Minutes of 02.10.2009 №85

MINUTES No. 85

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors meeting

(date and time of vote counting):                                                    October 2, 2009, 6.00 p.m.

(Moscow time)

Minutes Dated:                                                                                    October 5, 2009

Form of vote:                                                                                       absentee vote

Site of vote counting:                                                                         Mosсow, Arkhitektora Vlasova Str., 51


Number of elected members of the Board of Directors:              13


Members of the Board of Directors present at meeting:              S. I. Shmatko

                                                                                          A. B. Ballo

                                                                                          S. S. Beloborodov

                                                                                          B. F. Vainzikher

                                                                                          E. P. Volkov

                                                                                          V. I. Danilov-Danilyan

                                                                                          V. A. Zubakin

                                                                                          S. V. Maslov

                                                                                          S. V. Serebryannikov

                                                                                          O. V. Surikov

                                                                                          V. V. Tatsy

                                                                                          R. Z. Khamitov

                                                                                          A. V. Sharonov


In compliance with the Federal Law on Joint-Stock companies and the company's Articles of Association the quorum for conducting the Board of Directors Meeting is present.

 

AGENDA OF THE BOARD OF DIRECTORS MEETING:

 

1. On intermediate execution results of the company's Business plan for 2009 with due account for the first half of 2009 (including the Investment Programme implementation report for the first half of 2009).

2. Approval of the report on execution of key performance indicators of the company for the second quarter of 2009.

3. On the report on fulfilment of the company's Insurance Coverage Programme for the second quarter of 2009.

4. On review of the Report on the company's Management Board's activities for the first half of 2009.

5. On approval of the Provision on dividends policy as amended.

6. Introduction of changes to the key performance indicator assessment and calculation method used within the company.

7. On amendments to JSC RusHydro's Standard "Business planning system".

8. On amendments to the Provision on Strategy Committee under the Board of Directors.

9. On company's Environmental policy implementation programme for 2009-2011.

10. On approval of the Corporate Conduct Code of JSC RusHydro.

11. On holding more than one office, by members of the company's Management Board, in the management bodies of other organisations.

12. On participation of the company in other organisations:

12.1. On participation of the company in Non-commercial partnership "The National Geothermal Society".

12.2. On participation of the company in JSC Sulakskiy HydroCascade.

12.3. On participation of the company in JSC Geotherm.

13. Approval of the company's transactions.

13.1. Approval of interested-party transactions with JSC FGC UES.

13.2. On approval of an interested-party transaction with NP Hydro Power Engineering of Russia.

13.3. Approval of an interested-party transaction with JSC SO UPS.

14. Determination of company's (company's representatives) opinion regarding the agenda of the Board of Directors Meeting and General Shareholders' (participants) Meeting of subsidiaries and affiliates (SA) of the company.

14.1. Decision regarding participation (change of participation share) of the company's SA in other organisations.

14.2. On determination of agendas of the General Meetings of shareholders (participants) of SA.

 

RESULTS OF VOTING ON AGENDA:

 

Matter 1: On intermediate execution results of the company's Business plan for 2009 with due account for the first half of 2009 (including the Investment Programme implementation report for the first half of 2009).


Decision:

1.1. To take note of the Report on intermediary results of the company's business plan performance in 2009 with due account for the first half 2009 (Appendix 1.1).

1.2. To approve the report on fulfillment of the company's Investment programme for the first half of 2009 (Appendix 1.2).


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 1 (S. S. Beloborodov)

"Abstained" - 0

Decision made.

  

Matter 2: Approval of the report on execution of key performance indicators of the company for the second quarter of 2009.

 

Decision:

To approve the report on execution of key performance indicators of JSC RusHydro for the second quarter of 2009 (Appendix 2).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov,  A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

 

Matter 3: On the report on fulfillment of the company's Insurance Coverage Programme for the second quarter of 2009.


Decision:

To take into consideration the Report on fulfillment of the Insurance Coverage Programme of the Open Joint-Stock Company RusHydro for the second quarter of 2009 (Appendix 3).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 4: On review of the Report on the company's Management Board's activities for the first half of 2009.


Decision:

To take note of the Report on the company's Management Board's activities for the first half of 2009 (Appendix 4).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

  

Matter 5: On approval of the Provision on dividends policy as amended.


Decision:

To approve the Provision on the dividends policy of JSC RusHydro as amended (Appendix 5).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 6: Introduction of changes to the key performance indicator assessment and calculation method used within the company.


