Each party signing this lease should seek legal advice prior to executing this lease. This lease is a sample and does not constitute legal advice.Page 1 of 4

Commercial Lease

Law Offices of Todd E. Kobernick

This Leaseis made between ___________________________________ (“Lessor”), and ___________________________,

(“Tenant”). Tenant hereby offers to lease fromLessor the real propertylocated in the Cityof ____________, State of California,

with a common address of ___________________________________________________, (the “Real Property”), upon the

the annual rental of _____________________________________________________ Dollars ($ ), payable in

equal installments in advance on the first dayof each monthfor that month’s rental, duringthe term of this Lease. All rental

payments shall be made to Lessor at the address specified below.

2. Option to Renew.Provided that Tenant is not in default in the performance of this Lease, Tenant shall have the option to renew

the Lease for one (or, if more thanone option period given, insert number here _________) additional term(s) of ___________

months commencing at the expiration of the initial Lease term. All of the terms and conditions of the Lease shall applyduring the

renewal term except that the monthly rent shall be the sum of $_____________________________(subjecttothe restrictions of

paragraph 4, below). The option shall be exercised by written notice given to Lessor not less than ____________________ days

priortothe expiration of the prior Lease term.(If no other time is inserted, notice shall be given ninety(90) daysprior to the

4. SBA Provisions.If this Lease is executed bya Lessor and/or Tenant, who are participating in the U.S. Small Business

Administration 504Loan Program, then the parties hereto agree and acknowledge that this Lease shall be construed to complywith

the requirements of such program including, but not limitedto, those found in Title 13 of the Code of Federal Regulations, the SBA

Standard Operating Procedures 50-10 and all other relevant statutes laws, codes, regulationsand procedures. Without limitingthe

applicabilityof all relevant law, the following conditions shall apply:

(1)The Tenant shall lease from Lessor all of the Real Property;

(2)This Lease shall be junior and subordinate to any and all deeds of trust in favor of the SBA which relate to the

Real Property;

(5)The termof this Lease shall not expire prior to the maturitydate of the subject SBA 504 Loan. Provided, the

Lease term may include options to renewthe Lease, so long as the options are exercisable solely bythe Tenant.

(6)Any leases of the Real Property other than to the Tenant shall be between the Tenant andthe third party

subtenant.

5. Care and Maintenance of Real Property. Tenant acknowledges that the Real Propertyis in good order andrepair, unless

otherwise indicated herein. Tenant shall, at his own expense and at all times, maintain the Real Propertyingood and safe condition,

including plate glass, electrical wiring, plumbing and heatinginstallationsand anyothersystemor equipment uponthe RealProperty

Each party signingthis lease should seek legal advice prior to executingthis lease. This lease is a sample and does not constitute legal advice.Page 2 of 4

CommercialLease

Law Offices of Todd E. Kobernick

as sidewalks, driveways, lawns and shrubbery, which would otherwise be required to be maintained byLessor.

improvements, in, to or about the Real Property.

7. Ordinances and Statutes.Tenant shall complywith all statutes, ordinances,regulations,covenants, conditionsand requirements

of all municipal, state and federal authorities (includingowner’s association and similar entities) nowin force, or which may

hereafter be in force, pertaining to the Real Property, occasioned by or affecting the use thereof by Tenant.

8.Assignment and Subletting.Tenant shall not assign this Lease or sublet any portion of the Real Property without prior written

consent of the Lessor, which shall not be unreasonablywithheld. Anysuch assignment or subletting without consent shall be void

and, at the option of the Lessor, may terminate this Lease.

same, and will permit Lessor at any time within ninety(90) daysprior to the expiration of this Lease, to place upontheReal Property

any usual “To Let” or "For Lease” signs, and permit persons desiring to lease the same to inspect the Real Property thereafter.

11. Possession.If Lessor is unable to deliver possession of the Real Property at the commencement hereof, Lessor shall not be

liable for anydamage caused thereby, nor shall this Lease be void or voidable, but Tenant shall not be liable for anyrent until

possession is delivered. Tenant mayterminate this Lease ifpossession isnot delivered within one hundredtwentydaysof the

commencement of the term hereof.

