RHD Foundation Main conditions of the auction Address Kursk Region, city of Kursk, the Central district. Lease right price (initial price) (four million four hundred eighty four thousand) rubles, including VAT 18% Bidding step (two hundred thousand) rubles. Lease payment First eight quarters (grace period): (ten million three hundred seventy seven thousand nine hundred and seventy two) rubles a year, including VAT 18% Starting from the ninth quarter (main period): (thirty one million one hundred thirty three thousand nine hundred and sixteen) rubles a year including VAT 18% Redemption of the land plot after expiration of the lease agreement* (twenty million four hundred sixteen thousand and fifty six) rubles, VAT exempt. Land plot area square m Duration of lease of the land plot4 (four) years Maximum period of preparation of the land planning and surveying projects 8 (eight) months Maximum period of construction of engineering infrastructure facilities 4 (four) years Maximum period of housing and other construction 4 (four) years * The redemption may be carried out at any stage of the land plot development after the land planning and surveying project are 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 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 eight 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.