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CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is entered into by and between:

LACARLDUN ASSET CORPORATION, a duly registered corporation and existing under and by virtue of the laws of the
Republic of the Philippines, with principal place of business at P.C. Suico St., Tabok, Mandaue City, Philippines, represented
herein by its Administrator, Gerard Neville B. Co, Filipino, of legal age and a resident of Maria Cristina St., Cebu City,
Philippines, hereinafter referred to as the LESSOR;

-and-

__________________________________________, a duly registered corporation and existing under and by virtue of


the laws of the Republic of the Philippines with office address at Almirante Compound, Masurot, Brgy. Frieres, Sultan Kudarat,
represented herein by its representative, ____________________, Filipino, of legal age and a resident of
___________________________________________, Philippines hereinafter referred to as the LESSEE;

WITNESSETH:

WHEREAS, the LESSOR is the absolute and registered owner of a parcel of land together with all improvements thereon
situated at Pagutlan, Tayud, Lilo-an, Cebu.

WHEREAS, the LESSEE desires to lease one (1) warehouse unit in the above described property consisting of a floor
area of FIVE HUNDRED SEVENTY FOUR (574) SQUARE METERS more or less, being a portion of the said parcel of land herein
after referred to as the LEASED PREMISES.

WHEREAS, the LESSEE has offered to lease the LEASED PREMISES, and the LESSOR has accepted the said offer for the
consideration and under the terms and conditions hereinafter set forth.

Wherefore, in view of the foregoing, the parties have hereunto agreed to enter into a Contract of Lease subject to the
following TERMS AND CONDITIONS, to wit:

1. TERM OF LEASE. That the term or period of this lease shall be ONE (1) YEAR, to commence on __________________
and will expire on __________________, renewable only at the sole and exclusive option of the LESSOR after
execution of a new agreement in writing upon such terms and conditions as may be mutually agreed upon by the
parties. If at the end of this contract, the LESSEE continues to enjoy the property leased for (15) days or beyond even
after demanded to vacate by reason of expiration or termination of terms and/or pending negotiation for a renewal
with the acquiescence of the LESSOR, it is understood that there is no implied new lease. The LESSEE hereby waives
and renounces the benefit and effect of articles 1670 and 1687 of the New Civil Code of the Philippines on the implied
renewal and extension of lease. The LESSOR shall retain always the right to eject the LESSEE under and the pursuant to
the provisions hereof, no matter how long the LESSEE may continue its illegal possession of the LEASED PREMISES
thereafter.

2. MONTHLY RENTAL. That the LESSEE shall pay the LESSOR or their authorized representatives a monthly rental of
_______________________________________ (Php ________________) for the warehouse alone, exclusive of E-VAT
and national and municipal taxes, fees and charges which shall be for the account of the LESSEE, without necessity of
demand on or before the seventh (7th) day of each month at the principal place of business of the LESSOR; otherwise,
non-payment of two monthly rentals shall be a sufficient ground for the immediate termination of this contract of
lease. Any default or delay in the payment of the said rental shall entitle the LESSOR to charge the LESSEE liquidated
damages equivalent to three (3%) percent per month of the amount of the rental due by way of forbearance, interest
and/or penalty charge. For purposes of computation of the liquidated damages, a fraction of a month shall be
considered as one whole month.

3. RENTAL ESCALATION. That there shall be a FIVE PESOS (P5.00) per square meter annual escalation on the monthly
rental on the concrete enclosed warehouse only.

4. SECURITY DEPOSIT. That the LESSEE, upon signing of this contract of lease, shall pay the amount of
________________________________________ (Php ______________) for warehouse alone representing TWO (2)
months deposit. The LESSEE cannot apply the said security deposit to the payment of any rental under this contract;
however, the LESSOR at his exclusive option, can apply the whole or part of said amount to any unpaid rental,
liquidated damages, penalty, electric, telephone or water bills, cost to repair or replace any and all damages to the
LEASED PREMISES or other claims of the LESSOR from the LESSEE . The deposit, which shall bear no interest, shall be
returned by the LESSOR to the LESSEE, less whatever amounts are chargeable to it, if any, in accordance with this
contract, within thirty (30) days from the expiration of the term of the lease provided the LESSEE (a) has no debt or
obligation whatsoever to the LESSOR (b) has returned to the lessor the receipt for the said deposit, (c) has shown proof
that all electricity, water and other obligations have been paid for, (d) has turned over all keys of the LEASED PREMISES
to the LESSOR and (e) has vacated and surrendered the LEASED PREMISES to the LESSOR and after the LESSOR has
deducted the amount corresponding to whatever claim it may have arising from this lease contract and/or damage the

