Minutes of 10.12.2010 №114

MINUTES No. 114

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors Meeting
(date and time of vote counting):                                                December 08, 2010, 6 p.m.

                                                                                               (Moscow time)

Minutes dated:                                                                          December 10, 2010.

Form of vote:                                                                            absentee vote

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

Number of elected members of the Board of Directors:                  13

Members of the Board of Directors participating in the meeting:      S. I. Shmatko (Chairman)

                                                                                             S. S. Beloborodov,

                                                                                             E. V. Dod,

                                                                                             V. M. Zimin,

                                                                                             B. Yu. Kovalchuk,                                                                                             

                                                                                             V. V. Kudryavy,

                                                                                             G. M. Kurtser,

                                                                                             A. B. Malyshev,

                                                                                             M. V. Seliverstrova,

                                                                                             R. R. Sharipov


In compliance with 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. Approval of the report on execution of key performance indicators of the company for the third quarter of 2010.

2. Upgrading the company's non-core asset Register.

3. Approval of insurance companies for securing the insurance coverage of JSC RusHydro in 2011.

4. Approval of the insurance coverage programme of JSC RusHydro for 2011.

5. Standard collective agreement of JSC RusHydro's subsidiaries for 2011-2013.

6. Approval of the company's transactions.

7. Change in participation share of the company in LLC Index of Energy - HydroOGK.

8. 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.

9. Business priorities of the company: Approval of the principal contractual terms (supplementary agreements) between JSC RusHydro and JSC Power Machines.


RESULTS OF VOTING ON AGENDA:

 

Matter 1: Approval of the report on execution of key performance indicators for the third quarter of 2010.


Decision:

To approve the report on execution of key performance indicators of JSC RusHydro for the third quarter of 2010 (Appendix 1).


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.

  

Matter 2: Upgrading the company's non-core asset Register.


Decision:

To make amendments in the Register of non-core assets of the company approved by a decision of the company's Board of Directors (minutes No. 97 dated 11.05.2010) taking into account the amendments made by the Board of Directors of the company dated 15.10.2010 (minutes No. 109 dated 15.10.2010), in accordance with Appendix 2.


Voting results:


"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.

 

 

Matter 3: Approval of insurance companies for securing the insurance coverage of JSC RusHydro in 2011.


Decision:

To approve the following insurance companies for securing the insurance coverage of JSC RusHydro in 2011:


No.

Type of insurance

Insurer

1.

Insurance of property including buildings under construction against all risks

JSC AlfaStrakhovanie

Address: 115162, Moscow, Shabolovka st. 31, building  B

2.

Insurance of construction and assembly works including insurance of civil responsibility for injurious actions due to deficiencies of construction works

OJSIC Ingosstrakh

Address: 117997, Moscow, Pyatnitskaya st. 12, building 2

3.

Voluntary health insurance for company employees

JSC SK ROSNO

Address: 115184, Moscow, Ozerkovskaya  embankment, 30

4.

Accident and illness insurance for company employees

JSC AlfaStrakhovanie

Address: 115162, Moscow, Shabolovka st. 31, building  B

5.

Public liability insurance of organisations operating dangerous industrial facilities of the company

JSC AlfaStrakhovanie

Address: 115162, Moscow, Shabolovka st. 31, building  B

6.

Public liability insurance of owners of hydro engineering facilities

JSC AlfaStrakhovanie

Address: 115162, Moscow, Shabolovka st. 31, building  B

7.

Public liability insurance of transport means owners 

OJSIC RESO-Garantiya

Address: 125047, Moscow, Gasheka st. 12, building 1

8.

Company's vehicle insurance

OJSIC RESO-Garantiya

Address: 125047, Moscow, Gasheka st. 12, building 1

9.

Insurance of water transport means

JSC Military Insurance Company

Address: 121552, Moscow, Ostrovnaya st., 4

10.

