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This CONTRACT, made and entered into this 20th day of June,
2011, in the City of Makati, Metro-Manila, by and between:
single, Filipino, with residence at (formerly with address at #96 4th Street, New Manila,
Quezon City, represented herein by her judicial guardian,
JOVITO SJ. SANTOS, of legal age, married, Filipino
citizen and with residence at No. 3, R. Santos St.,
Concepcion I, Marikina City, hereinafter referred to as the
CORPORATION, a corporation duly organized and
existing under Philippine laws, with principal business
address at Sitio Tanag, San Isidro, Rodriguez, Rizal,
represented herein by its President, MA. TERESA H.
VILLA-ABRILLE, of legal age, married, Filipino citizen and
with residence at 82 J. P. Rizal St., Manggahan,
Rodriguez, Rizal, hereinafter referred to as the LESSEE;

WHEREAS, Jovita San Juan Santos is the judicial guardian over

the person and properties of the LESSOR pursuant to the Decision
dated September 25, 2001issued by the Regional Trial Court of San
Mateo, Rizal, Branch 76 in the case entitled In the Matter of the
Guardianship of the Incompetent Ma.Lourdes San Juan Hernandez
Jovita San Juan Santos, petitioner, Special Proceedings Case No.
250, certified copy of which is hereto attached and made integral part
hereof as Annex A.
WHEREAS, Ma. Teresa H. Villa-Abrille, is the President of the
LESSEE as evidenced by the Secretarys Certificate, copy of which is
hereto attached as Annex B.
WHEREAS the LESSOR has long been confined at (formerly located in the abovementioned
address which tends to all her immediate/basic needs particularly her
medical treatments complete with services of professional doctors and
WHEREAS, the LESSOR is the owner in fee simple of that parcel
of land situated at Rodriguez, Rizal, and more particularly described in
Transfer Certificate of Title No. 86718 issued by the Registry of Deeds
of the Province of Rizal with an aggregate area of
WHEREAS, the LESSOR, as earlier stated, had filed a Petition in
the aforesaid court seeking leave to sell the aforesaid property to the
LESSEE. But considering the urgency of the financial needs of the
LESSOR and considering further the delay in seeking the approval of
the court, the parties hereto have agreed to enter into a lease
agreement covering the same property without prejudice to pursuing
the intended sale.
WHEREAS, the LESSEE has agreed to lease the above-
described property and the LESSOR has accepted the said offer and
the latter does by these presents agree and bind herself to lease to the
LESSEE that the subject property situated in Brgy. San Isidro,
Rodriguez, Rizal with no improvements existing thereon, covered by
Transfer Certificate of Title No. 86718 subject to the terms and
conditions hereunder set forth.
NOW, THEREFORE, for and in consideration of the foregoing
premises, the parties hereto have agreed, stipulated and covenanted
as follows:
1. For and in consideration of the payment of the rent and of the
compliance of all the conditions and covenants of this lease, the
LESSOR has agreed to lease, let and demise, unto the LESSEE, and
the latter has agreed to lease from the former the aforesaid property at
the rate of NINETY THOUSAND PESOS (P90,000.00) per month under
the covenants and conditions hereafter stated.
2. The LESSEE, who is engaged in business, will use the
premises exclusively as crashing plant.
3. The LESSEE shall pay the rent one (1) year in advance in the
total amount of ONE MILLION EIGHTY THOUSAND (P1,080,000.00),
Philippine currency covering the entire term of this lease. The rent is
exclusive and net of expanded value-added tax and withholding tax,
which shall be for the sole account of the LESSEE.
4. This lease shall be valid for a period of ONE (1) YEAR,
commencing on the 20th day of JUNE, 2011 and expiring on the 20th
day of JUNE, 2012, which may be renewed by the parties for another
period of one (1) year under the same terms and conditions hereunder
5. In the event of renewal, the LESSEE agrees and undertakes
to pay an increase of 10% of the existing monthly rental.
6. It is further agreed and covenanted that should the intended
sale materialized, all the rentals thus far paid to the LESSOR shall be
considered as part payment of the total purchase price.
7. Upon prior notification and approval by the LESSOR, the
LESSEE shall be entitled to affix, inscribe, paint or install at its expense
such advertising notices or signs of its name, trademark, trade-name or
8. Immediately upon signing of this Contract, the LESSEE shall
be entitled to possession of the premises and do such construction of
improvements and installations on the leased premises as maybe
necessary and appropriate to carry out its business. It is understood
however that any and all assessment and taxes that the government
may impose on the said improvements shall be for the account of the
All fixed improvements and installations made by the LESSEE in
the premises, except furniture, fixtures and equipment, which may be
removed without impairing the use of the leased premises, shall
become the property of the LESSOR upon termination of this lease
without compensation to the LESSEE.
9. The LESSOR shall comply with reasonable rules and safety
regulations promulgated from time to time by the LESSOR as well as
rules, regulations, laws and ordinances promulgated or enforced to
government authorities regarding the use, occupancy and sanitation of
the leased premises.
10. The LESSEE shall pay for its telephone, water, gas, electricity
and other public services or utilities in the leased premises, the
installation thereof shall be at the expense of the LESSEE.
11. The LESSEE shall be responsible for any damage that may
be suffered by its customers and third parties while in the leased
premises which maybe attributable to its negligence and further binds
itself to hold the LESSOR free and harmless from any such claim for
injury or damage.
12. No compensation or claim or deduction of rental shall be
allowed against the LESSOR by reason of inconvenience, annoyance
or injury to the business of the LESSEE.
13. The LESSOR, by previous arrangement with the LESSEE
shall have the right to enter the leased premises at reasonable hours
during business day to examine the condition of the premises.

