Minutes of 13.09.2010 №107

MINUTES No. 107

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors meeting

(date and time of vote counting):                                         September 10, 2010, 6.00 p.m.

(Moscow time)

Minutes Dated:                                                                   September 13, 2010.

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

                                                                                       E. V. Dod

                                                                                       V. M. Zimin

                                                                                       B. Yu. Kovalchuk

                                                                                       V. V. Kudryavy

                                                                                       G. M. Kurtser

                                                                                       N. G. Kutyin

                                                                                       A. B. Malyshev

                                                                                       M. V. Seliverstrova

                                                                                       R. R. Sharipov


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 approval of the BEMO project funding model.

2. On issues related to the convening, preparation and conduction of the Extraordinary General Shareholders' Meeting.

3. On approval of agenda for the Extraordinary General Shareholders' Meeting.

4. On specification of prices as per the interested-party transactions.

5. On recommendations to the General Shareholders' Meeting of the company on the matters concerning approval of the interested party transactions.

6. On encumbrance of shares in possession of the company.

7. On recommendations to the General Shareholders' Meeting of the company on a matter concerning increase in the authorised capital of the company by means of placing additional shares.


RESULTS OF VOTING ON AGENDA:


Matter 1: On approval of the BEMO project funding model.


Decision:

To approve the BEMO project funding model for the maximum amount of 50,010,000,000 (fifty billion, ten million) rubles, by way of concluding credit agreements between JSC Boguchanskaya HPP and CJSC BoAZ (Borrowers), and Vneshekonombank (Creditor), on the following essential terms:


Borrower

CJSC BoAZ

JSC Boguchanskaya HPP

Creditor

Vnesheconombank

Vnesheconombank

Credit sum

Equivalent

21,910,000,000 rubles in US dollars at the exchange rate of the Central Bank of the Russian Federation established on the date of the credit agreement signing

28,100,000,000 rubles

Credit currency

US dollars

Rubles

Credit period (until final redemption of the loan principal)

Up to December 20, 2024 (inclusive)

Up to and including December 20, 2026

Rate of interest

Not exceeding 10 per cent per year

1. During the period until June 30, 2012 - fixed rate, equal to the refinancing rate of the Bank of Russia, as effective on the date of the credit agreement conclusion plus 2 per cent (as maximum) of the annual interest.

2. From June 30, 2012 - variable rate, equal to the refinancing rate of the Bank of Russia plus 2 per cent (at most) of the annual interest. The rate is to be established from June 30, 2012 and is subject to be changed automatically on the dates of the Bank of Russia's refinancing rate change and to the extent of such change but it may not be under 9.5 per cent per year.

Commission fee for credit granting

Not exceeding 1 per cent of the credit sum

Not exceeding 1 per cent of the credit sum

Commission fee for unexpended balance of the credit line

Not exceeding 0.5 per cent per year

Not exceeding 0.5 per cent per year

Security provided by the Borrower

1. Pledge of the Borrower's movable and immovable property.

2. Mortgage of land property lease rights or mortgage of land plots (in case they are in possession of the Borrower) with extension of mortgage to the buildings and structures located or being constructed on them.

3. Pledge of the rights (claims) to receive the borrower's earnings against off take contracts for sale of the final products.

1. Pledge of the Borrower's movable and immovable property.

2. Mortgage of land property lease rights or mortgage of land plots (in case they are in possession of the Borrower) with extension of mortgage to the buildings and structures located or being constructed on them.

3. Pledge of the rights (claims) to receive the earnings against the borrower's generating equipment lease contracts, as executed between the borrower and JSC RusHydro.

Security provided by the design companies (BALP Limited (Cyprus), Rusal BoAZ Ltd. (Cyprus), HydroOGK Aluminium Company Ltd (Cyprus), BoGES Limited (Cyprus)

1. Pledge of 100 per cent shares of CJSC BoAZ.

2. Pledge of 100 per cent shares of Balp Ltd.

1. Pledge of 93.72 per cent shares of JSC Boguchanskaya HPP.

Security provided by JSC RusHydro and UC RUSAL/JSC Russian aluminium

1. Pledge of 100 per cent shares of CJSC BoAZ Construction Organiser.

2. Pledge of 100 per cent shares of CJSC BoAZ Construction Customer.

3. Security of the bills of exchange held by CJSC BoAZ.

1. Pledge of 100 per cent shares of CJSC Boguchanskaya HPP Construction Organiser.

2. Pledge of 100 per cent shares of Boguchanskaya HPP Construction Customer.

3. Security of the bills of exchange of JSC Boguchanskaya HPP.

Subsequent pledges

Pledged items under the credit agreement executed between JSC Boguchanskaya HPP and the State Corporation Bank for Development and Foreign Economic Affairs (Vneshekonombank).

