Minutes of 11.05.2010 №97

Minutes No. 97 of the Board of Directors Meeting


Date and time of the Board of Directors Meeting 

(date and time of vote counting):                                                    May 11, 2010, 6.00 p.m.

                                                                                                   (Moscow time)

Minutes Dated:                                                                              May 11, 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

                                                                                                   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. Approval of a list and target values of key performance indicators and indicative parameters of JSC RusHydro for 2010.

2. Introduction of amendments to the Procedure for key performance indicators calculation and estimation of JSC RusHydro.

3. Introduction of amendments to the company's Insurance Coverage Programme for 2010.

4. Approval of the company's non-core assets register.

5. Holding more than one office by the company's Chairman of the Management Board and members of Management Board in other organisations.

6. Concerning the company's participation in other companies.

7. Change of the company's participation share in other companies.

8. Approving the company's transactions:

8.1. Approval of an interested party transaction with JSC South Yakutia HGC.

9. 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.

9.1. Determination of the opinion regarding the company's SA participation in self-regulated organisations.

10. On managing shares owned by JSC RusHydro (CONFIDENTIAL).


RESULTS OF VOTING ON AGENDA:


Matter 1: Approval of a list and target values of key performance indicators and indicative parameters of JSC RusHydro for 2010.

Decision:

1.1. Approve the list and target values of annual and quarterly key performance indicators of JSC RusHydro for 2010 (Appendix 1).

1.2. Approve the list and target values of annual indicative parameters of JSC RusHydro for 2010 (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 2: Introduction of amendments to the Procedure for key performance indicators calculation and estimation of JSC RusHydro.

Decision:

2.1. Introduce amendments to the decisions made by JSC RusHydro's Board of Directors dated 26.09.2008 (minutes No. 62) and dated 24.12.2008 (minutes No. 69) according to appendix 3.

2.2. Establish that amendments specified in clause 2.1 of the present decision come into force during calculation and assessment of the company's KPI for 2010 and further on.


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: Introduction of amendments to the company's Insurance Coverage Programme for 2010.

Decision:

Introduce amendments to the Insurance Coverage Programme of JSC RusHydro for 2010 approved by a decision of JSC RusHydro's Board of Directors dated 30.12.2009 (minutes No. 91) in accordance with 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 4: Approval of the company's non-core assets register.

Decision:

4.1. Approve the company's non-core assets register in accordance with Appendix 5 and Appendix 6.

4.2. Instruct the company's Management Board to review a work progress report in accordance with the company's non-core assets register for 2010 at the meeting of the Board of Directors not later than February 28, 2011.


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: Holding more than one office by the company's Chairman of the Management Board and members of Management Board in other organisations.

Decision:

5.1. Approve holding posts of member of the Board of Directors of the Open Joint-Stock Company Construction Engineering and Management Center of the Unified Energy Grid, Open Joint-Stock Company the South Interregional Distribution Company, Open Joint-Stock Company the North Caucasus Interregional Distribution Company, by Aleksey Viktorovich Maslov, member of the Management Board.

5.2. Approve holding posts of member of the Board of Directors of Closed Joint-Stock Company Industrial Power Company, member of the Management Board of Closed Joint-Stock Company Nizhnevartovskaya SDPP, by Konstantin Valeryevich Bessmertny, member of the Management Board.


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: Concerning the company's participation in other companies.

Decision:

Approve participation of JSC RusHydro in CJSC Malaya Dmitrovka on the following terms:

- seller: JSC Ferro-Stroy;

- buyer: JSC RusHydro;

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share;

- number of acquired shares: 400,000,000 (four hundred million) pieces;

- share market price: 2,300,000,000 (two billion and three hundred million) rubles 00 kopecks (the price has been defined by an independent assessment organisation - LLC Institute for Enterprise Issues);

- share acquisition price: not exceeding the real share market price;

- the method of share payment - monetary assets;

- share of JSC RusHydro in the authorised capital of CJSC Malaya Dmitrovka before share acquisition is zero per cent; share of JSC RusHydro in the authorised capital of CJSC Malaya Dmitrovka after share acquisition is 100 per cent.


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: Change of the company's participation share in other companies.