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leased property has suffered by reason of the LESSEEs occupancy thereat. In the event that the amounts chargeable
to the deposit exceed the amount of the deposit, then the LESSEE hereby undertakes to pay the LESSOR at the
principal place of business of the LESSOR the amount necessary to fully cover the excess charges on or before the
seventh (7th) day of the final month of this Contract of Lease. If the LESSEE, without fault of the LESSOR, pre-
terminates or vacates or is ejected from the LEASED PREMISES due to the termination of this Contract of Lease before
the expiration of the terms, the LESSEE agrees that the Security Deposit shall be forfeited in favor of the LESSOR as
liquidated damages. If any check is dishonored, the LESSEE is obliged to replace the check under pain of termination of
this agreement;

5. ADVANCE RENTAL. That upon signing of this contract of lease, the LESSEE also agrees to pay _______________
_________________________________ (______________) for the warehouse alone, exclusive of E-VAT and national
and municipal fees and charges which shall be for the sole account of the LESSEE, representing one (1) month advance
rental payment and which shall be applied to the balance of the last monthly rental payment of this Contract of Lease
or for any due and unpaid rentals. In the event that the amount due as rent for the final month of this Contract of
Lease is greater than the advance rental paid by the LESSEE, then the LESSEE hereby undertakes to pay the LESSOR at
the principal place of business of the LESSOR the outstanding balance on or before the seventh (7th) day of the final
month of the final year of this Contract of Lease.

6. POST-DATED CHECKS. That upon signing of this contract of lease the LESSEE shall deliver to the LESSOR eleven (11)
individual and separate checks to be applied to the eleven (11) monthly payment of this Contract of Lease by the
LESSEE, with full assurance that they are adequately and sufficiently funded upon presentment to the bank for
payment. After which, the advance rental payment shall be applied to the final month of this Contract of Lease. In the
event that the amount due as rent for the final month of this Contract of Lease is greater than the advance rental paid
by the LESSEE, then the LESSEE hereby undertakes to pay the LESSOR at the principal place of business of the LESSOR
the outstanding balance on or before the seventh (7th) day of the final month of the term of this Contract of Lease;

7. SECURITY PERSONNEL. The LESSEE shall pay to the LESSOR a monthly amount as its share of the security services
rendered by the authorized security agency to be paid on or before the seventh (7th) day of the month immediately
following the month when these charges were incurred.The LESSEES share shall be based on the total contract price of
the security agency prorated to the number of warehouse units leased by the LESSEE. The LESSEES share for security
services will be good for two (2) guards on a day and night shifting to be posted at the gate of the compound only and
will be rendering twelve (12) hours of work daily. The LESSOR is not the employer of the security guards, and in the
absence of such employer-employee relationship, the LESSORS duty shall only be to facilitate the payment of the
security services to the Security Agency and the LESSOR shall not be held liable for any loss or damages which may
involve the participation of the guards on duty of which the LESSOR has no connection whatsoever. The LESSEE shall
have a direct authority over the guards and it is the LESSEES responsibility to report directly to the Security Agency any
problems concerning the security guards that may possibly arise during the lease period;

8. UTILITIES. The LESSEE will procure the supply of and pay at its own exclusive account and expense all bills for
electricity, telephone, gas, water, garbage disposal and other utility services in the LEASED PREMISES as well as for the
repairs in all utility systems. Any change in the electrical or water connections, and/or other utilities may only be
introduced by the LESSEE upon prior written consent and approval of the LESSOR. Electric current for the LEASED
PREMISES may be obtained by the LESSEE from the LESSOR through the general meter in the building and the LESSEE
will reimburse the LESSOR for the current at the usual rate charged by the electric company including but not limited
to generation and distribution charge, in addition to the rent agreed upon in this Contract. The LESSOR will provide an
electric sub meter at the LESSEEs expense. Payment or reimbursement for electric power or other utility services
consumed during any given month will be payable to the LESSOR five (5) days after receiving the statement of account.
In case of violation of any provision of this lease contract, the LESSEE expressly and irrevocably authorizes the LESSOR
in advance to summarily withhold or terminate electric power service and/or other utility services to such defaulting
LESSEE without resort to court proceedings until the full amount due is paid plus penalty charge of 3 percent (3%) per
month on the amount due, without any liability on the part of the LESSOR. For purpose of computation a fraction of a
month shall be considered one whole month.