Decision:

To amend the company's Board resolution from 26.09.2008 (minutes No. 62) by restating clauses 2.5 and 2.6. The techniques of calculation and evaluation of JSC RusHydro key performance indicators in the version according to Appendix 6.


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 7: On amendments to JSC RusHydro's Standard "Business planning system".


Decision:

7.1. To amend the business planning system Standard of JSC RusHydro as approved by JSC RusHydro's Board (minutes No. 75 of 30.04.2009) in accordance with Appendix 7.

7.2. To establish that the changes made to the business planning system Standard of JSC RusHydro pursuant to clause 7.1. of this decision are subject to be applied from the date of their approval.


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 8: On amendments to the Provision on Strategy Committee under the Board of Directors.


Decision:

To amend the Provision on the Strategy Development Committee under the supervision of JSC RusHydro's Board of Directors approved by the company's Board of Directors on 25.04.2005 (minutes No. 5), according to Appendix 8.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.


Matter 9: On company's Environmental policy implementation programme for 2009-2011.

 

Decision:

9.1. To approve the JSC RusHydro's Environmental policy implementation programme for 2009-2011. (Appendix 9).

9.2. To consider void the Environmental policy implementation programme of JSC RusHydro for 2008-2010 as concerns the measures planned for implementation in 2009-2010.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.

 

Matter 10: On approval of the Corporate Conduct Code of JSC RusHydro.


Decision:

To approve the Corporate Conduct Code of JSC RusHydro (Appendix 10).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

  

Matter 11: On holding more than one office, by members of the company's Management Board, in the management bodies of other organisations.


Decision:

11.1.       To approve positions overlapping, by member and Deputy Chairman of JSC RusHydro's Management Board, Vasily Aleksandrovich Zubakin, in the Board composition of the Closed Joint Stock Company Energy Forecasting Agency.

11.2.       To approve positions overlapping by member of the JSC RusHydro's Management Board, Aleksander Valentinovich Toposhinov, in the Board composition of Siberian Energy Association (SEA).


Voting results:

"For" - 13 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 12: On participation of the company in other organisations:


12.1. On participation of the company in Non-commercial partnership "The National Geothermal Society".


Decision:

12.1.1.   To approve participation of JSC RusHydro in Non-commercial partnership "The National Geothermal Society" (NP NGS) subject to the following conditions:

- NP NGS cofounders: JSC RusHydro, JSC NIIES, JSC Geotherm, JSC New Binary Power Unit, CJSC Geoincom;

- admission fee amount - 73,000 (seventy-three thousand) rubles;

- annual fee amount - as specified by the NP NGS Articles;

- admission fee payment procedure - during 1 month from the date of NP NGS public registration;

- annual fee payment procedure - annually before or on April 1 of the current year.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.

  

12.2.       On participation of the company in JSC Sulakskiy HydroCascade.

 

Decision:

12.2.1.1. To approve participation of JSC RusHydro in JSC Sulakskiy HydroCascade by way of acquiring additional shares of JSC Sulakskiy HydroCascade, subject to the following conditions:

- category, type, nominal value of shares; ordinary registered shares with par value of 1 (one) ruble each;

- number of acquired shares: 1,763,388 (one million seven hundred sixty-three thousand and three hundred eighty-eight) pieces; JSC RusHydro may acquire the lesser quantity of JSC Sulakskiy HydroCascade shares, in this case JSC Sulakskiy HydroCascade shall transfer to the ownership of JSC RusHydro the corresponding number of paid shares;

- share acquisition price: by offering price for additional shares of JSC Sulakskiy HydroCascade amounting to 643 (six hundred forty-three) rubles per 1 (one) additional ordinary registered share, with the total amount not exceeding 1,133,858,484 (one billion one hundred thirty-three million eight hundred fifty-eight thousand four hundred eighty-four) rubles;

- form of payment for shares - monetary assets.

- JSC RusHydro's share in the authorised capital of JSC Sulakskiy HydroCascade prior to acquisition of the additional issue shares - 100 per cent; JSC RusHydro's share in the authorised capital of JSC Sulakskiy HydroCascade after acquisition of the additional issue shares - 100 per cent (remains unchanged).

