Document:

EX-10.5

PLEDGE AND SECURITY AGREEMENT

among

NAVIC CONSULTING LTD,

as the Pledgor and a Borrower

FORTLAND LIMITED ,

as the Company

and

GTS FINANCE, INC.

as the Pledgee

Dated as of December 15, 2006

1

PLEDGE AND SECURITY AGREEMENT

This PLEDGE AND SECURITY AGREEMENT (the “Agreement”), dated as of December 15, 2006
(the “Execution Date”), is entered into by and among

	(1)	 	NAVIC CONSULTING LTD, a company registered and existing under the laws of the British Virgin
Islands (the “Pledgor” and a “Borrower”),

	(2)	 	FORTLAND LIMITED, a company registered and existing under the laws of the British Virgin
Islands (the “Company”),

	(3)	 	GTS FINANCE, INC., a corporation validly existing under the laws of the State of Delaware
(together with its successors, designees and assigns in such capacity, the “Pledgee”).

RECITALS

WHEREAS, the Borrower has entered into that certain Loan Agreement, dated as of December 15,
2006 (as amended, amended and restated, supplemented or otherwise modified from time to time, the
"Loan Agreement”), between the Borrower and the Pledgee pursuant to which, among other
things, the Pledgee has committed to make a loan to, and for the benefit of, the Borrower;

WHEREAS, the Buyer and BELMARK ENTERPRISES, INC (“Belmark”), a company registered and
validly existing under the laws of the British Virgin Islands, with its principal place of
business at Sea Meadow House, Blackburne Highway, P.O. Box 116, Road Town, Tortola, British Virgin
Islands, have entered into a Share Purchase Agreement, dated as of December 15, 2006 (the
"Share Purchase Agreement”), pursuant to which the Buyer has agreed to acquire from Belmark
65% of the issued share capital of the Company;

WHEREAS, as of the date hereof, the Pledgor is registered owner of 150,000 shares in the
Company representing 15% of the share capital of the Company as more precisely described on
Schedule I hereto (the “Equity Interest”) and 100% of the issued and outstanding
shares of Belmark;

WHEREAS, the Pledgor directly or indirectly owns interests in the Company and will obtain
benefits as a result of the Loan and the Share Purchase Agreement; and

WHEREAS, it is a requirement under the Loan Agreement and the Share Purchase Agreement that
the Pledgor execute and deliver this Agreement;

AGREEMENT

NOW, THEREFORE, in consideration of the promises contained herein, and to induce the Pledgee
to enter into the Loan Agreement and to make the advances of credit to the Borrower contemplated
thereby, intending to be legally bound, the Company and the Pledgor hereby agree with the Pledgee
as follows:

ARTICLE I

DEFINITIONS

Section 1.01 Defined Terms. The following terms (whether or not underscored) when
used in this Agreement, including its preamble and recitals, shall have the following meanings and
the terms:

"Agreement” has the meaning given in the preamble to this Agreement.

"BC Act” means the BVI Business Companies Act, 2004 (as amended or restated form time to
time).

"Borrower” has the meaning given in the preamble to this Agreement.

"Company” has the meaning given in the preamble to this Agreement.

"Collateral” has the meaning given in Section 2.01 (Granting Clause).

"Discharge Date” means the date on which (i) all amounts payable in respect of the
Obligations have been irrevocably and indefeasibly paid in full in cash in accordance with the Loan
Agreement or (ii) the Obligations are otherwise fully discharged or deemed to have been fully
discharged in accordance with the Transaction Documents.

"Default” means any of the Events of Default as defined in the Loan Agreement.

"Equity Interest” has the meaning given in the preamble to this Agreement.

"Fair Value” means, for the purpose of Section 6.06, the value determined in
accordance with Section 4 of the Option Agreement (as if the Collateral were the Option Shares for
the purpose of the Option Agreement).

“GTI” means Golden Telecom, Inc., a Delaware corporation.

"IBC Act” means the International Business Companies Act, Cap. 291 of the laws of the
British Virgin Islands (as amended or restated form time to time).

"Loan Agreement” has the meaning given in the recitals to this Agreement.

"Obligations” has the meaning given in Section 2.01 (Granting Clause) of this
Agreement.

"Pledgee” has the meaning given in the preamble to this Agreement.

"Pledgor” has the meaning given in the preamble to this Agreement.

"Register” means the Register of Mortgages, Charges and Encumbrances maintained by the
Pledgor.

"Register of Members” means the register of members of the Company maintained by the
Company.

"Taxes” means any federal, state, territorial, regional, municipal, local or foreign and
other tax, assessment, duty or similar charge of any kind whatsoever, including any corporate
franchise, income, profit, sales, use, ad valorem, receipts, value added, license, withholding,
payroll, employment, excise, property, customs, net worth, capital gains, transfer, stamp,
documentary, social security, social fund, pension fund, environmental or other tax or levy, and
including any interest, penalties and additions imposed with respect to such amounts.

"Transaction Documents” means collectively, this Agreement, the Share Purchase Agreement,
the Loan Agreement and the Share Option Agreement.

"UCC” means Uniform Commercial Code.

Section 1.02 Loan Agreement and UCC Definitions. Unless otherwise defined herein or
unless the context otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided in the Loan Agreement or, if not defined therein, the UCC.

ARTICLE II

PLEDGE AND GRANT OF SECURITY INTEREST

Section 2.01 Granting Clause. To secure the timely payment in full when due (whether
at stated maturity, by acceleration) in cash (whether at the stated maturity, by acceleration or
otherwise) of all amounts due and payable by the Pledgor pursuant to the Loan Agreement and other
indebtedness, obligations and liabilities of the Pledgor to the Pledgee now or hereafter incurred
or created under, arising out of, or in connection with the Loan Agreement (collectively, the
"Obligations”), together with any and all reasonable expenses which may be incurred by the
Pledgee in collecting or enforcing the performance of any or all of the Obligations or enforcing
any rights under this Agreement, the Pledgor hereby irrevocably and unconditionally pledges to the
Pledgee and grants to the Pledgee a first priority security interest in the following (the
"Collateral”):

	 	(i)	 	the Equity Interest and any certificates representing
the Equity Interest;

	 	(ii)	 	all of the Pledgor’s capital or ownership interest or
other Equity Interest, including capital accounts, in the Company;

	 	(iii)	 	all rights, title and interest in or to the Company
derived from the Collateral;

	 	(iv)	 	all securities, notes, certificates and other
instruments representing or evidencing any of the foregoing rights and
interests or the ownership thereof and any interest of the Pledgor
reflected in the books of any financial intermediary pertaining to such
rights and interests.

Section 2.02 Delivery of Collateral. All certificates, notes and other instruments
representing or evidencing any Collateral shall be delivered to and held by or on behalf of the
Pledgee, or its designee pursuant hereto, in the manner set forth in Section 7.02 (Delivery of
Collateral; Proxy).

Section 2.03 Retention of Certain Rights. So long as no Default has occurred and is
continuing, the Pledgor reserves the right (except as limited by the Transaction Documents) to
exercise all voting and other rights, title and interest with respect to the Collateral (except as
limited by the Transaction Documents) and, to the extent permitted under the Transaction Documents,
to receive all income, gains, profits, dividends and other distributions from the Collateral
whether non-cash dividends, cash, options, warrants, stock splits, reclassifications, rights,
instruments or other investment property or other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such rights and
interests; provided that no vote shall be cast, right exercised or other action taken that
could reasonably be expected to result in a breach or conflict with any of the Transaction
Documents.

Section 2.04 Obligations Unconditional. The obligations of the Pledgor in this
Agreement shall be continuing, irrevocable, primary, absolute and unconditional irrespective of the
value, genuineness, validity, regularity or enforceability of any Transaction Document, or any
other agreement or instrument referred to therein, or any substitution, release or exchange of any
guarantee of or security for any of the Obligations and, to the fullest extent permitted by
applicable Law, irrespective of any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a surety or guarantor, other than the occurrence of the
Discharge Date, it being the intent of this Section 2.04 that the obligations of the
Pledgor hereunder shall be absolute and unconditional under any and all circumstances. Without
limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of
the following shall not alter or impair the liability of the Pledgor hereunder, which shall remain
absolute and unconditional as described above without regard to and not be released, discharged or
in any way affected (whether in full or in part) by the following:

(a) at any time or from time to time, without notice to the Pledgor, the time for any
performance of or compliance with any of the Obligations is extended, or such performance or
compliance is waived;

(b) any Transaction Document is amended or modified or there is a departure from, or waiver
of, any of the terms of any Transaction Document;

(c) the maturity of any of the Obligations is accelerated, or any of the Obligations is
modified, supplemented and/or amended in any respect, or any right under any Transaction Document,
or any other agreement or instrument referred to therein is waived or any guarantee of any of the
Obligations or any security therefore is released or exchanged in whole or in part or otherwise
dealt with;

(d) any lien granted to, or in favor of, a Pledgee as security for any of the Obligations
fails to be perfected; or

(e) any proceeding, voluntary or involuntary, involving the bankruptcy, insolvency,
receivership, reorganization, liquidation or arrangement of the Pledgor, or any defense which the
Pledgor may have by reason of the order, decree or decision of any court or administrative body
resulting from any such proceeding. The Pledgor acknowledges and agrees that the Obligations
include interest on the Obligations at the applicable rate therefor under the Transaction Documents
which accrues after the commencement of any such proceeding (or, if interest on any portion of the
Obligations ceases to accrue by operation of law by reason of the commencement of said proceeding,
such Obligations include the interest which would have accrued on such portion of the Obligations
if said proceedings had not been commenced), since it is the intention of the parties that the
amount of the Obligations secured pursuant to this Agreement should be determined without regard to
any rule of law or order which may relieve the Pledgor of any portion of the Obligations. The
Pledgor will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the
benefit of creditors or similar person to pay the Pledgee, or allow the claim of such Pledgee in
respect of, interest which would have accrued after the date on which such proceeding is commenced.
Notwithstanding the above, so long as any Obligation remains outstanding, the Pledgor shall not,
without the prior written consent of the Pledgee, commence or join with any other person in
commencing any bankruptcy, reorganization or insolvency proceedings of or against the Company.

Section 2.05 Waiver. The enforceability and effectiveness of this Agreement and the
liability of the Pledgor, and the rights, remedies, powers and privileges of the Pledgee, under
this Agreement shall not be affected, limited, reduced, discharged or terminated, and the Pledgor
hereby expressly waives, to the fullest extent permitted by law, any defense now or in the future
arising, by reason of:

(a) the illegality, invalidity or unenforceability of all or any part of the Obligations, any
Transaction Document (other than this Agreement), or any agreement, security document, guarantee or
other instrument relating to all or any part of the Obligations;

(b) the lack of perfection or continuing perfection or failure of the priority of any lien or
encumbrance on any collateral for all or any part of the Obligations;

(c) the cessation, for any cause whatsoever, of the liability of any Person that is a
guarantor of all or any part of the Obligations (other than by reason of the full payment and
performance of all Obligations);

(d) any judicial or nonjudicial foreclosure or sale of, or other election of remedies with
respect to, any interest in real property or other Collateral serving as security for all or any
part of the Obligations;

(e) any failure of the Pledgee to file or enforce a claim in any bankruptcy or other
proceeding with respect to any Person;

(f) any agreement or stipulation with respect to the provision of adequate protection in any
bankruptcy proceeding of any Person;

(g) the avoidance of any lien or encumbrance in favor of the Pledgee for any reason;

(h) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation
or dissolution proceeding commenced by or against any Person, including any discharge of, or bar or
stay against collecting, all or any part of the Obligations (or any interest on all or any part of
the Obligations) in or as a result of any such proceeding; or

(i) any action taken by the Pledgee that is authorized by this Section 2.05 or
otherwise in this Agreement, by any other provision of any Transaction Document or by any omission
to take any such action.

ARTICLE III

DEFAULT

The occurrence of a Default, whatever the reason for such Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any Governmental Authority, shall constitute
a default hereunder. Any such Default shall be considered cured or waived for the purposes of this
Agreement when it has been cured or waived in accordance with the Loan Agreement as relevant.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to and in favor of the Pledgee, as of the date hereof and
as of the date of the Loan Disbursement, as follows:

Section 4.01 Organization; Power; Compliance with Law and Contractual Obligations.
The Pledgor (a) is a company validly organized and existing and in good standing under the laws of
the British Virgin Islands, (b) is duly qualified to do business as is now being conducted and as
is proposed to be conducted and is in good standing as a foreign limited liability company in each
jurisdiction where the nature of its business requires such qualification, (c) has all requisite
limited liability company power and authority and holds all Authorizations required as of the date
of this representation to enter into and perform its obligations under this Agreement.

Section 4.02 Due Authorization; Non-Contravention.  

(a) The execution, delivery and performance by the Pledgor of this Agreement is within the
Pledgor’s powers, has been duly authorized by all necessary company action, and does not contravene
(i) the Pledgor’s organizational documents, or (ii) any Law or contract binding on or affecting the
Pledgor.

(b) The exercise by the Pledgee of any of its rights and remedies with respect to the
Collateral in accordance with the terms of this Agreement will not contravene any contract or
agreement binding on or affecting the Pledgor or any of the properties of the Pledgor and will not
result in or require the creation of any Lien upon or with respect to any of the Collateral other
than pursuant to this Agreement.

Section 4.03 Validity. This Agreement constitutes the legal, valid and binding
obligations of the Pledgor enforceable in accordance with its terms, except as the enforceability
hereof may be limited by (a) bankruptcy, insolvency, reorganization, or other similar laws
affecting the enforcement of creditors’ rights generally and (b) general equitable principles
(whether considered in a proceeding in equity or at law).

Section 4.04 Beneficial Ownership; Collateral. The Pledgor is the lawful and
beneficial owner of and has full right, title and interest in, to and under all rights and
interests comprising the Collateral, subject to no Liens (other than the Liens created under this
Agreement or the Transaction Documents). The Equity Interest (a) has been duly authorized and
validly issued, (b) is fully paid and non-assessable and (c) constitutes fifteen percent (15%) of
the outstanding shares of the Company.