Public liability insurance of members of management bodies and Officers of the company before third parties and the company

OJSIC RESO-Garantiya

Address: 125047, Moscow, Gasheka st. 12, building 1

11.

Compulsory health insurance for 2011-2013

JSC Insurance company SK ROSNO

Address: 109010, Moscow, Protopopovskiy pereulok (lane), 25


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.

 

Matter 4: Approval of insurance coverage programme of JSC RusHydro for 2011.

 

Decision:

To approve insurance coverage programme of JSC RusHydro for 2011 (Appendix 3).


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


Matter 5: Standard collective agreement of JSC RusHydro's subsidiaries for 2011-2013.


Decision:

5.1. To approve the standard collective agreement of JSC RusHydro's subsidiaries for 2011-2013 in accordance with Appendix 4.

5.2. Chairman of the company's Management Board shall ensure conclusion of collective agreements of the company's subsidiaries for 2011-2013 in accordance with the Standard Collective Agreement of JSC RusHydro's branches for 2011-2013 taking into consideration the peculiarities in several branches of the company with respect to additional franchising related to the territorial location of the company's power facilities.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


Matter 6: Approval of the company's transactions.


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


Decision:

To approve conclusion of an Agreement No. 1 between JSC RusHydro and JSC FGC UES (further on referred to as the Agreement) representing an interested party transaction on the following essential terms:

The Agreement shall be concluded in order to fulfil Lessor's (JSC RusHydro) obligations to Lessee (JSC FSK UES) on compensation of value of agreed permanent improvements according to clauses 3.1.3. and 3.2.12. of the property lease agreement (outdoor switchgear (ORU-500) of Sayano-Shushenskiy Industrial-Engineering Hydroenegro-Complex) No. SSh-349-2009 of 09.10.2009.

Parties to the Agreement:

Party 1 - JSC RusHydro

Party 2 - Open Joint Stock Company Federal Grid Company of Unified Energy System (JSC FGC UES)

Subject of the Agreement:

The Parties have come to an agreed decision to acknowledge the property mentioned in Appendix No. 1 to the Agreement for the amount of 10,752,974 (ten million seven-hundred and fifty-two-thousand-nine-hundred and seventy-four) rubles 79 kopecks, including VAT (18 %) - 1,935,535 (one million nine-hundred and thirty-five-thousand five-hundred and thirty-five) rubles 47 kopecks, and the result of works on a ground development for installation of two diesel driven generators, made in compliance with the bill of quantities - Appendix No. 2 to the Agreement - for the amount of 7,433,280 (Seven million four-hundred and thirty-three-thousand two-hundred and eighty) rubles 54 kopecks, including VAT (18 %) - 1,337,990 (one million three-hundred and thirty-seven-thousand nine-hundred and ninety) rubles 50 kopecks, as permanent improvements of leased property, in which case Party 1 agrees that it shall compensate the cost of the mentioned permanent improvements to Party 2.

Cost of the permanent improvements under the Agreement:

Party 1, within 30 calendar days from the moment of signing the Agreement, shall compensate the cost of the permanent improvements to the bank account of Party 2 according to Appendix 1, 2 to the Agreement in the amount of: 18,186,255 (eighteen million one-hundred and eighty-six-thousand two-hundred and fifty-five) rubles 33 kopecks, including VAT 18 % - 3,273,525.97 (three million two-hundred and seventy-three-thousand five-hundred and twenty-five) rubles 97 kopecks

Agreement validity term:

The Agreement comes into force from the moment of its signing by the Parties and remains in power until complete fulfilment of obligations by the Parties stipulated by the Agreement. The Parties agree that the Agreement terms apply to the Parties' relations initiated before its conclusion (from 01.04.2010).


Voting results:

"For" - 6 (S. S. Beloborodov, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, M. V. Seliverstrova)


"Against" - 0

"Abstained" - 0.

Decision made.