14. The LESSEE shall not assign or transfer its right in this
Contract and shall not sub-lease all or any part of the leased premises
without prior written consent of the LESSOR.
15. If it any time during the term of this lease, expropriation
proceedings are instituted by government instrumentality or agency
such that the leased premises would no longer be useful for the purpose
intended, either party may rescind this Contract upon giving the other
party written notice of at least thirty (30) days. The LESSEE
unconditionally relieves the LESSOR from any liability under this
Contract in connection with or arising out of such expropriation
16. Should an extraordinary inflation or deflation of the currency
supervene during the effectiveness of this Contract, the value of the
currency at the time of the establishment of the obligation shall be the
basis of payment as provided in Article 1250 of the Civil Code of the
17. The LESSEE agrees to return and surrender the leased
premises at the expiration of the term of this lease in as good condition
as reasonable wear and tear will permit and without any delay
whatsoever, devoid of all occupants, furniture, articles and effects of
any kind other than such additions or improvements which LESSOR
may elect to take.
If the premises be not surrendered at the expiration of the term,
the LESSEE shall be responsible to the LESSOR for damages which
the LESSOR shall suffer by reason thereof and shall indemnify the
LESSOR for claims against any and all claims made by any
succeeding tenant against the LESSOR, resulting from delay by the
LESSOR in delivering possession of the premises to such succeeding
tenant, so far as such delay is occasioned by the failure of the LESSEE
to so surrender the premises on time.
18. Disturbance or discontinuance of the possession of the
leased premises of the LESSEE by causes beyond the control of the
LESSOR shall confer no right of any kind to the LESSEE as against the
19. In case the leased premises shall be deserted or vacated
before the expiration of this lease, the LESSOR shall have the right to
enter the same as the agent of the LESSEE, either by force or otherwise
without being liable to any prosecution thereof, and to relet the same
as the agent of the LESSEE, and to receive the rent therefrom,
and to apply the same to the payment of the rent due to hereunder,
holding the LESSEE liable for any deficiency.
20. The failure of the LESSOR to insist upon a strict
performance of any of the terms, conditions and covenants hereof shall
not be deemed a relinquishment or waiver of any rights or remedy that
said LESSOR may have, nor shall it be construed as a waiver of any
subsequent breach of default of the terms, condition and covenants
hereof, which terms, conditions and covenants shall continue to be in
full force and effect. No waiver by the LESSOR of any of its right under
this Contract shall be deemed to have been made unless expressed in
writing and signed by the LESSOR.
21. The LESSEE agrees that all covenants and agreements
herein contained shall be deemed essential conditions hereof and that
if default or breach be made of any such conditions, then the LESSOR
shall have the right to terminate and cancel this Contract, whether
judicially or extra-judicially, upon five (5) days notice delivered at the
leased premises or posted on the main door thereof. Upon receipt of
such notice, the LESSEE shall allow the LESSOR to take an inventory
of all goods, merchandise, furniture, fixtures and equipments located at
the leased premises. Said inventory shall not be taken out of the leased
premises by the LESSEE without the written approval of the LESSOR.
Upon such termination or cancellation, the LESSOR may
forthwith lock the premises and exclude the LESSEE therefrom whether
forcefully or otherwise, without incurring any civil or criminal liability.
In case the LESSEE has an outstanding obligations under this
Contract, the LESSOR, as well as its employees, agent and
