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LAW OF THE REPUBLIC OF ARMENIA

of August 16, 2001 No. ZR-206

About privatization of Yerevan Power Supply Network, Northern Power Supply Network, Southern Power Supply Network and Central Power Supply Network Private companies

Accepted by National Assembly of the Republic of Armenia on July 27, 2001

(as amended of the Law of the Republic of Armenia of 23.12.2008 No. ZR-209)

Chapter 1 General Provisions

Article 1. The basic concepts used in the Law

The basic concepts used in sense of this Law are:

the societies distributing the electric power (further - RE of society) – the Yerevan Power Supply Network, Northern Power Supply Network, Southern Power Supply Network and Central Power Supply Network private companies and also formed on their basis as a result of reorganization of society, performing activities for electricity distribution;

the strategic investor – person according to this Law declared the winner as a result of international contest on privatization of RE of societies with which the Government signs the sales agreement of shares;

the sales agreement of shares – the sales agreement of the shares included in the block of shares concluded between the Government and the strategic investor as a result of international contest;

the agreement on direct sale of shares – the agreement on direct sale of shares RE of societies signed between the Government and the international financial institution or between the Government and the strategic investor;

the block of shares – shares of those RE of societies determined by the Government which are sold by method of international contest in total;

the amount received for shares – the amount received as a result of privatization from the strategic investor and financial institution based on sales agreements and direct sale of shares from the moment of representation of packet of competitive documents about day of the expiration of the fifth month from the moment of privatization – with deduction of the amount of remuneration of consultants of process of privatization and payment for success, and also compensation paid to the strategic investor;

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