The following members of JSC RusHydro's Board of Directors did not participate in voting: S. I. Shmatko, A. B. Malyshev, R. R. Sharipov recognized as transaction interested party, as well as E. V. Dod, who is the chairman of the company's Management Board and who is not recognized as an independent director.

  

Matter 7: Change in participation share of the company in LLC Index of Energy - HydroOGK.


Decision:

7.1.To approve the reduction in JSC RusHydro's participation share in LLC Index of Energy - HydroOGK in connection with inclusion by JSC ESK RusHydro of JSC Mosenergosbyt, JSC Petersburg Sales Company, JSC Saratovenergo, JSC Tambov Energy Sales Company, JSC Altaienergosbyt, JSC Unified Energy Sales Company's shares in LLC Index of Energy - HydroOGK's authorised capital in the process of increase in LLC Index of Energy - HydroOGK's authorised capital.

7.2. The share of JSC RusHydro in the authorised capital of LLC Index of Energy - HydroOGK before taking measures to increase LLC Index of Energy - HydroOGK's authorised capital shall be 100 per cent; the share of JSC RusHydro in LLC Index of Energy - HydroOGK's authorised capital after taking measures to increase LLC Index of Energy - HydroOGK's authorised capital shall be 0.15 per cent min.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


Matter 8: Determination of company's (company's representatives) opinion regarding the agenda of the Board of Directors Meeting and General Shareholders' (participants) Meeting of company's subsidiaries and affiliates (SA).


8.1. Determination of opinion regarding the termination of company's SA participation in other organisations.


Decision:

To direct JSC RusHydro's representatives in the Board of Directors of JSC ESK RusHydro to vote FOR making the following decisions:

8.1.1. Approve termination of participation of JSC ESK RusHydro in JSC Mosenergosbyt by carving out JSC Mosenergosbyt's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 1 (one) kopeck per 1 (one) share.

- Number of carved-out shares: 14,384,231,200 (fourteen billion three-hundred and eighty-four million two-hundred and thirty-one-thousand two-hundred) shares.

- Carve-out method: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share carve-out price: at a price defined by an independent appraiser.

- The Share of JSC ESK RusHydro in the authorised capital of JSC Mosenergosbyt before share alienation in compliance with the present decision is 50.92 per cent; the share of JSC ESK RusHydro in the authorised capital of JSC Mosenergosbyt after share alienation in compliance with the present decision is zero per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.1.2. To approve termination of JSC ESK RusHydro's participation in JSC Petersburg Sales Company by carving-out of JSC Petersburg Sales Company's shares on the following terms:

- Category, type, nominal value and number of carved-out shares:

╖ ordinary registered shares with the par value of 20 (twenty) kopecks per 1 (one) share in the quantity of 513,988,592 (five hundred and thirteen million nine hundred and eighty eight thousand five hundred  and ninety two) shares.


╖ preferred registered shares of A-type with the face value of 20 (twenty) kopecks per 1 (one) share in the quantity of 38,063,689 (thirty-eight million sixty-three thousand six-hundred and eighty-nine) shares.

- Share carve-out method: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share carve-out price: at a price defined by an independent appraiser.

- The share of JSC ESK RusHydro in the authorised capital of JSC Petersburg Sales Company before share alienation in compliance with the present decision is 61.52 per cent; share of JSC ESK RusHydro in the authorised capital of JSC Petersburg Sales Company after share alienation in compliance with the present decision is zero per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.1.3. To approve termination of JSC ESK RusHydro's participation in JSC Saratovenergo by carving out JSC Saratovenergo's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 2 (two) kopecks per 1 (one) share.

- Number of carved-out shares: 3,622,502,296 (three billion six hundred and twenty-two million five-hundred and two thousand two-hundred and ninety-six) shares.

- Share carve-out method: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share carve-out price: at a price defined by an independent appraiser.