Section 4.05 No Prior Assignment. The Pledgor has not previously assigned any of its
rights in, to or under all or any portion of the Collateral (except to the Pledgee under any other
Transaction Document).

Section 4.06 No Other Transaction Documents. The Pledgor has not executed, has not
authorized, and is not aware of, any effective UCC financing statement, security agreement or other
instrument similar in effect covering all or any part of the Collateral on file in any recording
office, except as may have been filed pursuant to this Agreement and the other Transaction
Documents.

Section 4.07 Perfection of Security Interest.

(a) The pledge, mortgage and charge of the Collateral pursuant to this Agreement and delivery
of certificates for such Collateral, filing of a UCC financing statement, filing of the Register at
the registered offices of the Pledgor in the British Virgin Islands and with the appropriate
Governmental Authority of the British Virgin Islands and notation of the pledge, charge and
mortgage created hereby in the Register of Members pursuant to IBC Act and/or BC Act as applicable
create a valid and perfected first priority security interest in such Collateral, securing the
Obligations.

(b) The Pledgor has delivered to the Pledgee, on or prior to the date hereof, that certain
original share certificate in the name of Navic Consulting Ltd. No.2 dated July 21, 2006 in respect
of the Equity Interest, together with a duly executed undated instrument of transfer of the Equity
Interest, for purposes of perfection of the security interest granted to the Pledgee in that
portion of the Collateral required for perfection by possession.

ARTICLE V

COVENANTS OF THE PLEDGOR

The Pledgor covenants to and in favor of the Pledgee as follows:

Section 5.01 Defense of Collateral. The Pledgor shall, until the Discharge Date,
defend its title to the Collateral and the interest of the Pledgee in the Collateral pledged
hereunder against the claims and demands of all other Persons.

Section 5.02 Limitation of Liens. The Pledgor shall not create, incur, assume or
suffer to exist any Liens on or with respect to all or any part of the Collateral (other than Liens
created in accordance with Transaction Documents). The Pledgor shall at its own cost and expense
promptly take such action as may be necessary to discharge any such Liens.

Section 5.03 No Other Filings. The Pledgor shall not file or authorize or permit to
be filed in any jurisdiction any UCC financing statements or any like statement relating to the
Collateral in which the Pledgee are not named as the sole secured party.

Section 5.04 No Sale of Collateral. Except and to the extent permitted by the terms
of the Transaction Documents, the Pledgor shall not cause, suffer or permit the sale, assignment,
conveyance, pledge or other transfer of all or any portion of the Pledgor’s Equity Interest in the
Company or any other portion of the Collateral.

Section 5.05 No Impairment of Security. The Pledgor shall not take any action that,
or fail to take any action if such failure would impair in any manner the enforceability of the
Pledgee’s security interest in and Lien on any Collateral.

Section 5.06 Maintenance of Records. The Pledgor shall, at all times, keep accurate
and complete records of the Collateral, including the Register and the Register of Members. The
Pledgor shall permit officers and designated representatives of the Pledgee to examine the
Pledgor’s books and records pertaining to the Collateral, and make copies thereof or abstracts
therefrom, all at the expense of the Pledgor and at such reasonable times during normal business
hours and as often as may be reasonably desired, upon reasonable advance notice to the Pledgor.

Section 5.07 Name; Jurisdiction of Organization. The Pledgor shall not change its
name, its jurisdiction of organization, the location of its principal place of business or its
organization identification number without the prior written consent of the Pledgee.

Section 5.08 Amendments to Organizational Documents. Except as expressly permitted by
this Agreement or the other Transaction Documents, the Pledgor shall not terminate, amend,
supplement or otherwise modify, or cancel, its memorandum and articles of association..

Section 5.09 Perfection.

(a) The Pledgor hereby authorizes the filing of any UCC financing statements or continuation
statements, and amendments to UCC financing statements, or any similar document in any
jurisdictions and with any filing offices as the Pledgee may reasonably determine are necessary or
advisable to perfect the security interest granted to the Pledgee herein. Such UCC financing
statements may describe the Collateral in the same or similar and consistent manner as described
herein.

(b) The Pledgor shall as promptly as practicable after the date hereof, but in any event
before the Disbursement, record in the Register of Members and the Register relevant particulars of
the security interest created hereunder and cause the Register be filed at the registered offices
of the Pledgor in the British Virgin Islands and with the appropriate Governmental Authority in the
British Virgin Islands and deliver to the Pledgee a stamped copy of the Register of Members and the
Register.

Section 5.10 Information Concerning Collateral. The Pledgor shall, promptly upon
request, provide to the Pledgee all information and evidence it may reasonably request concerning
the Collateral to enable such Pledgee to enforce the provisions of this Agreement.

Section 5.11 Payment of Taxes. The Pledgor shall pay or cause to be paid, before any
fine, penalty, interest or cost attaches thereto, all Taxes and other non-governmental charges or
levies (other than those Taxes or levies that are subject to a contest) now or hereafter assessed
or levied against the Collateral pledged by it hereunder and shall retain copies of and, upon
request, permit the Pledgee to examine receipts showing payment of any of the foregoing.

ARTICLE VI

REMEDIES UPON DEFAULT

Section 6.01 Remedies Upon Default. Upon the occurrence and during the continuation
of Default, the Pledgee shall have the right, at its election, but not the obligation, to do any of
the following:

(a) foreclose on the Collateral pursuant to Section 6.06 (Strict Foreclosure);

(b) demand, sue for, collect or receive any money or property at any time payable to or
receivable by the Pledgor on account of or in exchange for all or any part of the Collateral;

(c) cause any action at law or suit in equity or other proceeding to be instituted and
prosecuted to collect or enforce any obligation or exercise any right hereunder or included in the
Collateral, including specific enforcement of any covenant or agreement contained herein, or to
foreclose or enforce the security interest in all or any part of the Collateral granted herein, or
to enforce any other legal or equitable right vested in it by this Agreement or by applicable Law;

(d) secure the appointment of a receiver of the Collateral or any part thereof, whether
incidental to a proposed sale of the Collateral or otherwise, and all disbursements made by such
receiver and the expenses of such receivership shall be added to and be made a part of the
Obligations;

(e) exercise any other or additional rights or remedies granted to the Pledgee under any other
provision of this Agreement or any other Transaction Document, or exercisable by the Pledgee under
the UCC or under any other applicable Law and, without limiting the generality of the foregoing and
without notice except as specified below, sell the Collateral or any part thereof pursuant to
Section 6.03 (Sale of Collateral in the Absence of Foreclosure) or Section 6.05
(Private Sales);

(f) take any other lawful action and incur expense that the Pledgee deems necessary or
desirable to protect or realize upon its security interest in the Collateral or any part thereof;
and/or

(g) appoint another Person (who may be an employee, officer or other representative of the
Pledgee) to do any of the foregoing, or take any other action permitted hereunder, on behalf of the
Pledgee.

Section 6.02 Minimum Notice Period. If, pursuant to applicable Law requirements,
prior notice of any action described in Section 6.01 (Remedies Upon a Event of Default) is
required to be given to the Pledgor or the Company, the Pledgor and the Company hereby acknowledge
and agree that the minimum time of ten (10) days, shall be deemed a reasonable notice period under
such applicable Law.

Section 6.03 Sale of Collateral in the Absence of Foreclosure. In addition to
exercising the foregoing rights, the Pledgee may, to the extent permitted by applicable Law,
arrange for and conduct a sale of the Collateral at a public or private sale (as the Pledgee may
elect) in a commercially reasonable manner. The Pledgor also hereby waives, to the full extent it
may lawfully do so, the benefit of all laws providing for rights of appraisal, valuation, stay or
extension or of redemption in case the Pledgee elect to sell the Collateral in the absence of
foreclosure. In the event the Pledgee shall bid at any sale permitted by Law and this Agreement or
any other Transaction Document, the Pledgee may bid all or less than the amount of the Obligations.
The Pledgee shall not be obligated to make any sale of Collateral regardless of whether or not
notice of sale has been given. If the Collateral is sold, the Pledgee shall transfer to the Pledgor
the proceeds of the sale in excess of the Obligations.

Section 6.04 Actions Taken by the Pledgee.

(a) Any action or proceeding to enforce this Agreement may be taken by the Pledgee either in
the Pledgor’s name or in the Pledgee’s name, as the Pledgee may deem necessary.

(b) The Pledgor shall be entitled to rely and shall act upon any instruction or direction
issued by the Pledgee hereunder.

Section 6.05 Private Sales. The Pledgee shall incur no liability as a result of the
sale of the Collateral, or any part thereof, at any private sale made in good faith by the Pledgee
pursuant to this Article VI conducted in a commercially reasonable manner and in accordance
with the requirements of applicable Law. The Pledgor hereby waives any claims against the Pledgee
arising by reason of the fact that the price at which the Collateral may have been sold at such a
private sale was less than the price that might have been obtained at a public sale or was less
than the aggregate amount of the Obligations, even if the Pledgee accepts the first offer received
and does not offer the Collateral to more than one offeree, provided that such private sale is
conducted in a commercially reasonable manner and in accordance with applicable Law.

Section 6.06 Strict Foreclosure. Prior to commencement of actions set forth in
Section 6.03 (Sale of Collateral in the Absence of Foreclosure) or Section 6.05
(Private Sales) the Pledgee shall be entitled, but not obligated, to deliver a notice to the
Pledgor of acceptance by the Pledgee of the Collateral full satisfaction of the Obligations
(depending on the valuation of the Collateral as provided for below). Then

(a) the Pledgee shall be entitled to instruct the Company to register the transfer of the
Collateral in its name;

(b) the valuation procedure provided for in Section 4.2 of the Option Agreement shall commence
and if upon its completion the Fair Value of the Collateral

	 	(i)	 	exceeds the amount of the Obligations then due, the
Pledgee shall promptly pay the balance to the Pledgor;

	 	(ii)	 	is below the amount of the Obligations then due
Obligations shall be deemed to have been discharged in full.

Section 6.07 Compliance With Limitations and Restrictions. The Pledgor hereby agrees
that in respect of any sale of the Collateral pursuant to the terms hereof, the Pledgee is hereby
authorized to comply with any limitation or restriction in connection with such sale. Such
compliance shall not result in such sale being considered or deemed not to have been made in a
commercially reasonable manner.

ARTICLE VII

FURTHER ASSURANCES

Section 7.01 Attorney-in-Fact. The Pledgor hereby irrevocably constitutes and
appoints the Pledgee, acting for and on behalf of itself and each successor or permitted assign of
the Pledgee, the true and lawful attorney-in-fact of the Pledgor, with full power and authority in
the place and stead of the Pledgor and in the name of the Pledgor, the Pledgee or otherwise, to
enforce all rights, interests and remedies of the Pledgor with respect to the Collateral or enforce
all rights, interests and remedies of the Pledgee under this Agreement (including the rights set
forth in Section 6.01 (Remedies Upon a Event of Default)); provided,
however, that no Pledgee shall exercise any of the aforementioned rights unless a Default
has occurred and is continuing.

Section 7.02 Delivery of Collateral; Proxy. All certificates or instruments
representing or evidencing the Collateral shall be delivered to and held by or on behalf of the
Pledgees pursuant hereto. All such certificates or instruments shall be in suitable form for
transfer by delivery, or shall be accompanied by duly executed instruments of transfer or
assignment in blank, all in form and substance reasonably acceptable to the Pledgee. The Pledgee
shall have the right, at any time in its discretion and without prior notice to the Pledgor or the
Company, following the occurrence and during the continuation of a Default, to transfer to or to
register in the name of the Pledgee or either of them or any of its nominees any or all of the
Collateral. In furtherance of the foregoing, the Pledgor shall further execute and deliver to the
Pledgee a proxy in the form attached hereto as Exhibit A and an irrevocable power in the
form of Exhibit B with respect to the ownership interests of the Company owned by the
Pledgor.

Section 7.03 The Company’s Consent and Covenant. Notwithstanding anything to the
contrary contained in the Company’s organizational documents, the Company hereby consents to the
assignment of and grant of a security interest in the Collateral to the Pledgee and to the exercise
by the Pledgee of all rights and powers assigned or delegated to the Pledgee by the Pledgor
hereunder, including the rights upon and during the continuation of a Default to exercise the
Pledgor’s voting rights and other rights to manage or control the Company, all in accordance with
the Transaction Documents.

Section 7.04 Waiver of Rights of Subrogation. Until the Discharge Date, (a) the
Pledgor shall not exercise any right of subrogation, and (b) the Pledgor agrees not to exercise any
claim, right or remedy that the Pledgor may now have or hereafter acquire against Belmark or the
Company that arises hereunder and/or from the performance by the Pledgor hereunder.

Section 7.05 Limitatio n on Duty of the Pledgee with Respect to the Collateral. The
powers conferred on the Pledgee hereunder are solely to protect its interest in the Collateral and
shall not impose any duty on the Pledgee or any of its designated agents to exercise any such
powers. Except for (a) the safe custody of the Collateral in its possession, (b) the accounting
for monies actually received by it hereunder, (c) the exercise of reasonable care in the custody
and preservation of the Collateral in its possession, and (d) any duty expressly imposed on the
Pledgee by applicable Law with respect to the Collateral that has not been waived hereunder, the
Pledgee shall have no duty with respect to the Collateral.

Section 7.06 Termination of Security Interest. Upon the Discharge Date, this
Agreement and the security interest and all other rights granted hereby shall terminate and all
rights to the Collateral shall revert to the Pledgor. Upon any such termination, the Pledgee will,
at the Pledgor’s sole expense and upon its written direction, promptly return all certificates and
other instruments previously delivered to the Pledgee or any of them representing the Collateral
and to release all security interest in the Collateral and to return such Collateral to the
Pledgor.

ARTICLE VIII

MISCELLANEOUS

Section 8.01 Amendments, Etc. No amendment or waiver of any provision of this
Agreement, and no consent to any departure by any of the Pledgor or the Company from this
Agreement, shall be effective unless in writing signed by the Pledgee, and, in the case of an
amendment, by the Pledgor and the Company, and each such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.