Pledged items against the credit agreement between CJSC BoAZ and the State Corporation Bank for Development and Foreign Economic Affairs (Vneshekonombank)

Additional security provided by JSC RusHydro


Circumstantial guarantee for the entire credit sum, to come into force in case of:

- non-commencement of the equipment lease contracts until June 30, 2012;

- non-commencement of the agreement on pledge of the rights (claims) to receive the earnings against the equipment lease contracts, as security for performance of obligations taken by JSC Boguchanskaya HPP against the credit agreement, until June 30, 2012;

- non-fulfilment of obligations taken by either party under the equipment lease contracts;

- termination or suspension of the equipment lease contracts' force;

- loss or deterioration (except for natural wear) of items making the scope under the equipment lease contracts;

- non-insurance of items under the equipment lease contracts in accordance with the insurance programme recommended by an insurance broker;

- delay in performance of works, as per the project implementation schedule, by more than 10 months;

- overbalance of expenses for the project implementation as compared to the capital investment plan and absence of additional financing in the amount of such overbalance, on the part of JSC RusHydro and/or Aluminium Group Limited (Aluminium Group, Ltd) (RUSAL Group Company), in the form of acquisition for moneys of the bills of exchange held by JSC Boguchanskaya HPP and their transfer for pledge to the Creditor as security for performance of obligations taken by JSC Boguchanskaya HPP under the credit agreement, within 30 days from the date of identification of such overbalance of expenses;

- introduction of external management with regard to JSC Boguchanskaya HPP, taking a decision on its liquidation/ restructuring by the General Shareholders' Meeting of JSC Boguchanskaya HPP.

Additional material obligation of JSC RusHydro


Conclusion of an equipment lease contract with JSC BoGES under such lease rates which shall ensure maintenance of the debt coverage ratio, by JSC BoGES, at the level of at least 1.25


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, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)


Decision made.


Matter 2: On issues related to the convening, preparation and conduction of the Extraordinary General Shareholders' Meeting.


Decision:

2.1. To convene the extraordinary company's General Shareholders' Meeting in the form of absentee voting (hereinafter referred to as the General Shareholders' Meeting).

2.2. To determine the date for conduction of the General Shareholders' Meeting (final date for acceptance of the filled-in ballots for voting at the General Shareholders' Meeting) to be October 22, 2010.

2.3. Specify a postal address to which the filled-in voting ballots should be sent:

-  105082 Moscow, B. Pochtovaya Str., 34, bld. 8, JSC Central Moscow Depositary.

2.4. To specify the date for drafting the list of persons entitled to participate in the General Meeting as September 14, 2010.

2.5. To determine that the information (materials) to be provided to the persons entitled to participate in the General Shareholders' Meeting of JSC RusHydro is as follows:

-  draft decisions of the General Shareholders' Meeting of JSC RusHydro on the agenda issues and explanatory note;

-  minutes (minutes extract) of the meeting of the Board of Directors of JSC RusHydro with a decision made on recommendations to the General Shareholders' Meeting as regards the agenda issues.

2.6. To determine that the shareholders may become familiarized with the indicated information (materials) during the period from September 22, 2010 to October 22, 2010 (inclusive) at the following addresses:

- Moscow, Arkhitektora Vlasova Str., 51 (from 10.00 a.m. to 6.00 p.m. Moscow time);

- Moscow, B. Pochtovaya Str., 34, bld. 8, JSC Central Moscow Depositary (from 10.00 a.m. to 6.00 p.m. Moscow time);

- on the company's website: www.rushydro.ru

2.7. To approve the form and text of communication on holding of a general meeting of JSC RusHydro forwarded to shareholders (Appendix 1).

2.8. To publish the announcement on holding of the General Meeting in Izvestiya newspaper and post it on the company's website on the internet: www.rushydro.ru September 22, 2010, at latest.