- The share of JSC ESK RusHydro in the authorised capital of JSC Saratovenergo before share alienation in compliance with the present decision is 56.23 per cent; the share of JSC ESK RusHydro in the authorised capital of JSC Saratovenergo after share alienation in compliance with the present decision is zero per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.1.4. To approve termination of JSC ESK RusHydro's participation in JSC Tambov Energy Sales Company by means of JSC Tambov Energy Sales Company's shares carve-out on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 2 (two) kopecks per 1 (one) share.

- Number of carved-out shares: 1,035,635,344 (one billion thirty-five million six-hundred and thirty-five thousand three-hundred and forty-four) shares.

- Share carve-out method: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share carve-out price: at a price defined by an independent appraiser.

- The share of JSC ESK RusHydro in the authorised capital of JSC Tambov Energy Sales Company before share alienation in compliance with the present decision is 59.38 per cent; share of JSC ESK RusHydro in the authorised capital of JSC Tambov Energy Sales Company after share alienation in compliance with the present decision is zero per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.1.5. To approve termination of JSC ESK RusHydro's participation in JSC Altaienergosbyt by carving out JSC Altaienergosbyt's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 1 (one) kopeck per 1 (one) share.

- Number of carved-out shares: 3,000,000,000 (three billion) shares;

- Share carve-out method: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share carve-out price: at a price defined by an independent appraiser.

- The Share of JSC ESK RusHydro in the authorised capital of JSC Altaienergosbyt before share alienation in compliance with the present decision is 100 per cent; the share of JSC ESK RusHydro in the authorised capital of JSC Altaienergosbyt after share alienation in compliance with the present decision is zero per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.

 

8.1.6. To approve termination of JSC ESK RusHydro's participation in JSC Unified Energy Sales Company by means of JSC Unified Energy Sales Company's shares carve-out on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 1,000 (one thousand) ruble per 1 (one) share;

- Number of carved-out shares: 10,000 (ten thousand) shares;

- Share carve-out method: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share carve-out price: at a price defined by an independent appraiser.

- The share of JSC ESK RusHydro in the authorised capital of JSC Unified Energy Sales Company before share alienation in compliance with the present decision is 100 per cent; share of JSC ESK RusHydro in the authorised capital of JSC Unified Energy Sales Company after share alienation in compliance with the present decision is zero per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.1.7. To instruct JSC RusHydro's representatives in the management bodies of JSC ESK RusHydro to vote FOR making all the necessary decisions to implement clauses 8.1.1.-8.1.6. of these minutes.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.1.8. To take into consideration that acquisition by JSC ESK RusHydro of JSC Mosenergosbyt, JSC Petersburg Sales Company, JSC Saratovenergo, JSC Tambov Energy Sales Company, JSC Altaienergosbyt, JSC Unified Energy Sales Company's shares was made at the expense of funds received from JSC ESK RusHydro by virtue of a loan agreement concluded between JSC RusHydro (Lender) and JSC ESK RusHydro (Borrower).


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.1.9. To take into consideration information on the acquisition by JSC RusHydro's subsidiary - JSC ESK RusHydro - of JSC Mosenergosbyt, JSC Petersburg Sales Company, JSC Saratovenergo, JSC Tambov Energy Sales Company's shares in an order of securities acquisition from the stated joint-stock companies in accordance with mandatory offers for sale of JSC Mosenergosbyt, JSC Petersburg Sales Company, JSC Saratovenergo, JSC Tambov Energy Sales Company's shares sent by JSC ESK RusHydro to the shareholders for implementation of Article 84.2 of the Federal law On Joint-Stock Companies in connection with acquisition of more than 30 per cent of voting shares of the specified joint-stock companies:

1. Regarding JSC Mosenergosbyt:

- Category, type, nominal share value: ordinary registered shares with the face value of 1 (one) kopeck per 1 (one) share.

- Number of acquired shares: 5,065,200 (five million sixty-five thousand two hundred) shares.

- Share acquisition price: 1,819,926 (one million eight-hundred and nineteen thousand nine hundred and twenty-six) rubles 36 kopecks.

