Minutes of 02.04.2010 №94

MINUTES No. 94 OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors meeting

(date and time of vote counting):                                                April 2, 2010, 6.00 p.m.

(Moscow time)

Minutes Dated:                                                                          April 05, 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


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 financial incentives for the company's Top managers.

2. Amending the Provision on the company's investment activities.

3. On composition of the Investment Committee attached to the company's Board of Directors.

4. Charity and sponsorship activities of the company.

5. On approval of the company's corporate management code as newly amended.

6. On Report on the company's Management Board's activities for the second half of 2009.

7. On Report on fulfilment of the company's insurance coverage programme for the fourth quarter of 2009.

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

9. Approving the company's transactions:

9.1. On approval of the transaction with JSC MC HydroOGC is an interested party transaction.

9.2. On approval of the interested-party transactions with the SA of JSC RusHydro.

9.3. On approval of an interested-party transaction with JSC Zaramagskiye HPPs.

10. On 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.

10.1 On determination of opinion by issues related to conduction of annual general meetings of SA shareholders (participants).

10.2. On determination of opinion by issues regarding participation (change of participation share) of the company's SA in other organisations (CONFIDENTIAL).

11. Approval of contract terms with the company's Registrar.


RESULTS OF VOTING ON AGENDA:


Matter 1: On financial incentives for the company's Top managers.

Decision:

1.1.  To amend the Provision on financial incentives for Top managers of JSC RusHydro approved by resolution of the company's Board of Directors, on Dec 30, 2009 (minutes No. 91), according to Appendix 1.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


1.2.  To withhold payment of bonus for the results of financial and economic activities (KPI fulfilment) based on the results of the third and fourth quarters of 2009 and for 2009, to the company's Top managers of category 1 and 2.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


1.3.  To recommend the Management Board Chairman and heads of subsidiaries and affiliates (and their respective SA) of JSC RusHydro:

1.3.1. To make a decision to withhold bonus payment, based on the results of the company's financial and economic activities (KPI fulfilment) for the fourth quarter of 2009 and for 2009, to the employees of JSC RusHydro and JSC MC HydroOGC executive bodies and to the executives of JSC RusHydro subsidiary - Neporozhniy Sayano-Shushenskaya HPP;

1.3.2. To take decision to withhold payment of bonuses based on the results of financial and economic activities (KPI fulfilment) for the fourth quarter of 2009 and for 2009, to the Top managers of SA (and their respective SA);

1.3.3. To take decision on 50 per cent reduction of bonuses for the Lead managers of JSC RusHydro branches and for the Lead managers of SA (and their respective SA) based on the results of financial and economic activities (KPI fulfilment) for the fourth quarter of 2009 and for 2009.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


1.4.  To approve, from April 6, 2010, the list of positions included in the Top management category of JSC RusHydro as amended:

Category 1:

- Deputy Chairmen of the Management Board.

- The Management Board members.

Category 2:

- Directors of the subsidiaries and affiliates.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 2: Amending the Provision on the company's investment activities.

Decision:

To amend the Provision on the company's investment activities approved by a decision of the Board of Directors dated Aug 25, 2006 (minutes No. 23), with effect from Jan 01, 2010, with rewording of clause 7.2 to be read as follows: "7.2. Corporate procedures for IDP approval. The company shall ensure submission of the IDP approval issue for consideration of the Board of Directors. The IDPs are to be approved by the company's Board of Directors as part of the company's business plan. The company is entitled, based on a decision made by the Management Chairman and/or the Management Board, to implement its IP (Investment Programme) and make investments, including financing of the IPs contemplated in the IDPs, before the Board of Directors shall have approved the company's IDP, subject to strictly adhering to the IP composition, scope and its financing sources structure, as provided for in the company's IDP which had been approved by the Ministry of Energy of the Russian Federation in accordance with the established procedure".


Voting results:

"For" - 11 (S. I. Shmatko, A. B. Ballo, S. S. Beloborodov, 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)

"Against" - 0

"Abstained" - 1 (B. F. Vainzikher)

Decision made.


