Registered by:

State Management of Justice in Zaporozhye region

certificate № 0332

order № 164/03/3 dated 11 May, 2007

Management Head V. G. Gorlov

Approved by:

Decision of the founder of the “Happy Child” Charity Foundation

№ 1 dated 15 April, 2007

Registration documents of the Foundation

Ways of making donations to the “Happy Child” Foundation

STATUTE

CHARITY FOUNDATION

„HAPPY CHILD”

Zaporozhye, 2007

1. GENERAL INFORMATION

1.1. Charity Foundation “Happy Child”, further “Foundation” is a local Charity foundation.

1.2. The Foundation is created based on the Ukrainian legislation. The Foundation implements its activities in accordance with the Constitution of Ukraine, Ukrainian legislation in part of charity and non-profits and other normative and legal acts, the present Statute and the internal Acts of the Foundation.

1.3. The Foundation acquires rights of a Juridical Person starting from the date of its state registration accomplished in the order established by the valid Ukrainian legislation.

1.4. The Foundation acts based on legality, humaneness, consistency of interests and equality of its members’ rights; on openness, voluntariness and self-government.

1.5. The Foundation has a local status. The Foundation activities cover Zaporozhye region territory.

1.6. The Foundation is an independent juridical person that has separated property, independent balance, accounts in the banking facilities, a seal containing the Fund’s name and identification code and other features of a juridical person in compliance with the valid legislation. The Foundation has a right on behalf of its name to execute warrants, to conclude contracts, to obtain rights, to bear responsibilities, to act as plaintiff and defendant in courts.

1.7. The Foundation possesses all rights of a judicial person and is a participant of civil and legal relations.

1.8. The Foundation can be a founder and participant of entities, management societies and other legal persons in compliance with the valid legislation.

1.9. The Foundation is independently responsible for its obligations and all its property, on which a penalty can be imposed in compliance with the valid legislation.

1.10. The Foundation members are not responsible for the Foundation’ obligations and the Foundation is not responsible for the obligations of its members if not established otherwise by the Ukrainian valid legislation.

1.11. The State is not responsible for the Foundation’s obligations the same as the Foundation is not responsible for the State’s obligations.

1.12. The Foundation is a non-profit organization according to the Ukrainian legislation and it does not aim at receiving and redistribution of profit.

1.13. The Foundation is created for an indeterminate period.

1.14. Name of the Foundation in Ukrainian:

full name: Charity Foundation “Happy Child”;

shortened name: CF “Happy Child”.

Name of the Foundation in Russian:

full name: Charity Foundation “Happy Child”;

shortened name: CF “Happy Child”.

Name of the Foundation in English:

full name: Charity foundation „Happy child”

shortened name – CF „ Happy child”.

1.15. Foundation location: 69061, Ukraine, Zaporozhye, Tsentralna st 3, apt 4

2. PURPOSE, OBJECT, TASKS AND FORMATS OF THE FOUNDATION ACTIVITIES

2.1. The objective of the Foundation is implementation of charitable activities aimed at the following:

- help to orphans, children deprived of parental care, homeless children, grown-up persons from the scope of orphans (graduates from children’s orphanages), children with developmental peculiarities, children from families poorly provided for, children from different risk groups;

- help to persons suffering from leukemia, oncological and other severe diseases; participation in providing medical assistance to such persons and taking care of them; promoting prophylactic, diagnostics and treatment of these diseases;

- implementation of other kinds of charitable activities for the sake of society; providing charitable help to those who need it

2.2. The object of the Foundation’s activities is disinterested activities not envisaging profits from them, for the sake of the society or independent categories of persons in accordance with the objective and tasks specified by the present Statute and the Ukrainian legislation.

