By Thecommittee for Development of Small and Medium-Sized Business

“APPROVED BY”

The Board of Trustees of the State Non-Commercial Organization “Investment and Venture Fund of the Republic of Tatarstan”

Protocol # _ d.d. “ __” ______200_ .

The Chairman

______R.N. Minnikhanov

PROVISION

ON THE PROGRAM “REVOLVER FUND OF THE STATE NON-COMMERCIAL ORGANIZATION “INVESTMENT AND VENTURE FUND OF THE REPUBLIC OF TATARSTAN”

ENDORSED

by theCommittee for Development of Small and Medium-Sized Business

of the Republic of Tatarstan

“___” ______200_

Chairman

______/T.N.Shagivaleev/

ENDORSED

by the Chamber of Commerce and Industry

of the Republic ofTatarstan

“___”______200_

Chairman of the Management Board

______/Sh.R.Ageev/

Kazan 2008

1.GENERALPROVISIONS

1.1.ThisProvision ontheProgram “RevolverFundoftheStateNon-CommercialOrganization “InvestmentandVentureFundoftheRepublicofTatarstan” (hereinafter referred to as“Provision”) isworkedoutinaccordancewiththeFederalLawofJuly 27, 2007,# 209-FL“On the Development of Small and Medium-Sized Business in the Russian Federation” and the Law of the Republic ofTatarstan of October 21, 2005,# 105-LRT “Onthe Approvalof the Support Programof Small and Medium-Sized Businessfor 2005-2010.”

1.2.The main objectivesoftheProgram “RevolverFundoftheStateNon-CommercialOrganization “InvestmentandVentureFundoftheRepublicofTatarstan” (hereinafter referred to as “Provision”) are:

> broaden options for participation of small and medium business - goods producers inorders placement and stimulation of such participation;

>providing favourable conditions for the development of small and medium business entities -goods producers;

providing competitiveness of small and medium business entities -goods producers;

support of small and medium business entities-goods producers, making a agreement ondelivering of goods produced by them in accordance with theFederalLaw “About theOrders Placement on Goods Deliveries, WorkPerformance, Services Rendering for Governmentand Municipal Requirements” d.d.21.07.2005 № 94-FL (hereinafter referred to astheFederal Law # 94-FL);

mutuality of subjects of small and medium business entities -goods producers in marketing of goods, produced by them.

1.3.This Program is valid before the appropriatedecision making by the Board of TrusteesoftheStateNon-CommercialOrganization “InvestmentandVentureFundoftheRepublicofTatarstan” on its termination (completion).

2.GENERAL DEFINITIONS AND ABBREVIATIONS

2.1. ForthepurposesofthisProvision,thefollowing definitions are used:

1).The Program “Revolver Fund of the State Non-Commercial Organization “Investment and Venture Fund of the Republic of Tatarstan” (hereinafter referred to astheProgram) is aset ofarrangements, approved upbytheBoard of TrusteesoftheStateNon-CommercialOrganization “InvestmentandVentureFundoftheRepublicof Tatarstan” (hereinafter referred to as the Program) andagreedwiththeCommittee for Development of Small and Medium-Sized Business (hereinafter referred to astheCommittee) andtheChamberofCommerceandIndustryoftheRepublicofTatarstan (hereinafter referred to asCCIoftheRT)directedto supportthesmall and medium business entities- goodsproducers, whichconclude the government ormunicipalagreementinaccordancewiththeFederalLaw # 94-FLandwhich are includedin the Register Bookof trustworthysmall and medium business entities – goods producerson the basis of thisProvision;

2). RevolverFundisan establishmentfoundedbythefundsoftheFundinorder tosupportthe smallandmediumbusiness entities-goodsproducersconcluding the government or municipal contract in accordance with the Federal Law№ 94-FL and which are included in the Register Book of Reliable Small and Medium Business Entities – goods producers on the basis of this Provision through co-financing of government and municipal contractfulfillment.