Section 8.02 Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, WITHOUT REFERENCE TO
CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW).

Section 8.03 Dispute Resolution.

(a) Appointment of Agents of Service of Process; Consent to Jurisdiction. Each Party
irrevocably appoints CT Corporation System, located on the date hereof at 111 Eighth Avenue,
13th Floor, New York, New York 10011, USA, as its true and lawful agent and attorney to
accept and acknowledge service of any and all process against it in any judicial action, suit or
proceeding under this Agreement, with the same effect as if such Party were a resident of the State
of New York and had been lawfully served with such process in such jurisdiction, and waives all
claims of error by reason of such service, provided that the Party effecting such service shall
also deliver a copy thereof on the date of such service to the other Parties by facsimile as
specified in Section 8.10. Each Party will enter into such agreements with such agent as may be
necessary to constitute and continue the appointment of such agent hereunder. In the event that
any such agent and attorney resigns or otherwise becomes incapable of acting, the affected Party
will appoint a successor agent and attorney in New York reasonably satisfactory to each other
party, with like powers. Each Party hereby irrevocably submits to the non-exclusive jurisdiction
of the United States District Court for the Southern District of New York and of any New York state
court sitting in New York City, in connection with any such action, suit or proceeding, and agrees
that any such action, suit or proceeding may be brought in such court, provided, however, that such
consent to jurisdiction is solely for the purpose referred to in this Section 8.03 and shall not be
deemed to be a general submission to the jurisdiction of said courts of or in the State of New York
other than for such purpose. Each Party hereby irrevocably waives, to the fullest extent permitted
by law, any objection that it may now or hereafter have to the laying of the venue of any such
action, suit or proceeding brought in such a court and any claim that any such action, suit or
proceeding brought in such a court has been brought in an inconvenient forum. Nothing herein shall
affect the right of any Party to serve process in any other manner permitted by law or to commence
legal proceedings or otherwise proceed against any other Party in any other jurisdiction in a
manner not inconsistent with Section 8.03.

(b) WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR COUNTERCLAIM ARISING IN CONNECTION WITH
THIS AGREEMENT, THE BREACH THEREOF AND/OR THE SCOPE OF THE PROVISIONS OF THIS SECTION 8.03, WHETHER
SOUNDING IN CONTRACT OR TORT, AND INCLUDING ANY CLAIM FOR FRAUDULENT INDUCEMENT THEREOF.

Section 8.04 Benefits of Agreement. Nothing in this Agreement or any other
Transaction Document, express or implied, shall give to any Person, other than the parties hereto,
and each of their successors and permitted assigns under this Agreement or any other Transaction
Document, any benefit or any legal or equitable right or remedy under this Agreement.

Section 8.05 Expenses. Each of the Pledgor and the Company agrees to pay on demand to
the Pledgee all costs and expenses incurred by such Pledgee (including the reasonable fees,
expenses and disbursements of counsel) incident to its enforcement, exercise, protection or
preservation of any of its rights, remedies or claims under this Agreement.

Section 8.06 Interest. Any amount required to be paid by the Pledgor or the Company
pursuant to the terms hereof that is not paid when due shall bear interest at the rate set forth in
Section 5.2 of the Loan Agreement or the maximum rate permitted by law, whichever is less, from the
date due until paid in full in cash.

Section 8.07 Counterparts; Effectiveness.

(a) This Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract.

(b) Notwithstanding anything to the contrary herein, this Agreement is not shall not be deemed
to be effective and no rights or obligations of any party hereto are created hereby unless and
until the Board of Directors of Golden Telecom Inc., approves the Transaction Documents and notice
of such approval is sent to the Seller (the “Effective Date”). For the avoidance of doubt, this
Agreement shall become fully effective on the Effective Date.

(c) The Pledgor acknowledges and agrees that the Board of Directors of GTI has no obligation
to approve the Transaction Documents.

Section 8.08 Entire Agreement. This Agreement, together with each other Transaction
Document, is intended by the parties as a final expression of their agreement and is intended as a
complete and exclusive statement of the terms and conditions thereof.

Section 8.09 No Waiver; Cumulative Remedies. No failure by the Pledgee to exercise,
and no delay by the Pledgee in exercising, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided,
and provided under each other Transaction Document, are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

Section 8.10 Notices and Other Communications. (a)  Except in the case of notices and
other communications expressly permitted to be given by telephone (and except as provided in
Section 8.10(b)), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier or electronic mail as follows, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as set forth below:

If to the Pledgor:

NAVIC CONSULTING LTD

Sea Meadow House, Blackburne Highway (P.O.Box 116), Road Town, Tortola,
British Virgin Islands

Attention: E.Roytman

Telephone: +7 (495) 755 60 50

Facsimile: +7 (495) 755 60 48

If to the Company:

FORTLAND LIMITED

Sea Meadow House, Blackburne Highway (P.O.Box 116), Road Town, Tortola,
British Virgin Islands

Attention: A.Menshikova

Telephone: +7 (495) 755 60 50

Facsimile: +7 (495) 755 60 48

If to the Pledgee:

GTS FINANCE, INC.

	 	 	 
	2831 29th Street NW

	 
	 	 
	Washington, D.C. 20008, USA

	 
	 	 
	Attn:

	 	Julia Marx

Fax: +1 (202) 332-4877

Telephone: +1 (202) 332-5997

with a copy to:

	 	 	 
	Moscow Representative Office of Golden TeleServices, Inc.

	 
	 	 
	1, Kozhevnichesky Proezd, 2nd floor

Moscow, 115114, Russia

Attn:

	 	

General Counsel

Fax: +7 (495) 797-9306

Telephone: +7 (495) 967-1323

(b) Notices sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed
to have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next business day
for the recipient).

(c) Each of the parties hereto may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties hereto.

Section 8.11 Rights of the Pledgee. The Pledgee shall be entitled to the rights,
protections, immunities and indemnities set forth in the Loan Agreement as if specifically set
forth herein. With respect to the duties, obligations and rights of the Pledgee, if any conflict
between the terms of this Agreement and the terms of the Loan Agreement arises, the terms of the
Loan Agreement shall govern and control.

Section 8.12 Severability. If any provision of this Agreement or any other
Transaction Document is held to be illegal, invalid or unenforceable, (a) the legality, validity
and enforceability of the remaining provisions of this Agreement and the other Transaction
Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good
faith negotiations to replace the illegal, invalid or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the illegal, invalid
or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

Section 8.13 Successions and Assignments. This Agreement shall create a continuing
pledge, mortgage or charge and assignment of and security interest in the Collateral and shall
(a) remain in full force and effect until the Discharge Date and as otherwise provided in
Section 8.14 (Survival); (b) be binding upon the Company, the Pledgor, and their respective
successors and assigns; and (c) inure, together with the rights and remedies of the Pledgee, to the
benefit of the Pledgee, and its respective successors and assigns. The release of the security
interest in any of the Collateral, the taking or acceptance of additional security, or the resort
by the Pledgee to any security it may have in any order it may deem appropriate, shall not affect
the liability of any Person on the indebtedness secured hereby. The Pledgor is not entitled to
assign its obligations hereunder to any other Person without the written consent of the Pledgee,
and any purported assignment in violation of this provision shall be void.

Section 8.14 Survival. Notwithstanding anything in this Agreement to the contrary,
Sections 8.05 (Expenses) shall survive any termination of this Agreement. In addition,
each representation and warranty made hereunder and in any other Transaction Document or other
document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive
the execution and delivery hereof and thereof. Such representations and warranties have been or
will be relied upon by the Pledgee, regardless of any investigation made by the Pledgee or on their
behalf and notwithstanding that the Pledgee may have had notice or knowledge of any Default at the
time of any extensions of credit to the Company under the Transaction Documents, and shall continue
in full force and effect as long as any Loan or any other Obligation hereunder or under any other
Transaction Document shall remain unpaid or unsatisfied.

Section 8.15 Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable Law, neither the Pledgor nor the Company shall assert, and each of the Pledgor and the
Company hereby waives, any claim against any indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement, any other Transaction Document, or any
agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any
Loan, or the use of the proceeds thereof. No indemnitee shall be liable for any damages arising
from the use by unintended recipients of any information or other materials distributed by it
through telecommunications, electronic or other information transmission systems in connection with
this Agreement or the other Transaction Documents or the transactions contemplated hereby.

[SIGNATURE PAGE FOLLOWS]

2

IN WITNESS WHEREOF, the parties hereto, by their officers duly authorized, intending to be
legally bound, have caused this Pledge and Security Agreement to be duly executed and delivered as
of the Execution Date.

	 	 	 
	NAVIC CONSULTING LTD.	 	 
	as the Pledgor

By:

	 	

	
 
	 	 
	Name:

Title:

	 	Evgeny Roytman

	 	 	 
	FORTLAND LIMITED	 	 
	as the Company

By:

	 	

	
 
	 	 
	Name:

Title:

	 	Evgeny Roytman

	 	 	 
	GTS FINANCE, INC.	 	 
	as the Pledgee

By:

	 	

	
 
	 	 
	Name:

Title:

	 	Jean-Pierre Vandromme

CEO

3

EXHIBIT A

IRREVOCABLE PROXY

The undersigned hereby appoints GTS FINANCE, INC., not in its individual capacity but solely
as “Pledgee” under the Pledge and Security Agreement (each the “Pledgee”), as Proxy with
full power of substitution, and hereby authorizes Pledgee to represent and vote all of the shares
of FORTLAND LIMITED, an international business company organized and existing under the laws of the
British Virgin Islands, owned by the undersigned on the date of exercise hereof during the
continuance of a Default under, and as defined in, the Pledge and Security Agreement, dated as of
December 15, 2006 among NAVIC CONSULTING LTD, FORTLAND LIMITED and the Pledgee at any meeting or at
any other time chosen by the Pledgee in its sole discretion.

	 	 	 
	Date:	 	NAVIC CONSULTING LTD
	
 
	 	By:
	
 
	 	Name:
	
 
	 	Title:
	
 
	 	 

4

EXHIBIT B

FORTLAND LIMITED

Incorporated under the

International Business Companies Act (Cap 291)

of the British Virgin Islands (IBC Number 669724),

Re-registered as a BVI Business Company as of October 27, 2006

(BVI Company Number 1059968)

(the Company)

TRANSFER DOCUMENT

SHARE TRANSFER

We, NAVIC CONSULTING LTD of Sea Meadow House, Blackburne Highway (P.O. Box 116), Road Town,
Tortola, British Virgin Islands FOR VALUE RECEIVED DO HEREBY TRANSFER TO GTS FINANCE, INC., of 2831
29th Street, NW, Washington, D.C. 20008, USA, 150,000 (one hundred fifty thousand)
common shares standing in our name in the share register of the above Company to hold subject to
the conditions on which we held the said shares on execution of this transfer and irrevocably
appoints SFMT-CIS, INC. as attorney to transfer the ownership interests with full power of
substitution in the premises.

AS WITNESS the day of [   ] 200[   ]

—

Duly authorised signatory

For and on behalf of

NAVIC CONSULTING LTD.

EXHIBIT C

5

SCHEDULE OF SECURITY FILINGS

1. UCC-1 financing statement naming the Pledgor as debtor and the Pledgee as the secured party,
against the Collateral of the Pledgor in the Company and the other Collateral referred to, and as
defined in, this Agreement, to be filed with the Secretary of State in Washington, D.C.

2. A notation of the pledge, charge and mortgage over the Equity Interest in the Register of
Members;

3. Register to be filed and maintained at the registered offices of the Pledgor and with the
Registry of the Corporate Affairs in the British Virgin Islands;

6

SCHEDULE I

DESCRIPTION OF THE COLLATERAL

	 
	 

	Description:

	 

	 

	150,000 registered shares of FORTLAND LIMITED (IBC No. 669724, BVI Company

Number 1059968), represented by Share Certificate No. 2, dated July 21, 2006.

	 

	 

7EX-10.1

AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE — NET

(DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1. Basic Provisions (“Basic Provisions”)

1.1 Parties: This Lease (“Lease”), dated for reference purposes only      December      19,
     2006     is made by and between  GEOFFREY D. KNAPP AND JOHANNA L.
KNAPP     
(“Lessor”)

and  CAM COMMERCE SOLUTIONS, INC., a Delaware corporation     
 (“Lessee”),

(collectively the “Parties,” or individually a “Party”).

1.2 Premises: That certain real property, including all improvements therein or to be
provided by Lessor under the terms of this Lease, and commonly known as  1202 HIGH TECH
CIRCLE, HENDERSON, NV, located in the County of  Clark, State of 
Nevada, and generally described as (describe briefly the nature of the property
and, if applicable, the “Project”, if the property is located within a Project)

20,500 sq.ft. (+/-) of office space, including 11,000 sq. ft. (+/-) existing, plus 9,500
sq.ft. (+/-) under construction and scheduled for completion

In December 2006

(“Premises”). (See also Paragraph 2)

1.3 Term:  Ten  years and  -0-  months (“Original Term”)
commencing  January 1, 2007 (approx.)
 (“Commencement Date”) and ending  December 31, 2016 (approx.)
 (“Expiration Date”). (See also Paragraph 3 and Addendum Paragraph
50)

1.4 Early Possession:  Issuance of Certificate of Occupancy for expanded
space  (“Early Possession Date”). (See also Paragraphs 3.2 and 3.3, and Addendum
Paragraph 50)

1.5 Base Rent: $ 25,949.00  per month (“Base Rent”), payable on
the  first  day of each month commencing 
January 1, 2007
 (See also Paragraph 4)

X If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted (See
Addendum Paragraph 52).