2.3. The main tasks and areas of the Foundation activities are the following:

• development and implementation of activities aimed at supporting social, intellectual, physical and psychological rehabilitation and adaptation of orphans, children deprived of parental care, homeless children, grown-up persons from the scope of orphans (graduates from children’s orphanages), children with developmental peculiarities, children from families poorly provided for, children from different risk groups;

• organization, promoting and support of any activities aimed at help to persons suffering from leukemia, oncological and other severe diseases; participation in providing medical assistance to such persons and taking care of them; supporting prophylactic, diagnostics and treatment of these diseases;

• establishing additional address social support of orphans and graduates from children’s orphanages;

• enhancement of living conditions and level of life of orphans and children deprived of parental care;

• supporting development and implementation of activities aimed at development of a network and facilities for social protection;

• supporting development of family type organizations for children deprived of parental care;

• supporting social adaptation of orphans and children from risk groups by means of teaching them required life and professional skills and development of the children’s personalities;

• supporting strengthening of the family prestige and role of the family in the society;

• supporting maternity, childhood and parenthood;

• supporting activities in the area of prophylactics and protection of children’s health; *popularization of healthy life-styles; improvement of moral and psychological conditions of children;

• improvement of material well-being of receivers of the charitable help;

• supporting advanced professional development of scientific and pedagogical staff;

• assistance in provisions for children’s homes, orphanages and boarding schools for orphans and children deprived of parental care; providing teaching institutions, scientific facilities with modern text-books and manuals, with training materials, laboratory equipment, computer classes, other types of equipment etc.;

• supporting organization of summer camps for health improvement of children who can not afford to improve their health in other health improvement facilities; creation of private asylums for homeless children;

• promoting organization of recreation and teaching abroad of children deprived of parental care, grown-up persons from the scope of orphans, children with developmental peculiarities, children from families poorly provided for, children from different risk groups;

• supporting development of science and education, implementation of scientific-educational programs;

• support of implementation of scientific developments;

• granting assistance to talented youth, assignment of scholarships and welfare;

• support of talented youth’s participation in national and international scientific projects, grants, sittings, in international exchange of educational and scientific information;

• assistance in arrangement of conferences, workshops, meetings, exhibitions, contests, holidays and other mass events in part of protection of health, environment, science, culture and education;

• providing assistance to professorial-scholastic staff of higher education institutions, students, post-graduates, scientific assistants, teachers, students; complete or partial financing of their study and internship both in Ukraine and abroad;

• support of sociological investigations in part of political, social and economic, legal and cultural issues;

• supporting protection and preservation of cultural heritage, historical and cultural environment, historical and cultural monuments, burial grounds;

• supporting development of natural-reservation fund and nature-oriented activities; international cooperation in the area of environmental protection;

• supporting development of health protection, mass physical culture, sport and tourism, popularization of healthy life-style;

• participation in providing medical help to public and implementation of social care of sick, disabled, single, elderly people and other persons who required social support or care due to their physical, material or other peculiarities;

• supporting protection of maternity and childhood, providing help to families with many children and families poorly provided for;

• supporting culture development including implementation of programs of national and cultural development granting access for all public groups, especially for poorly provided for ones to cultural values and creative work;

• granting help to citizens who have suffered from natural disasters, ecological, human induced and other disasters, as a result of social conflicts, accidents; to victims of repressions, refugees and other least protected public groups;

• implementation of charitable activities in part of ensuring public employment, including organization of public on voluntary meetings for participation in resolving social issues; supporting organization of voluntary labor centers, increase of voluntary labor share in resolving social issues;

• granting help to children’s homes, orphanages, boarding schools and penal and correctional institutions;

• help to persons without definite places of abode, to homeless children;

• promoting social rehabilitation of poorly provided for persons, unemployed, disabled, of other persons requiring care; granting help to persons who are limited in implementation of their rights and legal interests due to their physical or other kinds of disabilities;

• support in organization of places of free board;

• granting help in development of the publishing business, mass media, informational infrastructure;

• support of lawmaking business, conduction of scientific investigation in the area of development of lawmaking proposals;

• support of experience exchange programs in part of issues of activities of the local self-government bodies and public self-organization bodies; development and implementation of programs for promoting of activities of these bodies;

• active cooperation with international organizations, foundations in part of issues of development joint projects in the areas of economy, education, culture, sport, tourism, medicine, information; participation in projects dedicated to social and economic issues;

• implementation of charitable programs on granting help to citizens and juridical persons in part of protection of their violated rights, freedoms and legal interests;

• support of cultural and enlightening activities among public and in mass media in order to popularize ideas of values common for all mankind; ideals of kindness, mercy and charity.