3).Small and medium business entities,entered intotheUnified StateRegisterof legal bodies, users’ cooperativesandcommercialorganizations (exceptforstateandmunicipalunitaryenterprises) andalsonaturalpersons, registered inthe SingleStateRegisterofPrivate Entrepreneurs,andrealizingentrepreneurial activitywithoutjuridical person’sformation (hereinafter referred to asPrivate Entrepreneurs), peasanteconomy (farmenterprises), conformingtotheconditions, statedbytheFederalLaw“On the Development of Small and Medium-Sized Business in the Russian Federation”of July 24, 2007№ 209-FL (hereinafter referred to astheFederalLaw № 209-FL).

4). Customer isthe statebodies (includinggovernmentbodies), managerialbodiesofstateextra-budgetaryfunds, localauthorities,aswellas budgetary institutions, otherpayeeoffederalbudgetandbudgetary institutions, authorized by competentgovernmentbodiesoftheRussianFederationsubjects, otherpayeeofbudgetsofsubjectsoftheRussianFederationorlocalbudgetswhen the orders placing ongoodsdeliveries, workperformance,servicesrenderingfromthebudgetandextra-budgetarysourcesof finance.

5)Orders Placement on Goods Deliveries, Work Performance, Services Rendering for Government and Municipal Requirements,realizing in the order, provided by the Federal Law №94-FL, the actions of customers, competent authorities by the providers’ definition(responsible parties, contractors) for the purposes of concluding the government and municipalcontracts with them, work performance, and services rendering for government and municipal requirements.

6).Government and municipal agreementis a document, concludedbythecustomeronbehalfoftheRussianFederation, the subject of the RussianFederation ormunicipalentityso that to providegovernmentandmunicipalrequirements.

7).OperatoristheAgencyonContractualwork, InvestmentActivityand Interregional ContactsoftheRepublicofTatarstan.

8).Joint Commission, established withintheframeworkofthis Provision bytherepresentativesoftheFund, the Committee, and theCommission of the RTforcarryingouttheanalysisandevaluation ofdocuments presentedbythesmallandmediumbusiness entitiesfor gettingco-financingofgovernmentandmunicipalcontract fulfillmentfrom the funds of the Revolver Fund.

9).Applicationisthewrittenappealofsubjectsofthesmallandmediumbusiness entities totheJointCommissiononco-financing provisionofgovernmentandmunicipalcontract fulfillmentfrom the funds of the Revolver Fund.

10).Register Book of Reliable Small and Medium Business Entities- goods producers (hereinafter referred to astheRegisterBook) isthedatabaseincludingtheinformationaboutthesmallandmediumbusiness entitiesoftheRepublicofTatarstan – goodsproducersthatarereliableandrecognizedbytheJointCommission as conformingtotheconditionsoftheProgram, containing:

dataaboutthe name, legalorganizationalform, locationofthesmallandmediumbusiness entities;

dataabout official registration of the smallandmediumbusiness entities(PSRN, TIN, KPР);

dataabout open bank account of the smallandmediumbusiness entity;

dataabout governmentandmunicipal contract, according to which the smallandmediumbusiness entity gotco-financingfrom the Revolver Fund funds;

dataabout actual types of economic activity conforming to theAll-Russia Classifier of Measurement Units AC 029-2001 (ARCMU).

11). Register-keeperis theCCIof the RT.

3. SOURCESOFTHEREVOLVER FUND’S FORMATION

3.1. RevolverFundisformedfrom thefundsoftheStateNon-CommercialOrganization “InvestmentandVentureFundoftheRepublicofTatarstan” inthesumof 50 000 000 (fiftymillion)roubles.

3.2. Financialassets, mentionedinthep. 3.1. of this Provision are kept in the OAO “Ak Bars” Bank under the contract terms of deposit account for the whole validity period of the Program.

4. CONDITIONS AND ORDER OF PARTICIPATION IN THE PROGRAM

4.1.The smallandmediumbusiness entities have a right on participation in the Programand at the same time conforming to the following criteria:

> compliance withcriteriaof reference tothe smallandmediumbusiness entities, stated by the Federal Law№209-FL;

> no outstanding tax liability ontheaccrued taxes, charges,andother commitments to the budget of any level or state extra-budgetary funds, not exceeding a month, up to the date of appealing to the JointCommission;

> positivefinancialresult,revealed on the basis of accounting analysis;

> entrepreneurialactivityisaimedtogoodsproduction;

> subject of the state or municipal contract is products, manufactured by the smallandmediumbusiness entity;

> legal registration on the territory of the Republic of Tatarstan;

> durationoftheactivityfromthemomentoflegalregistrationisatleast 6 months.