a. ELECTRICAL SYSTEM PROVISION. The LEASED PREMISES is ready for single phase electrical system provision.
Should the LESSEE use airconditioning units, manufacturing equipment and other electrical equipment
requiring three phase electric power, the application, proceurement, and installation of a separate three
phase electrical system with the electric company shall be the responsibility and for the account of the
LESSEE. The Bill deposit ( should the LESSEE opt to use his/her transformer) OR the Transformer Capacity
Deposit (should the LESSEE utilize VECO-owned transformer) shall be for the account of the LESSEE. shall be
for the account of the LESSEE. The LESSEE shall NOT alter, remove, or in manner destroy the existing single
phase electrical system provision.

b. SANITATION AND WASTE DISPOSAL.


i. The LESSEE shall keep the LEASED PREMISES in a clean, safe and sanitary condition. The cost for
maintenance, sanitation, and upkeep shall be for the account of the LESSEE.

ii. The LESSEE shall dispose all its garbage, waste, and other pollutants in accordance with the rules
promulgated by the national or local government.

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iii. The LEASED PREMISED has a cistern for water storage in place. Pursuant to Philippine Environmental
Regulations, the owner of the LEASED PREMISES is responsible for the disposal of water collected or
captured by way of cistern. As such, the LESSEE shall only dispose clean water into the cistern. The
LESSEE shall NOT dispose liquid or solid waste, or any contaminants or pollutants in the cistern. The
LESSEE is likewise prohibited from conducting or maintaining activity that may pollute or
contaminate the cistern.

9. INJURY, DEATH, DAMAGES AND INDEMNITY. That the LESSOR shall not be held liable in any manner for any liability,
injury, death, loss or damages whether partial or total which may transpire during the course of the lease period due
to any fortuitous event or force majeure. It shall be the sole responsibility of the LESSEE to exercise due care and to
implement any and all measures to ensure safety and security within the LEASED PREMISES;

10. PARKING AND LOADING/UNLOADING AREAS. That the LESSOR shall provide and assign to the LESSEE parking areas
and loading/unloading areas. The LESSEE shall park and load/unload only on the assigned areas and are strictly
prohibited from encroaching on the areas assigned to the other LESSEES;

11. USE OF LEASED PREMISES.


a. That during the existence and continuance of this lease, the LESSEE shall occupy and use the LEASED PREMISES for
warehousing only and the LESSEE shall not be allowed to store within and in close proximity to the premises any
explosive and/or noxious materials, such as but not limited to paints, thinners and solvents and any and all
substances which will endanger the safety or will cause damage to the LEASED PREMISES, except those
items/stocks being declared as stocks and products normally traded in the course of the LESSEEs business. If the
LESSEE uses any resources for its venture, it shall maintain the safety and security of the LEASED PREMISES. Should
any illegal chemicals or substances of whatever nature be present or found within and in close proximity to the
LEASED PREMISES and should there be any violation by the LESSEE of any law for the possession of illegal
chemicals or substances or contraband items and products of whatever nature or of any law of the Republic of the
Philippines, the LESSEE shall hold the LESSOR free from any responsibility, participation and liability;

b. That the LESSEE shall use the premises exclusively as a storage area and for no other purposes and shall not use it
as a residential or boarding place or for any form of domicile for any person, including but not limited to its
employees and representatives;

c. That the LESSEE shall, at all times, institute all the necessary measures to ensure that any substance, such as but
not limited to chemicals and waste matter, belonging to the LESSEE which may emit a foul smell or pose as a
health hazard or which may endanger the safety of any person or which may damage the LEASED PREMISES, shall
be disposed of properly without causing any damage to the LEASED PREMISES, the entire warehouse complex and
without endangering the health and welfare of any person;

