice of the existence, creation or
incurring of any new or additional Indebtedness or obligation or of any action
or non-action on the part of such Guarantor, the Company, any Benefited Party,
any creditor of such Guarantor, the Company or on the part of any other Person
whomsoever in connection with any Indebtedness or obligations hereby
guaranteed; (e) any defense based upon an election of remedies by a
Benefited Party, including but not limited to an election to proceed against
such Guarantor for reimbursement; (f) any defense based upon any statute
or rule of law which provides that the obligation of a surety must be
neither larger in amount nor in other respects more burdensome than that of the
principal; (g) any defense arising because of a Benefited Party’s election,
in any proceeding instituted under Bankruptcy Law, of the application of 11
U.S.C. Section 1111 (b)(2); or (h) any defense based on any borrowing
or grant of a security interest under 11 U.S.C. Section 364.  Each Guarantor hereby covenants that its
Subsidiary Guarantee will not be discharged except by complete performance of
the obligations contained in its Subsidiary Guarantee and this Indenture.

 

50

 

If
any Securityholder or the Trustee is required by any court or otherwise to
return to either the Company or any Guarantor, or any Custodian acting in
relation to either the Company or such Guarantor, any amount paid by the
Company or such Guarantor to the Trustee or such Securityholder, the applicable
Subsidiary Guarantees, to the extent theretofore discharged, shall be
reinstated and be in full force and effect. 
Each Guarantor agrees that it will not be entitled to any right of
subrogation in relation to the Securityholders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.

 

Each
Guarantor further agrees that, as between such Guarantor, on the one hand, and
the Securityholders and the Trustee, on the other hand, (i) the maturity
of the obligations guaranteed hereby may be accelerated as provided in Section 6.2
hereof for the purposes of this Subsidiary Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration as to the Company
or any other obligor on the Securities of the obligations guaranteed hereby,
and (ii) in the event of any declaration of acceleration of those
obligations as provided in Section 6.2 hereof, those obligations (whether
or not due and payable) will forthwith become due and payable by such Guarantor
for the purpose of this Subsidiary Guarantee.

 

Section 12.2. 
LIMITATION OF GUARANTOR’S LIABILITY.

 

Each
Guarantor and, by its acceptance hereof, the Trustee and each Securityholder
hereby confirm that it is its intention that the Subsidiary Guarantee of such
Guarantor not constitute a fraudulent transfer or conveyance for purposes of
the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Subsidiary Guarantee. 
To effectuate the foregoing intention, each such Person hereby
irrevocably agrees that the obligation of such Guarantor under its Subsidiary
Guarantee under this Article XII shall be limited to the maximum amount as
will, after giving effect to such maximum amount and all other (contingent or
other) liabilities of such Guarantor that are relevant under such laws, and
after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article XII, result in the
obligations of such Guarantor in respect of such maximum amount not
constituting a fraudulent transfer or conveyance under said laws.  The Trustee and each Securityholder by
accepting the benefits hereof, confirms its intention that, in the event of a
bankruptcy, reorganization or other similar proceeding of the Company or any
Guarantor in which concurrent claims are made upon such Guarantor hereunder, to
the extent such claims will not be fully satisfied, each such claimant with a
valid claim against the Company shall be entitled to a ratable share of all
payments by such Guarantor in respect of such concurrent claims.  For all purposes of this Section 12.2,
Senior Debt shall be deemed to have been incurred prior to the incurrence of
the obligations in respect of the Subsidiary Guarantees.

 

[Remainder of Page Left Blank Intentionally; Signature Pages Follow
Immediately.]

 

51

 

IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed as of the date and year first written above.

 

	
   

  	
  Iron
  Mountain Incorporated

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  [Names
  of Guarantors]

  
	
   

  	
   

  
	
   

  	
  [Name
  of Trustee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]