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CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:


This
contract
of
Lease,
made
and
executed
this_________________________2011 in the City of Cagayan de
Oro, Philippines, by and between:
________________________, of legal age, married , and
residing at
Cagayan de Oro City, Philippines, hereinafter,
referred to as the LESSOR;
-and________________________
by________________________of legal age,
hereinafter referred to as the LESSEE.

represented
married, Filipino

WITNESSETH:
WHEREAS, the LESSOR is the absolute owner of a
commercial building located at 6th Sts., Nazareth, Cagayan de
Oro City;
WHEREAS, the LESSEE has, with board approval, offered
to lease the area and the LESSOR has accepted the offer;
NOW, THEREFORE, for and in consideration of the
monthly rental to be paid by the LESSEE to the LESSOR and
the mutual terms and covenants and conditions hereinafter set
forth, the LESSEE has agreed to accept, as it hereby accepts by
way of lease, the above mentioned property, subject to the
following terms and conditions to wit:
I.

PERIOD

This lease agreement shall be in force for Three ( 3 ) years


from August 2011 and terminating on August 2014 The parties
are required to give notice at least three months in advance of
any intention of preterminating the period of this Contract of
Lease. This lease agreement, however, maybe extended at the
option and discretion of the Lessor and under the terms and
conditions agreeable by the Lessor.

II.

MONTHLY RENT

The Lessee shall pay the Lessor without need of demand


on or before the 5th day of every month at the place of business
of
the
LESSOR,
the
following
monthly
rental:
Thirteen Thousand Pesos Only (P13,000.00) net of taxes.
Value added tax, withholding and any government taxes
that may be imposed shall be for the account of the LESSEE.
There shall be a yearly increase of _Ten_ PERCENT (10%)
for the 2nd year and succeeding years thereafter, based on the
last monthly rent.

III.

ADVANCE RENTAL AND DEPOSIT

Upon signing of this agreement, the LESSEE shall pay the


LESSOR the amount of Pesos: Seventy Eight Thousand Pesos
Only as 3 months deposit and 3 months advance rental based
on the P 13,000.00 rate.

The security and damage deposit shall be returned after


the LESSEE shall have vacated and redelivered the premises to
the LESSOR less whatever amount the LESSEE may owe the
LESSOR or any utility company, in unpaid bills on telephone,
water, or electricity during the period of the Lease and until the
termination thereof and to whatever damage inflicted and/or
suffered on the Lease premises. Provided, that said security and
damage deposit shall not be applied by the Lessee to any unpaid
rent and shall be kept intact throughout the life of the lease.
The pre-termination of the lease shall cause the forfeiture
of the advance rentals and deposit.

IV.

TURNOVER OF LEASED PREMISES

Upon signing this Contract of Lease, the LESSOR shall


deliver to the LESSEE the LEASED PREMISES free of any
occupant.
The LESSOR shall guarantee the peaceful and quiet
possession, use and right of the LESSEE over the leased
premises for the duration of the lease.
In like manner, upon the termination of the lease, whether
by way of voluntary or involuntary termination, the LESSEE
shall deliver the lease premises to the LESSOR free from any
occupant, obstruction or any tangible thing that may limit, deny
or avoid the free possession and enjoyment of the property by
the LESSOR.

V.

PERMITS, LICENSES, AUTHORITY TO CONSTRUCT

The LESSEE shall take charge of securing all necessary


permits, licenses, authority to construct, repair and / or
renovate the building and shall be responsible for all expenses
in connection therewith. Provided, however, that should be the
LESSEE intend to introduce additional renovation and / or
improvement on the leased premises during the existence of this
lease, the same shall only be done with the prior written
approval of the LESSOR and any necessary permits, licenses
and authority required and / or mandated by the government
shall be secured by the LESSEE and expenses for the same
shall be at the sole expense of the latter.
The Lessee shall not engage in any illegal activity or trade
whatsoever and any reasonable suspicion of engaging in such
will be a ground to terminate this lease.
VI.

RESPONSIBILITY FOR DAMAGES

Damages to third parties that maybe caused by the


construction, renovation and/or improvement of the building
with the prior written approval of the LESSOR shall be for the
account of the LESSEE, unless such damages arose from or
caused by the LESSOR or his employees and or representatives.
Upon expiration of the lease, all the permanent improvements
additionally introduced thereon by the LESSEE during the
existence of this Contract of Lease shall become the absolute
property of the LESSOR, without any obligation on the part of
the LESSOR to pay and / or reimburse the LESSEE for its cost
and expenses. The LESSEE shall then deliver the said building
and other permanent improvements to the LESSOR, subject to
the right of the LESSEE to remove all furniture and other
improvements placed in the leased premises for the operation of
its business which are capable of being removed without
causing injury to the leased premises and/or building.