12. IMPROVEMENTS, ADDITIONS, ALTERATIONS AND REPAIRS. The LESSEE hereby expressly acknowledges that the
LEASED PREMISES are in good tenantable condition and agrees to keep the same in such good and tenantable
condition for which purposes it binds itself to undertake at its exclusive expense all repairs necessary to maintain the
same in such condition.

a. That LESSEE may make improvements, additions, alterations, and repairs in the LEASED PREMISES as it may deem
necessary and suitable for the conduct of its business in the premises thereof, with the expressed and prior
written consent of the LESSOR. Upon the expiration of this contract, the LESSEE may remove any temporary
renovations, additions, alterations, repairs, and/or replacements it has introduced and/or undertaken in the
LEASED PREMISES provided that their removal shall not cause damage to the structural strength of the building;

b. That the LESSEE shall not be allowed to introduce any permanent improvements or alterations of in the
construction of the LEASED PREMISES which will substantially damage or deform the construction of the LEASED
PREMISES thereof, except with the expressed and prior written consent of the LESSOR. Furthermore, upon the
expiration and non-renewal of the lease, all permanent improvements shall permanently form part of the LEASED
PREMISES and shall accrue and belong to the LESSOR without any obligation on the part of the LESSOR to
reimburse the LESSEE for all or any portion of its expenses;

c. That paintings, electrical installations, repairs or other alterations and changes therein for the improvement,
security or ornament of the LEASED PREMISES shall be for the exclusive account of the LESSEE without any right
whatsoever to reimbursement from the LESSOR;

d. That the minor repairs demanded by ordinary wear and tear shall be for the account of the LESSEE. Substantial
and/or major repairs occasioned through no fault of the LESSEE, his representatives, employees, etc., shall be
borne by the LESSOR;

e. That substantial and/or major repairs occasioned through the fault of the LESSEE, his representatives, employees,
etc. shall be for the sole account of the LESSEE;

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f. That the LESSOR shall take charge of any major repairs on the LEASED PREMISES which are necessary for its
tenantability but minor repairs and maintenance of the landscaping around the premises shall be for the account
of the LESSEE;

13. SUBLEASE. That the LESSEE shall not directly or indirectly sublease, assign, or transfer his right under this Contract to
third parties without the prior written consent of the LESSOR;

14. INSURANCE. Before engaging in business at the LEASED PREMISES, the LESSEE shall insure its improvements,
merchandise and all other properties in the LEASED PREMISES against fire, lighting and other perils and insure itself
against public liability with an insurance company approved by the LESSOR. The LESSEE shall furnish the LESSOR with
copies of relevant insurance policies and periodic renewals thereof together with copies of corresponding official
receipts evidencing payment of premiums and other charges.

14. UNDERTAKING TO ABIDE BY THE LAW, ORDINANCES, POLICIES SET FORTH BY THE LESSOR, ETC.
a. That the LESSEE shall undertake to keep the LEASED PREMISES in good condition and shall comply with all Laws,
Ordinances, rules and/or regulations and licensing requirements of the Republic of the Philippines in the conduct
of its business;

b. That the LESSOR shall strictly enforce and the LESSEE shall strictly comply with the NO SMOKING, NO ALCOHOLIC
BEVERAGES, NO ILLEGAL DRUGS AND SUBSTANCES AND NO ANIMALS policy inside the premises as well as the
entire warehouse complex;

c. That the LESSEE hereby undertakes to strictly prohibit any and all firearms and any and all weapons inside the
LEASED PREMISES as well as the entire warehouse complex, except those of the duly licensed security guards;

d. That the LESSEE shall be prohibited from performing any cooking activities except in areas specifically assigned by
the LESSOR;

e. That the LESSEE warrants that he will strictly abide with, adhere to and faithfully follow all LESSEE guidelines,
policies and restrictions issued by the LESSOR and that the LESSEE hereby agrees that any violation of these
guidelines, policies and restrictions shall result in a fine of FIVE HUNDRED PESOS (P500.00) for each violation to be
paid at the principal place of business of the LESSOR on the fifth (5th) day of the month immediately following the
violation;

f. That should the LESSOR be unable to lease out or devote the LEASED PREMISES to profitable use due to any
government investigation or action arising from any complaint or suspicion that illegal activity or activities have
been conducted in the LEASED PREMISES by the LESSEE, then the LESSEE shall be responsible to the LESSOR for
liquidated damages at the rate of the monthly rental for every month to be paid at the principal place of business
of the LESSOR;