4.2. Thesmallandmediumbusiness entitythatwishestotakepartintheProgram files the application to theJointCommission (Appendix #1).

The following documents are attached to the application:

> copyoftheaccountingbalancefor acalendar yearpreceding the date offile the applicationto the Joint Commission,or other documents of debt accounting, confirming the volume of proceeds from marketing goods (works, services) without regard to value added (re-established organizations or re-registered private entrepreneurs andpeasanteconomy (farmenterprises)over a period passed after the date of legal registration;

certificateaboutno outstanding tax liability ontheaccrued taxes, commitments to the budget of any level or state extra-budgetary funds, not exceeding a month, up to the date of appealing to the JointCommission;

Certificatefromtheservicingbankonno outstanding tax liability ontheaccrued taxes;

extractfromtheUnifiedStateRegisterBook (complete) (for legal bodies);

extractfromtheUnifiedStateRegisterBook (complete) (forprivate entrepreneurs);

copiesoffoundationdocuments(for legal bodies);

informationabouttheaveragenumberofemployeesoverthepreviouscalendaryearinaccordancewiththeorderoftheFederalTaxServiced.d. 29.03.2007г. #ММ-3-25/174@ “AboutApprovaloftheFormontheAverageStaffingNumberofEmployeesoverthePreviousCalendarYear” orinformationintheForm-4ofSIFoftheRF, approvedbythe Resolution of the Social Insurance Fund of the RF d.d. December 22, 2004 #111“AboutApprovalofthePayroll Formon the Fund’s assets of Social Insurance Fund of the Russian Federation (Form-4 of the SIF of the RF);

CertificatefromtheOperatoronabsence ofthe overdueexecutedgovernmentandmunicipalcontracts, in-time and voluntary payment of penal sanctions, absenceof production quality claims from the part of the Customer.

Thedocumentsshould be sentinthesealedenvelopetotheJoint Commissionatthe addressoftheCCIoftheRT:

18 Pushkin St.,

420111Kazan

Republic of Tatarstan

Russian Federation

5. JOINT COMMISSION’SORDEROFWORK

5.1. TheJoint CommissioniscomposedoftheFund, theCommitteerepresentatives, and theCCIoftheRTconsisting of three persons: one from the both parties.

5.2.TheJoint Commissionrealizes:

examinationofapplicationsandotherdocuments, receivedfromthe smallandmediumbusiness entities;

makingthedecisionconcerningregisteringthe smallandmediumbusiness entitiesin the Register Book and giving them the Certificate or refusing such registering.

5.3. MeetingsoftheJoint Commissionarebeingheldonthe basis of applicationsreceivingfromthe smallandmediumbusiness entities.

5.4. During 5 (five) workingdaysafterthedateofdocumentsreceiving,theJoint Commissionmakesthedecisionconcerningregisteringthe smallandmediumbusiness entities in the Register Book and giving them the Certificate or refusing such registeringonthebasisofthedocuments provided.

The decision of the Joint Commission is made according to the majority of votes and is formally proved by the Protocol.

5.5.IncasetheJoint Commissionmakesadecisiononregisteringofthe smallandmediumbusiness entitiestotheRegisterBook, theRegister-keeperregistersthesmallandmediumbusiness entities andgiveshimaCertificateaboutmaking an entry concerningentering thesmallandmediumbusiness entityin the Register Book of ReliableSmallandMediumBusiness Entities – Goods Producers (further - the Certificate).

In case the Joint Commission makes the decision to refuse entering thesmallandmediumbusiness entity in the Register Book,theRegister-keeper informsan appropriate the smallandmediumbusiness entityabout itduring 2 working days from the moment of making a decision with a help of available contact methods: Internet, telephone, e-mail means of communication.

According to the decision of the Joint Commission the request of additional documents is probable, confirming the information, mentioned in the documents that were sent tothe Joint Commission.