1.6 Base Rent Paid Upon Execution:
$     N/A     as Base Rent for the period 
N/A
.

1.7 Security Deposit: $_25,949.00     (of which $11,000 was previously funded with original
lease)     (“Security Deposit”). (See also Paragraph 5 and Addendum Paragraph 53 )

	 	 	 
	1.8

	 	Agreed Use: General Office, sales, software programming
	
 
	 	 
	
 
	 	(See also Paragraph 6)
	 

	 	 
	1.9

1.10

	 	Insuring Party. Lessor is the “Insuring Party” unless otherwise stated herein. (See also Paragraph 8)

Real Estate Brokers: (See also Paragraph 15)

(a) Representation: The following real estate brokers (collectively, the “Brokers”) and
brokerage relationships exist in this transaction (check applicable boxes)

o  N/A
 represents Lessor exclusively (“Lessor’s
Broker”);

o  N/A
 represents Lessee exclusively (“Lessee’s
Broker”); or

o  N/A
 represents both Lessor and Lessee (“Dual
Agency”).

(b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor
shall pay to the Broker the fee agreed to in their separate written agreement (or if there is no
such agreement, the sum of  N/A  % of the total Base Rent for the brokerage services
rendered by said Broker).

1.11 Guarantor: The obligations of the Lessee under this Lease are to be guaranteed by
N/A  (“Guarantor”). (See also Paragraph 37)

1.12 Addenda and Exhibits. Attached hereto is an Addendum or Addenda consisting of Paragraphs
 50  through  55  and Exhibits 
        , all of which
constitute a part of this Lease.

2. Premises.

2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the
Premises for the term, at the rental, and upon all of the terms, covenants and conditions set forth
in this Lease Unless otherwise provided herein, any statement of size set forth in this Lease, or
that may have been used in calculating rental, is an approximation which the Parties agree is
reasonable and the rental based thereon is not subject to revision whether or not the actual size
is more or less.

2.2 Condition. Lessor shall deliver the Premises to Lessee broom clean and free of debris on
the Commencement Date or the Early Possession Date, whichever first occurs (“Start Date”), and, so
long as the required service contracts described in Paragraph 7 1(b) below are obtained by Lessee
within thirty (30) days following the Start Date, warrants that the existing electrical, plumbing,
fire sprinkler, lighting, heating, ventilating and air conditioning systems (“HVAC”), loading
doors, if any, and all other such elements in the Premises, other than those constructed by Lessee,
shall be in good operating condition on said date and that the structural elements of the roof,
bearing walls and foundation of any buildings on the Premises (the “Building”) shall be free of
material defects. If a non-compliance with said warranty exists as of the Start Date, Lessor shall,
as Lessor’s sole obligation with respect to such matter, except as otherwise provided in this
Lease, promptly after receipt of written notice from Lessee setting forth with specificity the
nature and extent of such non-compliance, rectify same at Lessor’s expense If, after the Start
Date, Lessee does not give Lessor written notice of any non-compliance with this warranty within:
(i) one year as to the surface of the roof and the structural portions of the roof, foundations and
bearing walls, (ii) six (6) months as to the HVAC systems, (iii) thirty (30) days as to the
remaining systems and other elements of the Building, correction of such non-compliance shall be
the obligation of Lessee at Lessee’s sole cost and expense.

2.3 Compliance. Lessor warrants that the improvements on the Premises comply with all
applicable laws, covenants or restrictions of record, building codes, regulations and ordinances
(“Applicable Requirements”) in effect on the Start Date Said warranty does not apply to the use to
which Lessee will put the Premises or to any Alterations or Utility Installations (as defined in
Paragraph 7 3(a)) made or to be made by Lessee. NOTE’ Lessee is responsible for determining whether
or not the zoning is appropriate for Lessee’s intended use, and acknowledges that past uses of the
Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall,
except as otherwise provided, promptly after receipt of written notice from Lessee setting forth
with specificity the nature and extent of such non-compliance, rectify the same at Lessor’s expense
If Lessee does not give Lessor written notice of a non-compliance with this warranty within six (6)
months following the Start Date, correction of that non-compliance shall be the obligation of
Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed (as
opposed to being in existence at the Start Date, which is addressed in Paragraph 6 2(e) below) so
as to require during the term of this Lease the construction of an addition to or an alteration of
the Building, the remediation of any Hazardous Substance, or the reinforcement or other physical
modification of the Building (“Capital Expenditure”), Lessor and Lessee shall allocate the cost of
such work as follows

(a) Subject to Paragraph 2 3(c) below, if such Capital Expenditures are required as a result
of the specific and unique use of the Premises by Lessee as compared with uses by tenants in
general, Lessee shall be fully responsible for the cost thereof, provided, however that if such
Capital Expenditure is required during the last two (2) years of this Lease and the cost thereof
exceeds six (6) months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies
Lessee, in writing, within ten (10) days after receipt of Lessee’s termination notice that Lessor
has elected to pay the difference between the actual cost thereof and the amount equal to six (6)
months’ Base Rent If Lessee elects termination, Lessee shall immediately cease the use of the
Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a
termination date at least ninety (90) days thereafter. Such termination date shall, however, in no
event be earlier than the last day that Lessee could legally utilize the Premises without
commencing such Capital Expenditure.

(b) If such Capital Expenditure is not the result of the specific and unique use of the
Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee
shall allocate the obligation to pay for such costs pursuant to the provisions of Paragraph 7.1(c);
provided, however, that if such Capital Expenditure is required during the last two years of this
Lease ~r if Lessor reasonably determines that it is not economically feasible to pay its share
thereof, Lessor shall have the option to terminate this Lease upon ninety (90) days prior written
notice to Lessee unless Lessee notifies Lessor, in writing, within ten (10) days after receipt of
Lessor’s termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not
elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may
advance such funds and deduct same, with Interest, from Rent until Lessor’s share of such costs
have been fully paid If Lessee is unable to finance Lessor’s share, or if the balance of the Rent
due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an
offset basis, Lessee shall have the right to terminate this Lease upon thirty (30) days written
notice to Lessor

(c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to
apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital
Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use,
change in intensity of use, or modification to the Premises then, and in that event, Lessee shall
be fully responsible for the cost thereof, and Lessee shall not have any right to terminate this
Lease

2.4 Acknowledgements. Lessee acknowledges that’ (a) it has been advised by Lessor and/or
Brokers to satisfy itself with respect to the condition of the Premises (including but not limited
to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance
with Applicable Requirements), and their suitability for Lessee’s intended use, (b) Lessee has made
such investigation as it deems necessary with reference to such matters and assumes all
responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither
Lessor, Lessor’s agents, nor any Broker has made any oral or written representations or warranties
with respect to said matters other than as set forth in this Lease In addition, Lessor
acknowledges that’ (a) Broker has made no representations, promises or warranties concerning
Lessee’s ability to honor the Lease or suitability to occupy the Premises, and (b) it is Lessor’s
sole responsibility to investigate the financial capability and/or suitability of all proposed
tenants

2.5 Lessee as Prior Owner/Occupant. The parties acknowledge that Lessee has occupied the
originally constructed portion of the Premises under the terms of a prior Lease Agreement dated as
of March 15, 1997. The foregoing warranties of Lessor shall apply only to the newly constructed
portion of the Premises. As to the previously constructed portion of the Premises, subject to the
provisions of Paragraph 7, Lessee shall be responsible for any necessary corrective work.

3. Term.

3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as
specified in Paragraph 1 3

3.2 Early Possession. If Lessee totally or partially occupies the Premises prior to the
Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early
possession. All other terms of this Lease (including but not limited to the obligations to pay Real
Property Taxes and insurance premiums and to maintain the Premises) shall, however, be in effect
during such period. Any such early possession shall not affect the Expiration Date

3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to
deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts,
Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease Lessee shall not, however, be
obligated to pay Rent or perform its other obligations until it receives possession of the Premises
If possession is not delivered within sixty (60) days after the Commencement Date, Lessee may, at
its option, by notice in writing within ten (10) days after the end of such sixty (60) day period,
cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder If
such written notice is not received by Lessor within said ten (10) day period. Lessee’s right to
cancel shall terminate. Except as otherwise provided, if possession is not tendered to Lessee by
the Start Date and Lessee does not terminate this Lease, as aforesaid, any period of rent abatement
that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and
continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but
minus any days of delay caused by the acts or omissions of Lessee. If possession of the Premises is
not delivered within four (4) months after the Commencement Date, this Lease shall terminate unless
other agreements are reached between Lessor and Lessee, in writing.

3.4 Lessee Compliance. Lessor shall not be required to tender possession of the Premises to
Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5)
Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under
this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor’s
election to withhold possession pending receipt of such evidence of insurance further, if Lessee is
required to perform any other conditions prior to or concurrent with the Start Date, the Start Date
shall occur but Lessor may elect to withhold possession until such conditions are satisfied.

4. Rent.

4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease
(except for the Security Deposit) are deemed to be rent (“Rent”).

4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of
the United States, without offset or deduction (except as specifically permitted in this Lease), on
or before the day on which it is due Rent for any period during the term hereof which is for less
than one (1) full calendar month shall be prorated based upon the actual number of days of said
month. Payment of Rent shall be made to Lessor at its address stated herein or to such other
persons or place as Lessor may from time to time designate in writing. Acceptance of a payment,
which is less than the amount, then due shall not be a waiver of Lessor’s rights to the balance of
such Rent, regardless of Lessor’s endorsement of any check so stating.

5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit
as security for Lessee’s faithful performance of its obligations under this Lease If Lessee fails
to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any
portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or
compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by
reason thereof. If Lessor uses or applies all or any portion of said Security Deposit, Lessee shall
within ten (10) days after written request therefor deposit monies with Lessor sufficient to
restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases
during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional
moneys with Lessor so that the total amount of the Security Deposit shall at all times bear the
same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base
Rent Should the Agreed Use be amended to accommodate a material change in the business of Lessee or
to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security
Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear
and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs
during this Lease and following such change the financial condition of Lessee is, in Lessor’s
reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor
as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based
on said change in financial condition. Lessor shall not be required to keep the Security Deposit
separate from its general accounts. Within fourteen (14) days after the expiration or termination
of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise
within thirty (30) days after the Premises have been vacated pursuant to Paragraph 7 4(c) below,
Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of
the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment
for any monies to be paid by Lessee under this Lease.

6. Use.

6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal
use which is reasonably comparable thereto, and for no other purpose Lessee shall not use or permit
the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that
disturbs owners and/or occupants of, or causes damage to neighboring properties. Lessor shall not
unreasonably withhold or delay its consent to any written request for a modification of the Agreed
Use, so long as the same will not impair the structural integrity of the improvements on the
Premises or the mechanical or electrical systems therein, is not significantly more burdensome to
the Premises If Lessor elects to withhold consent, Lessor shall within five (5) business days after
such request give written notification of same, which notice shall include an explanation of
Lessor’s objections to the change in use

6.2 Hazardous Substances.

(a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease
shall mean any product, substance, or waste whose presence, use, manufacture, disposal,
transportation, or release, either by itself or in combination with other materials expected to be
on the Premises, 5 either (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a
basis for potential liability of Lessor to any governmental agency or third party under any
applicable statute or common law theory Hazardous Substances shall include, but not be limited to,
hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions
thereof Lessee shall not engage in any activity in or on the Premises which constitutes a
Reportable Use of Hazardous Substances without the express prior written consent of Lessor and
timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable Use” shall
mean (i) the installation or use of any above or below ground storage tank, (ii) the generation,
possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a
permit from, or with respect to which a report, notice, registration or business plan is required
to be filed with, any governmental authority. and/or (iii) the presence at the Premises of a
Hazardous Substance with respect to which any Applicable Requirements requires that a notice be
given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the
foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in
the normal course of the Agreed Use, so long as such use is in compliance with all Applicable
Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to
any meaningful risk of contamination or damage or expose Lessor to any liability therefor In
addition, Lessor may condition its consent to any Reportable Use upon receiving such additional
assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or
the environment against damage, contamination, injury and/or liability, including, but not limited
to, the installation (and removal on or before Lease expiration or termination) of protective
modifications (such as concrete encasements) and/or increasing the Security Deposit.

(b) Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a
Hazardous Substance has come to be located in, on, under or about the Premises, other than as
previously consented to by Lessor, Lessee shall immediately give written notice of such fact to
Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it
has concerning the presence of such Hazardous Substance

(c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be
spilled or released in, on, under, or about the Premises (including through the plumbing or
sanitary sewer system) and shall promptly, at Lessee’s expense, take all investigatory and/or
remedial action reasonably recommended. whether or not formally ordered or required, for the
cleanup of any contamination of, and for the maintenance, security and/or monitoring of the
Premises or neighboring properties, that was caused or materially contributed to by Lessee, or
pertaining to or involving any Hazardous Substance brought onto the Premises during the term of
this Lease, by or for Lessee, or any third party.

(d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents,
employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents
and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and
consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by
or for Lessee, or any third party (provided, however, that Lessee shall have no liability under
this Lease with respect to underground migration of any Hazardous Substance under the Premises from
adjacent properties) Lessee’s obligations Shall include, but not be limited to, the effects of any
contamination or injury to person, property or the environment created or suffered by Lessee, and
the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive
the expiration or termination of this Lease. No termination, cancellation or release agreement
entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with
respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of
such agreement.

(e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend,
reimburse and hold Lessee, its employees and lenders, harmless from and against any and all
environmental damages, including the cost of remediation, which existed as a result of Hazardous
Substances on the Premises prior to the Start Date or which are caused by the gross negligence or
willful misconduct of Lessor, its agents or employees. Lessor’s obligations, as and when required
by the Applicable Requirements, shall include, but not be limited to, the cost of investigation,
removal, remediation, restoration and/or abatement, and shall survive the expiration or termination
of this Lease.

(f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any
investigations or remediation measures required by governmental entities having jurisdiction with
respect to the existence of Hazardous Substances on the Premises prior to the Start Date, unless
such remediation measure is required as a result of Lessee’s use (including “Alterations”, as
defined in paragraph 7 3(a) below) of the Premises, in which event Lessee shall be responsible for
such payment Lessee shall cooperate fully in any such activities at the request of Lessor,
including allowing Lessor and Lessor’s agents to have reasonable access to the Premises at
reasonable times in order to carry out Lessor’s investigative and remedial responsibilities.

