Residential Lease Agreement

DATE: ________________ BETWEEN: _____________________________________________________ (Landlord") AND:____________________________________________________________ ("Tenant").

Landlord owns improved real property in ____________ County, Oregon, located at ______________________________ _________ (the Premises). If any easements or personal property is included in this Agreement, the description of each shall be attached to this Agreement as exhibits and shall be a part of the Premises as referred in this Agreement, unless other wise agreed in an attached written exhibit. Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, the Premises on the terms and conditions set out below: 1. TERM. The term of this Agreement is for a term of ________ months. The term begins on __________________, 2004, at ______ oclock __.m., and ends at midnight on ______________________, 2005. 2. RENT. The total rent for the term is the sum of __________________________ DOLLARS ($___________) payable on the ______ day of each month of the term. All rent payments shall be made to Landlord at Landlord's address: ____________________________, on or before the due date and without demand. There is no grace period for late payments. 3. DAMAGE DEPOSIT. On the execution of this Agreement, Tenant shall deposit with Landlord the sum of ______________________________________ DOLLARS ($________), receipt of which Landlord acknowledges, as security for any damage caused to the Premises during the term or holdover term. Within 31 days of termination of this Agreement, such deposit shall be returned to Tenant, without interest, and less any setoff for damages excluding ordinary wear and tear, or for other remedies agreed in this Agreement or in ORS 90.300 or other law, rule, regulation, or order. 4. CONDITION OF PREMISES. Tenant has examined the Premises, and it is in good order and repair, and in a safe, clean, and tenantable condition when this Agreement is entered into, except for any aspect of the Premises that shall be explicitly noted in writing and attached contemporaneously to this Agreement when executed. 5. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Agreement, or sublet, or grant any license to use the Premises or any part thereof without Landlords prior written consent. Landlords consent shall not be unreasonably withheld. Reasonable consent includes but is not limited to Landlords right to examine the proposed assignees financial statements, tax returns, and to conduct reasonable background checks. Consent by Landlord to one such assignment, sublet, or license shall not be deemed to be a consent to any subsequent assignment, sublet, or license. An assignment, sublet, or license without the prior written consent of Landlord or an assignment or subletting by operation of law is a violation of this Agreement, shall be absolutely void and shall, at Landlord's option, terminate this Agreement and entitle Landlord to all remedies provided in this Agreement or any remedy available in law or in equity.

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6. ALTERATIONS AND IMPROVEMENTS. Tenant shall make no alterations to the buildings or improvements on the Premises or construct any building or make any other improvements on the Premises without the prior written consent of Landlord. Any and all alterations, changes, and/or improvements Tenant or Tenants agents place or permit to be placed on the Premises, unless otherwise provided by written agreement between Landlord and Tenant, be and become the property of Landlord and shall remain on the Premises at the expiration or earlier termination of this Agreement. 7. NONDELIVERY OF POSSESSION. In the event Landlord cannot deliver possession of the Premises to Tenant upon the commencement of the Lease term, through no fault of Landlord or its agents, then Landlord or its agents shall have no liability, but the rental herein provided shall abate until possession is given. Landlord or its agents shall have thirty (30) days in which to give possession, and if possession is tendered within such time, Tenant agrees to accept the demised Premises and pay the rental agreed to from that date. In the event possession cannot be delivered within such time, through no fault of Landlord or its agents, then this Agreement shall terminate. 8. LANDLORDS DUTIES. A. Insurance. Landlord shall keep the Premises insured at Landlords expense against fire and other risks covered by a standard fire insurance policy with an endorsement for extended coverage. B. Real property taxes. Landlord shall pay and keep current all real property taxes.

C. Other laws. Landlord shall comply with duties imposed by law, including but not limited to those imposed by ORS 90.320. 9. TENANTS DUTIES; RULES AND RESTRICTIONS ON USE. A. Maintenance and Repairs. For the term of this Agreement, Tenant agrees that, at its sole expense, Tenant shall keep and maintain the Premises and appurtenances in the same good and sanitary condition and repair as they were in on entering into this Agreement, including but not limited to making repairs, but excluding repairs that are of a structural nature and that are not the result of the negligence or intentional act of Tenant or anyone or anything under Tenants control, or the result of any violation of this Agreement or any law, rule, regulation, or order. Landlord shall be responsible for making and paying for repairs that are both of a structural nature and that are not the result of the negligence or intentional act of Tenant or anyone or anything under Tenants control, or the result of any violation of this Agreement or any law, rule, regulation, or order. If any damage occurs to the Premises that is not the result of Tenants negligence or intentional act and that requires repair costing greater than $500.00, Tenant shall immediately notify Landlord in writing. Landlord and Tenant shall agree to the repairs to be performed by a contractor of Landlords approval. Landlord may contribute to repairs costing greater than $500.00, if the repairs and repair cost is not the result of the negligence or intentional act of Tenant or anyone or anything under Tenants control, or the result of any violation of this Agreement or any law, rule, regulation, or order.