15. WARRANTIES OF LESSOR. The warranty of the LESSOR for the LEASED PREMISES is exclusively limited to the peaceful
possession of the LEASED PREMISES by the LESSEE for the duration of the lease and does not include or extend to the
good condition and safety of the LEASED PREMISES. The LESSOR will not be liable or responsible: (a) for the presence
of bugs, vermins, ants, termites, insects, etc. if any, in the LEASED PREMISES; (b) for the poor condition, discontinuous
or failure of water supply, electric current and other utility services; (c) for any injury, loss or damage which the LESSEE,
its agents or employees might sustain in the premises due to any cause or reason whatsoever; (d) for loss of any article
delivered or left to any person in the LEASED PREMISES; (e) for any injury, damage or loss arising from plumbing, gas,
water and/or other pipes, or bursting, leaking or destruction of any cistern, water closet or waste pipe, in, above, upon
or about said LEASED PREMISES, or arising from the fault or negligence of the LESSEE, or its agents, employees,
representatives, or any and all other persons; (f) loss or damaged caused directly or indirectly by flood, tidal wave, high
water or overflow, whether driven by wind or not, backing up of sewers, drains, canals creeks, rivers and drainage
system or by the neglect of the LESSEE to use all reasonable means to save and preserve its property during and after a
typhoon, water damage as a result of doors or windows being left open, stocks placed on the floor notwithstanding
the happening of typhoons; (g) fire, due to or attributable to whatever reason, whether caused by faulty wiring,
installations, or through the direct or indirect negligence of the LESSEES employees or of other persons and tenants in
the building and its premises; (h) robbery, theft or any other crimes; (i) acts, negligence and/or vandalism by LESSEE or
its employees; or (j) in cases of emergency when the LESSOR has to break the padlocks and doors of the LEASED
PREMISES without notice to the LESSEES concerned. Furthermore, any and all disturbances of possession which are
for causes beyond the control of the LESSOR will no be considered as grounds for liability on the part of the LESSOR.

16. DAMAGES TO LEASED PREMISES. That in the event that the entire building or substantial portion thereof, including the
LEASED PREMISES, is destroyed by fire, earthquake, or any other calamity, this Contract shall automatically terminate
pursuant to Article 1655 of the New Civil Code of the Philippines without necessity of previous notice or judicial action
for rescission and/or ejectment, and the LESSOR shall be entitled to the immediate possession of the LEASED
PREMISES without any obligation or liability whatsoever to the LESSEE. However, any partial or total damage to the
LEASED PREMISES resulting from acts and commissions done by the LESSEE, shall be for the sole account and
responsibility of the LESSEE;

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17. INSPECTION OF PREMISES. That the LESSOR or its authorized representatives shall have the right to enter the LEASED
PREMISES at any time to inspect and examine the property or make alterations or repairs by previous arrangement
with the LESSEE or for any purpose which it may deem necessary for the operation and maintenance of the same;

18. RENEWAL OF THE CONTRACT OF LEASE. That the parties hereby agree that there shall be no automatic renewal of this
Contract of Lease upon its expiration, as the renewal of this Contract of Lease requires a new Contract of Lease
between the concerned parties. That upon the expiration of this Contract, the LESSOR and the LESSEE may renew this
lease upon such new terms and conditions as may be mutually agreed upon by both parties. Should either party
decide not to renew the contract, said party shall notify the other three (3) months prior to the expiration of the term;

19. TAXES. That taxes, fees and other charges or burdens imposed on the land and/or the building that are specifically
required of a real estate leasing company shall be borne by the LESSOR while all taxes, licenses, fees, permits and other
charges and burdens on the business or trade constructed by the LESSEE on the LEASED PREMISES such as but not
limited to DENR clearances and business permits shall be for the sole account of and solely borne by the LESSEE.

20. EXPROPRIATION. In the event that expropriation proceedings are instituted during the period of this lease by any
instrumentality of the government or by any other entity with authority to exercise such power, either party may
rescind this contract should the LEASED PREMISES become no longer useful for the purpose of this lease, upon giving
the other party thirty (30) days previous written notice thereof. In case of such expropriation, the LESSEE hereby
unconditionally relieves and releases the LESSOR from any and all liabilities under this contract in connection with or
arising out of such expropriation proceedings without prejudice to whatever recourse the LESSOR or LESSEE may have
against the expropriating entity on account of the damage done or caused to its properties.