(g) Lessor Termination Option. If a Hazardous Substance Condition occurs during the term of
this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the
investigation and remediation thereof required by the Applicable Requirements and this Lease shall
continue in full force and effect, but subject to Lessor’s rights under Paragraph 6.2(d) and
Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate such Hazardous
Substance Condition, if required, as soon as reasonably possible at Lessor’s expense, in which
event this Lease shall continue in full force and effect, or (ii) if the estimated cost to
remediate such condition exceeds twelve (12) times the then monthly Base Rent or $100,000,
whichever is greater, give written notice to Lessee, within thirty (30) days after receipt by
Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to
terminate this Lease as of the date sixty (60) days following the date of such notice. In the event
Lessor elects to give a termination notice, Lessee may, within ten (10) days thereafter, give
written notice to Lessor of Lessee’s commitment to pay the amount by which the cost of the
remediation of such Hazardous Substance Condition exceeds an amount equal to twelve (12) times the
then monthly Base Rent or $100,000, whichever is greater Lessee shall provide Lessor with said
funds or satisfactory assurance thereof within thirty (30) days following such commitment In such
event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such
remediation as soon as reasonably possible after the required funds are available If Lessee does
not give such notice and provide the required funds or assurance thereof within the time provided,
this Lease shall terminate as of the date specified in Lessor’s notice of termination

6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this
Lease, Lessee shall, at Lessee’s sole expense, fully, diligently and in a timely manner, materially
comply with all Applicable Requirements, the requirements of any applicable fire insurance
underwriter or rating bureau, and the recommendations of Lessor’s engineers and/or consultants
which relate in any manner to the Premises, without regard to whether said requirements are now in
effect or become effective after the Start Date. Lessee shall, within ten (10) days after receipt
of Lessor’s written request, provide Lessor with copies of all permits and other documents, and
other information evidencing Lessee’s compliance with any Applicable Requirements specified by
Lessor, and shall immediately upon receipt. notify Lessor in writing (with copies of any documents
involved) of any threatened or actual claim, notice, citation, warning, complaint or report
pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable
Requirements.

6.4 Inspection; Compliance. Lessor and Lessor’s “Lender” (as defined in Paragraph 30 below)
and consultants shall have the right to enter into Premises at any time, in the case of an
emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the
Premises and for verifying compliance by Lessee with this Lease The cost of any such inspections
shall be paid by Lessor, unless a violation of Applicable Requirements, or a contamination is found
to exist or be imminent. or the inspection is requested or ordered by a governmental authority. In
such case, Lessee shall upon request reimburse Lessor for the cost of such inspections, so long as
such inspection is reasonably related to the violation or contamination

7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.

7.1 Lessee’s Obligations.

(a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3
(Lessee’s Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations). 9 (Damage or
Destruction), and 14 (Condemnation). Lessee shall, at Lessee’s sole expense, keep the Premises,
Utility Installations, and Alterations in good order, condition and repair (whether or not the
portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or
readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of
Lessee’s use. any prior use. the elements or the age of such portion of the Premises), including,
but not limited to, all equipment or facilities, such as plumbing, heating, ventilating,
air-conditioning, electrical, lighting facilities, boilers, pressure vessels, fire protection
system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, floors, windows,
doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls,
signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the
Premises in good order, condition and repair, shall exercise and perform good maintenance
practices, specifically including the procurement and maintenance of the service contracts required
by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations, replacements or
renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good
order, condition and state of repair. Lessee shall, during the term of this Lease, keep the
exterior appearance of the Building in a first-class condition consistent with the exterior
appearance of other similar facilities of comparable age and size in the vicinity, including, when
necessary, the exterior repainting of the Building.

(b) Service Contracts. Lessee shall. at Lessee’s sole expense. procure and maintain
contracts. with copies to Lessor. in customary form and substance for, and with contractors
specializing and experienced in the maintenance of the following equipment and improvements (“Basic
Elements”), if any, if and when installed on the Premises. (i) HVAC equipment, (ii) boiler, and
pressure vessels, (iii) fire extinguishing systems. including fire alarm and/or smoke detection.
(iv) landscaping and irrigation systems, (v) roof covering and drains, (vi) driveways and parking
lots, (vii) clarifiers (viii) basic utility feed to the perimeter of the Building, and (ix) any
other equipment, if reasonably required by Lessor.

(c) Replacement. Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8 7
below, and without relieving Lessee of liability resulting from Lessee’s failure to exercise and
perform good maintenance practices, if the Basic Elements described in Paragraph 7 1(b) cannot be
repaired other than at a cost which is in excess of 50% of the cost of replacing such Basic
Elements, then such Basic Elements shall be replaced by Lessor, and the cost thereof shall be
prorated between the Parties and Lessee shall only be obligated to pay, each month during the
remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the
product of multiplying the cost of such replacement by a fraction, the numerator of which is one,
and the denominator of which is the number of months of the useful life of such replacement as such
useful life is specified pursuant to Federal income tax regulations or guidelines for depreciation
thereof (including interest on the unamortized balance as is then commercially reasonable in the
judgment of Lessor’s accountants). with Lessee reserving the right to prepay its obligation at any
time

7.2 Lessor’s Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3
(Compliance), 9 (Damage or Destruction) and14 (Condemnation), it is intended by the Parties hereto
that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or
the equipment therein, all of which obligations are intended to be that of the Lessee. It is the
intention of the Parties that the terms of this Lease govern the respective obligations of the
Parties as to maintenance and repair of the Premises, and they expressly waive the benefit of any
statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease.

7.3 Utility Installations; Trade Fixtures; Alterations.

(a) Definitions; Consent Required. The term “Utility Installations” refers to all floor and
window coverings, air lines, power panels, electrical distribution, security and fire protection
systems, communication systems, lighting fixtures, HVAC equipment, plumbing, and fencing in or on
the Premises The term “Trade Fixtures” shall mean Lessee’s machinery and equipment that can be
removed without doing material damage to the Premises The term “Alterations” shall mean any
modification of the improvements, other than Utility Installations or Trade Fixtures, whether by
addition or deletion. “Lessee Owned Alterations and/or Utility Installations” are defined as
Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant
to Paragraph 7 4(a). Lessee shall not make any Alterations or Utility Installations to the Premises
without Lessor’s prior written consent. Lessee may, however, make non-structural Utility
Installations to the interior of the Premises (excluding the roof) without such consent but upon
notice to Lessor, as long as they are not visible from the outside, do not involve puncturing,
relocating or removing the roof or any existing walls, and the cumulative cost thereof during this
Lease as extended does not exceed $50,000 in the aggregate or $10,000 in any one year

(b) Consent. Any Alterations or Utility Installations that Lessee shall desire to make and
which require the consent of the Lessor shall be presented to Lessor in written form with detailed
plans Consent shall be deemed conditioned upon Lessee’s. (i) acquiring all applicable governmental
permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications
prior to commencement of the work, and (iii) compliance with all conditions of said permits and
other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility
Installations shall be performed in a workmanlike manner with good and sufficient materials Lessee
shall promptly upon completion furnish Lessor with as-built plans and specifications. For work
which costs an amount equal to the greater of one month’s Base Rent, or $10,000, Lessor may
condition its consent upon Lessee providing a lien and completion bond in an amount equal to one
and one-half times the estimated cost of such Alteration or Utility Installation and/or upon
Lessee’s posting an additional Security Deposit with Lessor.

(c) Indemnification. Lessee shall pay, when due, all claims for labor or materials furnished
or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are
or may be secured by any mechanic’s or materialmen’s lien against the Premises or any interest
therein Lessee shall give Lessor not less than ten (10) days’ notice prior to the commencement of
any work in, on or about the Premises, and Lessor shall have the right to post notices of
non-responsibility If Lessee shall contest the validity of any such lien, claim or demand, then
Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the
same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the
enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal
to one and one-half times the amount of such contested lien, claim or demand, indemnifying Lessor
against liability for the same If Lessor elects to participate in any such action, Lessee shall pay
Lessor’s attorneys’ fees and costs.

7.4 Ownership; Removal; Surrender; and Restoration.

(a) Ownership. Subject to Lessor’s right to require removal or elect ownership as hereinafter
provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee,
but considered a part of the Premises Lessor may, at any time, elect in writing to be the owner of
all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless
otherwise instructed per Paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility
Installations shall, at the expiration or termination of this Lease. become the property of Lessor
and be surrendered by Lessee with the Premises

(b) Removal. By delivery to Lessee of written notice from Lessor not earlier than ninety (90)
and not later than thirty (30) days prior to the end of the term of this Lease, Lessor may require
that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or
termination of this Lease Lessor may require the removal at any time of all or any part of any
Lessee Owned Alterations or Utility Installations made without the required consent.

(c) Surrender/Restoration. Lessee shall surrender the Premises by the Expiration Date or any
earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and
free of debris, and in good operating order, condition and state of repair, ordinary wear and tear
excepted “Ordinary wear and tear” shall not include any damage or deterioration that would have
been prevented by good maintenance practice Lessee shall repair any damage occasioned by the
installation, maintenance or removal of Trade Fixtures, Lessee Owned Alterations and/or Utility
Installations, furnishings and equipment as well as the removal of any storage tank installed by or
for Lessee, and the removal, replacement, or remediation of any soil, material or groundwater
contaminated by Lessee. Trade Fixtures shall remain the property of Lessee and shall be removed by
Lessee. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c)
without the express written consent of Lessor shall constitute a holdover under the provisions of
Paragraph 26 below.

8. Insurance; Indemnity.

8.1 Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8
except to the extent of the cost attributable to liability insurance carried by Lessor under
Paragraph 8.2(b) in excess of $2.000,000 per occurrence Premiums for policy periods commencing
prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term.
Payment shall be made by Lessee to Lessor within ten (10) days following receipt of an Invoice.

8.2 Liability Insurance.

(a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability
Policy of Insurance protecting Lessee and Lessor against claims for bodily injury, personal injury
and property damage based upon or arising out of the ownership, use, occupancy or maintenance of
the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis
providing single limit coverage in an amount not less than $2,000,000 per occurrence with an
“Additional Insured-Managers or Lessors of Premises Endorsement” and contain the ‘~Amendment of the
Pollution Exclusion Endorsement” for damage caused by heat, smoke or fumes from a hostile fire. The
Policy shall not contain any intra-insured exclusions as between insured persons or organizations,
but shall include coverage for liability assumed under this Lease as an “insured contract” for the
performance of Lessee’s indemnity obligations under this Lease The limits of said insurance shall
not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder.

(b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8
2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee.
Lessee shall not be named as an additional insured therein.

8.3 Property Insurance — Building, Improvements and Rental Value.

(a) Building and Improvements. The Insuring Party shall obtain and keep in force a policy or
policies in the name of Lessor, with loss payable to Lessor, any groundlessor, and to any Lender(s)
insuring loss or damage to the Premises The amount of such insurance shall be equal to the full
replacement cost of the Premises, as the same shall exist from time to time, or the amount required
by any Lenders, but in no event more than the commercially reasonable and available insurable value
thereof If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility
Installations, Trade Fixtures, and Lessee’s personal property shall be insured by Lessee under
Paragraph 8 4 rather than by Lessor. If the coverage is available and commercially appropriate,
such policy or policies shall insure against all risks of direct physical loss or damage (except
the perils of flood and/or earthquake unless required by a Lender), including coverage for debris
removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition,
reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said
policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance
clause, waiver of subrogation, and inflation guard protection causing an increase in the annual
property insurance coverage amount by a factor of not less than the adjusted U.S Department of
Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are
located If such insurance coverage has a deductible clause, the deductible amount shall not exceed
$5,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an
Insured Loss.

(b) Adjacent Premises. If the Premises are part of a larger building, or of a group of
buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase
in the premiums for the property insurance of such building or buildings if said increase is caused
by Lessee’s acts, omissions, use or occupancy of the Premises.

8.4 Lessee’s Property/Business Interruption Insurance.

(a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s
personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations Such
insurance shall be full replacement cost coverage with a deductible of not to exceed $5,000 per
occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations Lessee
shall provide Lessor with written evidence that such insurance is in force.

(b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense
insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable
to all perils commonly insured against by prudent lessees in the business of Lessee or attributable
to prevention of access to the Premises as a result of such perils.

(c) No Representation of Adequate Coverage. Lessor makes no representation that the limits or
forms of coverage of insurance specified herein are adequate to cover Lessee’s property, business
operations or obligations under this Lease

8.5 Insurance Policies. Insurance required herein shall be by companies duly licensed or
admitted to transact business in the state where the Premises are located, and maintaining during
the policy term a “General Policyholders Rating” of at least B+, V, as set forth in the most
current issue of “Best’s Insurance Guide”, or such other rating as may be required by a Lender.
Lessee shall not do or permit to be done anything which invalidates the required insurance
policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of
such insurance or certificates evidencing the existence and amounts of the required insurance. No
such policy shall be cancelable or subject to modification except after thirty (30) days prior
written notice to Lessor Lessee shall, at least thirty (30) days prior to the expiration of such
policies, furnish Lessor with evidence of renewals or “insurance binders” evidencing renewal
thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount
shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one
year, or the length of the remaining term of this Lease, whichever is less If either Party shall
fail to procure and maintain the insurance required to be carried by it, the other Party may, but
shall not be required to, procure and maintain the same

8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor
each hereby release and relieve the other, and waive their entire right to recover damages against
the other, for loss of or damage to its property arising out of or incident to the perils required
to be insured against herein The effect of such releases and waivers is not limited by the amount
of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to
have their respective property damage insurance carriers waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

9. Damage or Destruction.

9.1 Definitions.

(a) "Premises Partial Damage” shall mean damage or destruction to the improvements on the
Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be
repaired in six (6) months or less from the date of the damage or destruction. Lessor shall notify
Lessee in writing within thirty (30) days from the date of the damage or destruction as to whether
or not the damage is Partial or Total

(b) "Premises Total Destruction” shall mean damage or destruction to the Premises, other than
Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be
repaired in six (6) months or less from the date of the damage or destruction. Lessor shall notify
Lessee in writing within thirty (30) days from the date of the damage or destruction as to whether
or not the damage is Partial or Total.