Matter 3: On composition of the Investment Committee attached to the company's Board of Directors.

Decision:

3.1.  To early terminate the powers of the members of the Investment Committee under the company's Board of Directors who were elected by the Board of Directors on July 23, 2009 (minutes No. 81 dated July 24, 2009).

3.2.  To elect the Investment Committee under the company's Board of Directors in the following composition:


1.

Dmitry Aleksandrovich Kozlov



Deputy Director of the Fuel and Energy Complex Investment Policy and Development Department attached to the Ministry of Energy of the Russian Federation

2.

Viktor Yuryevich Lebedev


Head of the Power Engineering Development Department of the State Tariff Regulation, Infrastructural Reforms and Energy Efficiency Agency attached to the Ministry of the Economic Development of the Russian Federation

3.

Denis Aleksandrovich Nozdrachev

Chairman of the Board

JSC JSCB Svyaz-Bank

4.

Mikhail Igorevich Poluboyarinov

Infrastructure Department Director of the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank)

5.

Elena Valentinovna Pomchalova


Head of the Federal Tariff Service Administration for Price Setting Control and Regulation in the Power Engineering Industry

6.

Mikhail Alekseevich Mantrov

Deputy Chairman of the Management Board

JSC RusHydro

7.

George Ilyich Rizhinashvili

Deputy Chairman of the Management Board

JSC RusHydro

8.

Wolfang Skribot


Managing Director of the Direct Investment Department of JSC Gazprombank

9.

Matvey Vladimirovich Taits

Senior Analyst of the Analytical Research Department of Uralsib Capital Limited

10.

Maria Gennadyevna Tikhonova


Deputy Director of the Economic Regulation and Property Relations Dept in the FEC of the Ministry of Energy of the Russian Federation

11.

Dmitry Ruslanovich Kostoev

Deputy General Director, Head of Economics and Finance Unit of JSC GMK Norilsk Nickel

12.

Andrey Vladimirovich Sharonov

Member of the Board of Directors of JSC RusHydro




3.3.  To elect Andrey Vladimirovich Sharonov as Chairman of the Investment Committee under the company's Board of Directors.


Voting results:

"For" - 11 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 4: Charity and sponsorship activities of the company.

Decision:

4.1.  To approve the Programme of charitable and sponsorship activities of JSC RusHydro for 2010 (Appendix 2).

4.2.  To allow financing, by E. V. Dod, the Chairman of the Management Board, of the Programme of charitable and sponsorship activities in JSC RusHydro for 2010 in accordance with Appendix 2.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 5: On approval of the company's corporate management code as newly amended.

Decision:

Approve the Corporate Governance Code of JSC RusHydro as amended (Appendix 3).


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 6: On Report on the company's Management Board's activities for the second half of 2009.

Decision:

Take note of the report on activities of the Management Board's for the second half of 2009 (Appendix 4).


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 7: On the Report on fulfilment of the company's Insurance Coverage Programme for the fourth quarter of 2009.

Decision: To take note of the Report on Implementation of the Open Joint Stock Company RusHydro Insurance Coverage Programme for the fourth quarter of 2009 (Appendix 5).


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 8: Holding more than one office by the company's Chairman of the Management Board and members of Management Board in other organisations.

Decision:

8.1.  To approve positions overlapping of Evgeny Vyacheslavovich Dod, the Chairman of the Management Board, as a member of JSC Irkutskenergo Board of Directors and a member of the Supervisory Board of the Open Joint Stock Company All-Russian Regional Development Bank.

8.2.  To approve positions overlapping of Evgeny Vyacheslavovich Dod, the Chairman of the Management Board, Vasily Aleksandrovich Zubakin, Deputy Chairman of the Management Board, and Rakhmetulla Shamshievich Alzhanov, member of the Management Board, as members of the Supervisory Board of NP Hydro Power Engineering of Russia.

8.3.  To approve positions overlapping of Rakhmetulla Shamshievich Alzhanov, member of the Management Board, as a member of the Supervisory Board of NP Counsel of Power Engineering Veterans.

