RHD Foundation

Terms and conditions of the auction

Address Perm territory, Perm district

Lease right price (initial price)

487 000 (four hundred eighty seven thousand) rubles, including VAT 18%.

Bidding step20 000 (twenty thousand) rubles.

Lease paymentFirst six quarters (grace period):

1 667 023 (one million six hundred sixty six thousand twenty three) rubles 50 kopeks a year, including VAT

18%

Starting from the seventh quarter (main period): 5 001 070 (five million one thousand seventy) rubles 50

kopecks a year including VAT 18%

Redemption of the land plot after expiration of the lease agreement*

121 302 (one hundred twenty one thousand three hundred and two), VAT exempt.

Land plot area 87 900 square m

Duration of lease of the land plot 3 (three) years

Maximum period of preparation of the land planning and surveying projects 8 (eight) months

Maximum period of construction of engineering infrastructure facilities 3 (three) years

Maximum period of housing and other construction 3 (three) years

* The redemption may be carried out at any stage of the land plot development after the land planning and surveying project is approved and new land plots are formed. The territories of general use and land plots under residential houses with flats transferred into ownership of individuals shall not be redeemed.

RHD Foundation- 2 -

Convenient Payment Schedule

The convenient payment schedule implies optimal ratio of three components of payment for the land plot :

1. Based on the assessment performed in accordance with the legislation of the Russian Federation on assessment

activity the startup value of payment for the right to conclude the RHD Foundation’s land plot lease agreement was

determined but its final value shall be determined during the action;

2. The lease payments shall be distributed for the whole construction period so that the lease payment reduced by

two times is established for the land plot, the right of conclusion of the lease agreement of which is acquired at the

action (hereinafter referred to as the “land plot”) or the land plots which are formed as a result of land surveying in

accordance with the land surveying project (hereinafter referred to as the “formed land plots”) for the first six quarters

from the date of signing the land plot acceptance and transfer certificate. The part by which the lease payment for the

grace period is reduced shall be evenly distributed for all years of lease of the land plot or formed land plots following

after the expiration of the grace period till the end of development of the territory.

3. The redemption price of the formed land plots shall be determined in accordance with the rates for the plots of

land in state or municipal ownership approved by state authorities of the constituent entity of the Russian Federation.

During implementation of the measures on complex development of land plots for the purpose of housing construction

the lease agreements for the formed land plots shall be terminated after the facilities built thereon are commissioned.

Thus, while the annual lease rate remains the same, the lease payment amount will be changed depending on the land

development.