The Charter of INTER-REGIONAL ASSOCIATION ON SOCIAL AND ECONOMIC INTERACTION of SMALL And MEDIUN-SIZE TOWNS of RUSSIA "MUNICIPAL ECONOMIC DEVELOPMENT"

1. The inter-regional association on social and economic interaction of small and medium-size towns of Russia "MUNICIPAL ECONOMIC DEVELOPMENT" (hereinafter referred to as ASSOCIATION) is a voluntary association of municipalities - small and medium-size towns of Russia ? meant for coordination of the activity, more effective realization of the rights, representation and protection of common interests.

2. The ASSOCIATION is a noncommercial organization and does not pursue as the basic purpose of its activity earning profit.

3. The activity of the ASSOCIATION is based on the European Charter on local self-management, the Constitution and the legislation of the Russian Federation, on the Foundation contract and the present Charter.

4. The ASSOCIATION gets the rights and duties of the juridical person from the moment of its registration. The ASSOCIATION has the exclusive property which is taken into account in the independent balance, this property is the guarantee of the obligations. The Association can on its own behalf get and realize property and non-property rights, perform duties, be claimant and defendant in the court.

5. The ASSOCIATION can have civil rights and perform civil duties necessary for realization of any kind of activity, not forbidden by the current legislation and not contradicting to both the subject and the purposes of the activity as determined by the present charter.

6. The ASSOCIATION has the right to open accounts (including currency accounts) in banks both on the territory of the Russian Federation and abroad.

7. The ASSOCIATION has a round seal containing its full name in Russian, stamps and forms with its name, its own emblem and other means of individualization.

8. The ASSOCIATION has the right to create branches, representative offices. Branches and representative offices of ASSOCIATION are not juridical persons and operate from on its behalf on the basis of the regulations confirmed by the ASSOCIATION.

9. The ASSOCIATION is not liable for the obligations of its members. The members of the ASSOCIATION bear subsidiary responsibility for the obligations of the ASSOCIATION at a rate of and in the order established by the foundation contract.

10. The full name of the Association: in Russian "??????????????? ?????????? ?? ?????????- ?????????????? ?????????????? ????? ? ??????? ??????? ?????? "????????????? ????????????? ????????".

11. The registered location of the ASSOCIATION: the town of Krasnoarmeysk of Moscow region.

12. The post address of the Association: 141290, Moscow region, the town of Krasnoarmeysk, Chkalov street, 25.

13. The location of the executive body of the Association: 141290, Moscow region, the town of Krasnoarmeysk, Chkalov street, 25.

2.1. The subject of activity of the Association are:

• combining efforts of the members in solving common economic, social, environmental problems of small medium-size towns of the Russian Federation;

• working out of programs, productions, activities and services focused to satisfy interests and needs of the members;

• active assistance to formation and development of local self-management in the Russian Federation;

• providing realization of the constitutional right on local self-management of the citizens living in municipalities - members of the ASSOCIATION;

• representation and protection of interests of municipalities - members of the ASSOCIATION.

2.2. The basic purposes of ASSOCIATION are:

• coordination of activity of municipalities in the sphere of social and economic development of their territories, more effective realization of the rights and protection of interests;

• stimulating investment processes, assistance in attraction of investment resources;

• exchange of experience in implementing effective structures of town management;

• assistance in formation, protection, development and strengthening of an open civil society in the Russian Federation;

• assistance in developing economic, legal, organizational and territorial bases of local self-management;

• establishing economic and business ties with other municipalities of the Russian Federation which are not included into the Association, and with foreign partners;

• representing interests of municipalities - members of the ASSOCIATION - in relations with bodies of the government of the Russian Federation and of the subjects of the Russian Federation.

2.3. To achieve these purposes the ASSOCIATION:

• puts forward to institutions of local self-government of the municipalities suggestions on the matters of coordination of their activity in the solving common problems;

• renders organizational, methodical and a legal assistance to the institutions of local self-government;

• makes researches with the attraction of scientists, experts, the scientific organizations;

• involves the population in the activity of the institutions of local self-government;

• promotes ideas of local self-management;

• in the order, determined by the legislation, participates in developing and the examining legal acts of the bodies of the government concerning the scope of activity of the institutions of local self-government;

• represents interests of the institutions of local self-government of the members of ASSOCIATION in relation with bodies of state government;

• In the order, determined by the legislation, participates in creating and developing a system of professional training of employees for municipal service;

• carries out its activity in interaction with bodies of the government, commercial and noncommercial organizations in the Russian Federation, establishes international contacts;

• sets up branches and representative offices.

2.4. In achieving its purposes the ASSOCIATION has no right to interfere with the lawful activity of the institutions of local self-government and to take up the execution of powers of these bodies.