8.4.  To approve positions overlapping of Rustem Zakievich Khamitov Deputy Chairman of the Management Board, as General Director of the Open Joint Stock Company Scientific and Research Institute of Energy Structures.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 9: Approving the company's transactions:

9.1. On approval of the transaction with JSC MC HydroOGC is an interested party transaction.

Decision:

9.1.1. To specify that a monthly rental value under a Rental contract concluded between JSC RusHydro and JSC MC HydroOGC equals to 20,308.72 (twenty thousand, three hundred and eight) rubles 72 kopecks per 1 (one) square meter per year, including VAT (18 per cent) - 3097.94 (three thousand and ninety seven) rubles 94 kopecks.

9.1.2. To approve the conclusion of an office space lease contract between JSC RusHydro and JSC MC HydroOGC as constituting an interested party transaction, under the following essential terms: Parties to Contract:

The Lessee is JSC MC HydroOGC. The Lessor is JSC RusHydro.

Subject of Contract:

The subject of this contract is transfer, by the Lessor, at a certain charge, for temporary possession and use by the Lessee, of the following immovable property (hereinafter referred to as the Premises) - non-living premises with total area of 325.2 square meters, namely:

6th floor, premises 1, 5, 9, 10, 11, 13, 16, 29, 39, 40, 50, rooms No. 6.01, 6.02, 6.03, 6.06, 6.07, 6.08, 6.10, 6.13, 6.23, 6.24, 6.25, 6.16 located at the following address: Moscow, Arkhitektora Vlasova Str., 51.

The premises are transferred to the Lessee to be used as office space.

The premises belong to the Lessee upon the ownership right, which is confirmed by the Certificate of title registration with the state No. 77 АК 096825 dated February 17, 2009, No. 77 АК 096823 dated February 17, 2009, No. 77 AK 096822 dated February 17, 2009.

Contract Price:

The lease payment rate under this Contract amounts to 20,308.72 (twenty thousand, three hundred and eight) rubles 72 kopecks per 1 (one) square meter per year, including VAT (18 per cent) - 3097.94 (three thousand and ninety seven) rubles 94 kopecks. The lease payment includes the payment for use of the Premises, utility and maintenance, cleaning and security services as well as for use of electronic communications located in the Premises and providing the operation of telephone and computer networks.

The total amount of lease payment equals to 550,365.28 (five hundred and fifty thousand, three hundred and sixty-five) rubles 28 kopecks per month, including VAT (18 per cent) - 83,954.03 (eighty three thousand, nine hundred and fifty-four) rubles 03 kopecks.

Effective Period of Contract:

The present contract comes into force from the date of its signing and is valid up to April 1, 2011.


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, O. V. Surikov, V. V. Tatsy)

"Against" - 0

"Abstained" - 0

Decision made.

Members of JSC RusHydro's Board of Directors, V. A. Zubakin and R. Z. Khamitov, also being members of the company's collective executive body and, in this connection, not considered as independent directors, did not take part in voting.


9.2. On approval of the interested-party transactions with the SA of JSC RusHydro.

Decision:

9.2.1.1. To specify that the cost of services rendered by JSC RusHydro (by JSC RusHydro's subsidiary - KorUnG) and acquired by JSC MC HydroOGC under a fee-based service contract concluded between JSC RusHydro and JSC MC HydroOGC and representing an interested party transaction, equals to, at most, 588,000 (five hundred and eighty-eight thousand) rubles including VAT (18 per cent) - 89,694 (eighty nine thousand six hundred and ninety four) rubles 92 kopecks.

9.2.1.2. To approve conclusion of a fee-based service contract between JSC RusHydro and JSC MC HydroOGC, being an interested party transaction, under the following essential terms: Parties to Contract:

Executor - JSC RusHydro (JSC RusHydro's subsidiary - KorUnG). Customer - JSC MC HydroOGC.

Subject of Contract:

The Customer shall assign and the Executor shall undertake to conduct training for the Customer's representatives in accordance with the topical calendar of training courses provided by JSC RusHydro's Subsidiary - KorUnG, for 2010.