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B. Hazardous, illegal, or infectious materials. Tenant shall not place or keep on the Premises any item of an illegal, dangerous, flammable, or explosive character that might unreasonably increase the danger of fire or explosion on the Premises or that might be considered hazardous or extra hazardous by any responsible insurance company or under any law, rule, regulation, or order. Any necessary cleanup shall be performed by consultants and contractors engaged by Landlord at Tenants sole expense. Tenant shall indemnify, defend, and hold Landlord harmless against any claims by third parties for damage or injury or any loss (including decrease in value) or damages to Landlords property resulting from any breach of Tenants covenants under this provision and against any claims for cleanup costs or fines imposed by governmental agencies arising out of any activities by Tenant on the Premises. Tenant shall not dispose of any infectious waste in a manner inconsistent with any laws. C. Utilities. Tenant shall be responsible for arranging for and timely paying for all utility services required on the Premises. D. Renters Insurance. Tenant shall be responsible for maintaining renters insurance on the Premises. E. Restrictions on Use. In connection with the use of the Premises, Tenant also shall: (1) Conform to all laws, rules, regulations, and orders and correct at Tenants sole expense any failure of compliance created through Tenants fault or by reason of Tenants use, but Tenant shall not be required to make any structural changes to effect such compliance unless such changes are required because of Tenants use; (2) Refrain from any activity that would make it impossible to insure the Premises against casualty, would increase the insurance rate, or would prevent Landlord from taking advantage of any ruling of the Oregon Insurance Rating Bureau or its successor, allowing Landlord to obtain reduced premium rates for long-term fire insurance policies, unless Tenant pays the additional cost of the insurance. (3) Keep all windows, glass, window coverings, doors, locks, and hardware working and in good, clean order and repair and not permit any locks or obstructions to be placed on any door or window with out Landlords prior written consent; (4) Keep heating, ventilation, and air conditioning units and all water, plumbing, and lavatory facilities clean and working properly at all times; (5) Refrain from any use that would be reasonably offensive to Landlord, other tenants, or owners or users of adjoining properties, and refrain from use that would tend to create a nuisance or damage to the reputation of the Landlord or Premises. (6) Refrain from loading the floors or electrical system beyond the point considered safe by a competent engineer or architect selected by Landlord; (7) Refrain from making any marks on or attaching any sign, insignia, antenna, aerial, or other device anywhere on the Premises without the Landlords prior written consent, and refrain from any act that may detract from the general use of the Premises;

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(8) Refrain from any act and from permitting any act by Tenant or anyone or anything under Tenants control on the Premises that is outrageous in the extreme, as defined in ORS 90.400. (9) Keep the driveways, sidewalks, courts, entry ways, stairs and/or halls unobstructed and free from ice, snow, debris, or any other dangerous condition and use them for ingress and egress only; (10) Maintain order in the Premises and use the Premises in a manner consistent with the purposes for which it is designed; (11) At all times, behave and keep noise to a decibel level that does not annoy or interfere with other residents; (12) Deposit all trash and recycling properly and not permit any trash or recycling to stand on the exterior of the Premises unreasonably; (13) Not permit smoking in the Premises, and shall not remove or tamper with any smoke alarm or smoke detector, and shall test all smoke alarms or smoke detectors at least once every six (6) months; (14) Comply with any other rules or regulations Landlord adopts after the execution of this Agreement if Landlord provides written notice to Tenant; except that if the newly adopted rule or regulation works a substantial modification of this Agreement, then Tenant must consent to the newly adopted rule or regulation in writing for it to be effective; (15) Other: 10. DAMAGE TO PREMISES. If the Premises is destroyed or rendered wholly untenantable by fire, storm, earthquake, or other casualty not caused by negligence or intentional act or violation of this Agreement by Tenant or anyone or anything in Tenants control, then this Agreement shall terminate from such time, except for the purpose of enforcing rights that may have then accrued. The rent agreed to shall then be accounted for by and between Landlord and Tenant up to the time of such injury or destruction of the Premises. Tenant shall pay rent up to such date and Landlord shall refund rent collected beyond such date. If a portion of the Premises is rendered untenantable, Landlord shall have the option of either repairing the injured or damaged portion or terminating this Agreement. If Landlord exercises its right to repair an untenantable portion, the rent shall abate in the proportion that the injured parts bears to the whole Premises, and Landlord shall restore the injured parts speedily as practicable, after which the full rent shall recommence and this Agreement shall continue under its terms. 11. ACCESS TO PREMISES. Landlord shall have the right, at all reasonable times during the term of this Agreement and any renewal term and in accordance with ORS 90.322, to enter and inspect the Premises and to make any repairs, additions, or alterations as Landlord deems appropriate, if Landlord provides 24 hours actual prior notice to Tenant, or a lesser notice period if in an emergency. Landlord shall further have the right to exhibit the Premises and to display or remove "for sale", "for rent," or "vacancy" signs on the Premises within forty-five (45) days before the expiration of this Agreement. Landlord shall further have the rights of access as provided in ORS 90.322.