Decision:

7.1. Approve participation of JSC RusHydro in CJSC Technopark Rumyantsevo on the following conditions:

- seller: JSC MC HydroOGK;

- buyer: JSC RusHydro;

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share; -          number of the acquired shares: 1 (one) share;

- share acquisition price: 54 (fifty-four) rubles 71 kopecks (as per the balance sheet value);

- method of share payment - monetary assets;

- share of JSC RusHydro in the authorised capital of CJSC Technopark Rumyantsevo before share acquisition is zero per cent; share of JSC RusHydro in the authorised capital of CJSC Technopark Rumyantsevo after share acquisition is 0.000005 per cent.


Voting results:

"For" - 10 (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, V. V. Tatsy, A. V. Sharonov)

"Against" - 0

"Abstained" - 0

Decision made.


7.2. Approve participation of JSC RusHydro in CJSC HydroEngineering Siberia on the following terms:

- seller: JSC MC HydroOGK;

- buyer: JSC RusHydro;

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share;

- number of acquired shares: 3,000,000 (three million) pieces;

- share acquisition price: 3,000,000 (three million) rubles (as per the balance sheet value);

- method of share payment - monetary assets;

- share of JSC RusHydro in the authorised capital of CJSC HydroEngineering Siberia before share acquisition is 99 per cent; share of JSC RusHydro in the authorised capital of CJSC HydroEngineering Siberia after share acquisition is 100 per cent.


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.


7.3. Approve participation of JSC RusHydro in a private limited company HYDROOGK ALUMINIUM COMPANY LIMITED on the following conditions:

- seller: JSC MC HydroOGK;

- buyer: JSC RusHydro;

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share; -          number of the acquired shares: 1 (one) share;

- share acquisition price: 59 (fifty-nine) rubles 54 kopecks (as per balance sheet value);

- method of share payment - monetary assets;


- share of JSC RusHydro in the authorised capital of HYDROOGK ALUMINIUM COMPANY LIMITED before share acquisition is 100 per cent - 1 share; share of JSC RusHydro in the authorised capital of HYDROOGK ALUMINIUM COMPANY LIMITED after share acquisition is 100 per cent.


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.


7.4. Approve participation of JSC RusHydro in a private limited company HYDROOGK ALUMINIUM COMPANY LIMITED under the following conditions:

- seller: JSC MC HydroOGK;

- buyer: JSC RusHydro;

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share; - number of the acquired shares: 1 (one) share;

- share acquisition price: 59 (fifty-nine) rubles 54 kopecks (as per balance sheet value);

- method of share payment - monetary assets;

- share of JSC RusHydro in the authorised capital of HYDROOGK POWER COMPANY LIMITED before share acquisition is 100 per cent - 1 share; share of JSC RusHydro in the authorised capital of HYDROOGK POWER COMPANY LIMITED after share acquisition is 100 per cent.


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.


7.5. Instruct the company's representatives in the Board of Directors of JSC MC HydroOGK to vote FOR the following decisions:

7.5.1. Approve termination of participation of JSC MC HydroOGK in CJSC Technopark Rumyantsevo on the following conditions:

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share;

- quantity of the carved-out shares: 1 (one) share;

- share carve-out price: 54 (fifty-four) rubles 71 kopecks (as per the balance sheet value),

- method of share payment - monetary assets;

- Buyer - JSC RusHydro.


7.5.2. Approve termination of participation of JSC MC HydroOGK in CJSC HydroEngineering Siberia on the following conditions:

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share;

- quantity of the carved-out shares: 3,000,000 (three million) pieces;

- share carve-out price: 3,000,000 (three million) rubles (as per the balance sheet value);

- method of share payment - monetary assets;

- Buyer - JSC RusHydro.


7.5.3. Approve termination of participation of JSC MC HydroOGK in HYDROOGK ALUMINIUM COMPANY LIMITED on the following terms:

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share;

- quantity of the carved-out shares: 1 (one) share;

- share carve-out price: 59 (fifty-nine) rubles 54 kopecks (as per balance sheet value);

- method of share payment - monetary assets;

- Buyer - JSC RusHydro.


7.5.4. Approve termination of participation of JSC MC HydroOGK in a private limited company HYDROOGK POWER COMPANY LIMITED on the following conditions:

- category, type, nominal value of shares: ordinary registered shares with the par value of 1 (one) ruble per share;

- number of acquired shares: 1 (one) share;

- share acquisition price: 59 (fifty-nine) rubles 54 kopecks (as per the balance sheet value);

- method of share payment - monetary assets;

- buyer - JSC RusHydro.