Contract Price:

The contract price does not exceed 588,000 (five hundred and eighty-eight thousand) rubles, including VAT (18 per cent) - 89,694 (eighty-nine thousand six hundred and ninety four) rubles 92 kopecks.

Effective Period of Contract:

The present contract comes into force from the date of its signing by the Parties hereto and is valid until December 31, 2010 inclusive.


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, O. V. Surikov, V. V. Tatsy)

"Against" - 0

"Abstained" - 0

Decision made.

Members of JSC RusHydro's Board of Directors, V. A. Zubakin and R. Z. Khamitov, also being members of the company's collective executive body and, in this connection, not considered as independent directors, did not take part in voting.


9.2.2.1. To specify that the cost of services rendered by JSC RusHydro (by JSC RusHydro's Subsidiary - KorUnG) and acquired by JSC Zagorskaya PSHPP-2 under a fee-based service contract concluded between JSC RusHydro and JSC Zagorskaya PSHPP-2 representing an interested party transaction shall not exceed 588,000 (five hundred and eighty-eight thousand) rubles including VAT (18 per cent) - 89,694 (eighty-nine thousand, six hundred and ninety four) rubles 92 kopecks.

9.2.2.2. To approve conclusion of a fee-based service contract between JSC RusHydro and JSC Zagorskaya PSHPP-2 representing an interested party transaction, under the following essential terms: Parties to Contract:

Executor - JSC RusHydro (JSC RusHydro's subsidiary - KorUnG). Customer - JSC Zagorskaya PSHPP-2.

Subject of Contract:

The Customer shall assign and the Executor shall undertake to conduct training for the Customer's representatives in accordance with the topical calendar of training courses provided by JSC RusHydro's Subsidiary - KorUnG, for 2010.

Contract Price:

The contract price does not exceed 588,000 (five hundred and eighty-eight thousand) rubles, including VAT (18 per cent) - 89,694 (eighty-nine thousand six hundred and ninety four) rubles 92 kopecks.

Effective Period of Contract:

The present contract comes into force from the date of its signing by the Parties hereto and is valid until December 31, 2010 inclusive.


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, O. V. Surikov, V. V. Tatsy)

"Against" - 0

"Abstained" - 0

Decision made.

Members of JSC RusHydro's Board of Directors, V. A. Zubakin and R. Z. Khamitov, also being members of the company's collective executive body and, in this connection, not considered as independent directors, did not take part in voting.


9.2.3.1. To specify that the cost of services rendered by JSC RusHydro (by JSC RusHydro's Subsidiary - KorUnG) and acquired by JSC Zaramagskiye HPPs under a fee-based service contract concluded between JSC RusHydro and JSC Zaramagskiye HPPs and representing an interested party transaction shall not exceed 588,000 (five hundred and eighty-eight thousand) rubles including VAT (18 per cent) - 89,694 (eighty-nine thousand six hundred and ninety four) rubles 92 kopecks.

9.2.3.2. To approve conclusion of a fee-based service contract between JSC RusHydro and JSC Zaramagskiye HPPs representing an interested party transaction, under the following essential terms: Parties to Contract:

Executor - JSC RusHydro (JSC RusHydro's subsidiary - KorUnG). Customer - JSC Zaramagskiye HPPs.

Subject of Contract:

The Customer shall assign and the Executor shall undertake to conduct training for the Customer's representatives in accordance with the topical calendar of training courses provided by JSC RusHydro's Subsidiary - KorUnG, for 2010.

Contract Price:

The contract price does not exceed 588,000 (five hundred and eighty-eight thousand) rubles, including VAT (18 per cent) - 89,694 (eighty-nine thousand six hundred and ninety four) rubles 92 kopecks.

Effective Period of Contract:

The present contract comes into force from the date of its signing by the Parties hereto and is valid until December 31, 2010 inclusive.


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, O. V. Surikov, V. V. Tatsy)

"Against" - 0

"Abstained" - 0

Decision made.

