RHD Foundation

Main conditions of the auction

AddressRepublic of Tatarstan,

Laishevsky District, (16:24:150304:120)

Lease right price (initial price)

12 048 000 (twelve million forty eight thousand) rubles, including VAT 18%

Bidding step500 000 (five hundred thousand) rubles.

Lease paymentFirst eleven quarters (grace period):

12 646 116 (twelve million six hundred forty-six thousand one hundred and sixteen) rubles 00

kopecks a year including VAT 18%

Starting from the twelfth quarter (main period):

33 475 012 (thirty-three million four hundred seventy-five thousand and twelve) rubles 94

kopeks a year, including VAT 18%

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

2 660 448 (two million six hundred sixty thousand four hundred forty-eight) rubles 00 kopeks, VAT

exempt.

Area of the land plots 1 797 600 sq. m

The duration of lease of the plots is 7 (seven) years

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

Maximum period of construction of engineering infrastructure facilities 7 (seven) years

Maximum period of housing and other construction 7 (seven) 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 eleven

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.