2.9. To approve the form and text of the ballot for voting at a General Shareholders' Meeting of JSC RusHydro (Appendix 2).

2.10. To establish that the ballots for voting on issues as per the agenda of the general meeting of JSC RusHydro are to be forwarded by registered mail or handed in against signature to each person included in the list of the persons entitled to participate in the general meeting, at the latest on October 01, 2010.

2.11. To elect Yuliya Vsevolodovna Smirnova, Head of Corporate Management Department of JSC RusHydro, the Secretary of the General Shareholders' Meeting.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 3: On approval of agenda for the Extraordinary General Shareholders' Meeting.


Decision:

To approve the agenda of the Extraordinary General Shareholders' Meeting:

1) On approval of the interested-party transactions.

2) On increase in the company's authorised capital by way of offering additional shares.


Voting results:

"For" - 12 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, M. V. Seliverstova, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 4: On specification of prices for the interested-party transactions.


Decision:

4.1. To determine the price of property to be transferred as pledge to the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) to secure interrelated commitments under the following credit agreements:

- between JSC Boguchanskaya HPP and Vnesheconombank in the amount according to Appendix 3 to this decision.

- between CJSC BoAZ and Vnesheconombank in the amount according to Appendix 3 to this decision.

4.2.  To specify the consideration for credit commitment of JSC Boguchanskaya HPP to Vnesheconombank under which JSC RusHydro acts as the guarantor, in the amount of aggregate value:

4.2.1. a bank credit to the sum of up to 28,100,000,000 (twenty-eight billion and one hundred million) rubles;

4.2.2. rate of interest:

- within the period until June 30, 2012 - fixed rate equal to the refinancing rate of the Bank of Russia which is valid on the date of conclusion of the credit agreement plus 2 per cent (at most) of the annual interest.

- from June 30, 2012 and on - variable rate equal to the refinancing rate of the Bank of Russia plus 2 per cent (at most) of the annual interest.

The rate is to be established from June 30, 2012 and is subject to be changed automatically on the dates of the Bank of Russia's refinancing rate change and to the extent of such change but it may not be under 9.5 per cent per year.

4.2.3. commission fee for granting of credit in the amount not exceeding 1 per cent annual interest of the credit amount;

4.2.4. commission fee on the credit line unexpended balance in the amount not exceeding annual 0.5 per cent of the unexpended balance.


Voting results:

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

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.


A member of JSC RusHydro's Board of Directors, A. B. Ballo, recognised as an interested party in the transaction, did not take part in voting.

A member of the Board of Directors of JSC RusHydro, E. V. Dod, as a person acting as the sole executive body of the company and in this respect not recognised as an independent director, did not take part in voting.



Matter 5: On recommendations to the General Shareholders' Meeting of the company on the matters of approval of the interested party transactions.


Decision:

5.1. To recommend the General Shareholders' Meeting of the company to approve conclusion of security agreements between the company and Vhesheconombank representing the interested party transactions on the following essential terms:

5.1.1. Contract Parties:

Pledger - JSC RusHydro;

Secured Party - Vnesheconombank.

5.1.2. Subjects of the contracts:

5.1.2.1. The Pledger, in order to provide security for performance of obligations of JSC Boguchanskaya HPP (Borrower) under the credit drawn from Vnesheconombank (including the obligations for repayment of the credit sum, interest and charges) shall transfer, by way of pledge, to the Secured Party:

- Registered ordinary shares of CJSC Boguchanskaya HPP Construction Organiser, state registration number of the issue: 1-01-72017-N, quantity: 5100, pledge value as specified by the Board of Directors: 3570 rubles.

- Registered ordinary shares of CJSC Boguchanskaya HPP Construction Customer, state registration number of the issue: 1-01-72016-N, quantity: 4900, pledge value as specified by the Board of Directors: 3430 rubles.

- Non-interest bearing promissory notes of JSC Boguchanskaya HPP, principal amount: up to 21,869,000,000 rubles, payment term: not before Dec 31, 2029, pledge value as specified by the Board of Directors: up to 21,869,000,000 rubles.