Members of JSC RusHydro's Board of Directors, V. A. Zubakin and R. Z. Khamitov, also being members of the company's collective executive body and, in this connection, not considered as independent directors, did not take part in voting.


9.2.4.1. To specify that the cost of services rendered by JSC RusHydro (by JSC RusHydro's Subsidiary - KorUnG) and acquired by JSC Kolymaenergo under a fee-based service contract concluded between JSC RusHydro and JSC Kolymaenergo and representing an interested party transaction, shall not exceed 588,000 (five hundred and eighty eight thousand) rubles including VAT (18 per cent) - 89,694 (eighty nine thousand six hundred and ninety four) rubles 92 kopecks.

9.2.4.2. To approve the conclusion of a fee-based service contract between JSC RusHydro and JSC Kolymaenergo representing an interested party transaction, under the following essential terms: Parties to Contract:

Executor - JSC RusHydro (JSC RusHydro's subsidiary - KorUnG). Customer - JSC Kolymaenergo.

Subject of Contract:

The Customer shall assign and the Executor shall undertake to conduct training for the Customer's representatives in accordance with the topical calendar of training courses provided by JSC RusHydro's Subsidiary - KorUnG, for 2010.

Contract Price:

The contract price does not exceed 588,000 (five hundred and eighty-eight thousand) rubles, including VAT (18 per cent) - 89,694 (eighty-nine thousand six hundred and ninety four) rubles 92 kopecks.

Effective Period of Contract:

The present contract comes into force from the date of its signing by the Parties hereto and is valid until December 31, 2010 inclusive.


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, O. V. Surikov, V. V. Tatsy)

"Against" - 0

"Abstained" - 0

Decision made.

Members of JSC RusHydro's Board of Directors, V. A. Zubakin and R. Z. Khamitov, also being members of the company's collective executive body and, in this connection, not considered as independent directors, did not take part in voting.


9.2.5.1. To specify that the cost of services rendered by JSC RusHydro (by JSC RusHydro's Subsidiary - KorUnG) and acquired by JSC Ust-Srednekanskaya HPP under a fee-based service contract concluded between JSC RusHydro and JSC Ust-Srednekanskaya HPP and representing an interested party transaction shall not exceed 588,000 (five hundred and eighty eight thousand) rubles including VAT (18 per cent) - 89,694 (eighty nine thousand six hundred and ninety four) rubles 92 kopecks.

9.2.5.2. To approve the conclusion of a fee-based service contract between JSC RusHydro and JSC Ust-Srednekanskaya HPP being an interested party transaction, under the following essential terms: Parties to Contract:

Executor - JSC RusHydro (JSC RusHydro's subsidiary - KorUnG). Customer - JSC Ust-Srednekanskaya HPP.

Subject of Contract:

The Customer shall assign and the Executor shall undertake to conduct training for the Customer's representatives in accordance with the topical calendar of training courses provided by JSC RusHydro's Subsidiary - KorUnG, for 2010.

Contract Price:

The contract price does not exceed 588,000 (five hundred and eighty-eight thousand) rubles, including VAT (18 per cent) - 89,694 (eighty-nine thousand six hundred and ninety four) rubles 92 kopecks.

Effective Period of Contract:

The present contract comes into force from the date of its signing by the Parties hereto and is valid until December 31, 2010 inclusive.


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, O. V. Surikov, V. V. Tatsy)

"Against" - 0

"Abstained" - 0

Decision made.

Members of JSC RusHydro's Board of Directors, V. A. Zubakin and R. Z. Khamitov, also being members of the company's collective executive body and, in this connection, not considered as independent directors, did not take part in voting.


9.3. On approval of an interested-party transaction with JSC Zaramagskiye HPPs.

Decision:

9.3.1. To specify that a monthly rental payment under a lease contract concluded between JSC RusHydro and JSC Zaramagskiye HPPs equals to 17,587,853 (seventeen million five hundred and eighty seven thousand eight hundred and fifty three) rubles 08 kopecks including VAT (18 per cent) - 2,682,892 (two million six hundred and eighty two thousand eight hundred and ninety two) rubles 84 kopecks.