3.1. Members of the ASSOCIATION can be small and medium-size towns - municipalities of the Russian Federation sharing the purposes, determined by the present Charter and wishing to work together to achieve the above-mentioned purposes. The decision on the introduction of a municipality in the ASSOCIATION is made by the authorized institution of the local self-government of the municipality.

3.2. Th e admission to the ASSOCIATION is done under the decision of the Assembly of the ASSOCIATION, adopted by 2/3 of voices.

3.3. Members of ASSOCIATION have the right:

• to participate in all actions conducted by the ASSOCIATION;

• to elect and be elected in governing bodies of the ASSOCIATION;

• to put forward for discussion of bodies of the ASSOCIATION suggestions on the matters of activity of the ASSOCIATION, and also to address to these bodies with any questions and statements;

• to get any information on the activity of the ASSOCIATION, on the actions conducted by it and the work of governing bodies;

• to get methodical, organizational, legal support of the ASSOCIATION;

• to leave the ASSOCIATION;

• to enjoy other rights given to them according to the current legislation.

3.4. Members of the ASSOCIATION are obliged:

• to adhere to the Charter of the Association and the Foundation contract, to participate directly in the activity of the ASSOCIATION according to the purposes set by the present Charter;

• to pay membership dues;

• to provide the governing bodies of the ASSOCIATION with the information on the activity of the municipality.

3.5. The member of the Association has the right to leave the association at own discretion upon termination of one fiscal year. In this case the member of Association bears subsidiary responsibility under its obligations proportionally to its payment within two years from the moment of termination. The application for the termination of a member of the Association is submitted to the general Assembly not later than 3 months before prospective termination.

3.6. The member of the ASSOCIATION can be expelled from the ASSOCIATION in cases of:

infringements of the Charter of ASSOCIATION;

non-payments of membership dues within one fiscal year, defaults or inadequate execution of other duties stipulated by the present Charter or the legislation of the Russian Federation.

3.7. The suggestion on expulsion from the ASSOCIATION can be brought by not less than 1/3 of its members, by the Assembly, by the Council or executive body of the Association. The expelled member of the Association bears the responsibility under its obligations according to article 3.5 of the present Charter.

4.1. The sources of forming the property of the Association in monetary and other forms are:

• regular and lump-sum receipts from members of the Association;

• voluntary property payments and donations; dividends (incomes, interests), received under shares, bonds, other securities and deposits;

• income received from the property of the Association;

• other receipts not forbidden by the law.

4.2. The order of regular receipts from members is defined by the Foundation contract of Association.

4.3. In the property of the ASSOCIATION there can be enterprises, buildings, structures, constructions, housing fund, equipment, vehicles, stock, property of cultural, educational and healthening character, money resources, shares, other securities and other movable property and real estate necessary for realization of the authorized activity of the ASSOCIATION.

4.4. At termination of the ASSOCIATION, the property left after satisfying the requirements of creditors, is used for realization of the purposes stipulated by the present Charter.

4.5. The ASSOCIATION conducts book keeping and the statistical reporting according to the established rules and the current legislation of the Russian Federation.

5.1. Governing bodies of the ASSOCIATION are:

• the Assembly of members of the ASSOCIATION (hereinafter referred to as Assembly);

• the Council of the ASSOCIATION;

• the Executive director of the ASSOCIATION;

• the President of Association.

5.2. The assembly of members of ASSOCIATION is the supreme body of government of the ASSOCIATION. Regular assemblies are convoked as required, but not less than twice a year. Extraordinary assemblies are convoked by the decision of the Council of the ASSOCIATION or on demand of the Executive director, a revision committee or by not less the one fifth of all members of the ASSOCIATION.

5.3. To the exclusive competence of assembly we refer:

• changing the Charter and the Foundation contract of the ASSOCIATION;

• defining the priority directions of activity of the ASSOCIATION, principles of forming and using the property;

• admission and expulsion of members of the ASSOCIATION;

• deciding on reorganization and liquidation of the ASSOCIATION;

• election of members of the Council and revision committee of the Association, the prescheduled termination of their powers;

• election of the President of the Association and the prescheduled termination of his powers;

• appointment of the Executive director of Association and the prescheduled termination of his powers;

• confirmation of the annual report and annual accounting balance;

• confirmation of the financial plan (budget) of the Association and making changes in it;

• setting up branches and representative offices of the Association;

• participation in other organizations;

5.4 The questions referred to the exclusive competence of the Assembly, can not be transferred to other bodies of the Association.

Each member of the Association has one voice at the Assembly. Calendar date of the next session of Assembly is appointed by the decision of the Council according to article 5.2 of clause 5 of the present Charter. The same decision of the Council should also authorize the agenda of the next session of the Assembly.