Joint Commission has a right to organize verification for applicant’sfactual realization of entrepreneurial activity by immediate drive to the place of activity realization.

5.6. Thesmallandmediumbusiness entitymayreceiveco-financingofgovernmentand municipalcontractfulfillmentonseveralagreements at once in accordanceonly with the Joint Commission.

6. THE ORDER OF KEEPING THE REGISTER BOOK

6.1. Register–keepercontrolsandcoordinates workson theissues of Register Bookmaking and its keeping.

6.2. By introduction of alterationsand amendmentsto theconstituent documents orincaseofthesmall and medium business entitystatuschanges, theperson, entered intheRegisterBook,isliablefor informingthe Joint Commissionabout it and presenting document copies with introduced corrections during 30 (thirty) days from the momentof correspondent alterations introduction.

Ifonedoesnotcarryouttherequirements,theJoint Commissionhasarighttoeliminatethesmall and medium business entity from theRegister Book. Insuchcasethesmall and medium business entityisbeingdeprivedofhisrightsto extend co-financing for ensuring the governmentand municipalagreement fulfillmentfor a term of a year from the exclusion dateof theRegister Book. Uponexpirationofthementionedperiod,thesmall and medium business entity has a right to re-appeal with the application form to the Joint Commission.

6.3. TheJoint Commissionduring 5 (five) workingdaysfromthedateofpresentingalterationsand amendmentsintroduces duealterationsand amendmentsto the Register Bookincaseofcorrespondenceto the criteriaestablished for entering in theRegister Book. IncaseofdatachangescontainedintheCertificate,theJoint CommissiongivesanewCertificatetothesmall and medium business entity. Theformer CertificateisbeinggiventotheRegister–keeper.

By that, the order of presenting, receiving, and processing the package of documents and requisites provided, and the order of making a decision on entering in the Register Book is similar to the order, valid when initial appealing forentering in the Register Book.

6.4. Incaseofrefusaltobeentered intheRegisterBook,theJoint Commission informs the applicant about the refusal in the written form.

6.5. Register–keeperhas a right toeliminatethesmall and medium business entity from theRegister Book in the foolowing cases:

> byliquidationandre-organizationofthesmall and medium business entity;

> byfindingouttheinvalidationofthepresentedinformation;

> byfailuretopresentduring 30 (thirty) daysperiodtheinformationonthechangesandadditions introductionto theconstituent documents bythesmall and medium business entityor in case of status change of thesmall and medium business entity;

> thesmall and medium business entitynolongercorrespondstocriteria, established for entering in theRegister Book.

TheCommissioninformsthesmall and medium business entityaboutits eliminationfromtheRegisterBookinthewrittenformduring 2 (two) workingdaysatthe address, writtenintheRegisterBook (exceptforthecasesof liquidationandre-organizationofthesmall and medium business entity).

EliminatingfromtheRegisterBook leads to determination (annulation) of the Certificate.

6.6. Onthebasisofthe writtenapplicationformonEliminatingfromtheRegisterBook, sent to the address of the Joint Commission, thesmall and medium business entity can be eliminatedfrom theRegisterBook. In case of eliminatingfromtheRegisterBook, thesmall and medium business entity gives the Certificate back to Register–keeper.

6.7. The period of Certificate’s validityis one year from its issue date.

Thesmall and medium business entity may prolong Certificate’s validity for a new period, having presented to the address of theJoint Commission the following documents:

copyoftheaccountingbalancefor acalendar yearpreceding the date of addressingto the Joint Commissionor other documents of financial statements or taxreportingconfirming the volume of proceeds from marketing products (works, services) realization without regard to value added;

certificateontheabsenceofthedebtsonaccrued taxes,feesandother compulsory payments to the budget of any level or government extra-budgetary funds as of the date, not exceeding one month up to the date of addressing to the Joint Commission;

certificatefromtheservicingbankontheabsenceofloan arrears;

TheJoint Commissionhasaright to request further documents.

During 5 (five) workingdays after the date of presenting the documents,theJoint Commissionmakes alterations and amendments in the RegisterBook and gives the written extract, confirming the extension in validity of the Certificate to the small and medium business entityin case of correspondence to criteriaestablishedfor entering in theRegisterBook. In case of data changes containing in theCertificate, theJoint Commission gives a newCertificate to thesmall and medium business entity.