21. TERMINATION OF LEASE. The LESSEE agrees to peacably and voluntarily return and surrender the LEASED PREMISES
at the expiration of the term of this Contract of Lease in as good a condition as reasonable wear and tear will permit
and without any delay whatsoever, devoid of all occupants, furniture, machinery, equipment and signages, except for
such permanent improvements which cannot be removed without causing any damage to the LEASED PREMISES;

22. PRE-TERMINATION OF LEASE. The LESSEE agrees that, without fault of the LESSOR, it cannot pre-terminate this
Contract of Lease. If the LESSEE, without fault of the LESSOR, pre-terminates or vacates or is ejected from the LEASED
PREMISES due to the termination of this Contract of Lease before the expiration of the terms, the LESSEE agrees that
the Security Deposit shall be forfeited in favor of the LESSOR;

23. MORTGAGE, SALE, CONVEYANCE OR FORECLOSURE. That the LESSOR shall inform the LESSEE in writing of any
mortgage on the property, sale, conveyance or foreclosure during the term of this Contract of Lease. In the event that
the LEASED PREMISES are sold, transferred, mortgaged or conveyed to a third party during the term of this Contract of
Lease or any renewal hereof, the LESSOR hereby undertakes to require the Vendee, Transferee, Mortgagee, his
successors and assigns to respect and abide by the terms and conditions of this Contract of Lease and to recognize the
applicable advance rentals, if any, and the security deposits paid;

24. EFFECT OF CONTRACT. This Contract of Lease shall be binding upon the parties, his/its heirs, assigns and successors-in-
interest. None of the terms and conditions of this Contract of Lease may be changed or altered except with the
expressed written agreement between parties;

25. VIOLATION OF THE TERMS OF CONTRACT AND REMEDIES. The LESSEE hereby acknowledges and recognizes the rights
and options of the LESSOR to avail of or resort to any or all of the following remedial measures without the need for
judicial proceedings or court action:

a. That should the LESSEE fail to pay the LESSOR the stipulated rental for two (2) months or violate any terms and
conditions of this Contract, this shall render this Contract of Lease rescinded and/or terminated and the LESSOR
shall be entitled to any or all recourses provided by law. The failure of the LESSOR to insist upon the strict
compliance with any term and condition or upon the remedies allowed by law shall not be deemed as waiver on
its part of the other terms of this Contract;

b. That should the LESSEE fail to settle any due and unpaid obligations for two (2) months from due date, the LESSEE
hereby gives to the LESSOR the right to effect disconnection of all facilities, such as but not limited to, electricity,
water, telephone and others, in the LEASED PREMISES without need for prior notice to the LESSEE;

c. That upon non-payment by the LESSEE of its obligations to the LESSOR for two(2) months, the LESSEE hereby
agrees that the LESSOR has the right to eject the LESSEE from the LEASED PREMISES and to padlock the premises
in order to prevent the LESSEE from entering the LEASED PREMISES without need for prior notice to the LESSEE;

d. To secure the payment of unpaid obligations of the LESSEE, the LESSEE hereby consents and authorizes the
LESSOR to take and retain possession of any items or any properties found within and surrounding the LEASED
PREMISES belonging to the LESSEE until all unpaid obligations of the LESSEE under this Contract of Lease have
been paid in full without need for prior notice to the LESSEE;

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e. Upon the full payment of all unpaid obligations by the LESSEE to the satisfaction of the LESSOR, the LESSEE is
hereby given the right to re-enter the premises and take possession of any items or properties belonging to the
LESSEE held in the padlocked premises;

f. That the LESSEE hereby agrees to pay a surcharge of three percent (3%)per month on all due and unpaid
obligations. For purposes of computation, a fraction of a month shall be considered as one whole month;

g. That if the LESSEE fails to pay in full all due and unpaid obligations to the LESSOR within ten (10) days after the
date that the LESSOR took possession of the aforesaid items and/or properties within and surrounding the LEASED
PREMISES, the LESSEE hereby consents and authorizes the LESSOR to sell any and all items or properties as
settlement of the amounts due and payable plus surcharge without need for prior notice to the LESSEE. All
expenses that may be incurred in the sale shall be for the sole account of the LESSEE.

