KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease made and executed by and between:

Spouses [NAME OF HUSBAND] & [NAME OF WIFE], both Filipinos, married, with residence at [ADDRESS OF LANDLORDS], represented by [NAME OF REPRESENTATIVE], of legal age, Filipino, married and with residence at [ADDRESS OF REPRESENTATIVE] hereinafter referred to as the LESSOR

[NAME OF TENANT], a U.S. National with Passport No. [TENANT'S PASSPORT NUMBER], hereinafter referred to as the LESSEE.

For and in consideration of the terms and conditions hereafter set forth, the parties hereby agree as follows:

1. The LESSOR hereby agrees to lease to the LESSEE and the LESSEE hereby agrees to lease from the LESSOR the property described below:

   "A residential house and lot located at [ADDRESS OF PROPERTY], including three (3) air-conditioning units, one (1) refrigerator, one (1) gas range, a sofa set with coffee table & side table with lamp, three (3) beds, one (1) dining table with 6 chairs, one (1) microwave unit, two (2) electic fans, four (4) TV sets."

2. PERIOD OF LEASE. The term of this contract shall be for a period of one (1) year from September 8, 2005 and to expire on September 8, 2006.

3. RENTAL FEE. In consideration of this lease, LESSEE will pay the LESSOR a rent of FIFTY THOUSAND PESOS (P50,000.00) per month. Upon signing of this Contract, LESSEE shall pay to LESSOR the amount of TWO HUNDRED THOUSAND PESOS (P200,000) equivalent to two (2) months security deposit and two (2) months advance rental. The LESSEE is to pay to the LESSOR the monthly rental on or before the 8th day of every month thereafter.

4. SECURITY DEPOSIT. The security deposit of ONE HUNDRED THOUSAND PESOS (P100,000.00) shall be used for whatever unpaid account(s) that may be due from the LESSEE such as water, telephone bills, electricity, association dues, garbage fee, and such other assessments, including damages which may be caused on the leased premises except for reasonable wear and tear.

   This security deposit, after deducting the above amounts due from the LESSEE, shall be returned to the LESSEE within one (1) month of the termination of this lease agreement; as soon as all bills for the last month are already settled the LESSOR automatically refunds the LESSEE.

5. USE OF LEASED PREMISES. During the term of this contract, the aforementioned property shall be used by the LESSEE exclusively for RESIDENTIAL PURPOSES ONLY. Illegal and immoral activities shall also be prohibited. The maximum number of persons residing therein must not exceed six (6) at one time.

   LESSEE shall not directly or indirectly sublease, assign, transfer, convey, mortgage or in any way encumber the right lease over the leased premises or any portion thereof, under any circumstances whatsoever; any violation, direct or indirect, of any stipulation hereof shall automatically and unequivocally terminate this lease contract from the time such violation occurs and LESSEE shall not be entitled to any refund of any advanced rental payment.

   LESSEE shall not make or permit disturbing noise within the leased premises caused by himself or by persons under his control, nor permit anything to be done by himself or such other persons which will interfere with the rights, comfort or convenience of the other tenants. LESSEE shall not play or suffer to be played in the leased premises any musical instrument, phonograph, radio, or loudspeaker, or install any machinery or device which may cause or tend to cause any noise which may be heard outside the leased premises.

6. UTILITIES, TELEPHONE BILL, ASSOCIATION DUES, ETC. These incurred during the term of this lease shall be the sole responsibility of the LESSEE.

7. INSPECTION. The LESSEE agrees that the LESSOR or its authorized representative may at all reasonable time with prior notice enter into and upon the leased premises to inspect or observe the manner of its use, make alterations or repairs or for any purpose which may deem necessary for the operation or maintenance of the building or its installations and during the last month of the term of this lease, to exhibit the leased premises to prospective tenants.

8. IMPROVEMENTS, MAINTENANCE, REPAIR & ALTERATION. LESSEE shall not make any alterations or improvements without the written consent of the LESSOR. All authorized improvements or alterations that the LESSEE may undertake on the house or its premises shall automatically become the property of the LESSOR without any obligation on the part of the LESSOR to reimburse the LESSEE for the expenses incurred by reason of such improvements or alterations except those that may be removed without damaging or defacing the leased premises.

9. SANITATION & REPAIR. The LESSEE shall keep the house and its premises clean and in sanitary condition and shall take good care of the leased premises. The LESSOR agrees to keep the premises in good and tenantable condition and shall be responsible for necessary major repairs. Likewise, LESSEE acknowledges that the same is in good and tenantable condition and agrees to keep the same in all respect. Minor repairs shall be at the exclusive expense of the LESSEE.

10. HAZARDOUS & OBNOXIOUS SUBSTANCES. The LESSEE shall not keep, deposit any obnoxious substances and/or inflammable materials or substances that might constitute a fire hazard, except cooking gas or gasoline in vehicles. LESSEE shall at all times have a fire extinguisher in the leased premises.

11. RULES & REGULATIONS. The LESSEE agrees to abide by the rules and regulations established by competent authorities and those that may be promulgated from time to time by the subdivision association.

12. PRETERMINATION. Should the LESSEE without any legitimate reason preterminate the lease contract, the LESSEE shall give LESSOR two (2) months notice of his intention to preterminate and the two (2) months advance deposit and two (2) months security deposit shall be forfeited in favor to the LESSOR.

13. EXPIRATION OF CONTRACT. Upon the expiration of the term of the lease or cancellation of this lease as herein provided, LESSEE will promptly deliver the said premises to the LESSOR in as good and tenantable condition, in all respects, as the same now are, reasonable wear and tear excepted, devoid of all occupants, furniture, article, and effects of any kind belonging to the LESSEE; provided, however, that non-compliance will give the LESSOR the right at its option to refuse to accept the delivery of the premises and to compel the LESSEE to pay rent thereof at the same rate of rental as herin provided, plus 50% additional sum as penalty, until the LESSEE shall have complied with the terms hereof. This same penalty shall likewise be imposed in case LESSEEE shall refuse to leave the premises after his right of lease has expired or terminated for any reason whatsoever.

14. RENEWAL. Sixty (60) days before the expiration of this lease, LESSEE shall give notice in writing to LESSOR his intention to renew this lease subject to the agreement of the LESSOR. That in the event of renewal, the LESSOR can only increase the rent up to 10% of the present rate.

15. VENUE. All actions arising from this Contract shall be the proper court of the City of Cebu.

[NAME OF HUSBAND] & [NAME OF WIFE] LESSOR Represented by: [NAME OF REPRESENTATIVE]	[NAME OF TENANT] LESSEE
WITNESSED BY

BEFORE ME, this ____ day of ____________ at the City of Cebu, Philippines, personally appeared the following:

all known to me to be the same persons who signed and executed the foregoing Contract of Lease and acknowledged to me that the same is their own free and voluntary acts and deeds.

WITNESS MY HAND AND SEAL on the date and place mentioned above.

NOTARY PUBLIC

Doc. No. _____ ;
Page No. _____ ;
Book No. _____ ;
Series of 2005