- The order of share payment: monetary assets.

- The share of JSC ESK RusHydro in the authorised capital of JSC Mosenergosbyt before share acquisition on the basis of Mandatory offer is 50.90 per cent; the share of JSC ESK RusHydro in the authorised capital of JSC Mosenergosbyt after share acquisition on the basis of the mandatory offer is 50.92 per cent.

2.  Regarding JSC Petersburg Sales Company:

- Category, type, nominal share value: ordinary registered shares with the face value of 20 (twenty) kopecks per 1 (one) share.

- Number of acquired shares: 100,000 (one hundred thousand) shares;

- Share acquisition price: 492,580 (four hundred and ninety two thousand five hundred and eighty) rubles.

- The order of share payment: monetary assets.

- The share of JSC ESK RusHydro in the authorised capital of JSC Petersburg Sales Company before share acquisition on the basis of Mandatory offer is 61.51 per cent; the share of JSC ESK RusHydro in the authorised capital of JSC Petersburg Sales Company after share acquisition on the basis of Mandatory offer is 61.52 per cent.

3. Regarding JSC Saratovenergo:

- Category, type, nominal share value: ordinary registered shares with the face value of 2 (two) kopecks per 1 (one) share.

- Number of acquired shares: 506,866,900 (five hundred and six million eight hundred and sixty-six thousand nine hundred) shares.

- Share acquisition price: 64,270,722 (sixty-four million two hundred and seventy thousand seven hundred and twenty-two) rubles 92 kopecks.

- The order of share payment: monetary assets.

- The share of JSC ESK RusHydro in the authorised capital of JSC Saratovenergo before share acquisition on the basis of the mandatory offer is 48.36 per cent; the share of JSC ESK RusHydro in the authorised capital of JSC Saratovenergo after share acquisition on the basis of Mandatory offer is 56.23 per cent.

4. Regarding JSC Tambov Energy Sales Company:

- Category, type, nominal share value: ordinary registered shares with the face value of 2 (two) kopecks per 1 (one) share.

- Number of acquired shares: 180,876,114 (one hundred and eighty million eight hundred and seventy-six thousand one hundred and fourteen) shares.

- Share acquisition price: 26,661,139 (twenty-six million six hundred and sixty-one thousand one hundred and thirty-nine) rubles 20 kopecks.

- The order of share payment: monetary assets.

- The share of JSC ESK RusHydro in the authorised capital of JSC Tambov Energy Sales Company before share acquisition on the basis of Mandatory offer is 49.01 per cent; the share of JSC ESK RusHydro in the authorised capital of JSC Tambov Energy Sales Company after share acquisition on the basis of Mandatory offer is 59.38 per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.2. On determination of an opinion regarding the participation of SA of the company in other organisations.

 

Decision:

To instruct JSC RusHydro's representatives in the Board of Directors of LLC Index of Energy - HydroOGK to vote FOR making the following decisions:

8.2.1. To approve participation of LLC Index of Energy - HydroOGK in JSC Mosenergosbyt by acquiring JSC Mosenergosbyt's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 1 (one) kopeck per 1 (one) share.

- Number of shares being acquired: 14,384,231,200 (fourteen billion three hundred and eighty-four million two hundred and thirty-one thousand two hundred) shares.

- Method of acquisition: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share acquisition price: at a price defined by an independent appraiser.

- The share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Mosenergosbyt before share acquisition in compliance with the present decision is zero per cent; the share of JSC Index of Energy - HydroOGK in the authorised capital of JSC Mosenergosbyt after share acquisition in compliance with the present decision is 50.92 per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.2.2. To approve participation of LLC Index of Energy - HydroOGK in JSC Petersburg Sales Company by acquiring  JSC Petersburg Sales Company's shares on the following terms:

- Category, type, face value and number of acquired shares:

╖ ordinary registered shares with the face value of 20 (twenty) kopecks per 1 (one) share to the number of 513,988,592 (five hundred and thirteen million nine hundred and eighty eight thousand five hundred and ninety two) shares.