5.1.2.2. The Pledger, in order to provide security for obligations of CJSC BoAZ (Borrower) under the credit drawn from Vnesheconombank (including the obligations for repayment of the credit sum, interest and commission fees) shall transfer, by way of pledge, to the Secured Party:

- Registered ordinary shares of CJSC Construction Organiser for Boguchansky Aluminium Smelter, state registration number of the issue: 1-01-72010-N, quantity: 4900, pledge value as specified by the Board of Directors: 3430 rubles.

- Registered ordinary shares of CJSC Construction Customer for Boguchansky Aluminium Smelter, state registration number of the issue: 1-01-72015-N, quantity: 5100, pledge value as specified by the Board of Directors: 3570 rubles.

- Non-interest bearing promissory notes of CJSC BoAZ, principal amount: Up to 5,732,000,000 rubles payment term: not before Dec 31, 2024, pledge value as specified by the Board of Directors: up to 5,732,000,000 rubles.

5.1.3. Basic parameters of commitments secured by the pledge:

5.1.3.1. commitments of JSC Boguchanskaya HPP:


Creditor

Vnesheconombank

Borrower

JSC Boguchanskaya HPP

Credit sum

28,100,000,000 (twenty-eight billion and one hundred million) rubles

Credit currency

rubles

Credit period (period until final redemption of the loan principal)

Up to December 20, 2026 (inclusive)

Rate of interest

1. Within the period until June 30, 2012 - fixed rate, equal to the refinancing rate of the Bank of Russia which is valid on the date of conclusion of the credit agreement plus maximum 2 per cent of the annual interest.

2. From June 30, 2012 ad on - variable rate equal to the refinancing rate of the Bank of Russia plus maximum 2 per cent ohf the annual interest. The rate is established starting from June 30, 2012 and is subject to be changed automatically on the dates of changes of the refinancing rate of the Bank of Russia, and to the extent of such change but it may not be less than 9.5 per cent per year.

Commission fee for credit granting

not exceeding 1 per cent of the credit sum

Commission fee for unexpended balance of the credit line

not exceeding 0.5 per cent per year

5.1.3.2. obligations of CJSC BoAZ:

Creditor

Vnesheconombank

Borrower

CJSC BoAZ

Credit sum

The equivalent of 21,910,000,000 rubles in US dollars at the exchange rate of the Central Bank of the Russian Federation on the date of the credit agreement signing

Credit currency

US dollars

Credit period (period until final redemption of the loan principal)

Up to December 20, 2024 (inclusive)

Rate of interest

Not exceeding 10 per cent per year

Commission fee for credit granting

Not exceeding 1 per cent of the credit sum

Commission fee for unexpended balance of the credit line

Not exceeding 0.5 per cent per year


5.1.4. Contract Price:

The price of property to be transferred by way of pledge shall amount to 27,601,000,000 (twenty-seven billion, six hundred and one million) rubles as maximum.

5.1.5. Contract validity term:

The Contracts come into force from the date of their signing by the Parties and shall remain valid until Parties have fully completed their obligations ensured by the pledge.


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, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.


Decision:

5.2.  To recommend the General Shareholders' Meeting of the company to approve conclusion of a guarantee agreement between the company and Vnesheconombank, representing an interested party transaction, on the following essential terms:

5.2.1. Parties to Contract:

Guarantor - JSC RusHydro;

Lender - Vnesheconombank.

5.2.2. Subject of Contract:

The Guarantor undertakes before the Creditor to be fully responsible for the performance, by JSC Boguchanskaya HPP, of its obligations under the credit drawn from Vnesheconombank (including obligations for repayment of the credit sum, interest and commission fees).

5.2.3. Basic parameters of the obligation secured by the guarantee:


Creditor

Vnesheconombank

Borrower

JSC Boguchanskaya HPP

Credit sum

28,100,000,000 (twenty-eight billion and one hundred million) rubles

Credit currency

rubles

Credit period (period until final redemption of the loan principal)

Up to December 20, 2026 (inclusive)

Rate of interest

1. Within the period until June 30, 2012 - fixed rate, equal to the refinancing rate of the Bank of Russia which is valid on the date of conclusion of the credit agreement plus maximum 2 per cent of the annual interest.

2. From June 30, 2012 ad on - variable rate equal to the refinancing rate of the Bank of Russia plus maximum 2 per cent of the annual interest. The rate is established starting from June 30, 2012 and is subject to be changed automatically on the dates of changes of the refinancing rate of the Bank of Russia, and to the extent of such change but it may not be less than 9.5 per cent per year.