12.2.1.2.1. To specify that the price for property, as set forth in Appendix 11, as estimated based on the statement made by an independent assessor shall amount to 1,133,858,192 (one billion one hundred thirty-three million eight hundred fifty eight thousand one hundred ninety-two) rubles. (incl. VAT).

12.2.1.2.2. To approve a transaction made by JSC RusHydro related to disposal of the property beneficially owned by JSC RusHydro according to the list in Appendix 11, including the property intended for electricity production, under the following essential terms:

Transaction parties:

The seller - JSC RusHydro

Buyer - JSC Sulakskiy HydroCascade

Subject of the Transaction:

The Seller shall transfer into the ownership of the Buyer, and the Buyer shall accept and pay for, the property, according to the list of Appendix 11.

Balance value of the property disposed under the transaction: equals 917,448,873 (nine hundred and seventeen million, four hundred forty-eight thousand, eight hundred seventy-three) rubles 06 kopecks as of 30.06.2009.

Transaction price: The price for property disposed under the transaction, subject to the statement made by independent assessor, shall amount to 1,133,858,192 (one billion, one hundred thirty-three million, eight hundred fifty-eight thousand, one hundred ninety-two) rubles (incl. VAT).

Form of payment for the property: monetary assets.

12.2.1.2.3.      To instruct JSC RusHydro's representatives in the management bodies of JSC Sulakskiy HydroCascade to vote FOR taking of all the necessary decisions aimed at implementation of this decision.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.


12.3. On participation of the company in JSC Geotherm.

 

Decision:

12.3.1.   To approve the change of JSC RusHydro participation share in JSC Geotherm, by way of acquiring JSC Geotherm shares under the following essential conditions:

- category, type, par value, quantity of the acquired shares - ordinary registered shares by par value of 10 (ten) rubles per share in the quantity of 4,002,800 (four million, two thousand, eight hundred) pieces, for the total par value of 40,028,000 (forty million, twenty-eight thousand) rubles.

- acquisition price - 63,000,000 (sixty-three million) rubles.

- settlement procedure - JSC RusHydro shall transfer to JSC Kamchatskenergo, in payment for shares, non-interest-bearing promissory notes (note) of JSC Geotherm for the total principal amount of 63,000,000 (sixty‑three million) rubles, with note payment term "after sight but not before 01.07.2010", by par value.

- share of JSC RusHydro participation in the authorised capital of JSC Geotherm before acquisition of shares: 71.61 %;

- share of JSC RusHydro participation in the authorised capital of JSC Geotherm after acquisition of shares: 79.8411 %.

12.3.2.   To specify the price for JSC Geotherm shares (4,002,800 pieces by par value of 40,028,000 rubles) in the amount of 63,000,000 (sixty-three million) rubles in accordance with the independent assessor report.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" -1 (S. S. Beloborodov)

Decision made.


Matter 13: Approving the company's transactions:


13.1. Approval of interested-party transactions with JSC FGC UES.

 

Decision:

13.1.1.      To establish that the monthly rate of rental payment under the Lease contract executed between JSC RusHydro and JSC FGC UEC shall amount to 6,000,868 (six million, eight hundred and sixty-eight) rubles 32 kopecks, including VAT 18 per cent - 915,386 (nine hundred fifteen thousand three hundred and eighty-six) rubles 69 kopecks.

The total amount of rental payment shall make 43,941,842 (forty three million nine hundred forty-one thousand eight hundred and forty-two) rubles 22 kopecks, including VAT 18 per cent - 6,702,992 (six million, seven hundred, two thousand, nine hundred and ninety-two) rubles 88 kopecks.

13.1.2.   To approve conclusion of a movable / immovable property (outdoor switchgear (ORU-500) for Sayano-Shushensky Industrial-Engineering Hydropower Complex) lease contract executed between JSC RusHydro and JSC FGC UES, being an interested party transaction, under the following essential terms:

Parties to Contract:

The Lessee is JSC FGC UES

Lessor - JSC RusHydro

Subject of Contract:

Under the lease contract, the Lessor shall transfer, and the Lessee shall accept for payment, into temporary possession and use (lease), a power grid facility (hereinafter - Facility) held in beneficial ownership of the Lessor:

- outdoor switchgear (ORU-500 kV) for Sayano-Shushensky Industrial-Engineering Hydropower Complex.

