Lodging Agreement

Lodging agreement celebrated by the LESSOR Juan Perez, and by the TENANT Michael Smith, who in the successive will be recognized as the TENANT of unit 01, in the condominium SSS located in: xxxxxxxxxxxxxxxxxxxxxxxxxxxx, in which both parties will be held by the following:

Clauses

First: the LESSOR grants the TENANT the use of unit 01, of the building nominated xxxxxxxxx, located in xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx,  with all that in fact and by right corresponds, receiving the TENANT to his full satisfaction and consequently, he agrees to pay the LESSOR a price in money; as well as deliver the unit back at the end of the present agreement according to the terms of the article 2328 and 2376 of the civil code enforced for the estate of Guerrero.

Second: the term of the lease is agreed for a obligatory period of twelve (12) months which will start from December 15^th 2008 till December 14^th 2009, with out eviction needed, in terms of the article 2426 of the civil code for the Estate of Guerrero. In case the TENANT wishes a prolongation of the agreement, the price will adjust according to the inflationary rate, published by the Banco de Mexico. It would only apply under a expressed agreement among the lessor and the tenant.

Third: The TENANT will pay the amount of $7,200 USD (SEVENTHOUSAND TWOHUNDRED AMERICAN DOLLARS) for the year rent of the unit above mentioned, which will be fully covered at the signature of this agreement, in the address of the condominium according to the article 2359 fraction I of the civil code, which will be enforced in the signature of this contract.

Forth:  Both parties agree in this act that, in order to guarantee the exact payment of all and every one of the obligation that are conveyed, to have a guarantor who appears in this act and that is obligated solidarity, and associatively with the TENANT renouncing the right of order and exclusion; and further more he obligates and agrees to pay the amounts that the TENANT owns derived of the leasing of the apartment, up till the time of the voluntary or judicial vacate. Also he agrees and obligates in the same terms to cover any debt in the unit leased derived from the present contract, as the payment of damages or affects, derived from the interest agreed, lawyer honoraries in the trials that the TENANT gave cause, and to deliver by the LESSOR request, the unit if there was a proved un fulfillment of any of his obligation gained in the lease. As well the guarantor is obligated to celebrate the contract of security guarantee or mortgage and guarantee after the signature, the obligation derived off this lease with Juan Perez.

Fifth: the payment of the rent must be maid in total by the TENANT to the LESSOR, in the address of the LESSOR, located in sixth floor of the condominium Capri or in any other place that the LESSOR designs, in agreement to what is said in the article 2361, of the civil code.

 Sixth: The TENANT is responsible of paying the taxes derived from the usage of the property municipality or federal.

Seventh: The property rented will be exclusively used for housing purpose

Eight: The rent according to the stipulated must be paid in total advanced.

Ninth: Canceled.….....................................................................................................

Tenth: both parties establish that the minimum stay in the unit by the LESSOR in 12 months, and in case its vacant before, the amount paid will be taken by the LESSOR as penalty of the anticipated cancelation; stating clear that the obligation of payment of any other debt after the vacant, will be charged to the TENANT or its guarantor in every case.

Eleventh: It is agreed with the TENANT that, during the time of the lease he will keep the apartment in good conditions, and he would only be allow to make any modifications or improvements to said apartment with previews written authorization of the LESSOR, being those expenses exclusively by the TENANT, and said improvements or installations, once finished will be left for the LESSOR’s benefit with out having to pay any amount for these concepts by the LESSOR.

In case the TENANT wishes connections for telephone or installations for eclectic wires or any eclectic appliances, the TENANT once having the acceptance from the leassor will indicate the technician the place where the ducts, wires or cables must be introduced: also pointing the location of the devices that are wished to install inside or outside of the apartment, object of the present contract.

It is established that the installations referred in the past paragraph, will be paid exclusively by the TENANT. Also in agreement with the article 2353 of the civil code, when repairs are needed the TENANT will notify the LESSOR in a period no longer than 24 hrs. Following the event that motivates the report.

Twelve: It is prohibited for the TENANT to keep inside the unit explosive substances, corrosive or of any type of danger which will be a contract recession motive, with out responsibility for the LESSOR.

Will also be responsible for the damages or effects caused to the LESSOR, as well as any other person that suffer damages for the use of said substances in terms of the articles 2374 of the civil code, enforced for the Estate of Guerrero.

Thirteen:  It is expressly forbidden to use the patios, hallways, stairs, and roofs, if its not exclusively to transit or for the indispensable service of the apartment, also it is forbidden to keep dogs, cats, or other animals that bother the other residents, of the building or that may damage the property.

Fourteen: The LESSOR agrees that the apartment leased is received in good conditions, having all updated sanitary services, accepting the what is ordered in the article 2378 of the civil code, being under his responsibility the improvements needed.

Fifth teen: The TENANT manifest that the guarantor who he presents in this act, gathers the requirements of economic, and moral capacity according to law, and the criteria of the LESSOR, he renounces to the benefit granted by the article 2340 of the civil code and will place other who gathers the requirements. The situation wil prevail if the guarantor looses capacity or dies.

Sixth teen: The LESSOR points as conventional address to accomplish his obligations, requirements of payment or obligations inherent to derived from this document and any legal effect derived from the same, said address; apartment nominated unit xxx of the condominium xxxxxxxxi, located xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx.

Seventh teen: it is expressively forbidden for the TENANT to transfer or rent, part or the total unit of the apartment, the lease or the right of this contract, as foreseen in the article 2422 of the civil code, also its forbidden for the TENANT give as guarantee in any way or form, the apartment given for his custody.

Eight teen: An inventory of the installation and furniture will be placed in the present contract, signed by both parties at the time of the occupation of the apartment.  The guarantor will receive a copy of this document.

Nineteen: The TENANT agrees to pay the electric energy bill of the apartment, water bill, and any other service, in which he will be responsible to delivery fully paid bills at the end of the present contract.

Twentieth:  If the TENANT does not comply with any of the obligations gained in this contract the LESSOR can with anticipation resign this contract with out responsibility. To make use of this right the LESSOR will communicate the TENANT in written, and the TENANT will have to vacate the apartment with in 10 natural days. This date will be legal date in which the contract is extinguished.

Twentieth first: both parties declare that are fully aware of each and every clause contained in this contract, recognizing their personality, having plain knowledge of the reach contained in every one on the articles. As well as all the legal uses and affects that could take place and agree to ratify against a public officer.

Twentieth second: The unit leased is part of the condominium Capri, the TENANT is obligated to respect the internal regulations that prevail in the building, if the TENANT violates or dos not accomplishes with the rules, the administration of condominium Capri, in plain use of his faculties could request the rescission of the present contract, the modification or the accomplishment of the obligations of his election.

Twentieth third: the LESSOR in any time can sell the unit, matter of this present contract, previous notification made to the TENANT, to exercise the right of preference to his election during a 15 day period, with acknowledgment that if he does not make use of his right through out written manner, it will be understood that he has resigned his right as foreseen in the articles 2391 and 2392 of the civil code.

Twentieth four: The TENANT in case he does not use the right of preference  and the apartment matter of this contract was sold, he agrees to vacate the unit in a period no longer that 3 months or occupy other apartment in the same building according to the availability. The transfer to the new apartment exclusively in the building will be charged to the LESSOR.

DATE, AND PLACE OF SIGNATURE

LESSOR                                                                  TENANT

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