REPUBLIC OF LITHUANIA                                     
                                                                                
                               LAW                                              
On the Privatization of  Property of Agricultural Enterprises                   
                                                                                
                    (As amended by 7 April 1993)                                
                                                                                
     Article 1. Objectives of this Law                                          
                                                                                
     1. This  law shall  regulate the  conditions  and  procedure               
for the  initial privatization  of   property  of    agricultural               
enterprises.                                                                    
                                                                                
     2. This  law shall  not apply  to either  state agricultural               
industrial enterprises  whose property  is being privatized under               
the  Law   of  the  Republic  of  Lithuania      on  the  Initial               
Privatization of  State Property, or to  specialized agricultural               
enterprises which are not subject to privatization.                             
                                                                                
     Article 2. Facilities Subject to Privatization                             
                                                                                
     Property of  agricultural enterprises, with the exception of               
property which is subject to restitution as defined in the Law of               
the Republic  of Lithuania   on  Procedure  and Conditions of the               
Restoration of  Ownership   Rights to the Existing Real Property,               
shall be subject to privatization.                                              
     Social and  industrial infrastructures  whose  establishment               
was funded  by the  state, facilities  of  land-reclamation,  and               
facilities used  for a specific purpose as determined  by  higher               
levels of  local government  or by the Government of the Republic               
of Lithuania,  shall be  privatized only upon the decision of the               
district board.                                                                 
                                                                                
     Article 3. Persons Entitled to Acquisition Rights of                       
               Agricultural Enterprise Property Subject to                      
               Privatization                                                    
                                                                                
     Property subject to privatization may be acquired by:                      
     1) employees or members of the  enterprise;                                
     2) persons who have retired from the enterprise;                           
     3) invalids  of Groups  1 and  2 who  became invalids  while               
working  at the enterprise;                                                     
     4) members   of  the  farmers'  holding  who  were  formerly               
employed in the enterprise;                                                     
     5)  persons   (and  their   family  members)   employed   in               
communication services,   in  medical, educational,  or  cultural               
institutions, and in other jobs specified in the list approved by               
the Government  of the  Republic of  Lithuania, who reside on the               
territory of  an   agricultural enterprise  and who are employees               
(or retired employees) of the aforesaid enterprise;                             
     6) disabled  family members  and dependants  of persons  set               
forth  in paragraphs 1-4;                                                       
     7) other  persons who have been employed in one agricultural               
enterprise for no less than 5 years, and who have been working in               
Lithuanian agriculture  for no  less  than  10  years  (with  the               
exception  of   those  employed  by  force,  and  who  have  been               
unlawfully  evicted  from  that  area).  Such  persons  shall  be               
entitled to  acquire the  property of the agricultural enterprise               
in which they worked for the longest period;                                    
     8)  employees   residing  in     areas   where  agricultural               
enterprises  not subject to privatization are located;                          
     9) persons  acquiring land  ownership rights   pursuant  the               
June 18,  1991   Law of  the Republic  of Lithuania  on Procedure               
and Conditions  of  the  Restoration  of    Ownership  Rights  to               
Existing Real  Property;                                                        
                                                                                
     10) other  persons established by the Laws of the Republic of              
Lithuania;                                                                      
     11) legal  persons  which  came  into  existence  after  the               
property  of   agricultural  enterprises   has  been   privatized               
according to its value;                                                         
     12) groups  of natural  persons which  have  subscribed  for               
share investments  in industrial technological complexes (Amended               
7 April 1993)                                                                   
                                                                                
     Article 4. Methods of Privatization                                        
                                                                                
     1. Persons  specified in  paragraphs 1-4  of Article 3   may               
attain  property   of  agricultural  an  enterprises  subject  to               
privatization either  by purchasing it at closed auctions, or  by               
acquiring shares.                                                               
                                                                                
     2. Property  of  agricultural enterprises which has not been               
privatized shall  be sold  to persons referred to in Article 3 of               
this law.  Any unsold  property may   be  purchased by  all other               
persons who so desire.                                                          
                                                                                
     3.  Lists   of  agricultural  enterprises  which  are  being               
privatized by  purchase shall  be approved by the district board,               
upon the  recommendation of  district privatization  commissions.               
Requests made  by  persons  entitled  to  acquisition  rights  of               
agricultural enterprise  property subject  to privatization shall               
be taken into account.                                                          
                                                                                
     Article 5. Payments for  Purchased Facilities of                           
               Privatization                                                    
     1.  State-owned   property  and   property  of  agricultural               
enterprises shall be sold for:                                                  
     1) one-time state allocations;                                             
     2) purposive compensations;                                                
     3) purposive agrarian compensations;                                       
     4) payments by agricultural  enterprises;                                  
     5) money.                                                                  
                                                                                
