RHD Foundation

Main conditions of the auction

Address Novosibirsk Region, Novosibirsk District

Lease right price (initial price)

8 768 000 (eight million seven hundred sixty-eight thousand) rubles, including VAT 18%

Bidding step400 000 (four hundred thousand) rubles.

Lease paymentFirst four quarters (grace period):

14 416 292 (fourteen million four hundred sixteen thousand two hundred ninety-two) rubles 50 kopecks a

year including VAT 18%

Starting from the fifth quarter (main period): 29 792 671 (twenty-nine million seven hundred ninety-two thousand six hundred seventy-one) rubles 17 kopeks a year

including VAT 18%

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

6,434,740 (six million four hundred thirty-four thousand seven hundred and forty) rubles, VAT exempt.

Area of the land plots (Cadastral number: 54:19:142601:887, 54:19:142601:888)

2 474 900 sq. m

The duration of lease of the Plots is 16 (sixteen) years

Maximum period of preparation of the land planning and surveying projects 1 (one) year

Maximum period of construction of engineering infrastructure facilities 16 (sixteen) years

Maximum period of housing and other construction 16 (sixteen) 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 auction;

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

auction (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 four quarters

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

commissioned. Thus, while the annual lease rate remains the same, the lease payment amount will be changed depending

on the land development.