Lease payment value under the Contract amounts to 123,114,971 (one hundred and twenty-three million, one hundred fourteen thousand, nine hundred and seventy-one) rubles 55 kopecks, including VAT (18 per cent) - 18,780,249 (eighteen million seven hundred and eighty thousand two hundred and forty nine) rubles 90 kopecks.

9.3.2. To approve conclusion of an equipment lease contract between JSC RusHydro and JSC Zaramagskiye HPPs being an interested party transaction, under the following essential terms:

Parties to Contract:

The Lessee - JSC RusHydro. The Lessor - JSC Zaramagskiye HPPs.

Subject of Contract:

JSC Zaramagskiye HPPs shall transfer into temporary possession and use of JSC RusHydro the following immovable and movable property (hereinafter referred to as the Property) specified in Appendix 6, and JSC RusHydro shall accept the Property and pay the lease payment in the amount and within terms specified in the Contract.

Contract rental payment value:

A monthly rental payment under a lease contract concluded between JSC RusHydro and JSC Zaramagskiye HPPs equals to 17,587,853 (seventeen million, five hundred and eighty-seven thousand, eight hundred and fifty-three) rubles 08 kopecks including VAT (18 per cent) - 2,682,892 (two million, six hundred and eighty-two thousand, eight hundred and ninety-two) rubles 84 kopecks. Lease payment value under the Contract amounts to 123,114,971 (one hundred and twenty-three million, one hundred fourteen thousand, nine hundred and seventy-one) rubles 55 kopecks, including VAT (18 per cent) - 18,780,249 (eighteen million seven hundred and eighty thousand two hundred and forty nine) rubles 90 kopecks.

Effective Period of Contract:

The contract comes into effect from the date of its signing and is valid until Parties have completed their duties in full. The parties have established that the terms and conditions of this Contract apply to the parties' relations initiated from 00.00 a.m. of June 1, 2010.

Property lease term:

From 00.00 a.m. of June 1, 2010 to 24.00 p.m. of December 31, 2010 inclusive.

If, not later than 10 days before the end of property lease term, none of the Parties has declared the end of lease term, then the Contract shall be deemed to be extended on the same terms and conditions for 3 months.


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, O. V. Surikov, V. V. Tatsy)

"Against" - 0

"Abstained" - 0

Decision made.

Members of JSC RusHydro's Board of Directors, V. A. Zubakin and R. Z. Khamitov, also being members of the company's collective executive body and, in this connection, not considered as independent directors, did not take part in voting.


Matter 10: On determination of company's (company representatives') opinion regarding the issues put on agendas of the Board of Directors Meetings and General Shareholders (participants) Meetings of the company's subsidiaries and affiliates (SA):

10.1. On determination of opinion by issues related to conduction of annual general meetings of SA shareholders (participants).


Decision:

To instruct JSC RusHydro's representatives in the SA' Boards of Directors to vote FOR the following matters to be included, as necessary, in the agendas of SA General shareholders (participants) meetings:

- On introduction of changes to the company's Articles of Association (on approval of the company's Articles of Association as amended);

- On procedure of remuneration payments to the members of the company's Board of Directors;

- On procedure of remuneration payments to the members of the company's Audit Commission.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


COMMERCIAL SECRET COPIES No. 1


10.2.  On determination of opinion by issues regarding participation (change of participation share) of the company's SA in other organisations (CONFIDENTIAL).

Decision:

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


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.


Matter 11: Approval of contract terms with the company's Registrar.

Decision:

11.1.  To approve contract terms with the company Registrar engaged to keep and store the register of owners of the company's registered equity securities in accordance with Appendix 7.

11.2. To deem the decision No. 58 dated June 23, 2008 of JSC RusHydro's Board of Directors regarding the issue No. 12 "On Approval of Contract Terms with the company's Registrar" to have lost its power.


Voting results:

"For" - 12 (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)

"Against" - 0

"Abstained" - 0

Decision made.





Chairman of the Board of Directors                                                   S. I. Shmatko


Secretary of the Board of Directors                                                   M. M. Davydov

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