7. ORDEROFCO-FINANCINGEXTENSION

7.1. Forco-financingofgovernmentandmunicipalagreementfulfillmentout of theassetsoftheRevolverFund,thesmall and medium business entity,ifheconcludesthegovernmentandmunicipalagreementinaccordancewiththeFederalLaw No 94-FL, presentstotheFundthefollowingdocuments:

copyoftheProtocol on the market results, holding in accordance with theFederalLawNo 94-FL;

bank statement withthe bank note on the fulfillment, confirming the fact of 33 % sum transfer for providing the fulfillment according to the governmentandmunicipalagreement for the Customer;

Certificate.

7.2.Co-financingofgovernmentandmunicipalagreementfulfillmentoutoftheassetsoftheRevolverFundisrealized in the following proportions:

33%out ofthesumforthegovernmentandmunicipalagreementfulfillment,thesmall and medium business entity individually places to accountaccording to the requisites, required by the Customer;

67% out ofthesumforthe governmentandmunicipalagreementfulfillmentisprovided to the Customer out of the funds of the Revolver Fund in the form of caution money as a deposit.

Themaximumamountforprovidingthefulfillmentaccordingtothegovernmentandmunicipalagreement is 3 000 000 (three million) roubles.

7.3.Co-financingofgovernmentandmunicipalagreementfulfillmentoutofthefundsoftheRevolverFundisrealizedonlyinrelationtogovernmentandmunicipalagreements on goods delivery.

7.4.Co-financingofgovernmentandmunicipalagreementhas a compensation base.

Fund’samountofremunerationis 1 % outoftotalsumforgovernmentandmunicipalagreementfulfillment for the account of theRevolverFund.

This sum is to be transferred to the settlement account of the Fund by the small and medium business entity.

7.5. During 2 (two) workingdaysfromthemomentofpresentingthe Provision of documents mentioned in p. 7.1., theFundandtheCustomermake the agreement on the pledge of rights (requirements)of cash assets according to thetime-deposit agreement, which is the government and municipal agreementfulfillment in the amount, provided by the Program.

8.INFORMATION SUPPORT OF THE PROGRAMME

8.1. InformationsupportisrealizedbytheFund,theCommittee, the CCI of the RT and the Operator.

8.2. TheFund, theCommittee, the CCIof the RT and the Operator poston official websites the documents and other data about basic conditions withindicating necessary documents for participation in the Programand about the opportunities for participants of the markets,holding in accordance with the Federal Law № 94-FL to take part in the Program and get co-financing of government and municipal agreementfulfillmentout of theassetsoftheRevolverFundin the amount, provided by the Program.

CCIof the RTposts the Register Bookon official website

8.3. Informationsupportisrealizedinthepurposesofproviding the persons concerned with the information:

abouttheinstitutions performing the Program realization;

> aboutbasicconditionsof participation in the Program;

of other sort.

8.4.MentionedinformationisavailableforeveryoneandpostedintheInternet.

8.5.InordertorealizetheobjectivesofthisProvision,theOperatorin propertimeinformstheFundaboutperformancetermsbythesmall and medium business entity ofgovernmentandmunicipalagreement, onwhich it was extendedco-financing for ensuringthe fulfillmentout of the assets of the Revolver Fund.

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Appendix 1

Application

On entering the reliable small and medium business entities – goods producers in the Register Book

The full name of the applicant-subject of small (medium) enterprise (use the stated name)

______

______

Contact information about applicant-subject of small (medium) enterprise:

Zip-code ______, Address ______

Legal address______

Tel.:(_____) ______, Fax (______) ______

E-mail:______

This is to confirm:

InaccordancewiththeFederalLaw “On the Development of Small and Medium-Sized Business in the Russian Federation” d.d.24.07.2007 No 209-FL;

• Iamasubjectofsmall (medium) enterprise;

• information, containingintheRequest is authentic;
• I am attaching necessary documents to the application.

Applicant-subject of small (medium) enterprise

______Stamp here

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