2.4. In order to conduct charitable activities and in correspondence with the main tasks and areas, the Fund has rights for the following:

• to independently resolve issues of granting charitable help to its receivers; to use targeted donations made by donors for implementation of charitable programs in compliance with the conditions of the donations;

• to unite into unions, associations or other societies created on voluntary basis and supporting implementation of the statutory tasks;

• to exchange information and specialists with respective organizations from foreign countries;

• to organize collection of charitable donations and payments from both physical and juridical persons, foreign and international organizations;

• to constantly identify formats, objects, subjects and scopes of charitable help;

• to open accounts (both in national and foreign currencies) in banking facilities;

• to create public waiting rooms for granting legal assistance;

• to found mass media, firms and companies, to be occupied in publishing activities;

• to be a member of other charitable organizations;

• to have own symbols which are subjects of the state registration in the order established in the valid Ukrainian legislation;

• to popularize own name and symbols;

• to make proposals and to bring in actions in the organs of the state authorities and local self-government; also use other ways in part of achievement of the set targets and statutory tasks of the Foundation;

• to take part in development, social discussions, expertise and monitoring of regulating and other normative and legal acts concerning the Foundation statute objectives;

• to represent interests and to protect the Foundation members;

• to establish and develop humanitarian and professional connections in Ukraine and other countries, to exchange information, volunteers and specialists from respective organizations of Ukraine and other countries;

• to independently approve and implement charitable programs including those on the basis of donations and agreements about charitable help;

• to disseminate information about the Foundation activities, to popularize the Foundation’s ideas, objectives and tasks;

• to conclude contracts and other legal warrants in order to implement the Foundation’s statutory tasks with organs of state management and local self-government; other legal persons and public associations;

• to support conduction and to take part in international, national and local conferences, seminars and other educational, scientific and training events in part of issues connected with the Foundation tasks;

• to be a recipient and purchaser of humanitarian help;

• to organize contests, charitable festivals, auctions, fairs and other charitable activities in the order established by the legislation;

• to establish honorable insignia and rewards for persons who have accomplishments in implementation of the Foundation’s statute tasks;

• to create and maintain electronic data resources in the Internet covering the Foundation activities;

• to have other rights in accordance with Ukrainian legislation

2.5. The Foundation is obliged to ensure implementation of the statute tasks; free access to its reports, documents about managerial and financial activities to the Foundation members.

2.6. The Foundation implements its charitable activities in the following basic formats:

• one-time financial, material and other help;

• systematic financial, material and other help;

• financing of particular targeted programs;

• assistance based on agreements (contracts) about charitable activities;

• presenting or granting permit for free (privileged) usage of the property objects;

• permit for usage of its own name, emblem, symbols;

• granting direct help by means of personal labor, services or transfer of results of the personal creative labor;

• undertake of expenses in part o free, full or partial maintaining of the charitable objects;

• other events not prohibited by Law.

2.7. Implementation of charitable activities by the Foundation as providing particular services (performance of works) which are subjects of mandatory certification or licensing is allowed only upon such certification of licensing in the order established by the Ukrainian legislation.

3. FOUNDATION MEMBERS, THEIR RIGHTS AND RESPONSIBILITIES

3.1. Members of the Foundation are his founder and other physical and juridical persons who have joined the Foundation in the order established by the present statute.

3.2. The Foundation members have equal right. Members of the Foundation who are juridical persons act through their representatives.