Commission fee for credit granting

not exceeding 1 per cent of the credit sum

Commission fee for unexpended balance of the credit line

not exceeding 0.5 per cent per year


5.2.4. Contract Price:

The price of obligation secured by the guarantor is defined as an aggregate value of:

5.2.4.1. a bank credit to the sum of up to 28,100,000,000 (twenty-eight billion and one hundred million) rubles;

5.2.4.2. rate of interest:

- during the period until June 30, 2012 - fixed rate equal to the refinancing rate of the Bank of Russia which is valid on the date of conclusion of the credit agreement plus at most 2 per cent of the annual interest.

- from June 30, 2012 and on - variable rate equal to the refinancing rate of the Bank of Russia plus at most 2 per cent of the annual interest.

The rate is established starting from June 30, 2012 and is subject to be changed automatically on the dates of changes of the refinancing rate of the Bank of Russia, and to the extent of such change but it may not be less than 9.5 per cent per year.

5.2.4.3. commission fee for granting of credit in the amount not exceeding 1 per cent annual interest of the credit amount;

5.2.4.4. commission fee on the credit line unexpended balance in the amount not exceeding annual 0.5 per cent of the unexpended balance.

5.2.5. Terms and conditions of the contract entry into force:

- non-commencement of the equipment lease contracts until June 30, 2012;

- non-commencement of the agreement on pledge of the rights (claims) to receive the earnings against the equipment lease contracts, as security for performance of obligations taken by JSC Boguchanskaya HPP against the credit agreement, until June 30, 2012;

- non-fulfilment of obligations taken by either party under the equipment lease contracts;

- termination or suspension of the equipment lease contracts' force;

- loss or deterioration (except for natural wear) of items making the scope under the equipment lease contracts;

- non-insurance of items under the equipment lease contracts in accordance with the insurance programme recommended by an insurance broker;

- delay in performance of works, as per the project implementation schedule, by more than 10 months;

- overbalance of expenses for project implementation compared to the capital investment plan and absence of additional financing in the amount of such overbalance on the part of JSC RusHydro and/or Aluminium Group Ltd in the form of acquiring for moneys the bills of exchange held by JSC Boguchanskaya HPP and their transfer by way of pledge to the Creditor to ensure execution of obligations of JSC Boguchanskaya HPP against the credit agreement not later than 30 days from the date of identification of such overbalance;

- introduction of external management with regard to JSC Boguchanskaya HPP, taking a decision on its liquidation/restructuring by the General Shareholders' Meeting of JSC Boguchanskaya HPP.


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, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.


Matter 6: On encumbrance of shares in the possession of the company.


Decision:

6.1.  To approve the encumbrance of shares of CJSC Construction Organiser for Boguchanskaya HPP owned by the company (hereinafter referred to as the Shares) by concluding a pledge agreement between the company and Vnesheconombank, on the following essential terms:

Pledger - JSC RusHydro;

Secured Party - Vnesheconombank;

Subject of the agreement - the Pledger as a security of commitments of JSC Boguchanskaya HPP (Borrower) under a credit drawn from Vnesheconombank (including commitments for repayment of the credit sum, interest and commission fees) shall transfer to the Secured Party, by way of pledge and on conditions specified in Appendix 4 to this decision, the Shares.

Subject of the Pledge:

Type and category of securities

Ordinary registered shares

Name of the Issuer

CJSC Organizer of Construction of Boguchanskaya HPP

Quantity of securities (shares)

5100

State Registration Number

1-01-72017-N

Face value of one security (rubles)

1

Assessment of the subject of pledge (pledge value) (rubles)

3570

Agreement validity term - the agreement comes into force from the date of its signing by both Parties and is valid until completion of the obligation secured by pledge.


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, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 0

Decision made.


Decision:

6.2.  To approve the encumbrance of shares of CJSC Construction Customer for Boguchanskaya HPP owned by the company (further on referred to as Shares) by concluding a pledge agreement between the company and Vnesheconombank on the following essential terms:

Pledger - JSC RusHydro;

Secured Party - Vnesheconombank;

Subject of the agreement - the Pledger as a security of commitments of JSC Boguchanskaya HPP (Borrower) under a credit drawn from Vnesheconombank (including commitments for repayment of the credit sum, interest and commission fees) shall transfer to the Secured Party, by way of pledge and on conditions specified in Appendix 4 to this decision, the Shares.