(c) "Ensured Loss” shall mean damage or destruction to improvements on the Premises, other
than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an
event required to be covered by the insurance described in Paragraph 8 3(a), irrespective of any
deductible amounts or coverage limits involved.

(d) "Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by
Lessor at the time of the occurrence to their condition existing immediately prior thereto,
including demolition, debris removal and upgrading required by the operation of Applicable
Requirements, and without deduction for depreciation.

(e) "Hazardous Substance Condition” shall mean the occurrence or discovery of a condition
involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6
2(a), in, on, or under the Premises.

9.2 Partial Damage — Insured Loss. If a Premises Partial Damage that is an Insured Loss
occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures
or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this
Lease shall continue in full force and effect, provided, however, that Lessee shall, at Lessor’s
election, make the repair of any damage or destruction the total cost to repair of which is $10,000
or less, and, in such event, Lessor shall make any applicable insurance proceeds available to
Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required
insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the
Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete
said repairs. In the event, however, such shortage was due to the fact that, by reason of the
unique nature of the improvements, full replacement cost insurance coverage was not commercially
reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance
proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with
the funds to cover same, or adequate assurance thereof, within ten (10) days following receipt of
written notice of such shortage and request therefor If Lessor receives said funds or adequate
assurance thereof within said ten (10) day period, the party responsible for making the repairs
shall complete them as soon as reasonably possible and this Lease shall remain in full force and
effect If such funds or assurance are not received, Lessor may nevertheless elect by written notice
to Lessee within ten (10) days thereafter to: (i) make such restoration and repair as is
commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall
remain in full force and effect; or (ii) have this Lease terminate thirty (30) days thereafter
Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such
damage or destruction Premises Partial Damage due to flood or earthquake shall be subject to
Paragraph 9 3, notwithstanding that there may be some insurance coverage, but the net proceeds of
any such insurance shall be made available for the repairs if made by either Party.

9.3 Partial Damage — Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss
occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the
repairs at Lessee’s expense), Lessor may either’ (i) repair such damage as soon as reasonably
possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or
(ii) terminate this Lease by giving written notice to Lessee within thirty (30) days after receipt
by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective sixty
(60) days following the date of such notice In the event Lessor elects to terminate this Lease,
Lessee shall have the right within ten (10) days after receipt of the termination notice to give
written notice to Lessor of Lessee’s commitment to pay for the repair of such damage without
reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance
thereof within thirty (30) days after making such commitment. In such event this Lease shall
continue in full force and effect, and Lessor shall proceed to make such repairs as soon as
reasonably possible after the required funds are available. If Lessee does not make the required
commitment, this Lease shall terminate as of the date specified in the termination notice.

9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total
Destruction occurs, this Lease shall terminate sixty (60) days following such Destruction. If the
damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor
shall have the right to recover Lessor’s damages from Lessee, except as provided in Paragraph 8.6.

9.5 Damage Near End of Term. If at any time during the last six (6) months of this Lease
there is damage for which the cost to repair exceeds one (1) month’s Base Rent, whether or not an
Insured Loss, Lessor may terminate this Lease effective sixty (60) days following the date of
occurrence of such damage by giving a written termination notice to Lessee within thirty (30) days
after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time
has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may
preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in
insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the
earlier of (i) the date which is ten days after Lessee’s receipt of Lessor’s written notice
purporting to terminate this Lease, or (ii) the day prior to the date upon which such option
expires. If Lessee duly exercises such option during such period and provides Lessor with funds (or
adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor’s
commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease
shall continue in full force and effect. If Lessee fails to exercise such option and provide such
funds or assurance during such period, then this Lease shall terminate on the date specified in the
termination notice and Lessee’s option shall be extinguished

9.6 Abatement of Rent; Lessee’s Remedies.

(a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a
Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent
payable by Lessee for the period required for the repair, remediation or restoration of such damage
shall be abated in proportion to the degree to which Lessee’s use of the Premises is impaired. All
other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no
liability for any such damage, destruction, remediation, repair or restoration except as provided
herein.

(b) Remedies. If Lessor shall be obligated to repair or restore the Premises and does not
commence, in a substantial and meaningful way, such repair or restoration within thirty (30) days
after such obligation shall accrue, Lessee may, at any time prior to the commencement of such
repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual
notice, of Lessee’s election to terminate this Lease on a date not less than sixty (60) days
following the giving of such notice If Lessee gives such notice and such repair or restoration is
not commenced within thirty (30) days thereafter, this Lease shall terminate as of the date
specified in said notice. If the repair or restoration is commenced within said thirty (30) days,
this Lease shall continue in full force and effect. “Commence” shall mean either the unconditional
authorization of the preparation of the required plans, or the beginning of the actual work on the
Premises, whichever first occurs.

9.7 Termination-Advance Payments. Upon termination of this Lease pursuant to Paragraph 6 2(g)
or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other
advance payments made by Lessee to Lessor. Lessor shall, in addition. return to Lessee so much of
Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor.

9.8 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the
effect of any damage to or destruction of the Premises with respect to the termination of this
Lease and hereby waive the provisions of any present or future statute to the extent inconsistent
herewith.

10. Real Property Taxes.

10.1 Definition of “Real Property Taxes.” As used herein, the term “Real Property Taxes”
shall include any form of assessment, real estate, general, special, ordinary or extraordinary, or
rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond;
and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the
Premises, Lessor’s right to other income therefrom, and/or Lessor’s business of leasing, by any
authority having the direct or indirect power to tax and where the funds are generated with
reference to the Building address and where the proceeds so generated are to be applied by the
city, county or other local taxing authority of a jurisdiction within which the Premises are
located The term “Real Property Taxes” shall also include any tax, tee, levy, assessment or charge,
or any increase therein, imposed by reason of events occurring during the term of this Lease,
including but not limited to, a change in the ownership of the Premises

10.2 (a) Payment of Taxes. Lessee shall pay the Real Property Taxes applicable to the
Premises during the term of this Lease. Subject to Paragraph 10.2(b), all such payments shall be
made at least ten (10) days prior to any delinquency date Lessee shall promptly furnish Lessor with
satisfactory evidence that such taxes have been paid If any such taxes shall cover any period of
time prior to or after the expiration or termination of this Lease, Lessee’s share of such taxes
shall be prorated to cover only that portion of the tax bill applicable to the period that this
Lease is in effect, and Lessor shall reimburse Lessee for any overpayment. If Lessee shall fail to
pay any required Real Property Taxes, Lessor shall have the right to pay the same, and Lessee shall
reimburse Lessor therefor upon demand

(b) Advance Payment. In the event Lessee incurs a late charge on any Rent payment, Lessor
may, at Lessor’s option, estimate the current Real Property Taxes, and require that such taxes be
paid in advance to Lessor by Lessee, either: (i) in a lump sum amount equal to the installment due,
at least twenty (20) days prior to the applicable delinquency date, or (ii) monthly in advance with
the payment of the Base Rent. If Lessor elects to require payment monthly in advance, the monthly
payment shall be an amount equal to the amount of the estimated installment of taxes divided by the
number of months remaining before the month in which said installment becomes delinquent When the
actual amount of the applicable tax bill is known, the amount of such equal monthly advance
payments shall be adjusted as required to provide the funds needed to pay the applicable taxes If
the amount collected by Lessor is insufficient to pay such Real Property Taxes when due, Lessee
shall pay Lessor, upon demand, such additional sums as are necessary to pay such obligations All
moneys paid to Lessor under this Paragraph may be intermingled with other moneys of Lessor and
shall not bear interest In the event of a Breach by Lessee in the performance of its obligations
under this Lease, then any balance of funds paid to Lessor under the provisions of this Paragraph
may at the option of Lessor, be treated as an additional Security Deposit.

10.3 Joint Assessment. If the Premises are not separately assessed, Lessee’s liability shall
be an equitable proportion of the Real Property Taxes for all of the land and improvements included
within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the
respective valuations assigned in the assessor’s work sheets or such other information as may be
reasonably available

10.4 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed
against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures,
furnishings, equipment and all personal property of Lessee When possible, Lessee shall cause such
property to be assessed and billed separately from the real property of Lessor. If any of Lessee’s
said personal property shall be assessed with Lessor’s real property, Lessee shall pay Lessor the
taxes attributable to Lessee’s property within ten (10) days after receipt of a written statement

11. Utilities. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal
and other utilities and services supplied to the Premises, together with any taxes thereon. If any
such services are not separately metered to Lessee, Lessee shall pay a reasonable proportion, to be
determined by Lessor, of all charges jointly metered.

12. Assignment and Subletting.

12.I Lessor’s Consent Required.

(a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber
(collectively, “assign or assignment”) or sublet all or any part of Lessee’s interest in this Lease
or in the Premises without Lessor’s prior written consent

(b) A change in the control of Lessee shall constitute an assignment requiring consent. The
transfer, on a cumulative basis, of twenty-five percent (25%) or more of the voting control of
Lessee shall constitute a change in control for this purpose.

(c) The involvement of Lessee or its assets in any transaction, or series of transactions (by
way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise), whether or
not a formal assignment or hypothecation of this Lease or Lessee’s assets occurs, which results or
will result in a reduction of the Net Worth of Lessee by an amount greater than twenty-five percent
(25%) of such Net Worth as it was represented at the time of the execution of this Lease or at the
time of the most recent assignment to which Lessor has consented, or as it exists immediately prior
to said transaction or transactions constituting such reduction, whichever was or is greater, shall
be considered an assignment of this Lease to which Lessor may withhold its consent. “Net Worth of
Lessee” shall mean the net worth of Lessee (excluding any guarantors) established under generally
accepted accounting principles.

(d) An assignment or subletting without consent shall, at Lessor’s option, be a Default
curable after notice per Paragraph 13 1(c), or a noncurable Breach without the necessity of any
notice and grace period If Lessor elects to treat such unapproved assignment or subletting as a
noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon thirty (30) days
written notice, increase the monthly Base Rent to one hundred ten percent (110%) of the Base Rent
then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price
of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to one
hundred ten percent (110%) of the price previously in effect, and (ii) all fixed and non-fixed
rental adjustments scheduled during the remainder of the Lease term shall be increased to One
Hundred Ten Percent (110%) of the scheduled adjusted rent.

(e) Lessee’s remedy for any breach of Paragraph 12 1 by Lessor shall be limited to
compensatory damages and/or injunctive relief.

12.2 Terms and Conditions Applicable to Assignment and Subletting.

(a) Regardless of Lessor’s consent, any assignment or subletting shall not’ (i) be effective
without the express written assumption by such assignee or sublessee of the obligations of Lessee
under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary
liability of Lessee for the payment of Rent or for the performance of any other obligations to be
performed by Lessee.

(b) Lessor may accept Rent or performance of Lessee’s obligations from any person other than
Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or
disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver
or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach.

(c) Lessor’s consent to any assignment or subletting shall not constitute a consent to any
subsequent assignment or subletting.

(d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against
Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under
this Lease, including any assignee or sublessee. without first exhausting Lessor’s remedies against
any other person or entity responsible therefore to Lessor, or any security held by Lessor.

(e) Each request for consent to an assignment or subletting shall be in writing, accompanied
by information relevant to Lessor’s determination as to the financial and operational
responsibility and appropriateness of the proposed assignee or sublessee, including but not limited
to the intended use and/or required modification of the Premises, if any, together with a fee of
$1,000 or ten percent (10%) of the current monthly Base Rent applicable to the portion of the
Premises which is the subject of the proposed assignment or sublease, whichever is greater, as
consideration for Lessor’s considering and processing said request Lessee agrees to provide Lessor
with such other or additional information and/or documentation as may be reasonably requested

(f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such
assignment or entering into such sublease, be deemed to have assumed and agreed to conform and
comply with each and every term, covenant, condition and obligation herein to be observed or
performed by Lessee during the term of said assignment or sublease, other than such obligations as
are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has
specifically consented to in writing

12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and
conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be
deemed included in all subleases under this Lease whether or not expressly incorporated therein:

(a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable
on any sublease, and Lessor may collect such Rent and apply same toward Lessee’s obligations under
this Lease, provided, however, that until a Breach shall occur in the performance of Lessee’s
obligations, Lessee may collect said Rent Lessor shall not, by reason of the foregoing or any
assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the
sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such
sublessee Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a
written notice from Lessor stating that a Breach exists in the performance of Lessee’s obligations
under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee
shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any
obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from
Lessee to the contrary

(b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn
to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such
sublease from the time of the exercise of said option to the expiration of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit paid by such
sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.

(c) Any matter requiring the consent of the sublessor under a sublease shall also require the
consent of Lessor

(d) No sublessee shall further assign or sublet all or any part of the Premises without
Lessor’s prior written consent.

(e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee.
who shall have the right to cure the Default of Lessee within the grace period, if any, specified
in such notice. The sublessee shall have a right of reimbursement and offset from and against
Lessee for any such Defaults cured by the sublessee.

13. Default; Breach; Remedies.

13.1 Default; Breach. A “Default” is defined as a failure by the Lessee to comply with or
perform any of the terms, covenants, conditions or rules under this Lease. A “Breach” is defined
as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such
Default within any applicable grace period:

(a) The abandonment of the Premises; or the vacating of the Premises without providing a
commercially reasonable level of security, or where the coverage of the property insurance
described in Paragraph 8 3 is jeopardized as a result thereof, or without providing reasonable
assurances to minimize potential vandalism.

(b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be
made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable
evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers
or threatens life or property, where such failure continues for a period of three (3) business days
following written notice to Lessee.

(c) The failure by Lessee to provide (i) reasonable written evidence of compliance with
Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized
assignment or subletting, (iv) a Estoppel Certificate, (v) a requested subordination, (vi) evidence
concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42
(easements), or (viii) any other documentation or information which Lessor may reasonably require
of Lessee under the terms of this Lease, where any such failure continues for a period of ten (10)
days following written notice to Lessee.

