Preliminary Lease Agreement for Property at Leningradsky Prospect 31A, Building 1, Moscow, Russia, by
and between Closed Joint Stock Company “CTC Network” (the “Lessee”), and Open Joint Stock Company
“MonArch” and an individual (together, the “Lessor”) dated as of July 12, 2010.
(1) Pursuant to Rule 12b-12(d)(3) under the US Securities Exchange Act of 1934, as amended, the Registrant is
filing as an exhibit to its Quarterly Report on Form 10-Q this summary in the English language of a preliminary
lease prepared in the Russian language in respect of the Registrant’s new headquarters facility in Moscow,
Russia. The Registrant will provide a copy of the Preliminary Lease to the Securities and Exchange Commission
Property subject to
Approximately 6,500 square meters in a class “A” office building at Leningradsky
Prospect 31A, Building 1, Moscow, Russia
10 years from the date of the definitive lease agreement to be entered into between the
parties, which is to be signed no later than July 12, 2011.
Lessee has a right to extend for a further 10-year term, at the then current market rates
Approximately US$3.5 million, plus VAT, including technical costs arising from
maintenance of the premises and certain supplementary municipal services.
Rent is subject to adjustment annually in line with inflation, not to exceed 4% of the
then-applicable annual rent. In the event that the average Russian ruble / US dollar
exchange rate fluctuates by more than 15% during any three-month period during the
term of the lease, each party is entitled to begin negotiations to adjust the basic rent
Lease of parking space
Available at additional cost
Expansion option / right
of first offer
Lessee has an expansion option / right of first