Article 6 Authorized Capital and its Formation

The PARTNERS shall make contributions to build the JV Autorized Capital required to set up and operate the JV. The original size of the Autorized Capital shall be ... rubles.

The PARTNERS shall make the following original contributions:

RUSSIAN PARTNER - ... rubles, i.e. ... % of the Authorized Capital;

FOREIGN PARTNER - ... rubles, i.e. ... % of the Authorized Capital.

These contributions into the Authorized Capital in compliance with the existing RF law may include buildings, structures, machinery and other assets, the right of use of buildings, structures, machinery as well as other property rights (including use of inventions, know-how, trademark, etc.), cash facilities both in the currencies of the PARTNERS' countries and in FCC.

The PARTNERS shall appraise the assets contributed into the Authorized Capital according to the agreed prices with due account of the world market prices.

Cash contributed by the PARTNERS in rubles or assets appraised in rubles shall be also converted into the agreed foreign currency in conformity with the official Central Bank exchange rate valid on the date of conversion.

The PARTNERS shall receive a respective document (investment certificate) which certifies the amount of contribution made by each PARTNER into the JV Authorized Capital.

The JV PARTNERS shall have separate rights neither for individual portions of the JV assets nor for the contributions. Each PARTNER's contribution may be assigned, mortgaged or in any other way distributed in part or in total before the JV is dissolved only subject to the BOARD's unanimous decision.

When the BOARD agrees to increase the Authorized Capital, the capital shall be expanded in proportion to each PARTNER's share in the Authorized Capital, which is to be preliminary and unanimously agreed upon. Capital expansion can be financed from the JV operating profits, bank credits or, when required, via further investments by the PARTNERS.

When required, the JV is entitled to source credits in Russian rubles and the agreed foreign currency made available on commercial terms according to the procedures existing for joint ventures.

Vocabulary:

an authorized capital	- уставный фонд
a contribution	- вклад, взнос
to set up	- создавать, учреждать
to appraise	- оценивать
structures	- зд.: строения
the agreed price	- договорная цена
conversion	- пересчет
exchange rate	- обменный курс
investment certificate	- свидетельство об инвестициях
to assign	- передавать (имущество, права и т.д.)
to mortgage	- закладывать (имущество)
to dissolve	- зд.: закрывать, ликвидировать
unanimous	- единодушный, единогласный
to be entitled	- иметь право