h. For purposes of selling the aforesaid properties, the LESSEE hereby irrevocably appoints the LESSOR as its
attorney-in-fact to sell and dispose of any or all of the aforesaid property of the LESSEE in a private or public
auction at a price as may be determined to be just and reasonable by the LESSOR and to aply the proceeds
therefrom to any and all unpaid obligations of the LESSEE.

i. In the event that the proceeds of the aforementioned sale are inadequate to fully settle the unpaid obligations of
the LESSEE, the LESSEE shall remain liable to the LESSOR for any of the deficiency.

j. In the event that the proceeds of the aforementioned sale are sufficient to pay or settle all of the LESSEES unpaid
obligations, the LESSEE may retrieve its other properties not sold by the LESSOR. The LESSOR shall notify the
LESSEE of his redeemable properties through a written notice to the last known address of the LESSEE. If the
LESSSEE fails to redeem the unsold properties after thirty (30) days from the date of notice, said properties shall
then be deemed abandoned in favor of the LESSOR;

26. NON-WAIVER OF RIGHTS OR REMEDIES. The failure of the LESSOR or LESSEE to insist upon a strict performance of any
of the terms and conditions and covenants of this Contract of Lease shall not be deemed as a relinquishment or waiver
of any rights or remedies that the LESSOR or LESSEE may have nor shall it be construed as a waiver of any rights or
remedies on any subsequent breach or default of the terms, conditions and covenants of this Contract of Lease, in
which all the terms and conditions and covenants shall continue to be in full force and effect;

27. PREVIOUS AGREEMENTS. This Contract of Lease supersedes and renders void any and all agreements and
understandings, oral and/or written, previously entered into by the LESSOR and the LESSEE covering the LEASED
PREMISES. This Contract of Lease may not hereafter be modified or altered except by another instrument in writing
duly signed by the parties thereto;

28. NOTICES. When required to be given under this Contract of Lease, notice shall be in writing and shall be deemed
sufficiently given when delivered or mailed by registered mail or by courier, addressed to the party to receive it at the
address herein specified, or at such other address or addresses as the party to receive such notice shall have
designated in writing. Unless otherwise modified or changed, all notices shall be delivered or sent as follows:

To LESSOR:
LACARLDUN ASSET CORPORATION
P.C. Suico Street, Tabok
6014 Mandaue City, Philippines

TO LESSEE:
_____________________________________
_____________________________________
_____________________________________

29. INVALIDITY OF ANY PROVISION. If any provision of this LEASE CONTRACT or the application of such provision to any
circumstances is held invalid by a competent court, the remainder of the LEASE CONTRACT shall not be affected
thereby;

30. LITIGATION. In the event a party is compelled to seek judicial relief against the other in order to enforce any or all of
its rights under this Contract of Lease, the culpable party, in addition to any other damages that may be awarded by
the Court, hereby agrees to pay an amount equivalent to twenty five percent (25%) of the amount claimed by the
aggrieved but in no case less than Twenty Five Thousand Pesos (P25,000.00) as and by way of attorneys fees aside
from the costs of litigation and other expenses which the law entitles the aggrieved party. The LESSEE hereby agrees
that all disputes or claims arising from this Contract of Lease shall be litigated before the proper courts of Mandaue
City, Philippines, to the expressed exclusion of all other venues;

IN WITNESS WHEREOF, we have hereunto set our hands this ____ day of ________________________ at Mandaue City,
Philippines.

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LESSOR LESSEE

By : By :

_____________________ _______________________

Signed in the presence of :

_________________________ and _________________________

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ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )


CITY OF MANDAUE....................) S.S.

In the City of Mandaue, Philippines, _____ day of _________________ before me, the undersigned Notary Public for
and in the said place personally appeared :

NAME CTC NO./PASSPORT NO./ LICENSE NO. DATE/PLACE ISSUED

____________________ ___________________________ ___________________________

____________________ ___________________________ ___________________________

known to me the same persons who signed the foregoing CONTRACT OF LEASE consisting of SEVEN(7) pages and they further
acknowledged to me that the same is executed by them of their own free and voluntary act and deed.

Witness my hand and seal on the day, month and year and at the place herein-above written.

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