3.3. Foundation membership is free

3.4. Members of the Foundation can be Ukrainian citizens, foreign citizens, persons without any citizenship who have reached 18 years of age, and juridical persons supporting the Foundation’s objective and tasks, provide Foundation with material support or other activities in the established order and support implementation of the Foundation’s objective and tasks. State authorities and local self-government authorities as well as state and communal enterprises, facilities and organizations of Ukraine financed from the budget cannot be the Foundation’s members.

3.5. Physical and juridical persons obtain membership in the Foundation by means of application to its Management.

3.6. The Foundation membership is terminated based on the following:

• in case of expulsion from the Foundation members;

• in case of voluntarily quitting the Foundation membership;

• in other cases in compliance with the valid Ukrainian legislation.

3.7. A person can be expelled from the Foundation members in case of the following:

• violation of the Statute by a Foundation member or activities making damage to the Foundation or contradicting decisions of the Foundation Management;

• activities damaging the Foundation reputation or interests.

3.8. Expulsion of a person from the Foundation members is implemented based on the Management decision. The issue about expulsion is resolved by an open vote. The Management decision is final. The person in part of which the decision is taken is obligatorily notified about it.

3.9. Members of the Management and Supervision Council can be expelled from the Foundation members only by the decision of the General Meeting of the Foundation. In such cases, decision is considered as taken if it was voted by not less than 2/3rds of the overall number of the Foundation members present at the Foundation’s General Meeting.

3.10. The base for expulsion from the Foundation members based on the Foundation member’s initiative is a corresponding written application of the Foundation member to the Management.

3.11. The Foundation members have rights for the following, in the order foreseen by the legislation and the Statute:

• to elect and to be elected to the Foundation Management, to participate in its activities with the right to vote;

• to make proposals in part of all issues of the Foundation activities to the Foundation management, to turn to it with claims and applications and to receive reasoned and comprehensive reply;

• to receive from the Foundation any kind of information for study in part of the Foundation’s activities which do not represent any confidentiality;

• to freely quit the Foundation membership;

• to receive comprehensive information about implementation of a charitable program or individual charitable activities, use of the Foundation’s property and funds;

• to use scientific, methodical, informational and other materials available with the Foundation;

• to use material resources of the Foundation;

• to turn for help to the Foundation in protecting personal rights and legal interests;

• to use privileges established by the General Meeting of the Foundation Members for the Foundation members;

• Foundation members exercise other rights foreseen by the legislation and internal documents of the Foundation.

3.12. The Foundation members are obliged:

• to observe the Foundation statute;

• to implement decisions of the Foundation management taken within the limits of their responsibilities;

• to perform their obligations to the Foundation;

• to refrain from actions which cause the Foundation material loss or can impair the business reputation of interests of the Foundation;

• to take active part in the Foundation activities;

• to popularize the Foundation ideas and to provide corresponding support in this relation;

• to protect the Foundation interests;

• to notify the Management in a written form about any changes in its representatives;

• to bear other responsibilities foreseen by the legislation, the Statute and the internal Foundation documents.

4. MANAGEMENT AND FOUNDATION STRUCTURE

4.1. Highest management of the Foundation is its General Meeting of the Foundation members.

4.2. The right to take part in the General Meeting of the Foundation members and to vote for taking decisions belongs to all the Foundation members. The Foundation members have the right to assign their representatives. Each Foundation member has only one voice.

4.3. The General Meeting of the Foundation members is considered legally competent if the majority of the Foundation members are present at the Meeting.

4.4. The General Meeting of the Foundation members is conducted once per year or more often.

4.5. Decision about calling for the General Meeting of the Foundation members is taken by the President or a person performing his functions.

4.6. Based on the Management decision or in response to a written requirement of a Supervision council or of two thirds of the Foundation members a special General meeting is to be called within thirty days. If the President fails to appoint the time and the place of the General Meeting conduction within the specified period, an initiator calls for the General Meeting of the Foundation Members.

