[LOGO-CA Assoc. of Realtors] COMMERCIAL LEASE AGREEMENT
(C.A.R. Form CL, Revised 10/01)
Date (For reference only):_______________ Noel C. McDermott and Warren P. Yost ("Landlord") and
Microtel International Incorporated ("Tenant") agree as follows:
1. PROPERTY: Landlord rents to Tenant and Tenant rents from Landlord, the real property and improvements
described as: 894 Faulstich Court, San Jose, CA 925112-1361 ("Premises"), which compromise approximately
100% of the total square footage of rentable space in the entire property. See Exhibit A for a further description
of the Premises.
2. TERM: The term shall be for 7 years and 0 months, beginning on (date) July 1, 2004 ("Commence Date").
(Check A or B):
[X] A. Lease: and shall terminate on (date) June 30, 2011 at Midnight AM PM. Any holding over after the term
of this agreement expires, with Landlord's consent, shall create a month-to-month tenancy that either party may
terminate as specified in paragraph 2B. Rent shall be at a rate equal to the rent for the immediately preceding
month, payable in advance. All other terms and conditions of this agreement shall remain in full force and effect.
[ ] B. Month-to-month: and continues as a month-to-month tenancy.
Either party may terminate the tenancy by giving written notice to the other at least 30 days prior to the intended
termination date, subject to any applicable local laws. Such notice may be given on any date.
[X] C. RENEWAL OR EXTENSION TERMS: See attached addendum Exhibit B.
3: BASE RENT:
A. Tenant agrees to pay Base Rent at the rate of (CHECK ONE ONLY:)
[ ] (1) $__________ per month, for the term of the agreement.
[ ] (2) $__________ per month, for the first 12 months of the agreement. Commencing with the 13th month, and
upon expiration of each 12 months thereafter, rent shall be adjusted according to any increase in the U.S.
Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor for All Urban Consumers
("CPI") for ______________