The Facility makes part of Sayano-Shushensky Industrial-Engineering Hydropower Complex, capacity rate of 6,721,000 kW, cadastral number 19:03:080104:0029:1683 3, certificate of public registration of the title, series 19 АА No. 154300 of Aug 16, 2008, located at the address: Russian Federation, Republic of Khakassia, Sayanogorsk, Cheremushki, record number 19-19-00/002/2008-105 of March 21, 2008 in the Unified State Register of Rights to Immovable Property and Related Transactions.

The structure of transferred Facility is specified in Appendix No. 1 to the Contract.

Contract rental payment value:

The monthly rate of rental payment is calculated according to Appendix No. 2 to the Contract and shall amount to 6 000 868 (six million eight hundred sixty-eight) rubles 32 kopecks, including VAT 18 per cent - 915,386 (nine hundred, fifteen thousand, three hundred and eighty-six) rubles 69 kopecks.

Effective Period of Contract:

This Contract is deemed concluded, shall enter into force from the date of its signing by both Parties hereto and is valid until April 1, 2010.

The terms and conditions of this Contract shall be applied to relations of Parties regarding the use of Facility as established before signing of this contract, starting from August 22, 2009.

The Contract is deemed redrawn for a new term (1 month) each time under the same conditions, in case none of the Parties has notified the other Party in writing on its disagreement with prolongation of the Contract, at least 10 days before expiration of its force.


Voting results:

"For" - 8 (A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, S. V. Serebryannikov, O. V. Surikov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

The members of the Board of Directors of JSC RusHydro S. I. Shmatko, V. V. Tatsy, S. V. Maslov recognized as interested parties in the transaction, did not take part in voting.

The members of JSC RusHydro's Board of Directors, V.A. Zubakin, as a person exercising the functions of company's individual executive body, and R.Z. Khamitov, as a member of the company's collective executive body both of whom, in this connection, may not be considered as independent directors, did not take part in voting.

  

13.2. On approval of an interested-party transaction with NP Hydro Power Engineering of Russia.


Decision:

13.2.1.   To specify that the cost of services provided by NP Hydro Power Engineering of Russia to JSC RusHydro under a fee-based services contract executed between JSC RusHydro and NP Hydro Power Engineering of Russia shall amount to 3,400,000 (three million, four hundred thousand) rubles, including VAT 18 per cent, which is 518,644 (five hundred eighteen thousand six hundred and forty four) rubles.

13.2.2.   To approve conclusion of a Fee-based service contract between JSC RusHydro and NP Hydro Power Engineering of Russia (hereinafter referred to as the Contract) representing an interested party transaction, under the following essential terms:

Parties to Contract:

Executor - Non-Commercial Partnership Hydro Power Engineering of Russia.

Customer - JSC RusHydro.

Subject of Contract:

The Executor shall render to Customer, the services on development of standardization methodology in the field of technical regulation for the purposes of implementation of the programme of works on standardization in accordance with the Technical Assignment (Appendix 1 to the Contract) under the procedure, terms and conditions stipulated by the Contract. The Customer shall accept and pay for the rendered services.

Scope of services: analysis of the company's technical regulation facilities, development of proposals on their classification, description of composition and structure of the normative technical documents in the field of hydropower industry and renewable energy sources (RES), development of the company's classifier for standards, development of prioritization criteria for development of the company's standards in the field of technical regulation in 2009-2010, development of the guidelines on estimation of economic efficiency factor in development of the organisation standard (OS) in the field of technical regulation.

Contract Price:

3,400,000 (three million, four hundred thousand) rubles, including 18 per cent VAT: 518,644 (five hundred eighteen thousand, six hundred and forty-four) rubles.

Term of providing services under Contract:

Beginning of works - the third quarter of 2009.

End of works - the third quarter of 2009.

Effective Period of Contract:

The Contract becomes effective as of the date of its signing by the Parties, shall apply to their relations starting from quarter III, 2009 and shall be valid until the end of quarter III 2009; as to financial obligations, the Contract shall remain effective till full discharge of such obligations.


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

The members of JSC RusHydro's Board of Directors, V.A. Zubakin, as a person exercising the functions of company's individual executive body, and R.Z. Khamitov, as a member of the company's collective executive body both of whom, in this connection, may not be considered as independent directors, did not take part in voting.