4.7. A person who calls for the General Meeting of the Foundation members has to distribute to the Foundation members the General Meeting agenda not later than 10 days prior to the day of its conduction.

4.8. The Foundation President presides at the General Meeting of the Foundation. One of the Management members acts as the Meeting secretary. The Conference minutes of the meeting are signed by the President and the secretary.

4.9. Decisions of the General Meeting of the Foundation members beside the specified ones are taken by simple majority of votes. Voting at the General Meeting of the Foundation members is open. General Meeting of the Foundation members has a right to resolve particular issues by means of secret vote, about which a separate decision is taken.

4.10. The following belongs to the competence of the General Meeting of the Foundation Members:

• approval of the Foundation Statute, making changes in it;

• election and recall of the Management and Supervision Council members as well as election and dismissal of the President;

• approval of charitable programs and reports about their implementation;

• identification of the main areas of the Foundation activities;

• taking decisions about the Foundation re-organization or liquidation;

• hearing and approval of annual reports of the Management and Supervision Council;

• expulsion of the Management or Supervision Council members from the number of the Foundation members.

4.11. General Meeting of the Foundation members can consider any other issues arising in the due to the Foundation activities.

4.12. The management is the executive body of the Foundation.

4.13. The management is composed of 2 members including the Management Head that is elected by the General Meeting of the Foundation members from the number of the Foundation members for a period of three years. Number of the Foundation members and / or periods for which they are elected can be changed based on the decision of the General Meeting of the Foundation members.

4.14. The Management Head and members do not receive any salary for their work in this body. Expenses resulting from execution of the statutory responsibilities in these bodies can be reimbursed on the expense of the Foundation based on the Management decision.

4.15. The Management members can be re-elected repeatedly. The President, Supervision Council members or Foundation staff cannot be the Management members. If a Management member retires, quits or loses capabilities to perform his duties due to the health conditions or other reasons, the Management can appoint a temporary Management member until approval of a new Management member by the next General Meeting of the Foundation Members.

4.16. Organizational form of the Management activities is its sittings. The Management sittings are called and conducted by the Management Head in case it is necessary or within 15 days after application of the Supervision Council.

4.17. Decisions at the Management sittings are taken by a simple majority of votes (beside ones separately specified in the Statute) at participation in the sitting of not fewer than ? members from the overall Management composition. At the equal numbers of the votes the vote of the Management Head is the decisive one.

4.18. The Management decisions are registered in the Minutes. The sitting Minutes are signed by the Management Head and the Secretary.

4.19. The Management functions:

• to organize implementation of the General Meeting decisions;

• to monitor implementation of the General Meeting decisions;

• based on the President’s request – to approve the Foundation activity plan and makes up an estimate for each year;

• to approve models of symbols and attributes, the Foundation stamp, seal and template as well as Fundamentals about them;

• to approve the staff list of the Foundation;

• to take decisions about acquiring membership and expels persons from the Foundation members in accordance with the order specified by the present Statute;

• to consider applications and proposals of the Foundation members forwarded to the Management address;

• to take decisions in part of the Foundation joining to associations, unions and other enterprises; in part of its participation (termination of participation) in implementation of joint projects;

• to prepare and brings to discussion at the General Meeting of the Foundation members main areas of the Foundation activities;

• to approve decisions about calling for special General Meeting of the Foundation members;

• to provide all the necessary information about the Foundation activities to the Supervision Council upon its request;

• to make proposals to the General Meeting of the Foundation members in part of changes and additions to the Foundation Statute;

• to perform other functions provided to the Management by the present Statute or placed on it by the General Meeting of the Foundation members.

4.20. The Foundation members do not have any rights to receive material benefits and additional interest because of their status in the Foundation beside those that are foreseen by the Law.

4.21. In case when the Foundation does not muster a quorum, the issues taken to the Management consideration and the authorities in part of resolving of these issues pass from the Management to the President.