The date and the agenda of an extraordinary meeting of the Assembly are defined by the decision of body or the person (persons), who required it. The decision on convoking the Assembly is sent by the Executive Director to all members of the Association not later than one month before the appointed day of session of the Assembly.

5.5. The assembly of members of the ASSOCIATION is empowered, if there are more than half of members of the ASSOCIATION present.

Decisions on the questions referred to the exclusive competence of the Assembly, are accepted by two thirds of voices of members of the ASSOCIATION. The decision on other questions of the competence of Assembly are accepted by the simple majority of voices of members of the ASSOCIATION present at the session. Decisions of the Assembly are signed by the Chairman and the secretary of the Assembly.

5.6.The Council is the permanent collective body of the Association. Members of the Council are elected at Assembly session for the period of 2 years. The quantitative structure of the Council of the ASSOCIATION is defined by Assembly. The following questions are referred to the competence of the Council:

• convoking Assembly, fixing the date and the place of Assembly session, confirming the agenda of the session;

• coordination of activity of bodies of the Association;

• preparing questions for discussion at sessions of Assembly;

• controlling the activity of the Executive director of the Association;

• distributing duties between the members of the Council;

• confirming internal documents of the Association;

• appointing extraordinary checks of financial and economic activities of the Association;

• putting forward at Assemblies suggestions on acceptance of new members and expulsion of members of the Association;

• deciding on other questions connected with the realization of the purposes and tasks of the Association, except for those referred by the present Charter to the competence of the Assembly.

The Council of the ASSOCIATION conducts sessions not less than once in three months. Sessions of the Council of the ASSOCIATION are convoked by the President of the ASSOCIATION. The operating procedure of the Council of the ASSOCIATION is defined by internal documents of the ASSOCIATION.

• effects general management of the ASSOCIATION;

• has the right to represent the ASSOCIATION in relations with any organization;

• is elected by the Assembly of members of the ASSOCIATION for the term defined by the Assembly;

• organizes control of execution of the Assembly and Council decisions;

• convokes and opens the regular sessions of the Council;

• presides over sessions of the Council of the ASSOCIATION and signs its decisions;

• forms the agenda of the regular session of the Council of ASSOCIATION on the basis of consultations with members of the ASSOCIATION.

5.9 The only executive body of the Association is the Executive director. He effects the current management of the activity of the Association and is accountable directly to the Assembly of the Association. The executive director is appointed by the Assembly for 5 years.

Within the competence of the Executive director is decision of all questions which are not referred to the competence of the Assembly and the Council, defined by the present Charter.

The executive director:

• without the power of attorney acts on behalf of the Association, represents its interests and makes bargains;

• gives out the power of attorney on the right of representation on behalf of the Association, including powers of attorney with the right of principal and attorney;

• issues orders appointing employees of the Executive management of the Association, on their transmission and dismissal, applies measures of encouragement and imposes summary punishments;

• makes decision on getting credits, using money resources, proceeding from the authorized financial plans, is the first manager of credits.

• concludes contracts, and also solves all questions arising from execution of treaty obligations; opens settlement, currency and other accounts in banks, disposes of them;

• provides the current activity of the Association;

• submits to the Assembly the annual report on financial and economic activities of Association;

• provides the execution of decisions of the Assembly;

• independently solves all questions of the to the Assembly activity, except for those referred by the present Charter to the competence of the Assembly and the Council.

The Executive management of the Association is the working body of the Association set up for realization of current financial and economic activities and maintenance of the activity of governing bodies of the Association. The management of Executive body is carried out by the Executive director individually.

5.10. The structure and the list of staff of the Executive management is affirmed by the Council of the ASSOCIATION on presentation of the Executive director.

5.11 The Executive director supervises the work of executive management, bears personal responsibility before the Assembly and the Council of the ASSOCIATION. On all questions referred to his competence, the Executive director makes decisions individually.

6.1. The control of financial activity of the ASSOCIATION is carried out by the a revision committee elected by the Assembly of members of the ASSOCIATION for the period of two years. The quantitative structure of the revision committee is defined by the Assembly.

The revision committee:

• checks the execution of decisions of the Assembly, the Council of the ASSOCIATION, and also the work of the Executive director, connected with financial activity of the ASSOCIATION, conducts annual audits of financial and economic activity of the ASSOCIATION;

• checks duly payment of introductory and a membership dues;

• submits the report on the activity to the Assembly of the ASSOCIATION;

• gives the information on its work to the Council of the ASSOCIATION.

6.2. Members of the Council of the ASSOCIATION, the Executive director and the chief accountant can not be members of the revision committee.

6.3. For the organization of work the revision committee elects from the chairman and the vice-chairman of the revision committee. The revision committee adopts decisions by the majority of voices.