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12. SUBORDINATION OF LEASE. This Agreement and Tenant's interest are and shall be subordinate, junior, and inferior to any and all mortgages, liens, or encumbrances that Landlord now or hereafter places on the Premises, and all advances made under any such mortgages, liens or encumbrances (including, but not limited to, future advances), the interest payable on such mortgages, liens or encumbrances, and any and all renewals, extensions or modifications of such mortgages, liens or encumbrances. 13. TENANT'S HOLDOVER. If Tenant remains in possession of the Premises with the consent of Landlord after the natural expiration of this Agreement, a new tenancy from month-to-month shall be created between Landlord and Tenant which shall be subject to all of the terms and conditions in this Agreement, except that rent shall then be due and owing at __________________________ DOLLARS ($__________) per month and such tenancy shall be terminable on fifteen (15) days written notice served by either party. 14. SURRENDER OF PREMISES. On the expiration of the term of this Agreement, Tenant shall surrender the Premises in as good a state and condition as they were at the commencement of this Agreement, except for reasonable use and wear and tear and damages by the elements not resulting from Tenants negligence or intentional acts. 15. ANIMALS. Tenant shall be entitled to keep no more than ______ domestic dogs, cats, or birds on the Premises. At such time as Tenant shall actually keep any such animal on the Premises, Tenant shall pay to Landlord a pet deposit of ___________________________ DOLLARS ($_________). No blind, deaf, or physically impaired person shall be required to pay an additional nonrefundable fee or excessive deposit for a guide or assistance animal. Of that amount set as the pet deposit, ______________________ DOLLARS ($_________) is non-refundable and shall be used on the termination or expiration of this Agreement to clean the Premises. Tenant remains responsible for any and all animal damage to the Premises. If this Section 17 is left blank, Tenant shall not keep or permit any animal to enter the Premises at any time, except for guide or assistance animals for the blind, deaf, or physically impaired persons as provided under ORS 364.680. 16. QUIET ENJOYMENT. On payment of all of the sums payable by Tenant and Tenant's performance of all Tenant's duties, and Tenant's observance of all laws, rules, regulations, and orders, Tenant shall and may peacefully and quietly have, hold and enjoy said Premises for the term. 17. INDEMNIFICATION. Landlord shall not be liable for any damage or injury of or to the Tenant, Tenant's family, guests, invitees, agents, employees, or any person entering the Premises or any area that Tenant is responsible for maintaining including but not limited to sidewalks, driveways, or public areas over which Tenant has control or responsibility, or to any goods or any thing, or in the structure or equipment of the structure of which the Premises are a part. Tenant agrees to indemnify, defend, and hold Landlord harmless from any and all claims, demands, or assertions of any kind or nature. 18. DEFAULT. If Tenant fails to comply with any provisions of this Agreement, other than the covenant to pay rent, or of any present rules and regulations or any that Landlord may later adopted in accordance with this Agreement and ORS 90.262, or if Tenant materially fails to comply with any duties imposed on Tenant by this Agreement or governing law, rule, regulation, or order, then within seven (7) days after delivery of written notice by Landlord specifying the noncompliance and indicating the Landlords intent to terminate the Lease, Landlord may terminate this Agreement and shall be entitled to the remedies agreed to in this Agreement or as provided by law or in equity. Tenants failure to pay rent on the date specified in Section 2 also is an event of default. If such default continues for five (5) days thereafter, Landlord may, at Landlord's sole option, exercise any and all rights and remedies available to Landlord at law, in equity, and under this Agreement.