╖ preferred registered shares of A-type with the face value of 20 (twenty) kopecks per 1 (one) share in the quantity of 38,063,689 (thirty eight million sixty three thousand six hundred and eighty nine) shares.

- Share acquisition procedure: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share acquisition price: at a price defined by an independent appraiser.

- The share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Petersburg Sales Company before share acquisition in compliance with the present decision is zero per cent; the share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Petersburg Sales Company after share acquisition in compliance with the present decision is 61.52 per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.2.3. To approve participation of LLC Index of Energy - HydroOGK  in JSC Saratovenergo by acquiring JSC Saratovenergo's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 2 (two) kopecks per 1 (one) share.

- Number of shares being acquired: 3,622,502,296 (three billion six hundred and twenty two million five hundred and two thousand two hundred and ninety six) shares.

- Share acquisition procedure: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share acquisition price: at a price defined by an independent appraiser.

- The share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Saratovenergo before share acquisition in compliance with the present decision is zero per cent; the share of JSC Index of Energy - HydroOGK in the authorised capital of JSC Saratovenergo after share acquisition in compliance with the present decision is 56.23 per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.2.4. To approve participation of LLC Index of Energy - HydroOGK in JSC Tambov Energy Sales Company by acquiring JSC Tambov Energy Sales Company's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 2 (two) kopecks per 1 (one) share.

- Number of shares being acquired: 1,035,635,344 (one billion thirty five million six hundred and thirty five thousand three hundred and forty four) shares.

- Share acquisition procedure: inclusion into the authorised capital of JSC RusHydro's associated company - LLC Index of Energy - HydroOGK.

- Share acquisition price: at a price defined by an independent appraiser.

- The share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Tambov Energy Sales Company before share acquisition in compliance with the present decision is zero per cent; the share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Tambov Energy Sales Company after share acquisition in compliance with the present decision is 59.38 per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.2.5. To approve participation of LLC Index of Energy - HydroOGK in JSC Altaienergosbyt by acquiring JSC Altaienergosbyt's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 1 (one) kopeck per 1 (one) share.

- Number of shares being acquired: 3,000,000,000 (three billion) shares;

- Share acquisition procedure: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share acquisition price: at a price defined by an independent appraiser.

- The share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Altaienergosbyt before share acquisition in compliance with the present decision is zero per cent; the share of JSC Index of Energy - HydroOGK in the authorised capital of JSC Altaienergosbyt after share acquisition in compliance with the present decision is 100 per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.2.6. To approve participation of LLC Index of Energy - HydroOGK in JSC Unified Energy Sales Company by acquiring JSC Unified Energy Sales Company's shares on the following terms:

- Category, type, nominal share value: ordinary registered shares with the face value of 1,000 (one thousand) ruble per 1 (one) share;

- Number of shares being acquired: 10,000 (ten thousand) shares;

- Share acquisition procedure: inclusion into the authorised capital of JSC RusHydro's subsidiary - LLC Index of Energy - HydroOGK.

- Share acquisition price: at a price defined by an independent appraiser.

- The share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Unified Energy Sales Company before share acquisition in compliance with the present decision is zero per cent; the share of LLC Index of Energy - HydroOGK in the authorised capital of JSC Unified Energy Sales Company after share acquisition in compliance with the present decision is 100 per cent.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.

8.2.7. To instruct JSC RusHydro's representatives in the management bodies of LLC Index of Energy - HydroOGK  to vote FOR making all the necessary decisions to implement clauses 8.2.1.-8.2.6. of this minute.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.3.1. Determination of an opinion regarding an increase in the authorised capital of subsidiaries and affiliates of the company.