4.22. The Management Head functions:

• to organize and to guide the Management activities;

• to call for the Management sittings and to preside at them;

• to sign all the documents accepted by the Management;

• to be responsible for preparation and conduction of the Management sittings, storage of the Minutes and other documents from their previous sittings;

• to personally report to the General Meeting of the Foundation members and to the Management about the Foundation activities during the reporting period;

• to take proposals in part of changes and additions in the Foundation Statute to the Management consideration;

• to perform other functions laid on him by the Statute, the General Meeting of the Foundation members and internal Foundation documents.

4.23. The Management by its decision can transfer part of its authorities to the Management Head. The Management Head can pass part of his authorities to the President.

4.24. A personal administrative and executive body – President – is appointed to ensure current Foundation activities

4.25. The President functions:

• to perform on-line management of the Foundation activities;

• to call for General Meeting of the Foundation members and to preside on it;

• to act in compliance with the legislation on behalf of the Foundation without any letter of attorney;

• to represent the Foundation interests in interactions with other charitable foundations and organizations, enterprises, establishments and organizations irrespectively of the property and management forms, with state bodies and local self-government bodies, with citizens of Ukraine, other countries and persons without any citizenship;

• to dispose of the Foundation property and funds without any limitations in part of value and amounts; to conclude agreements on behalf of the Foundation, to execute warrants, to issue letters of attorney;

• to open and close current and other accounts in banking facilities; he has a right of the first signature in the banking and financing documents of the Foundation;

• to organize work of the Foundation staff;

• to distribute responsibilities among the Foundation staff;

• to develop and to submit for the Management consideration estimates of expenditures and activity plans of the Foundation for each year;

• to issue within his competences orders, ordinances, procedures and instructions mandatory for execution by the Foundation members;

• to issue letters of attorney to the Foundation staff;

• to entrust the Foundation staff with implementation of particular tasks;

• to accept for work and to dismiss the staff of the Foundation; to assign awards and to impose penalties on them;

• within the limits of his competences, to ensure preparation of materials for consideration at the Management sittings;

• to submit the staff list of the Foundation for approval to the Management;

• within the limits of his competences, to ensure implementation of decisions of the General Meeting of the Foundation members and the Management;

• to develop current plans for the Foundation activities together with activities required for fulfilling its tasks;

• to ensure development and registration of all the documents required for current activities of the Foundation;

• to perform other functions foreseen by the present Statute laid on him by the General Meeting of the Foundation members, the Management or the Management Head.

4.26. The President has a right to take decisions in part of all the issues of the Foundation activities that are not covered by the competence of the General Meeting of the Foundation members or the Management.

4.27. The President gets salary for his work. The Foundation President is covered by the Ukrainian legislation about labor, social protection and social insurance.

4.28. The President can entrust resolving of individual issues in his competence to his deputies, other Foundation staff or third persons.

4.29. All the persons accepted for employment in the Foundation by the President are the Foundation staff.

4.30. The Foundation staff is covered by the Ukrainian legislation about labor, social protection and social insurance.

4.31. Administrative and monitoring functions in the Foundation are performed by the Supervision Council.

4.32. The Supervision Council composed of 2 persons is elected for a period of 3 years.

4.33. The Supervision Council Head and one member belong to the Supervision Council. The composition of the Supervision Council is specified by the Sitting. The Supervision Council members are the Foundation members.

4.34. The Supervision Council members can be re-elected repeatedly. If a member of the Supervision Council loses his capabilities to perform his duties due to health conditions or other reasons, the Supervision Council can appoint a temporary member till approval of a new member of the Supervision Council at the next General Meeting of the Foundation members.

4.35. The Supervision Council members perform their functions on a voluntary basis without payment. The Foundation can make compensatory payments to the Supervision Council members directly connected with participation in its activities at the cost of the Foundation based on the Management decision.