representative, is hereby granted the right and authority without
incurring civil or criminal liability of any kind to prevent the LESSEE, its
employees, agents or representatives, whether by force or otherwise,
from taking out furniture or equipment from the leased premises.
Termination of Lease and Surrender of the Premises: (a) The
LESSEE agrees to return and surrender the leased premises with the
keys thereto appertaining at the end of the term of the lease in as good
condition as reasonable wear and tear will permit and without delay,
whatsoever, devoid of all occupants, furniture, articles and other effects
belonging to the LESSEE, subject to LESSORs right of retention.
(b) In all case where this contract Is terminated or cancelled,
whether judicially or extra judicially, by reason of any default or breach,
for the rentals in accordance with the term of this lease as well as for
any and all damages, actual or consequential, resulting from such
default and termination, in the event of cancellation or termination
or shall vacate or attempt to vacate or abandon, the LESSOR shall have
the right to retain properties owned by the LESSEE found in leased
premises as security for the payment of LESSEEs obligation
hereunder and the LESSOR is hereby authorized and appointed as
Attorney-in-Fact of the LESSEE, to sell at public auction or private sale,
without notice to the LESSEE, any and all goods, merchandise,
furniture, fixtures, and equipments located at the leased premises, and
to apply the proceeds of the sale to the obligations of the LESSEE under
this contract; and the excess to be turned over to the LESSEE or
whoever is entitled thereto, or placed in deposit, if necessary without
prejudice to the right of the LESSOR to collect the deficiency, if any,
from LESSEE where such proceeds should be insufficient to answer for
LESSEEs liabilities;
Should the LESSOR be compelled to seek judicial relief against
the LESSEE, the latter shall in addition to the damages mentioned in
the preceding paragraph, pay an amount equivalent to 25% of the
amount claimed in the complaint, as Attorneys fees (with a minimum of
P10,000.00), aside from the costs of the litigation and other expenses
which the law may entitle the LESSOR to recover from the LESSEE.
Provisions of a penal character in the other sections of this Contract
shall be considered as cumulative to the relief granted by this section.
22. This agreement shall inure to the benefit of, and be binding
upon the parties hereto and their respective legal representatives and
their heirs, successors, and assigns, but the right of the LESSEE by
virtue hereof cannot be validly transferred or assigned to a third party
without the prior written consent of the LESSOR.
IN WITNESS WHEREOF, the parties hereto have hereunto set
their hands on the date and place first above written.



BEFORE ME a Notary Public, in and for Makati City, Metro-

Manila, personally appeared JOVITA S. SANTOS and MA.TERESA H.
VILLA-ABRILLE, with their respective competent evidence of identities
indicated above, the both acting in their respective capacities as
Judicial Guardian of MARIA LOURDES HERNANDEZ and MA.
Identification Number indicated above, all known to me to be the same
persons who executed the foregoing instrument and acknowledged to
me that the same are their free act and deed and that of the corporation
she represents for the uses and purposes hereinabove set forth.

This instrument consisting of seven (7) pages including this

whereon the acknowledgement is written, has been signed by the
parties on each and every page thereof and relates to CONTRACT OF

IN WITNESS WHEREOF, I have hereunto affixed my signature

and seal on this 20th day of June, 2011 at Makati City, Metro-Manila.

Notary Public for Makati City
Commission No. M-43 until Dec. 31, 2011
Roll of Attorney No. 30389
IBP Lifetime No. 03402; 01.16.04; Rizal Chapter
PTR No. 2093760; 01.07.2010; Makati City

Doc. No. ____;

Page No.____;
Book No.____;
Series of 2011.