  

13.3. Approval of an interested-party transaction with JSC SO UPS.

 

Decision:

To approve conclusion of a Notes exchange agreement between JSC RusHydro and JSC SO UES representing an interested party transaction, on the following essential terms:

Parties to Contract:

JSC RusHydro, JSC SO UES

Subject of Contract:

1. JSC RusHydro shall transfer, into the property of JSC SO UES, promissory notes of JSC SO UES for the total amount of 706,161,372 (seven hundred and six million one hundred sixty-one thousand, three hundred and seventy-two) rubles 72 kopecks, in the quantity of 7 (seven) pieces, with the following details:


Series, number of the note

Redemption period

Date of drawing

Place of payment

Note sum, rubles

СО-А 004

After sight but not earlier
31.12.2009.

11.02.2008

Moscow

171,152,936.88

СО-А 018

After sight but not earlier
31.12.2009.

11.02.2008

Moscow

89,168,072.64

СО-А 019

After sight but not earlier
31.12.2009.

11.02.2008

Moscow

89,168,072.64

СО-А 020

After sight but not earlier
31.12.2009.

11.02.2008

Moscow

89,168,072.64

СО-А 021

After sight but not earlier
31.12.2009.

11.02.2008

Moscow

89,168,072.64

СО-А 022

After sight but not earlier
31.12.2009.

11.02.2008

Moscow

89,168,072.64

СО-А 023

After sight but not earlier
31.12.2009.

11.02.2008

Moscow

89,168,072.64


2. JSC SO UES shall transfer, into the property of JSC RusHydro, 3 (three) promissory notes of JSC SO UES containing the condition on repayment of the note sum to JSC RusHydro or by its order, with the redemption period "after sight but not before 31.12.2010", place of payment - "Moscow city", and for the total note amount of 704,885,995 (seven hundred and four million eight hundred eighty five thousand nine hundred and ninety five) rubles 76 kopecks:

Series, number of the note

Redemption period

Date of drawing

Place of payment

Note sum, rubles

СО-А 030

After sight but not earlier than 31.12.2010.

08.09.2009

Moscow

169,877,559.92

СО-А 031

After sight but not earlier than 31.12.2010.

08.09.2009

Moscow

267,504,217.92

СО-А 032

After sight but not earlier than 31.12.2010.

08.09.2009

Moscow

267,504,217.92

3. JSC SO UES agrees, during 1 (one) banking day from the date of signing by Parties of the Notes acceptance and transfer certificate, to remit to the account of JSC RusHydro the moneys in the amount of difference between values of the accepted and transferred notes which equals 1,275,376 (one million two hundred seventy five thousand three hundred and seventy six) rubles 96 kopecks.


Voting results:

"For" - 10 (A.B. Ballo, S.S. Beloborodov, B.F. Vainzikher, E.P. Volkov, V.I. Danilov-Danilyan, S.V. Maslov, S.V. Serebryannikov, О.V. Surikov, V.V. Tatsy, А.V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.

A member of the Board of Directors of JSC RusHydro, S.I. Shmatko, recognized as an interested party in the transaction, did not take part in voting.

The members of JSC RusHydro's Board of Directors, V.A. Zubakin, as a person exercising the functions of company's individual executive body, and R.Z. Khamitov, as a member of the company's collective executive body both of whom, in this connection, may not be considered as independent directors, did not take part in voting.



Matter 14: On determination of company's (company's representatives) opinion regarding the issues put on agenda of the Board of Directors' Meetings as well as general shareholders' meetings of the company's subsidiaries and affiliates (SA).


14.1.  Decision regarding participation (change of participation share) of the company's SA in other organisations.


Decision:

14.1.1. To instruct JSC RusHydro's representatives in the Board of Directors of JSC Geotherm to vote FOR taking of the following decisions:

14.1.1.1. To approve participation of JSC Geotherm in JSC Pauzhetskaya GeoPP by way of acquiring additional shares of JSC Pauzhetskaya GeoPP, subject to the following essential conditions:

- category, type, par value and quantity of the acquired shares - ordinary registered shares by par value of 1 (one) ruble per share in the quantity of 32,389,530 (thirty-two million, three hundred, eighty-nine thousand, five-hundred and thirty) pieces by total par value of 32,389,530 (thirty-two million, three hundred and eighty-nine thousand, five hundred and thirty) rubles;

- acquisition method - execution of the agreement for sales/purchase of JSC Pauzhetskaya GeoPP shares between JSC Geotherm and JSC Kamchatskenergo;

- acquisition price - 68,000,000 (sixty-eight million) rubles as valued by an independent assessor report;

- form of payment for shares - monetary assets.