(d) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or
of the rules adopted under Paragraph 40 hereof, other than those described in subparagraphs
13.1(a), (b) or (c), above, where such Default continues for a period of thirty (30) days after
written notice; provided, however, that if the nature of Lessee’s Default is such that more than
thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Breach
if Lessee commences such cure within said thirty (30) day period and thereafter diligently
prosecutes such cure to completion

(e) The occurrence of any of the following events’ (i) the making of any general arrangement
or assignment for the benefit of creditors, (ii) becoming a “debtor” as defined in 11 U S C. § 101
or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same
is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take
possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest
in this Lease, where possession is not restored to Lessee within thirty (30) days, or (iv) the
attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at
the Premises or of Lessee’s interest in this Lease, where such seizure is not discharged within
thirty (30) days, provided, however, in the event that any provision of this subparagraph (e) is
contrary to any applicable law, such provision shall be of no force or effect, and not affect the
validity of the remaining provisions.

(f) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor
was materially false.

(g) If the performance of Lessee’s obligations under this Lease is guaranteed’ (i) the death
of a Guarantor, (ii) the termination of a Guarantor’s liability with respect to this Lease other
than in accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the
subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the guaranty, or (v) a
Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure,
within sixty (60) days following written notice of any such event, to provide written alternative
assurance or security, which, when coupled with the then existing resources of Lessee, equals or
exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of
execution of this Lease.

13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations,
within ten (10) days after written notice (or in case of an emergency, without notice), Lessor may,
at its option, perform such duty or obligation on Lessee’s behalf, including but not limited to the
obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or
approvals. The costs and expenses of any such performance by Lessor shall be due and payable by
Lessee upon receipt of invoice therefor If any check given to Lessor by Lessee shall not be honored
by the bank upon which it is drawn, Lessor, at its option, may require all future payments to be
made by Lessee to be by cashier’s check. In the event of a Breach, Lessor may, with or without
further notice or demand, and without limiting Lessor in the exercise of any right or remedy, which
Lessor may have by reason of such Breach.

(a) Terminate Lessee’s right to possession of the Premises by any lawful means. in which case
this Lease shall terminate and Lessee shall immediately surrender possession to Lessor In such
event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at
the time of termination, (ii) the worth at the time of award of the amount by which the unpaid rent
which would have been earned after termination until the time of award exceeds the amount of such
rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time
of award of the amount by which the unpaid rent for the balance of the term after the time of award
exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv)
any other amount necessary to compensate Lessor for all the detriment proximately caused by the
Lessee’s failure to perform its obligations under this Lease or which in the ordinary course of
things would be likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reletting, including necessary renovation and alteration of
the Premises, reasonable attorneys’ fees, and that portion of any leasing commission paid by Lessor
in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time
of award of the amount referred to in provision (iii) of the immediately preceding sentence shall
be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the
District within which the Premises are located at the time of award plus one percent (1%). Efforts
by Lessor to mitigate damages caused by Lessee’s Breach of this Lease shall not waive Lessor’s
right to recover damages under Paragraph 12 If termination of this Lease is obtained through the
provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding
any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover
all or any part thereof in a separate suit If a notice and grace period required under Paragraph 13
1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee
under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In
such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute
shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two
such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling
Lessor to the remedies provided for in this Lease and/or by said statute

(b) Continue the Lease and Lessee’s right to possession and recover the Rent as it becomes
due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of
maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor’s
interests, shall not constitute a termination of the Lessee’s right to possession

(c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of
the state wherein the Premises are located The expiration or termination of this Lease and/or the
termination of Lessee’s right to possession shall not relieve Lessee from liability under any
indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by
reason of Lessee’s occupancy of the Premises.

13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration
for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as
"Inducement Provisions,” shall be deemed conditioned upon Lessee’s full and faithful performance of
all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any
such Inducement Provision shall automatically be deemed deleted from this Lease and of no further
force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated,
given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by
Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not
be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in
writing by Lessor at the time of such acceptance.

13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause
Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain Such costs include, but are not limited to, processing and accounting
charges, and late charges which may be imposed upon Lessor by any Lender Accordingly, if any Rent
shall not be received by Lessor within ten 10) days after such amount shall be due, then, without
any requirement for notice to Lessee, Lessee shall pay to Lessor a one-time late charge equal to
ten percent (10%) of each such overdue amount The parties hereby agree that such late charge
represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late
payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s
Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other
rights and remedies granted hereunder In the event that a late charge is payable hereunder, whether
or not collected, for three (3) consecutive installments of Base Rent, then notwithstanding any
provision of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due and
payable quarterly in advance

13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not
received by Lessor, when due as to scheduled payments (such as Base Rent) or within thirty (30)
days following the date on which it was due for non-scheduled payment, shall bear interest from the
date when due, as to scheduled payments, or the thirty-first (3ist) day after it was due as to
non-scheduled payments The interest (“Interest”) charged shall be equal to the prime rate reported
in the Wall Street Journal as published closest prior to the date when due plus four percent (4%),
but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the
potential late charge provided for in Paragraph 134

13.6 Breach by Lessor.

(a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails
within a reasonable time to perform an obligation required to be performed by Lessor. For purposes
of this Paragraph, a reasonable time shall in no even~ be less than thirty (30) days after receipt
by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for
such purpose, of written notice specifying wherein such obligation of Lessor has not been
performed; provided, however, that if the nature of Lessor’s obligation is such that more than
thirty (30) days are reasonably required for its performance, then Lessor shall not be in breach if
performance is commenced within such thirty (30) day period and thereafter diligently pursued to
completion.

(b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender
cures said breach within thirty (30) days after receipt of said notice, or if having commenced said
cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at
Lessee’s expense and offset from Rent an amount equal to the greater of one month’s Base Rent or
the Security Deposit, and to pay an excess of such expense under protest, reserving Lessee’s right
to reimbursement from Lessor Lessee shall document the cost of said cure and supply said
documentation to Lessor.

14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent
domain or sold under the threat of the exercise of said power (collectively “Condemnation”), this
Lease shall terminate as to the part taken as of the date the condemning authority takes title or
possession, whichever first occurs If more than ten percent (10%) of any building portion of the
premises, or more than twenty-five percent (25%) of the land area portion of the premises not
occupied by any building, is taken by Condemnation, Lessee may, at Lessee’s option, to be exercised
in writing within ten (10) days after Lessor shall have given Lessee written notice of such taking
(or in the absence of such notice, within ten (10) days after the condemning authority shall have
taken possession) terminate this Lease as of the date the condemning authority takes such
possession If Lessee does not terminate this Lease in accordance with the foregoing, this Lease
shall remain in full force and effect as to the portion of the Premises remaining, except that the
Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such
Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such
award shall be made as compensation for diminution in value of the leasehold, the value of the part
taken, or for severance damages, provided, however, that Lessee shall be entitled to any
compensation for Lessee’s relocation expenses, loss of business goodwill and/or Trade Fixtures,
without regard to whether or not this Lease is terminated pursuant to the provisions of this
Paragraph All Alterations and Utility Installations made to the Premises by Lessee, for purposes of
Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to
any and all compensation which is payable therefor. In the event that this Lease is not terminated
by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such
Condemnation.

15. Brokers’ Fee.

15.1 Additional Commission. In addition to the payments owed pursuant to Paragraph 1 10
above, and unless Lessor and the Brokers otherwise agree in writing, Lessor agrees that (a) if
Lessee exercises any Option, (b) if Lessee acquires any rights to the Premises or other premises
owned by Lessor and located within the same Project, if any, within which the Premises is located,
(c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the
expiration of this Lease, or (d) if Base Rent is increased, whether by agreement or operation of an
escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the schedule of
said Brokers in effect at the time of the execution of this Lease.

15.2 Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this Lease
shall be deemed to have assumed Lessor’s obligation hereunder Each Broker shall be a third party
beneficiary of the provisions of Paragraphs 110,15, 22 and 31. If Lessor fails to pay to a Broker
any amounts due as and for commissions pertaining to this Lease when due, then such amounts shall
accrue Interest In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due.
Lessee’s Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to
pay such amounts within ten (10) days after said notice, Lessee shall pay said monies to its Broker
and offset such amounts against Rent. In addition, Lessee’s Broker shall be deemed to be a third
party beneficiary of any commission agreement entered into by and/or between Lessor and Lessor’s
Broker

15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each
represent and warrant to the other that it has had no dealings with any person, firm, broker or
finder (other than the Brokers, if any) in connection with this Lease, and that no one other than
said named Brokers is entitled to any commission or finder’s fee in connection herewith Lessee and
Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and
against liability for compensation or charges which may be claimed by any such unnamed broker,
finder or other similar party by reason of any dealings or actions of the indemnifying Party,
including any costs, expenses, attorneys’ fees reasonably incurred with respect thereto

16. Estoppel Certificates.

(a) Each Party (as “Responding Party”) shall within ten (10) days after written notice from
the other Party (the “Requesting Party”) execute, acknowledge and deliver to the Requesting Party a
statement in writing in form similar to the then most current “Estoppel Certificate” form published
by the American Industrial Real Estate Association, plus such additional information, confirmation
and/or statements as may be reasonably requested by the Requesting Party.

(b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within
such ten day period, the Requesting Party may execute an Estoppel Certificate stating that. (i) the
Lease is in full force and effect without modification except as may be represented by the
Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and
(iii) if Lessor is the Requesting Party, not more than one month’s rent has been paid in advance.
Prospective purchasers and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate,
and the Responding Party shall be estopped from denying the truth of the facts contained in said
Certificate.

(c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee
and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such
financial statements as may be reasonably required by such lender or purchaser, including but not
limited to Lessee’s financial statements for the past three (3) years. All such financial
statements shall be received by Lessor and such lender or purchaser in confidence and shall be used
only for the purposes herein set forth.

17. Definition of Lessor. The term “Lessor” as used herein shall mean the owner or owners at the
time in question of the fee title to the Premises, or, if this is a sublease. of the Lessee’s
interest in the prior lease In the event of a transfer of Lessor’s title or interest in the
Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit)
any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such
transferor assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be
relieved of all liability with respect to the obligations and/or covenants under this Lease
thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or
covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as
hereinabove defined Notwithstanding the above, and subject to the provisions of Paragraph 20 below,
the original Lessor under this Lease, and all subsequent holders of the Lessor’s interest in this
Lease shall remain liable and responsible with regard to the potential duties and liabilities of
Lessor pertaining to Hazardous Substances as outlined in Paragraph 6 above.

18. Severability. The invalidity of any provision of this Lease, as determined by a court of
competent jurisdiction, shall in no way affect the validity of any other provision hereof.

19. Days. Unless otherwise specifically indicated to the contrary, the word “days” as used in this
Lease shall mean and refer to calendar days.

20. Limitation on Liability. Subject to the provisions of Paragraph 17 above, the obligations of
Lessor under this Lease shall not constitute personal obligations of Lessor, the individual
partners of Lessor or its or their individual partners, directors, officers or shareholders, and
Lessee shall look to the Premises, and to no other assets of Lessor. for the satisfaction of any
liability of Lessor with respect to this Lease, and shall not seek recourse against the individual
partners of Lessor, or its or their individual partners, directors, officers or shareholders, or
any of their personal assets for such satisfaction

21. Time of Essence. Time is of the essence with respect to the performance of all obligations to
be performed or observed by the Parties under this Lease.

22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between
the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous
agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to
the Brokers that it has made, and is relying solely upon, its own investigation as to the nature,
quality, character and financial responsibility of the other Party to this Lease and as to the
nature, quality and character of the Premises Brokers have no responsibility with respect thereto
or with respect to any default or breach hereof by either Party. The liability (including court
costs and Attorneys’ fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or modification hereto
shall be limited to an amount up to the fee received by such Broker pursuant to this Lease,
provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable
to any gross negligence or willful misconduct of such Broker.

23. Notices.

23.1 Notice Requirements. All notices required or permitted by this Lease shall be in writing
and may be delivered in person (by hand or by courier) or may be sent by regular, certified or
registered mail or U S Postal Service Express Mail, with postage prepaid, or by facsimile
transmission, and shall be deemed sufficiently given if served in a manner specified in this
Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be that
Party’s address for delivery or mailing of notices Either Party may by written notice to the other
specify a different address for notice, except that upon Lessee’s taking possession of the
Premises, the Premises shall constitute Lessee’s address for notice A copy of all notices to Lessor
shall be concurrently transmitted to such party or parties at such addresses as Lessor may from
time to time hereafter designate in writing

23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt
requested, shall be deemed given on the date of delivery shown on the receipt card, or if no
delivery date is shown, the postmark thereon If sent by regular mail the notice shall be deemed
given forty-eight (48) hours after the same is addressed as required herein and mailed with postage
prepaid. Notices delivered by United States Express Mail or overnight courier that guarantee next
day delivery shall be deemed given twenty-four (24) hours after delivery of the same to the Postal
Service or courier. Notices transmitted by facsimile transmission or similar means shall be deemed
delivered upon telephone confirmation of receipt, provided a copy is also delivered via delivery or
mail. if notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on
the next business day.

24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant or condition
hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of
any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition
hereof Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the
obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be
construed as the basis of an estoppel to enforce the provision or provisions of this Lease
requiring such consent The acceptance of Rent by Lessor shall not be a waiver of any Default or
Breach by Lessee- Any payment by Lessee may be accepted by Lessor on account of moneys or damages
due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection
therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless
specifically agreed to in writing by Lessor at or before the time of deposit of such payment

25. Recording. Either Lessor or Lessee shall, upon request of the other, execute, acknowledge and
deliver to the other a short form memorandum of this Lease for recording purposes The Party
requesting recordation shall be responsible for payment of any fees applicable thereto.

26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part
thereof beyond the expiration or termination of this Lease In the event that Lessee holds over,
then the Base Rent shall be increased to one hundred fifty percent (150%) of the Base Rent
applicable during the month immediately preceding the expiration or termination. Nothing contained
herein shall be construed as consent by Lessor to any holding over by Lessee.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall,
wherever possible, be cumulative with all other remedies at law or in equity.