Subject of the Pledge:

Type and category of securities

Ordinary registered shares

Name of the Issuer

CJSC Customer of Construction of Boguchanskaya HPP

Quantity of securities (shares)

4900

State Registration Number

1-01-72016-N

Face value of one security (rubles)

1

Assessment of the subject of pledge (pledge value) (rubles)

3430

Agreement validity term - the agreement comes into force from the date of its signing by both Parties and is valid until completion of the obligation secured by pledge.


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, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.


Decision:

6.3.  To approve the encumbrance of shares of CJSC Construction Organiser for Boguchansky Aluminium Smelter owned by the company (further on referred to as Shares) by concluding a pledge agreement between the company and Vnesheconombank on the following essential terms:

Pledger - JSC RusHydro;

Secured Party - Vnesheconombank;

Subject of the agreement - the Pledger shall, as security of commitments of CJSC BoAZ under a credit granted by Vnesheconombank (including commitments for repayment of credit sum, interest and commission fees) transfer to the Secured Party, by way of pledge and on conditions specified in Appendix 5 to this decision, the Shares.

Subject of the Pledge:

Type and category of securities

Ordinary registered shares

Name of the Issuer

CJSC Organizer of Construction of Boguchansky Aluminum Smelter

Quantity of securities (shares)

4900

State Registration Number

1-01-72010-N

Face value of one security (rubles)

1

Assessment of the subject of pledge (pledge value) (rubles)

3430

Agreement validity term - the agreement comes into force from the date of its signing by both Parties and is valid until completion of the obligation secured by pledge.


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, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.


Decision:

6.4.  To approve the encumbrance of shares of CJSC Construction Organiser for Boguchansky Aluminium Smelter owned by the company (further on referred to as Shares) by concluding a pledge agreement between the company and Vnesheconombank on the following essential terms:

Pledger - JSC RusHydro;

Secured Party - Vnesheconombank;

Subject of the agreement - the Pledger shall, as security of commitments of CJSC BoAZ under a credit granted by Vnesheconombank (including commitments for repayment of credit sum, interest and commission fees) transfer to the Secured Party, by way of pledge and on conditions specified in Appendix 5 to this decision, the Shares.

Subject of the Pledge:

Type and category of securities

Ordinary registered shares

Name of the Issuer

CJSC Customer of Construction of Boguchansky Aluminum Smelter

Quantity of securities (shares)

5100

State Registration Number

1-01-72015-N

Face value of one security (rubles)

1

Assessment of the subject of pledge (pledge value) (rubles)

3570

Agreement validity term - the agreement comes into force from the date of its signing by both Parties and is valid until completion of the obligation secured by pledge.


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, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.


Matter 7: On recommendations to the General Shareholders' Meeting of the company on a matter concerning increase in the authorised capital of the company by means of placing additional shares.


Decision:

7. Recommend that the General Shareholder's Meeting makes the following decision regarding the subject of "Increase of authorised capital of the company by means of placing additional shares":

7.1. To increase the authorised capital of the company by placing additional ordinary registered shares in the quantity of 1,860,000,000 (one billion, eight hundred and sixty million) shares with face value of 1 (one) ruble per each for the total amount by face value of 1,860,000,000 (one billion eight hundred and sixty million) rubles.

7.2. Method of placement is public offering.

7.3. The price for offering additional shares (including to persons included in the list of persons having pre-emptive right for acquisition of additional shares being placed) - at the price determined by the Board of Directors of the company in accordance with Articles 36, 77 of the Federal Law On Joint-Stock Companies.

7.4. Form of share payment - monetary assets.

7.5. Share payment procedure - the shares shall be paid in full upon their placement.


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, E. V. Dod, V. M. Zimin, B. Yu. Kovalchuk, V. V. Kudryavy, G. M. Kurtser, N. G. Kutyin, A. B. Malyshev, R. R. Sharipov)

"Against" - 0

"Abstained" - 1 (M. V. Seliverstova)

Decision made.





Chairman of the Board of Directors                                                                      S. I. Shmatko


Secretary of the Board of Directors                                                                      M. M. Davydov

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