6.4 The Revision committee is accountable to the Assembly of members of ASSOCIATION. At revealing infringements in financial and economic activities of bodies of the ASSOCIATION the revision committee has the right to demand convocation of extraordinary Assembly of members of the ASSOCIATION. The decision on this question is adopted by two thirds of voices of members of the revision committee.

Organizational maintenance of the activity of ASSOCIATION is assigned to the Executive director of the ASSOCIATION according to his powers and the duties determined by the present Charter.

Changes are made in the Charter and the Foundation contract of the Association under the decision of the Assembly in the order determined by clause 5 of the present Charter. Changes in the foundation documents of Association come into effect from the moment of their state registration.

Clause 9. Reorganization and liquidation of ASSOCIATION.

9.1. Reorganization or liquidation of the ASSOCIATION is carried out under the decision of the Assembly of members of the ASSOCIATION, and also under the decision of court on the bases and in the order determined by the legislation.

9.2. Reorganization and liquidation of the ASSOCIATION is carried out in the order determined by the civil legislation of the Russian Federation.

9.3. In case of liquidation of the Association the property left after satisfying the requirements of creditors, is used for the realization of the purposes stipulated by the Charter of the Association.

9.4 At the termination of activity of the ASSOCIATION documents on staff of regular employees are duly transferred archival establishments of the Russian Federation in the place of location of the association.

We, the undersigned authorized representatives of municipalities of small and medium-size towns of the Russian Federation, acting on the basis of Charters of the municipalities, hereinafter referred to as Founders (members) of the Association, have concluded the present contract on the following:

1. Founders according to clause 10 of the Federal law "On the general principles of the organization of local self-management in the Russian Federation" with view of coordination of the activity, more effective realization of the rights and interests, create the Inter-regional association on social and economic interaction of small and medium-size towns of Russia "Municipal economic development " (hereinafter ASSOCIATION).

2. ASSOCIATION is subject to the state registration in the order established by the legislation of the Russian Federation.

For creation of Association the parties transfer a constituent payment at a rate of 5000 roubles.

Performance of functions on registration of Association in the authorized bodies is assigned to the Head of the town of Krasnoarmeysk of Moscow region - Pashentsev V.V.

The right to sign the documents submitted for the registration of Association, and also other necessary documents is given to the Head of the town of Krasnoarmeysk, Moscow region, - Pashentsev V.V

3. The governing bodies of ASSOCIATION are:

• the Assembly of members of ASSOCIATION - the supreme governing body of ASSOCIATION;

• the Council of ASSOCIATION - permanent collective governing body of ASSOCIATION;

• the President of ASSOCIATION - the supreme official of ASSOCIATION;

• the Executive director of ASSOCIATION - a single executive body of ASSOCIATION.

4. The order of formation, the competence and the order of adopting decisions by the governing bodies of ASSOCIATION is defined by the Charter of ASSOCIATION.

5. Members of ASSOCIATION undertake to participate in the organization and conducting assemblies of members of ASSOCIATION, in work of other bodies of ASSOCIATION in case of election of their representatives in these bodies, in other actions conducted by ASSOCIATION.

Members of ASSOCIATION transfer to the settlement account of ASSOCIATION annual membership dues, and also target payments according to decisions of the Assembly of ASSOCIATION. The sum of annual membership dues and target payments, terms and order of their payment are established by decisions of the Assembly of ASSOCIATION.

6. The ASSOCIATION is not liable for obligations its members. Members of ASSOCIATION bear subsidiary responsibility under obligations of ASSOCIATION at a rate proportional to the paid contribution.

7. Losses of ASSOCIATION are covered by the property of ASSOCIATION, and also can be covered by target payments of members of ASSOCIATION under the decision of the Assembly of ASSOCIATION.

8. The member of Association has the right to leave the association at own discretion upon termination of one fiscal year. The application for termination from association is submitted to the Assembly not later than 3 months before prospective termination.

The member of ASSOCIATION can be expelled from ASSOCIATION in cases:

• infringements of the Charter of ASSOCIATION;

• failures to pay membership dues within one fiscal year, defaults or inadequate execution of other duties stipulated by the present Charter or the legislation of the Russian Federation.

Expulsion from ASSOCIATION is made by the decision of other members of ASSOCIATION. The suggestion on expulsion from ASSOCIATION can be brought by not less than 1/3 of numbers, the Council or the executive body of ASSOCIATION. The member who has left voluntarily or has been expelled, has no right on a part of property of ASSOCIATION.

9. In case of liquidation of ASSOCIATION the property left after satisfying requirements of creditors, is used for realization of the purposes stipulated by the Charter of ASSOCIATION.

10. Changes in the present contract are made by the decision of members of ASSOCIATION. Change of the Foundation contract of ASSOCIATION is subject to the state registration in the order established by the current legislation.

11. The present contract comes into effect from the moment of its signing.