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19. LATE CHARGE. In the event that any payment Tenant is required to pay under this Agreement is not made within five (5) days of the due date, Tenant shall pay to Landlord, in addition to such payment or other charges due under this Agreement, a late fee in the amount of THIRTY-FIVE DOLLARS ($35.00) for each late payment, and in addition any unpaid amounts shall begin accruing interest at a rate of 12% per annum if not paid within ten (10) days when due. 20. ABANDONMENT; REMEDY. If at any time during the term of this Agreement Tenant abandons the Premises or any part thereof, Landlord may, at Landlord's option, obtain possession of the Premises in the manner provided by law, and, without becoming liable to Tenant for damages or for any payment of any kind whatever, Landlord may, at Landlord's discretion, as agent for Tenant, exercise each and every legal right as provided in ORS 90.425 or in any other law, rule, regulation, or order. 21. REMEDIES A. Tenants Remedies. Tenant shall have the remedies provided in ORS 90.360 to 90.390, 90.435, 90.453 to 90.475 and any other remedy at law or in equity. B. Landlords Remedies. Landlord shall have the remedies provided in ORS 90.400 to 90.430 and any other remedy at law or in equity. In the event of Tenants default, Landlord may terminate this Agreement by giving 30 days written notice to Tenant. Landlord shall have as remedies the right to recover all damages, including but not limited to past rent due, future rent minus mitigation, costs including leasing commissions, advertising costs, abated rent, repairs, remodels, and removal of tenant improvements or fixtures, court costs, attorney fees as provided in this Agreement and at law or inequity, and any other remedy provided at law or in equity or in this Agreement. These remedies are cumulative and shall be in addition to any other remedy available at law or in equity. 22. ATTORNEY FEES. If Landlord is required to engage an attorney to enforce any of the terms of this Agreement, including but not limited to the collection of rents or gaining possession of the Premises, Tenant shall be liable for all costs and reasonable attorney fees whether legal action is commenced, and, if legal action is commenced, then at arbitration, trial, and on appeal and review. 23. NONRECORDING OF AGREEMENT. This Agreement shall not be recorded in any public office. 24. GOVERNING LAW; VENUE. This Agreement shall be interpreted and construed under the laws of Oregon. If legal action or arbitration commences, venue shall be in Deschutes County, Oregon. 25. SEVERABILITY. If any provision of this Agreement or its application shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected, but instead shall be enforced to the maximum extent permitted by law. 26. BINDING EFFECT. The covenants, obligations, and conditions in this Agreement shall be binding on and inure to the benefit of the heirs, successors, legal representatives, and assigns of the parties.

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27. DESCRIPTIVE HEADINGS. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect in determining the rights or obligations of the parties. 28. NON-WAIVER. No indulgence, waiver, election, or non-election by Landlord under this Agreement shall affect Tenant's duties and liabilities. 29. MODIFICATION. This Agreement is the entire agreement to lease the property between the parties. This Agreement shall not be modified in any way except in writing signed by all of the parties. 30. NOTICE. Any notice required or permitted under this Lease or under law shall be deemed sufficiently given or served when actually delivered or 48 hours after being deposited in the United States mail as certified mail, return receipt requested, addressed as follows: Landlord: ____________________________________ Address: __________________________________________________________________

Tenant: ___________________________________________ Address:__________________________________________________________________ The parties shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice to the other party. The parties shall have the obligation to change the place notice is required to be given immediately if any mailing addresses change. 31. ADDITIONAL PROVISIONS; DISCLOSURES. Additional provisions are as follows:

A. None B. If applicable, a lead-based paint disclosure shall be delivered to Tenant with this Agreement. C. The following persons are authorized to act on Landlords behalf to manage the Premises and to send or receive notices: ________________________________________________. D. Landlord discloses any outstanding notices or tax liens affecting the Premises that are required to be disclosed under ORS 90.310: _________________________ (or see attached). E. Tenant is responsible for each and every utility or service on the Premises, including but not limited to electricity, natural or liquid propane gas, oil, water, hot water, heat, air conditioning, cable television, direct satellite or other video subscription service, internet access or usage, sewer or septic services, and garbage and recycling collection and disposal.

LANDLORD:

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Sign: ___________________________________ Date: ______________

TENANT: Sign: ___________________________________ Date: ______________ TENANT: Sign: ___________________________________ Date: ______________

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