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The agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on creation at the Baikonur spaceport of the space Bayterek missile system

of December 22, 2004

The government of the Republic of Kazakhstan and the Government of the Russian Federation which further are referred to as with the Parties

being guided by the Agreement between the Republic of Kazakhstan and the Russian Federation on the basic principles and conditions of use of the Baikonur spaceport of March 28, 1994, the Agreement on assistance in creation and development of the production, commercial, credit and financial, insurance and mixed transnational associations of April 15, 1994, the Lease agreement of the Baikonur complex between the Government of the Republic of Kazakhstan and the Government of the Russian Federation of December 10, 1994 (further - the Lease agreement), the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on procedure for movement through border of the goods necessary for performance of works at the Baikonur spaceport of December 25, 1993,

proceeding from regulations of the Agreement between the Republic of Kazakhstan and the Russian Federation on development of cooperation in effective use of the Baikonur complex of January 9, 2004,

in view of regulations of the Agreement between the Government of the Republic of Kazakhstan and the Russian Federation on mutual protection of the classified information of July 7, 2004,

wishing to deepen traditionally developed production bonds and cooperation between the Kazakhstan and Russian companies and the organizations, to jointly develop and implement at the Baikonur spaceport modern space-rocket technologies with the high level of ecological safety,

agreed as follows:

Article 1

The purpose of this agreement is determination of the basic principles and conditions of cooperation of the Parties during creation and joint use of new ecologically safe space Bayterek missile system based on objects of land space infrastructure of the Baikonur spaceport for the purpose of accomplishment of commercial space programs and projects, and also implementation of national space programs of the Republic of Kazakhstan and the Russian Federation.

Article 2

For the purposes of this agreement the following terms and determinations are used:

"the space Bayterek missile system - the complex intended for starts of spacecrafts by the Russian carrier rocket "Angara" and its possible modifications with the high level of ecological safety. Also the technical line items created based on technical means, constructions and communications of the Baikonur spaceport are part of the space Bayterek missile system starting;

"classified information" - the data expressed in any form, protected according to the legislation of each of the Parties, and also formed in the course of cooperation of the Parties which unauthorized distribution can cause damage to safety and interests of the Republic of Kazakhstan and/or the Russian Federation;

"confidential information" - any information which is not public, except the classified information referred to category, rather scientific and technical, business, productive and other activity, including the trade secret and know-how protected by the opening Party or its companies and the organizations from unauthorized access, distribution and use and also when information has the real or potential commercial value owing to uncertainty to her third parties, to it is not present open entry legally and the owner of information takes measures to protection of its confidentiality. Any copies of the documents containing confidential information, and also any documents made with use or on the basis of the original documents containing confidential information belong to the category of confidential information;

"goods" - carrier rockets, accelerating blocks, spacecrafts, any other equipment necessary for implementation of the preparation and start, the control and test equipment, fuel, construction and other materials, mechanisms and the equipment, and also technologies in type of information fixed on material carriers, necessary for development, production or use in case of implementation of space programs. Other information expressed in any material form belongs to information category (the computer software, including databases, trade secret, know-how, the manufacturing documentation and technical characteristics);

"the performing organizations" - the organizations of the Parties attracted by joint-stock company "The joint Kazakhstan-Russian business "Bayterek" to performance of works on creation and operation of the space Bayterek missile system irrespective of patterns of ownership.

Article 3

For the purpose of creation of the space Bayterek missile system and its further operation of the Party form joint-stock company "The joint Kazakhstan-Russian business "Bayterek" (the daleesovmestny company).

Joint business is created on the principles of equality of the Kazakhstan and Russian participation.

As the founder the organization authorized by the Kazakhstan Side speaks on behalf of the Kazakhstan Side.

As the founder from the Russian Side the Federal state unitary enterprise "State Research and Production Space Center of M. V. Khrunichev" acts.

Founders deposit in the authorized capital of Joint business money in the amount of on 200 thousand US dollars.

Joint business is registered in the city of Astana and performs the activities according to this agreement, the legislation of the Republic of Kazakhstan and constituent documents.

Joint business is subject to the taxation according to the legislation of the Republic of Kazakhstan.

Works on ensuring starts of spacecrafts within this agreement are carried out according to the procedure, determined by the laws and other regulatory legal acts of the Russian Federation, under the direction of the interstate commission of the Parties.

Article 4

For creation of the space Bayterek missile system the Kazakhstan Side will grant to Joint business budget credit on the amount equivalent to 223 million US dollars, for a period of 19 years with 5-year grace period on repayment of principal debt, with 4-year grace period on remuneration payment, at the rate of remuneration of 0,5 of % per annum, with refining of the amount of budget credit by results of the examination of the outline sketch approved by the Parties.

The Kazakhstan side charges to Development Bank of Kazakhstan joint-stock company accomplishment of functions of the agent on servicing of the project financed by budget credit.

Charge of remuneration on the credit will be performed from the moment of transfer of money for the joint venture account opened by the agent.

Ensuring obligation fulfillment of Joint business on budget credit is the property of Joint business.

In case of the claims to Joint business connected with the address of collection on being in its property property, the Parties will provide observance of the international non-proliferation regime of weapons of mass destruction and means of its delivery.

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