 

Decision:

To instruct JSC RusHydro's representatives at the extraordinary General Shareholders' Meeting of LLC Index of Energy - HydroOGK to vote FOR making the following decision on the issue of an increase in the authorised capital of LLC Index of Energy - HydroOGK by means of a contribution of JSC ESK RusHydro, on the following terms;


1.  Property contributed by JSC ESK RusHydro:


Description

Q-ty (pcs)

% of AC

Ordinary registered shares

JSC Petersburg Sales Company

513,988,592

61.52

Preferred registered shares of A type

JSC Petersburg Sales Company

38,063,689

Ordinary registered shares

JSC Mosenergosbyt

14,384,231,200

50.92

Ordinary registered shares

JSC Saratovenergo

3,622,502,296

56.23

Ordinary registered shares

JSC Altaienergosbyt

3,000,000,000

100

Ordinary registered shares

JSC Tambov Energy Sales Company

1,035,635,344

59.38

Ordinary registered shares

JSC Unified Energy Sales Company

10,000

100


2.  The price of contribution by JSC ESK RusHydro: nominal value and share size of JSC ESK RusHydro in the authorised capital of LLC Index of Energy - HydroOGK after contribution by JSC ESK RusHydro specified in clause 1 of the present decision shall correspond to the market value defined by an independent appraiser.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.3.2. Determination of an opinion regarding an increase in the authorised capital of subsidiaries and affiliates of the company.

 

Decision:

8.3.2.1. To approve the budget of RusHydro International B.V. for 2010-2011 to maintain office and pre-investment studies in the amount  5,800,000 (five-million eight-hundred thousand) euro (Appendix 5) to be financed by JSC RusHydro in the following manner:

- 1,000,000 (one million) euro - monetary assets allocated to the authorised capital when establishing RusHydro International B.V;

- 4,800,000 (four million eight-hundred thousand) euro - monetary assets allocated as an additional contribution to the authorised capital of RusHydro International B.V;

In this case participation/non-participation in each investment project are approved by JSC RusHydro's Board of Directors.

8.3.2.2. To allow JSC RusHydro's Management Board to amend the budget of RusHydro International B.V. for 2010-2011, if necessary.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


8.3.2.3. To instruct JSC RusHydro's representatives in the management bodies of RusHydro International B.V to vote FOR making the following decision on the issue of an increase in the authorised capital of RusHydro International B.V. by means of placing additional shares:

To increase authorised capital of RusHydro International B.V. (in accordance with legislation of the Netherlands) by placing additional ordinary registered shares in the amount of 4,800,000 (four million eight-hundred thousand) shares with a face value of 1 (one) euro each in the total amount of 4,800,000 (four million eight-hundred thousand) euro on the following terms;

- a circle of persons entitled to acquire additional shares: JSC RusHydro;

- share offering price: at the face value equal to 1 (one) euro per share;

- the method of share payment: monetary assets.

- the order of share payment: shares shall be paid at their placement in full.


Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.



8.3.2.4. To approve an increase in the number of shares owned by JSC RusHydro in the authorised capital of RusHydro International B.V. in connection with JSC RusHydro adding monetary assets to the authorised capital of RusHydro International B.V. when increasing the authorised capital of RusHydro International B.V.

The share of JSC RusHydro in the authorised capital of RusHydro International B.V before taking measures to increase the authorised capital of RusHydro International B.V. shall be 100 per cent; the share of JSC RusHydro in the authorised capital of RusHydro International B.V after taking measures to increase the authorised capital of RusHydro International B.V is 100 per cent.

 

Voting results:

"For" - 10 (S. I. Shmatko, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0.

Decision made.


Matter 9: Business priorities of the company: Approval of the principal contractual terms (supplementary agreements) between JSC RusHydro and JSC Power Machines.