4.36. The Foundation President, the Management members or Foundation staff cannot be members of the Supervision Council.

4.37. The Supervision Council is reportable to the General Meeting of the Foundation members.

4.38. The Supervision Council members have no rights to receive material benefits and additional funds due to their status in the Foundation beside those which are stipulated by the Legislation.

4.39. (Scheduled) inspections are conducted by the Supervision Council yearly, also - by request of the General Meeting of the Foundation members, or on the own initiative of the Supervision Council (special inspections).

4.40. The Supervision Council has a right to involve auditors or other experts for conduction of inspections.

4.41. Upon request of the Supervision Council it must be provided with all materials, accounting or personal explanations of the officials and the Foundation staff.

4.42. The Supervision Council can demand for a special calling for the General Meeting of the Foundation members in case of arising of any threat to significant Foundation interests or in case of detection of power abuses by the Foundation staff.

4.43. The Supervision Council makes its conclusions on the annual reports and balances. Without a conclusion of a Supervision Council’s conclusion, the General Meeting of the Foundation members has no right for approval of the annual report about the results of the Foundation’s financial activities.

4.44. The Supervision Council is called by its Head in case it is necessary and also within 10 days upon request of the Management. A Management representative can take part in the Supervision Council sittings.

4.45. Sittings of the Supervision Council are considered legal if all its members participate in them. Decisions of the Supervision Council are taken by simple majority of votes. Sittings of the Supervision Council are conducted by its Head. If the numbers of votes are equal, the Head’s voice is decisive.

4.46. The following is covered by the competence of the Supervision Council:

• monitoring of financial and managerial activities of the Foundation;

• monitoring of observance of the Statute, decisions of the General Meeting by other Foundation management bodies and officials;

• consideration and making proposals in part of the Foundation’s financial activities and audits;

• settling of disputes among the Foundation members and Management in part of the Statute activities;

• consideration of applications and proposals of the Foundation members forwarded to the address of the Supervision Council;

• review of correctness of the Foundation’s accounting and report keeping.

4.47. The Foundation President, the Management Head and members, the Supervision Council Head and member are the Foundation’ officials.

5. FOUNDATION PROPERTY

MANAGEMENT AND FINANCIAL ACTIVITIES OF THE FOUNDATION

5.1. The Foundation can possess both movables and immovables, material and non-material assets, funds and other property purchased on the legal basis.

5.2. The Foundation has the right to conclude any kind of agreements which do not contradict the Foundation Statute and Ukrainian legislation in part of the property and funds it possesses.

5.3. The following comprises the Foundation property and funds:

• contributions of the founders and other donors;

• charitable contributions and donations that have targeted character (charitable grants) made by physical and juridical persons in monetary and non-monetary forms;

• funds from charitable campaigns on collection of charitable donations, charitable mass events, charitable lotteries and charitable auctions on selling of property and donations which have not met their beneficiaries;

• profits from deposits and stock; donations from companies and organizations owned by the Foundation;

• other sources not prohibited by Ukrainian legislation.

5.4. Credits can not serve as a Foundation’s property and funds generation source.

5.5. The Foundation property and funds cannot serve as objects of deposit.

5.6. The Foundation conducts economic activities aimed at implementation and achieving its Statutory objectives and tasks.

5.7. The Foundation can act as a founder (participant) of associations, establishments and organizations with juridical person statuses in the order established by the Ukrainian legislation.

5.8. The Foundation entertains independency in the issues of taking economical decisions, identification of labor payment conditions for the Foundation staff, utilization of its own funds and material resources in compliance with requirements of the legislation and the Statute.

5.9. Amount of expenses for the Foundation maintaining will not exceed 20 per cent of its estimates in the current year.

5.10. Financial activities of the Foundation are conducted in compliance with Ukrainian legislation.

5.11. Financial activities are aimed at charity; business or other profitable activities are not considered.

5.12. Foundation’s funds from financial activities are aimed exclusively at charity and ensuring business activities in the order and scopes established by the valid Ukrainian legislation and the Statute.

