Basic Terms and Conditions of the Auction

AddressIvanovo,

street Dalnyaya Balinskaya, 82

Cost of the lease rights(starting price)

638,000 (six hundred and thirty-eight thousand) rubles, including VAT 18%

Bid increment30 000 (thirty thousand) rubles.

Rent The first six quarters (grace period)

2,197,745 (two million one hundred ninety-seven thousand seven hundred and forty-five) rubles per year,

including VAT 18%

Starting from the seventh quarter (main period):

6,593,235 (six million five hundred ninety-three thousand two hundred and thirty-five) rubles per year,

including VAT 18%

Redemption of plot upon expiration the lease agreement *

75,361 (seventy-five thousand three hundred sixty-one) rubles, not subject to VAT.

Plot area 34,100 sq.m.

Term of plot lease 3 (three) years

The maximum terms for preparation of the project for area planning and surveying project

8 (eight) months

Maximum terms for construction of engineering infrastructure facilities

3 (three) years

Maximum terms for implementation of housing and other construction

3 (three) years

* Redemption may occur at any stage of the development of the plot after the approval of the project for planning and surveying of the territory and the formation of new plots. Common areas and plots for residential buildings with apartments owned by the citizens are not redeemable.

RHD Foundation

RHD Foundation- 2 -

Convenient Payment Schedule

The convenient payment schedule implies optimal ratio of three components of payment for the land plot :

1. Based on the assessment performed in accordance with the legislation of the Russian Federation on assessment

activity the startup value of payment for the right to conclude the RHD Foundation’s land plot lease agreement was

determined but its final value shall be determined during the action;

2. The lease payments shall be distributed for the whole construction period so that the lease payment reduced by

two times is established for the land plot, the right of conclusion of the lease agreement of which is acquired at the

action (hereinafter referred to as the “land plot”) or the land plots which are formed as a result of land surveying in

accordance with the land surveying project (hereinafter referred to as the “formed land plots”) for the first six quarters

from the date of signing the land plot acceptance and transfer certificate. The part by which the lease payment for the

grace period is reduced shall be evenly distributed for all years of lease of the land plot or formed land plots following

after the expiration of the grace period till the end of development of the territory.

3. The redemption price of the formed land plots shall be determined in accordance with the rates for the plots of

land in state or municipal ownership approved by state authorities of the constituent entity of the Russian Federation.

During implementation of the measures on complex development of land plots for the purpose of housing construction

the lease agreements for the formed land plots shall be terminated after the facilities built thereon are commissioned.

Thus, while the annual lease rate remains the same, the lease payment amount will be changed depending on the land

development.