Decision:

9.1.  To approve the following principal terms of supplementary agreement No. 1 for manufacture and delivery of equipment for hydro-power units at the plants Nos. 16, 20, 8, 7, 18 of JSC RusHydro's subsidiary - the Zhigulevskaya HPP and execution of works (further on referred to as the Agreement) to contract No.05030856/100822-0898 dated 19.08.2010 (further on referred to as the Contract) concluded between JSC RusHydro and JSC Power Machines.

Agreement Parties:

Supplier is JSC Power Machines.

Customer is JSC RusHydro.

Subject of the Agreement:

In compliance with the Agreement, the Supplier undertakes to manufacture and deliver the equipment for hydro-power units at the plants Nos. 16, 20, 8, 7, 18 of JSC RusHydro's subsidiary - the Zhigulevskaya HPP and to execute works, and the Customer undertakes to accept and pay for the equipment and work results in the order, amount and terms stipulated by the Contract.

Obligations of the Supplier as per the Agreement are defined by the Parties in the Agreement and Appendices to it, in the Contract and Appendices to it and include obligations listed in Appendix 6.

Agreement Price:

6,359,748,060 (six billion three hundred and fifty nine million seven hundred and forty eight thousand sixty) rubles, including VAT (18 %) - 970,131,060 (nine-hundred and seventy million one-hundred and thirty-one thousand  and sixty) rubles.

The Agreement price is fixed and may be changed only by agreement of the Parties by signing additional agreements to the Contract should corresponding changes in the volume of delivery, work and/or corresponding changes in the Technical Requirements / Technical Assignment occur.

Delivery of the equipment to the Customer's warehouse is performed by means of and at the expense of the Supplier.

Terms of Equipment Delivery and Execution of Work:

Till 31.12.2016

The Parties shall co-ordinate the terms (of equipment delivery, execution of work, providing of services) and cost of the equipment, works and services listed in Appendix 7, having signed corresponding supplementary agreements to the Contract.


Voting results:

"For" - 9 (S. I. Shmatko, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" -1 (S. S. Beloborodov)

Decision made.

 

Decision:

9.2. To approve the following principal terms of the contract between JSC RusHydro and JSC Power Machines for manufacture and delivery of three hydro-turbines with automatic control systems, three hydro generators and three excitation systems of hydro-power generators for hydro-power units at the plants Nos. 1, 2, 3 of the Baksanskaya HPP, a subsidiary of JSC RusHydro - Kabardino-Balkarian Branch as well as installation supervision services.

Parties to Contract:

Supplier is JSC Power Machines.

Customer is JSC RusHydro.

Subject of Contract:

In compliance with the Contract, the Supplier undertakes to manufacture and deliver the equipment for three hydro-turbines with automatic control systems, three hydro generators and three excitation systems of hydro-power generators for hydro-power units at the plants Nos. 1, 2, 3 of the Baksanskaya HPP, a subsidiary of JSC RusHydro - Kabardino-Balkarian Branch as well as to provide installation supervision services and the Customer undertakes to accept and pay for the equipment and work results in the order, amount and terms stipulated by the Contract.

Contract Price:

652,084,520.00 rubles (Six-hundred fifty-two million and eighty-four thousand five-hundred and twenty rubles 00 kopecks) including VAT (18 %) in the amount of 99,470,520.00 rub. (Ninety-nine million four-hundred and seventy thousand five-hundred and twenty rubles 00 kopecks).

The Contract price is fixed and may be changed only by agreement of the Parties by signing supplementary agreements to the Contract should corresponding changes in the volume of delivery, work and/or corresponding changes in the Technical Requirements / Technical Assignment occur.

Delivery cost inclusion is to be coordinated by the Parties in a Supplementary Agreement to the Contract

Terms of Equipment Delivery and Execution of Work:

December 2010-February 2012.


Voting results:

"For" - 9 (S. I. Shmatko, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, A. B. Malyshev, M. V. Seliverstrova, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (S. S. Beloborodov)

Decision made.

 

 



Chairman of the Board of Directors                                              S. I. Shmatko


Secretary of the Board of Directors                                              M.M. Davydov

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