Charitable Program NORD-OST For Children

May 15, 2002

Approved by the decision of
The Board of Trustees of the Foundation
April 8, 2002

Charitable Program
"NORD-OST for Children"

Program goals:
1. Collection of charitable donations from private persons and legal entities to allow children from orphanages and from low income families to see NORD-OST - the Russian musical based on "Two Captains" by V. Kaverin.
2. Allocation of funds to the needs of charitable institutions working with children and young people.
3. Propaganda of the national culture.

Principal idea:
To give a charity performance which will be preceded by the collection of donations for the purposes of the Charitable Program. The performance is expected to be honoured by the presence of representatives of state authorities, business community, public institutions and mass media. The program of the event includes also a press conference and a buffet-supper. The lists of persons and institutions that will contribute major donations will be published. Other ways of acknowledgement and thanks to the donators are also foreseen.

Implementation dates:
From May 1 to July 1, 2002. The main event (the Charity Performance) - May 31, 2002.

Organisational Structure:
The Charitable Program is implemented by The Foundation for Russian Musical (hereinafter "The Foundation"). The Foundation shall accumulate the requests from state and public institutions working with children and young people, distribute the charitable tickets for NORD-OST in accordance with such requests, provide transportation for the spectators when necessary, control the special-purpose use of the allocated tickets. The Foundation shall conclude an agreement with the "LINK" production company which shall undertake:
ž To provide The Foundation with privilege tickets (up to 25%-discount) for NORD-OST;
ž To bear considerable part of expenses on informing the public about the Charitable Program and on publishing the donators' names;
ž To assist in the organization of the main event.
In case of major donations The Foundation concludes with each donator a separate agreement, under which it undertakes to inform the public about the charitable activity of the donator and to provide the donator with reports on the use of funds raised. In particular, acknowledgement and thanks to 5 major sponsors will be published in press ("Argumenty & Facty", "Izvestia", etc.), the donator of the greatest contribution will receive the status of the official sponsor of the NORD-OST project.
The activity of The Foundation in connection with the implementation of the Charitable Program is controlled by the Foundation Board of Trustees consisting of the following persons: Victor Berkovsky, Andrey Makarevich, Vladimir Lebedev, Philip Kirkorov and Igor Chkalov.

Main Actions:
1. Publication of information about the Charity Performance and mailing of invitations to the potential sponsors.
2. Mailing of letters of recommendation from the state authorities and public institutions.
3. Sale of tickets for the Charity Performance. At the same time donations are accumulated on the account of The Foundation for Russian Musical.
4. Holding the Charity Performance and attendant events (press conference, coffee-break during the intermission, buffet-supper and excursion around the theatre and backstage after the performance).
5. Acknowledgement and thanks to the participants in the Charitable Program in mass media.
6. Purchase of special-purpose performances and tickets for NORD-OST at privilege prices from the production company for their further free-of-charge distribution among the children from orphanages and from low income families (in cooperation with the Federal and Moscow state authorities and public institutions working with children).
7. Allocating part of the funds raised to other charitable children-related purposes.

Use of Donations:
1. The funds collected for the Charitable Program shall be transferred to The Foundation account opened by The Foundation specially for this Program and shall be expended under the control of the Board of Management and the Board of Trustees of the Foundation.
2. Not less than 80% of the donations collected shall be allocated for the realization of the main goal of the Charitable Program (NORD-OST attendance by the children and young people from orphanages and from low income families), up to 12% can be spent to cover the costs of transportation of the young spectators and up to 8% shall be allocated to cover the organizational expenses in connection with the realization of the Charitable Program.
3. The distribution of charitable tickets by the Foundation will be based on the requests for privilege and free-of-charge tickets for NORD-OST which will be received during the year 2002 both by The Foundation and "LINK" production company, namely:
ž Requests from public institutions that support socially unprotected children and young people, low income families, disabled children, etc.
ž Requests from specialized state institutions of federal and city level (committees on youth and families, on social policy, on culture, etc.).
ž Requests from orphanages, health institutions for children, music and secondary schools, higher education institutions, houses of amateur arts.
4. The Foundation shall use a worked-through technology of collection and analysis of the requests, issue of privilege tickets, ticket protection from forgery or re-sale, other procedures and ways of controlling the special-purpose use of the donations.
5. The Foundation shall provide accounting of charitable contributions and bear responsibility for proper acknowledgement and thanks to the donators in mass media.
6. On requests from the donators the Foundation shall provide detailed information on the use of the donations.

Bank details for making donations (in rubles):
Non-profit organization" Foundation for Russian Musical"
A/c 40703810000352000003 in JSCB "AVTOBANK"
INN 7709330555\770901001
C/a 30101810100000000774, BIK 044525774

For more detailed information, please, contact Zinaida Staina at tel. (095) 270-70-05