5.13. Foundation funds not disposed of during a fiscal year irrespectively from their source cannot be withdrawn and sremain at the Foundation accounts for the next fiscal year.

6. FOUNDATION ACCOUNTING AND REPORTING

6.1. The Foundation performs accounting of the results of its activities, maintains on-line accounting, statistic reporting and it bears responsibility for the reliability of the accounting data and reporting in accordance with the valid Ukrainian legislation.

6.2. Reporting is submitted to bodies, establishments and organizations using definite formats and periods in compliance with the Ukrainian legislation.

6.3. The Foundation accounts funds for economic and charitable activities in both national and foreign currencies at different banking accounts.

7. PROVISIONS FOR TERMINATION OF THE FOUNDATION ACTIVITIES

7.1. Termination of the Foundation activities is performed by way of its re-organization (merging, attachment, transformation) or liquidation.

7.2. The Foundation is terminated based on the decision of the General Meeting of the Foundation members, a court decision or in other cases foreseen by the legislation.

7.3. The order of the termination is specified by the valid Ukrainian legislation.

7.4. The decision of the General Meeting about termination is considered as taken if it was voted for by not less than 2/3 of the Foundation members present at the General Meeting.

7.5. The body that has taken the decision about the Foundation termination notifies in a written form the body responsible for the state registration.

7.6. The body that has taken the decision about termination appoints a commission on the Foundation termination – a liquidation commission and established the order and time periods for the Foundation termination. Performance of the functions of the Foundation termination commission can be laid on the Foundation management body.

7.7. Starting from the moment of appointing the liquidation commission, it acquires all the authorities in part of the Foundation management.

7.8. At the Foundation re-organization its rights and responsibilities pass to its successors, which issue is resolved during approval of the decision about reorganization.

7.9. After expiration of the period intended for making claims by the creditors and satisfaction or rejection of these claims, the Foundation termination commission develops an act of transfer (in case of merging, attachment or conversion) or a distributive balance (in case of splitting), which contain provisions about succession in part of all the Foundation’s responsibilities and other provisions in compliance with the legislation.

7.10. The act of transfer and the splitting balance are to be approved by the body that has taken the decision about the termination.

7.11. In case of the Foundation’s merging with other objects all property rights and responsibilities of each of them are transferred to the subject which is created as a result of merging.

7.12. In case of termination of one or several of the Foundation’s objects, it acquires all the property rights and obligations of the attached subjects.

7.13. In case of the Foundation splitting its property rights and responsibilities in accordance with the act (balance) of splitting are distributed in respective shares to each of the new subjects created as a result of the splitting. In case of separation of one or several new objects, each of them obtains in respective shares the Foundation property rights and responsibilities in accordance with the act (balance) of splitting.

7.14. In case of the Foundation conversion the newly created object acquires all the Foundation rights and responsibilities.

7.15. The Foundation cannot be re-organized into a juridical person, the activity objective of which is making profits and conduction of business activities.

7.16. In case of termination the body that conducts the liquidation evaluates the available Foundation property, develops a liquidation balance and submits it for approval to the body that created it, also it satisfies other requirements of the valid Ukrainian legislation.

7.17. In case of the Foundation liquidation its assets cannot be distributed among the Foundation members and will be transferred to another non-profit in compliance with their types or will be acquired by the budget.

7.18. The Foundation is considered as terminated from the date of making an entry in the state register about its termination, if not foreseen otherwise by the legislation.

8. MAKING CHANGES AND ADDITIONS TO THE STATUTE

8.1. Changes and additions to this Statute are approved by the 2/3rds of the votes of the Foundation members present at the General meeting.

8.2. Issues of making changes and additions to the Foundation Statute is included to the agenda of the General Meeting upon request of the Foundation President, Management, Supervision Council or request of not less than 1/3 of the Foundation members.

8.3. The Foundation informs the registering body about the implemented changes and additions within the certain period from their approval established by the legislati