VII. INSPECTION OF PREMISES


During the effectivity of this contract, the LESSOR or any
of their representatives shall have the right to inspect the
Premises during reasonable hours , especially to check if
activities conducted are legal and other conditions of the lease
are followed.
LESSEE shall not store any illegal items like illegal drugs,
smuggled items and the like.
The LESSEE agree to be bound by the house rules on the
use of the building position of signages, parking, etc. and which
rules may be changed from time to time by the LESSOR.

VIII. PROHIBITIONS AGAINST SUB-LEASE, etc.


The LESSEE without the written consent of the LESSOR,
is hereby strictly prohibited to directly or indirectly sublease,
assign, transfer , convey, mortgage or sell his rights on the
premises to third parties or in any manner encumber the
LESSEES right to lease the premises or any portion thereof
under any circumstances whatsoever.

During the effectivity of this contract, the Lessee shall


have the leasehold improvements insured against fire and other
natural calamities with a reputable insurance company in an
amount equivalent to their maximum insurable value. Copy of
the Contract/Policy shall be given to the Lessor within one (1)
month from issuance or renewal.

IX. SANITATION AND REPAIRS


The LESSEE shall keep the leased premises in good and
sanitary condition and is allowed to make all necessary repairs,
replacements and improvements in the structure of the
building, in the electrical and plumbing installations and/or
works to be done to conform to the requirements and standards
provided in the National Building Code and other government
regulations. Ordinary wear and tear is expressly excepted from
the responsibility of the LESSEE, provided, however, that
repairs and maintenance works necessary and arising from the
normal use of the property and incidental to the lease of the
property shall be borne by the LESSEE and at no cost to the
LESSOR. Whatever improvement introduced thereon by the
LESSEE may be removed and appropriated by the LESSEE
provided the removal thereof shall not cause damage to the
lease premises, provided further, that should there be major
and permanent improvement to be introduced on the leased
premises, prior written approval shall be secured from the
LESSOR and the same shall at the termination of this lease
contract belong to the LESSOR without need of any
reimbursement payable to the LESSEE.
The LESSEE shall not store, place or deposit in the
premises herein leased any merchandise or substance that will
subject the property to undue hazard, except such materials
which are commonly and ordinarily used in connection with the
LESSEES business.

X. UTILITY CHARGES

For the entire duration of the Lease, the LESSEE shall pay
all charges for telephone service, water, and electricity etc. used
in the leased premises and shall comply with all laws,
ordinances, whatever National or Municipal regarding
sanitation, public health, and safety in connection with the
leased premises.
XI. LIABILITY FOR TAXES
Land taxes and special assessments which maybe due on
the parcel of land and the building herein leased shall be for the
account of LESSOR. Other realty taxes on improvements made
by LESSEE, equipment and other taxable assets shall be paid
by LESSEE.

XII. DELIVERY OF LEASED PREMISES


Upon termination or expiration of the Leased and unless
this contract is renewed by the LESSOR, the LESSEE shall
immediately vacate and redeliver the physical possession of the
leased premises, devoid of all occupants, equipment, furniture,
articles, merchandise, etc., belonging to the LESSEE.
In case the LESSOR decides not to renew the lease at the
end of the lease period, the LESSEE shall be given three (3)
months prior written notice. The contract may be renewed
provided the LESSEE shall have given the LESSOR notice of its
intention to renew the lease at least six (6) months prior to the
expiry of this lease. Any renewal of the lease shall be subject to
such terms and conditions as may be agreed upon between the
parties.
Per-termination of the contract shall cause the revocation
of the advance rental.

XIII. VIOLATION OF CONTRACT


In case of violation of any of the terms and conditions of this
agreement by any of the parties hereto, the aggrieved party shall
have the right to terminate the lease and shall be entitled to
indemnity for actual damages .

The LESSOR may also exercise extra-judicial remedies such as


padlocking of the premises, preventing entry to lessee or its
representatives, deprivation of utilities ,etc to protect its rights.
Any and all actions or proceedings by either party against the
other arising directly or indirectly from this contract shall be
instituted in the proper courts of Cagayan de Oro City only.

IN WITNESS WHEREOF, we have hereunto signed these


presents this_______________2011 at the City of Cagayan de Oro
City.

(LESSEE)
I.D. No.
Date/Place Issued:

(LESSOR)
I.D. No.
Date/Place Issued:

Signed in the presence of :


_____________________

&

_____________________

REPUBLIC OF THE PHILIPPINES


City of Cagayan de Oro

At the CITY OF CAGAYAN DE ORO, on the ____th day of


__________, 2011, personally appeared known to me and to me
known to be same persons who executed the foregoing Contract
of Lease, which consist of 6 pages including this page the
acknowledgement is written and signed by the parties executing
this instrument and their witnesses at the left hand margin of
each and every page, and sealed with my notarial seal and said
parties acknowledge to me that the same is their free act and
deed.
Doc. no.______;

Page no. _____;


Book no._____;
Series of 2011