     2. One-time allocations shall be appropriated  in accordance               
with the  Law of the Republic of Lithuania concerning the initial               
privatization of state property.                                                
     3. Other  purposive compensations  shall be    allocated  in               
accordance with  the corresponding  resolutions of the Government               
of the  Republic of  Lithuania (March 28, 1991, No. 106; June 28,               
1991, No. 253; July 4, 1991, No. 262).                                          
     4. Purposive  agrarian compensations  shall be  allocated to               
employees and former employees of agricultural  enterprises.  The               
amount of  compensation shall  be proportional  to  the length of               
service at the enterprise in question:                                          
                                                                                
     from 5 to 10 years -- 10 percent;                                          
     from 10 to 15 years --20 percent;                                          
     more than 15 years -- 30 percent.                                          
                                                                                
     5. Payments   allocated  by  agricultural  enterprises    to               
employees (members)  of the enterprise, to pensioners, to persons               
who became  invalids of  Groups 1  or  2  during  the  period  of               
employment  in  that  enterprise,  and  to  members  of  farmers'               
holdings who were employed in that enterprise.                                  
     Payments allocated  by  agricultural  enterprises  shall  be               
calculated by  deducting: the  value of the property specified in               
Article 2  of this  law; the  sums of  registered one-time  state               
allocations, purposive compensations,  and purposive agricultural               
compensations   of persons indicated in paragraphs 1-4 of Article               
3;    and   the  sums of  short-term and  long-term credits drawn               
after   January  1,  1990,  from  the  property  value    of  the               
enterprise. In  accordance with  the  decision  of  the  district               
agencies of  agricultural reform,  the remaining  portion of  the               
property shall  be distributed  to persons  receiving  enterprise               
payments, in  proportion  to  the  length  of  their  service  in               
agricultural enterprises of the Republic of Lithuania.                          
     6. In  purchasing   property of  an  agricultural  enterprise              
under privatization,  a person  shall have  the right to use money              
according to  the established  quotas (March 14,1991 Resolution of              
the Supreme  Council of the Republic of Lithuania  "Enforcement of              
the Law Concerning the Initial Privatization of State Property").               
     Upon the  decision of  the Government  of  the  Republic  of               
Lithuania,    portions  of    property  of  certain  agricultural               
enterprises may be sold to persons specified in Article 3 of this               
law without applying money quotas.                                              
     7. Property  provided for in items 1-4 of paragraph 1 of this              
Article shall be inherited according to the general procedure.                  
                                                                                
     Article 6. Procedure for Property Acquisition of                           
               Agricultural Enterprises under Privatization                     
                                                                                
     1.  The   property   of   agricultural   enterprises   under               
privatization shall  first be  acquired by  complete  industrial-               
technological units, formed in response to personal requests, and               
in accordance  with   the criteria   of  the formation of complex               
land use planning of an enterprise.                                             
     The acquired  separate complexes  at the  request  of  their               
onwners (  shareholders) may  be either  merged or  splitted  up.               
Decision concerning  the merging or splitting shall be adopted in               
the owners' meeting by  2/3 of the votes of the owners.                         
     2. At  least 5  percent of  the value  of purchased property               
(shares) must  be  paid  with  money.      This  money  shall  be               
transferred   to the  Fund  of  Agricultural  Reform  (which  was               
established for the repayment of long-term credits of enterprises               
drawn prior  to   January 1,  1990, and  for the reimbursement of               
expenses connected with agricultural reform and the activities of               
agricultural reform    agencies),  according  to  the  procedures               
established by the Government of the Republic of Lithuania.                     
     3. Upon the  privatization of the property of an agricultural              
enterprise  and the termination of its activities according to the              
procedures specified  in Article  12 of  this law,   payments  for              
unsold agricultural enterprises shall become invalid.                           
                                                                                
     Article 7. The System of Privatization Bodies                              
                                                                                
     The  system   of  privatization   bodies   of   agricultural               
enterprises  shall   consist  of   the   district   agencies   of               
agricultural reform,  the district  privatization commission, the               
district board,  the Commission  of Agricultural  Reform  by  the               
Government  of   the  Republic  of  Lithuania,  and  the  Central               
Privatization Commission.                                                       
     The functions  and  competence  of  these  bodies  shall  be               
determined  by  the Government of the Republic of Lithuania.                    
                                                                                
                                                                                
                                                                                
                                                                                
     Article 8. Inventory and Appraisal of  Property under                      
               Privatization                                                    
     Administrations   of      agricultural   enterprises   under               
privatization shall  take an  inventory and   shall  appraise the               
property of  the   enterprise.    The  procedures  and  rules  of               
inventory and  appraisal shall  be approved  by the Government of               
the Republic of Lithuania.                                                      
                                                                                