- share of JSC Geotherm participation in the authorised capital of JSC Pauzhetskaya GeoPP before acquisition of shares: 0 %;

- share of JSC Geotherm participation in the authorised capital of JSC Pauzhetskaya GeoPP after acquisition of shares: 100 %.

14.1.1.2. To approve the change of participation share of JSC Geotherm in JSC OP Verkhne-Mutnovskaya GeoPP by way of acquiring shares of JSC OP Verkhne-Mutnovskaya GeoPP, under the following essential conditions:

- category, type, par value and quantity of the acquired shares - ordinary registered shares by par value of 1 (one) ruble per share in quantity of 101,633,259 (one hundred and one million, six hundred and thirty three thousand, two hundred and fifty-nine) shares by total par value of 101,633,259 (one hundred and one million, six hundred and thirty three thousand, two hundred and fifty-nine) rubles;

- acquisition method - execution of the agreement for sales/purchase of JSC OP Verkhne-Mutnovskaya GeoPP shares between JSC Geotherm and JSC Kamchatskenergo;

- acquisition price - 46,000,000 (forty-six million) rubles as estimated by an independent assessor report;

- form of payment for shares - monetary assets.

- share of JSC Geotherm participation in the authorised capital of JSC OP Verkhne-Mutnovskaya GeoPP before acquisition of shares: 11.16 %;

- share of JSC Geotherm participation in the authorised capital of JSC Verkhne-Mutnovskaya GeoPP after acquisition of shares: 47.77 %.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" -1 (S. S. Beloborodov)

Decision made.

 

Decision:

14.1.2. To authorise JSC RusHydro's representatives in the Boards of Directors of JSC NIIES, JSC Geotherm and JSC New Binary Power Unit to vote FOR making the following decision:

To approve participation of the company in Non-commercial partnership "The National Geothermal Society" (NP NGS) under the following conditions:

- NP NGS cofounders: JSC RusHydro, JSC NIIES, JSC Geotherm, JSC New Binary Power Unit, CJSC Geoincom;

- admission fee amount - 73,000 (seventy-three thousand) rubles;

- annual fee amount - as specified by the NP NGS Articles;

- admission fee payment procedure - during 1 month from the date of NP NGS public registration;

- annual fee payment procedure - annually before or on April 1 of the current year.     

  

Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.

 

Decision:

14.1.3.   To authorise JSC RusHydro's representatives in the Board of Directors of JSC ChirkeiGESstroy to vote FOR taking of the following decision:

To approve change of JSC ChirkeiGESstroy participation share in LLC KB Sulak by way of the share disposal under the following conditions:

- disposal method: conclusion of an agreement for purchase and sale of share between JSC ChirkeiGESstroy and LLC KB Sulak;

- amount of share of JSC ChirkeiGESstroy in the authorised capital of LLC KB Sulak: 4.28 %;

- share balance value: 104,000 rubles;

- share market value, as estimated by an independent assessor: 270,000 rubles;

- share disposal price: at a market price estimated by an independent assessor, but not less than 270,000 rubles;

- form of share payment - monetary assets.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.


14.2.       On determination of agendas of the General Meetings of shareholders (participants) of SA.


Decision:

14.2.1.   To authorise the company's representatives in the Boards of SA (representing limited liability entities) to vote FOR inclusion of the following question in the agenda of General Meetings of SA participants:

- On amendments to the company's Articles of Association (on approval of the company's Articles of Association as amended).

 

Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.

Decision:

14.2.2.    To instruct representatives of JSC RusHydro in the Board of Directors of JSC OP Verkhne-Mutnovskaya GeoPP to vote IN FAVOR of approval of the following agenda for the extraordinary General Shareholders' Meeting of JSC OP Verkhne-Mutnovskaya GeoPP:

- "On approval of an additional agreement to the property lease contract No. 784 of 01.08.2009 executed between JSC OP Verkhne-Mutnovskaya GeoPP and JSC Geotherm, which represents an interested party transaction".

 

Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, B. F. Vainzikher, E. P. Volkov, V. I. Danilov-Danilyan, V. A. Zubakin, S. V. Maslov, S. V. Serebryannikov, O. V. Surikov, V. V. Tatsy, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.


Questionnaires of the members of the Board of Directors are attached.





Chairman of the Board of Directors                                                                          S. I. Shmatko


 Secretary of the Board of Directors                                                                            M. M. Davydov

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