28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be
observed or performed by Lessee are both covenants and conditions. In construing this Lease, all
headings and titles are for the convenience of the parties only and shall not be considered a part
of this Lease. Whenever required by the context, the singular shall include the plural and vice
versa. This Lease shall not be construed as if prepared by one of the parties, but rather according
to its fair meaning as a whole, as if both parties had prepared it.

29. Binding Effect; Choice of Law. This Lease shall be binding upon the parties, their personal
representatives, successors and assigns and be governed by the laws of the State in which the
Premises are located Any litigation between the Parties hereto concerning this Lease shall be
initiated in the county in which the Premises are located

30. Subordination; Attornment; Non-Disturbance.

30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate
to any ground lease, mortgage, deed of trust, or other hypothecation or security device
(collectively, “Security Device”), now or hereafter placed upon the Premises, to any and all
advances made on the security thereof, and to all renewals, modifications, and extensions thereof
Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as
“Lender”) shall have no liability or obligation to perform any of the obligations of Lessor under
this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to
the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease
and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates
of the documentation or recordation thereof.

30.2 Attornment. Subject to the non-disturbance provisions of Paragraph 30 3, Lessee agrees
to attorn to a Lender or any other party who acquires ownership of the Premises by reason of a
foreclosure of a Security Device, and that in the event of such foreclosure, such new owner shall
not’ (i) be liable for any act or omission of any prior lessor or with respect to events occurring
prior to acquisition of ownership; (ii) be subject to any offsets or defenses which Lessee might
have against any prior lessor, or (iii) be bound by prepayment of more than one (1) month’s rent.

30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the
execution of this Lease, Lessee’s subordination of this Lease shall be subject to receiving a
commercially reasonable non-disturbance agreement (a “Non-Disturbance Agreement”) from the Lender
which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long as Lessee is not in
Breach hereof and attorns to the record owner of the Premises Further, within sixty (60) days after
the execution of this Lease, Lessor shall use its commercially reasonable efforts to obtain a
Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by
the Premises In the event that Lessor is unable to provide the Non-Disturbance Agreement within
said sixty (60) days, then Lessee may, at Lessee’s option, directly contact Lessor’s lender and
attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement

30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without
the execution of any further documents; provided, however, that, upon written request from Lessor
or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor
shall execute such further writings as may be reasonably required to separately document any
subordination, attornment and/or Non-Disturbance Agreement provided for herein.

31. Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises
to enforce the terms hereof or to declare rights hereunder, the Prevailing Party (as hereafter
defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable
attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether
or not such action or proceeding is pursued to decision or judgment. The term, “Prevailing Party”
shall include, without limitation, a Party or Broker who substantially obtains or defeats the
relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment
by the other Party or Broker of its claim or defense. The attorneys’ fees award shall not be
computed in accordance with any court fee schedule, but shall be such as to fully reimburse all
attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees,
costs and expenses incurred in the preparation and service of notices of Default and consultations
in connection therewith, whether or not a legal action is subsequently commenced in connection with
such Default or resulting Breach.

32. Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s agents shall have the right to
enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times for
the purpose of showing the same to prospective purchasers, lenders, or lessees. and making such
alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary All
such activities shall be without abatement of rent or liability to Lessee Lessor may at any time
place on the Premises any ordinary “For Sale” signs and Lessor may during the last six (6) months
of the term hereof place on the Premises any ordinary “For Lease” signs. Lessee may at any time
place on or about the Premises any ordinary “For Sublease” sign

33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises
without Lessor’s prior written consent Lessor shall not be obligated to exercise any standard of
reasonableness in determining whether to permit an auction.

34. Signs. Except for ordinary “For Sublease” signs, Lessee shall not place any sign upon the
Premises without Lessor’s prior written consent All signs must comply with all Applicable
Requirements.

35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary
or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a
termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or
lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all
existing subtenancies. Lessor’s failure within ten (10) days following any such event to elect to
the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor’s
election to have such event constitute the termination of such interest.

36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party
is required to an act by or for the other Party, such consent shall not be unreasonably withheld or
delayed Lessor’s actual reasonable costs and expenses (including but not limited to architects’,
attorneys’, engineers’ and other consultants’ fees) incurred in the consideration of, or response
to, a request by Lessee for any Lessor consent, including but not limited to consents to an
assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee
upon receipt of an invoice and supporting documentation therefor. Lessor’s consent to any act,
assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee
of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or
Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such
consent. The failure to specify herein any particular condition to Lessor’s consent shall not
preclude the imposition by Lessor at the time of consent of such further or other conditions as are
then reasonable with reference to the particular matter for which consent is being given In the
event that either Party disagrees with any determination made by the other hereunder and reasonably
requests the reasons for such determination, the determining party shall furnish its reasons in
writing and in reasonable detail within ten (10) business days following such request.

37. Guarantor.

37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most
recently published by the American Industrial Real Estate Association, and each such Guarantor
shall have the same obligations as Lessee under this Lease.

37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses,
upon request to provide’ (a) evidence of the execution of the guaranty, including the authority of
the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate
Guarantor, a certified copy of a resolution of its board of directors authorizing the making of
such guaranty, (b) current financial statements, (c) a Estoppel Certificate, or (d) written
confirmation that the guaranty is still in effect.

38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the
covenants, conditions and provisions on Lessee’s part to be observed and performed under this
Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term
hereof.

39. Options.

39.1 Definition. "Option” shall mean: (a) the right to extend the term of or renew this Lease
or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first
refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to
purchase or the right of first refusal to purchase the Premises or other property of Lessor

39.2 Options Personal To Original Lessee. Each Option granted to Lessee in this Lease is
personal to the original Lessee. and cannot be assigned or exercised by anyone other than said
original Lessee and only while the original Lessee is in full possession of the Premises and, if
requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or
subletting.

39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew
this Lease, a later Option cannot be exercised unless the prior Options have been validly
exercised.

39.4 Effect of Default on Options.

(a) Lessee shall have no right to exercise an Option: (i) during the period commencing with
the giving of any notice of Default and continuing until said Default is cured, (ii) during the
period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii)
during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given
three (3) or more notices of separate Default, whether or not the Defaults are cured, during the
twelve (12) month period immediately preceding the exercise of the Option.

(b) The period of time within which an Option may be exercised shall not be extended or
enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of
Paragraph 39.4(a).

(c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee’s
due and timely exercise of the Option, if, after such exercise and prior to the commencement of the
extended term, (i) Lessee fails to pay Rent for a period of thirty (30) days after such Rent
becomes due (without any necessity of Lessor to give notice thereof), (ii) Lessor gives to Lessee
three (3) or more notices of separate Default during any twelve (12) month period, whether or not
the Defaults are cured, or (iii) if Lessee commits a Breach of this Lease

40. Multiple Buildings. If the Premises are a part of a group of buildings controlled by Lessor,
Lessee agrees that it will observe all reasonable rules and regulations which Lessor may make from
time to time for the management, safety, and care of said properties, including the care and
cleanliness of the grounds and including the parking, loading and unloading of vehicles, and that
Lessee will pay its fair share of common expenses incurred in connection therewith.

41. Security Measures. Lessee hereby acknowledges that the rental payable to Lessor hereunder does
not include the cost of guard service or other security measures, and that Lessor shall have no
obligation whatsoever to provide same Lessee assumes all responsibility for the protection of the
Premises, Lessee, its agents and invitees and their property from the acts of third parties.

42. Reservations. Lessor reserves to itself the right, from time to time, to grant, without the
consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary,
and to cause the recordation of parcel maps and restrictions, so long as such easements, rights,
dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by
Lessee Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such
easement rights, dedication, map or restrictions

43. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of
money to be paid by one Party to the other under the provisions hereof, the Party against whom the
obligation to pay the money is asserted shall have the right to make payment “under protest” and
such payment shall not be regarded as a voluntary payment and there shall survive the right on the
part of said Party to institute suit for recovery of such sum If it shall be adjudged that there
was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party
shall be entitled to recover such sum or so much thereof as it was not legally required to pay

44. Authority. If either Party hereto is a corporation, trust, limited liability company,
partnership, or similar entity, each individual executing this Lease on behalf of such entity
represents and warrants that he or she is duly authorized to execute and deliver this Lease on its
behalf. Each party shall, within thirty (30) days after request, deliver to the other party
satisfactory evidence of such authority

45. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or
handwritten provisions shall be controlled by the typewritten or handwritten provisions.

46. Offer. Preparation of this Lease by either Party or their agent and submission of same to the
other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to
be binding until executed and delivered by all Parties hereto.

47. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at
the time of the modification As long as they do not materially change Lessee’s obligations
hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be
reasonably required by a Lender in connection with the obtaining of normal financing or refinancing
of the Premises

48. Multiple Parties. If more than one person or entity is named herein as either Lessor or
Lessee, such multiple Parties shall have joint and several responsibility to comply with the terms
of this Lease.

49. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation and/or the
Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease o is
o is not attached to this Lease.

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED
HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO THE
PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE
COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO
THE PREMISES

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL
ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES
OFTHIS LEASE OR THE TRANSACTION TO WHICH IT RELATES THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID
INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITEDTO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES,
THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING
SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED USE.

WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS
OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE
LOCATED.

[Execution on following page]

The parties hereto have executed this Lease at the place and on the dates specified above their
respective signatures

	 	 	 	 	 
	Executed at:
	 	Executed at

	 
	 	 	 	 
	on:
	 	on:

	 
	 	 	 	 
	By LESSOR:
	 	By LESSEE:

	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	By:

	 
	 	 	 	 
	Name Printed:
	 	Name Printed:

	 
	 	 	 	 
	Title:
	 	Title:

	 
	 	 	 	 
	By:
	 	By:

	 
	 	 	 	 
	Name Printed:
	 	Name Printed:

	 
	 	 	 	 
	Title:
	 	Title:

	 
	 	 	 	 
	Address:
	 	Address:

	 
	 	 	 	 
	Telephone: ( )
	 	Telephone:   (      )

	 
	 	 	 	 
	Facsimile: ( )
	 	Facsimile:    (     )

	 
	 	 	 	 
	Federal ID No:
	 	Federal ID No:

	 
	 	 	 	 

NOTE: These forms are often modified to meet changing requirements of law and industry needs.
Always write or call to make sure you are utilizing the most current form: AMERICAN INDUSTRIAL REAL
ESTATE ASSOCIATION, 700 So Flower Street, Suite 600, Los Angeles, California 90017. (213) 687-8777.
Fax No (213) 687-8616

©Copyright 1997- By American Industrial Real Estate Association. All rights reserved.

No part of these works may be reproduced In any form without permission In writing.

1

ADDENDUM

THIS ADDENDUM is made to the STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE — NET dated as
of December 19, 2006, for Premises located at 1202 High Tech Circle, Henderson, Nevada:

50. Lease Term. Notwithstanding the provisions of Paragraph 1.3, the term of this Lease, and the
obligation for the payment of Base Rent by Lessee, shall commence thirty (30) days following the
issuance of a certificate of Occupancy for the newly constructed portion of the Premises (the
“Commencement Date”). Base Rent for any partial calendar month shall be prorated. The term of
this Lease shall continue for ten (10) years after the Commencement Date.

51. Concurrent Termination of Prior Lease Agreement. Concurrent with the Commencement Date, the
prior Lease Agreement between the parties for the lease by Lessee of the original portion of the
Premises shall terminate; provided, however, that Lessee shall remain liable for any obligations
which have accrued, but remain unpaid or unperformed, as of such termination date.

52. Adjustments to Base Rent.  (a) The monthly Base Rent shall be adjusted (as
measured from the Commencement Date) on the first day of the first full month after the first
anniversary of the Commencement Date and on the same day of each year thereafter during the lease
term (the “Adjustment Dates”). The adjustment to Base Rent shall be in accordance with the
increase, if any, in the United States Department of Labor, Bureau of Labor Statistics, Consumer
Price Index — All Urban Consumers For the West B/C Region (1982-1984=100) (“Index”) as follows:

(i) The Rent in effect immediately before each Adjustment Date (the “Comparison Rent”) shall
be adjusted by the percentage that the Index has changed from the date (the “Comparison Date”) on
which payment of the Comparison Rent began through to the month in which the applicable Adjustment
Date occurs. Lessor shall notify Lessee of each adjustment by a written statement which shall
include the Index for the applicable Comparison Date, the Index for the applicable Adjustment Date,
the percentage change between those two (2) indices, and the new Rent. However, no rent
adjustment based on the Index shall be less than two percent (2%) nor greater than four percent
(4%).

(ii) In the event the compilation or publication of the Index shall be discontinued, then the
index most nearly the same as the Index shall be used to make the calculation of the increase in
Rent.

(b) In the event that Lessee undergoes a “change in control”, the Base Rent shall be
increased by a percentage so the monthly rent will be equal to a “fair market rental value”, but
will not be less than $1.75 (one dollar and seventy-five cents) per square foot per month as of the
first day of the first full calendar month following the effective date of such change of control.
As used herein, “change of control” shall mean the acquisition by a single entity of more than 50%
of the outstanding common stock of Lessee. As used herein, “fair market rental value” shall mean
the triple-net rental value of the premises as determined by rental surveys of comparable
properties conducted and determined by two independent Certified General Appraisers. The cost of
such appraisal shall be borne by Lessor. Following any such adjustment of Base Rent pursuant to
this subparagraph (b), the “Adjustment Dates”, as described in subparagraph (a) shall be changed
such that the first CPI adjustment shall occur on the first anniversary thereafter, and on the same
date during each remaining year of the lease term.

53. Security Deposit. The security deposit to be paid pursuant to Paragraph 1.7 of this Lease
shall be paid on or before the Early Possession Date, and the Security Deposit previously paid to
Lessor under the prior Lease Agreement between the parties shall be applied thereto.

54. Build out of leased space. The build out of the leased space funded by the lessor will consist
of general office use space only and is not unique to lessee in any way, and will not be considered
a “build to suit” lease.

55. Leasehold improvements. The lessee will be responsible for funding leasehold improvements
beyond the build out discussed in section 54 above.

2

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