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.


7.6. Approve conclusion of interested party transactions relating to purchasing shares on the terms stated in clauses 7.1-7.4 of the present decision.


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.


R. Z. Khamitov, member of the company's collective executive body, who is not considered an independent director in this connection, and V. A. Zubakin, recognised as a transaction interested party and who was the person executing functions of the company's sole executive body within a year preceding a decision, and who is not recognised as an independent director, did not participate in voting on matter 7.


Matter 8: Approving the company's transactions:

8.1. Approval of an interested party transaction with JSC South Yakutia HGC.


Decision:

8.1. Establish that the sum of non-interest bearing loan provided as per the loan agreement between JSC RusHydro and JSC South Yakutia HGC which is an interested party transaction, is 2,166,600,000.00 (two billion, one hundred and sixty-six million, six hundred thousand) rubles 00 kopecks.

8.2. To approve conclusion of the loan contract which is an interested party transaction on the following essential terms:

Parties to Contract:

JSC South Yakutia HGC (Borrower) and JSC RusHydro (Lender).

Subject of Contract: The Lender agrees that he shall transfer possession of the sum of money to the Borrower to the amount of the loan sum within the terms stipulated by the contract, and the Borrower agrees that he shall repay the loan sum to the Lender as and when stipulated by the contract.

Targeted Use of the Loan Sum: The loan is provided to finance development of design documents for the construction of Kankunskaya HPP as a part of the investment project Development of Design Documents for Kankunskaya Hydro Power Plant and the Facilities of Power Grid Infrastructure, implemented in accordance with the terms of the Investment agreement No. А7-25-s/09 dated 05.06.2009.

Loan Sum: The sum of money transferred to the ownership of the Borrower and subject to repayment equals to 2,166,600,000 (two billion, one hundred and sixty-six million, six hundred thousand) rubles as per the loan contract.

Interest is accrued to the loan sum on the following rate: Interest free (zero per cent).

Terms of Loan Granting: The loan sum is granted to the Borrower no later than 01.10.2011 on the basis of Borrower's request and transferred from the Lender's bank account to the Borrower's bank account opened in the Vnesheconombank by the details indicated by the Borrower in corresponding Requests.

Loan repayment term: The Borrower shall be obliged to repay the Loan sum to the Lender in full amount by 25.12.2011 by way of money transfer to the Lender's bank account.

Terms of Pre-Term Repayment: Pre-term full or partial loan repayment shall be allowed.

Loan Contract Validity Period: the contract comes into force from the moment of its signing by the parties and remains in force until full fulfilment of obligations by the parties stipulated by the agreement.


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.


R. Z. Khamitov, member of the company's collective executive body, who is not considered an independent director in this connection, and V. A. Zubakin, recognised as a transaction interested party and who was the person executing functions of the company's sole executive body within a year preceding a decision, and who is not recognised as an independent director, did not participate in voting.


Matter 9: 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.

9.1. Determination of the opinion regarding the company's SA participation in self-regulated organisations.


Decision:

9.1. Instruct the company's representatives in the Boards of Directors of subsidiaries and affiliates (SA) of JSC RusHydro, in the issues of participation of the SA in self-regulated organisations created in the form of non-commercial partnerships with the purpose of admission to perform building activities (including engineering surveys, architectural designing, reconstruction and complete overhaul of capital structures), carrying out energy inspections as well as performance of other activities requiring, in accordance with the legislation in effect, participation in self-regulated organisation, voting FOR the participation of the SA of the company in the stated self-regulated organisation on the terms defined by the company's Management Board.

9.2. Instruct the company's Management Board to define the terms of SA entering (including the amount of membership and other dues) self-regulated organisations stated in clause 9.1 of the present decision.


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.


COMMERCIAL SECRET COPIES No. 1


Matter 10: On managing shares owned by JSC RusHydro (CONFIDENTIAL).

Decision:

The text of the resolution made by the Board of Directors contains confidential information.


Voting results:

"For" - 12 (S. I. Shmatko, 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" - 1 (A. B. Ballo)

Decision made.





Chairman of the Board of Directors                                     S. I. Shmatko


Secretary of the Board of Directors                                     M. M. Davydov

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