     Article 9. Registration of Requests from Persons  Entitled                 
               to Acquisition Rights of Property of an                          
               Agricultural Enterprise                                          
                                                                                
     Persons entitled  to acquisition  rights of  property of  an               
enterprise subject  to  privatization  must  file  documents,  as               
established by  the Government of the Republic of Lithuania, with               
the district agency of agricultural reform, prior to  November 1,               
1991.                                                                           
     Petitions for  the aquisition  of property  and  the  chosen               
forms  of  farming  shall  be  accepted  by  the  agency  of  the               
agricultural reform until  December 31, 1991.                                   
     The Government  of the  Republic of Lithuania shall have the               
right to extend the term established in this Article.                           
                                                                                
     Article 10.A Meeting of Persons Entitled to Acquire the                    
               Property of Agricultural Enterprises Subject to                  
               Privatization                                                    
     For checking  the lists  of persons entitled to the right to               
acquire   the   property   of   agricultural   enterprise   under               
privatization,for verifying  the calculated amount of payments of               
an  agricultural   enterprise,  for   discussing  the   proposals               
concerning the  drafting   of a  scheme  for the privatization of               
the property  of an  enterprise as  well as  for discussing other               
related matters,     District Agency  of an  Agricultural  Reform               
shall hold  a meeting  of persons  specified in Article 3 of this               
law.                                                                            
                                                                                
     Article 11. Procedure for Solving Disputes                                 
                                                                                
     1.  Persons   who  disagree   with  the   decisions  of  the               
administration of  an enterprise  or of  the district  agency  of               
agricultural reform may  appeal against them to the privatization               
commission of the district. The dispute must be solved within the               
month from  the day  the claim was filed. Decisions of a district               
board   may be  changed by  the Government  of  the  Republic  of               
Lithuania.                                                                      
                                                                                
     2. Property disputes shall be solved in court.                             
                                                                                
     Article 12. The Termination of the  Activities of an                       
               Enterprise                                                       
                                                                                
     1. Upon privatization  an agricultural enterprise, the state               
government body under the jurisdiction of which is the enterprise               
under privatization,  on the recommendation of district agency of               
agricultural reform,  shall adopt  the decision  to liquidate  or               
reorganize such  enterprise in  the manner  established by  laws,               
delegating  the   functions  of  liquidation  commission  to  the               
district agency  of agricultural  reform. Information  concerning               
the termination of activities of an enterprise shall be published               
in the local press and in the central bulletin of privatization.                
                                                                                
     2. Claims  concerning the obligations of an enterprise under               
liquidation  shall  be  accepted  by  the  district  agencies  of               
agricultural reform  within a  month after the termination of the               
activities of an enterprise have been announced in the press.                   
                                                                                
     Article 13. Privatization Procedure of the Unprivatized                    
               Property                                                         
                                                                                
     1. The property which remained unprivatized after 3 May 1993               
shall be  privatized by  15 June  1993 to  persons specified   in               
paragraphs 1 -7 of Article 3 for the funds defined in Article 5.                
                                                                                
     2. The  property which remained unprivatized by 15 June 1993               
shall be privatized in the following manner:                                    
                                                                                
     1)  enterprises   which  have  been  established  after  the               
privatization  of   the  property   of  agricultural  enterprises               
according to  their  value  and  groups  of  persons  which  have               
subscribed for  share  investments  in  industrial  technological               
complexes, shall  acquire the  unprivatized portion  of  property               
pursuant to  purchase-sale  contract,  for  cash  and  at  a  95%               
discount;                                                                       
                                                                                
     2) other  unprivatized property shall be sold to enterprises               
which have  been established  in  the  territory  of  the  former               
agricultural  enterprise  under  privatization  and  for  persons               
specified in paragraphs 1-4 of Article 3 on the basis of economic               
expediency and  competitive bidding at the price not lower than 5               
percent of  the value  of the  property. The  competitive bidding               
shall be organised by the district agency of agricultural reform;               
                                                                                
     3)  at   the  request  of  agricultural  enterprises,  local               
governments of  districts and regions ( their branches) must sell               
unprivatized facilities  meant for social and other needs as well               
as  residential  houses  built  with  the  money  of  the  former               
agricultural enterprises and conveyed  to local governments by 28               
September 1990   directive  No. 298 and 12 October 1990 directive               
No 420  of the  Government of  the Republic  of Lithuania, at the               
price of 5 percent of the value of this property;                               
                                                                                
     4) the  value of  the purchsed property shall be distributed               
among the  members of  the agricultural  enterprises according to               
the procedure  prescribed by the Law on Agricultural Companies of               
the Republic of Lithuania ( Amended 7 April 1993).                              
                                                                                
Vytautas Landsbergis                                                            
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
Vilnius                                                                         
30 July 1991                                                                    
No. I-1624