12. Indemnification of Lessor.Lessor shall not be liable for anydamage or injuryto Tenant, or anyother person, or to any

property, occurring on the Real Property or any part thereof, and Tenant agrees to indemnifyand hold Lessor harmless from any

Tenant shall provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The Certificateshall provide for a

ten-day written notice toLessor in the event of cancellation or material change of coverage. To the maximumextent permittedby

insurance policies which may be owned by Lessor or Tenant, Tenant and Lessor, for the benefit of each other, waive anyand all

rights of subrogation which might otherwise exist.

14. Eminent Domain.If the Real Property or any part thereof or any estate therein, or anyother part of the building materially

affecting Tenant’s use of the Real Property, shall be taken by eminent domain, this Lease shall terminate on the datewhen title vests

pursuant to such taking.The rent, and anyadditional rent, shall be apportioned as of the termination date, and anyrent paidfor any

period beyond that date shall be repaidto Tenant. Tenant shall not be entitled to anypart of the award for such takingorany

a proportionate reduction of rent while such repairs are being made, basedupon the extent to which the making of such repairsshall

interfere with the business of Tenant on the Real Property. If such repairs cannot be made within said sixty (60) days, Lessor, in

Lessor’s sole discretion and option, maymake the repairs within a reasonable time,this Lease continuing in effect with the rent

Each party signingthis lease should seek legal advice prior to executingthis lease. This lease is a sample and does not constitute legal advice.Page 3 of 4

CommercialLease

Law Offices of Todd E. Kobernick

proportionatelyabatedas provided in the preceding sentence, and in the event that Lessor shallnotelect to make such repairs,which

cannot be made within sixty(60) days, this Lease maybe terminated at the option of either party.In the event that the building in

which the Real Propertymaybe situated is destroyed to an extent of not less than one-third of the replacement costs thereof, Lessor

may elect to terminate thisLease whether the Real Property be injuredornot. A total destruction of the building in which the Real

Property may be situated shall terminate this Lease.

16. Lessor’s Remedies on Default.If Tenant defaults in the payment of rent, or anyadditional rent, or defaultsinthe performance

quit and surrenderthe Real Property to Lessor, but Tenant shall remainliable as hereinafter provided. If thisLease shall have been

so terminated by Lessor, Lessor mayat anytime thereafter resume possession of the Real Property byanylawful means and remove

Tenant or other occupants and their effects. No failure to enforce any term shall be deemed a waiver.

No act of Lessor shall be construed as terminating this Lease except written notice given byLessor to Tenant advising Tenantthat

Lessor elects to terminate the Lease. In the event Lessor elects to terminate this Lease, Lessor may recover from Tenant: (a) The

worth at the time of award of anyunpaid rent that had been earned at the time of termination of the Lease; (b) The worth at the time

of award ofthe amount bywhichthe unpaid rent that would have been earnedafter termination of the Lease until the time of award

exceeds the amount of rental loss that Tenant proves could have been reasonably avoided; (c)The worth at the time of award ofthe

amount by which the unpaid rent for the balance of the term of this lease after the time of award exceeds the amount of rental loss

17. Security Deposit.Tenant shall deposit withLessoron the signing of this Lease the sumof

______________________________ Dollars ($ ) as security forthe performanceof Tenant’s obligations under this

Lease, including without limitation the surrender of possession of the Real Property to Lessor as herein provided.If Lessorapplies

anypart of the deposit to cure anydefault of Tenant, Tenant shall on demand deposit withLessor the amount so applied so that

Lessor shall have the full deposit on hand at all times during the term of this Lease.

18. Tax Increase.In the event there is any increase duringanyyear of the termof this Lease in real property taxes over and above

the amount of such taxes assessed for the tax year during which the term of this Lease commences, whether because of increased

rate, valuation or otherwise, Tenant shall pay to Lessor upon presentation of paid tax bills anamount equal tothe increase in taxes

upon the land and buildingon which the Real Propertyis situated. In the event that suchtaxes are assessed for a tax yearextending

Each party signingthis lease should seek legal advice prior to executingthis lease. This lease is a sample and does not constitute legal advice.Page 4 of 4

CommercialLease

Law Offices of Todd E. Kobernick

of the parties.