CONTRACT OF LEASE WITH OPTION TO PURCHASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease with Option to Purchase (“Contract”) is made and

executed on the ___ day of _________ 2018 at _____________________ by and
between:

ABC CORP., a corporation duly organized and existing under the

laws of the Republic of the Philippines, and with principal office address
at ___________ represented herein by ________ its __________,
hereinafter referred to as the “LESSOR”;

- and -

__________________________________, of legal age, Filipino,

single/married, and a resident of
_________________________________________, hereinafter referred
to as the “LESSEE”;

WITNESSETH:

WHEREAS, the LESSOR is the absolute and registered owner of one (1) motor
vehicle, more particularly described as follows:

Make: Year Model:

Motor No: Plate No.:
CR No.: Color:

(hereinafter referred to as the “VEHICLE”)

WHEREAS, the LESSOR is willing to lease the VEHICLE to the LESSEE with option
to purchase;

NOW, THEREFORE, for and in consideration of the mutual agreements, covenants

and promises herein contained, it is hereby mutually agreed, covenanted and promised
as follows:

1. DESCRIPTION OF LEASED PROPERTY. Lessee has leased from Lessor and received
in satisfactory condition the following property, referred to in this lease as the
“Vehicle:”
A New or Used: _____________________________________________________
__________________________________________________________________

2. TERM OF LEASE. The term of lease shall commence on _________________ and

shall be for a period of ________________ unless extended further by
agreement of Lessor and Lessee.

3. RENTAL. The Vehicle is hereby leased at a monthly rate of Philippine Peso: _____
(PhP _____.00) payable monthly on the ___ day of each month to be deducted
directly from Lessee’s salary as follows:

MONTH RENTAL

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4. AUTHORIZATION FOR PAYROLL DEDUCTION. Lessee hereby understands that the
signing of this Contract authorizes the reduction of gross pay by the amount of
rentals indicated above. Lessee hereby authorizes his employer to deduct a
different amount should there be a rental change throughout the year. This
Contract likewise authorizes the continuation of deductions for the
aforementioned Rental to the succeeding years until full payment of the amount
stated herein.

5. INSURANCE. Lessor agrees to provide insurance coverage for the term of this
lease in the types and amounts satisfactory and required by the local and
national government.

6. MAINTENANCE. Lessor will provide the fixed amount of Philippine Peso: ______
(PhP ___.00) per month/week as allowance for the maintenance of the Vehicle
and the fixed amount of Philippine Peso: ______ (PhP ___.00) per month/week
as gas allowance. Any expenses in excess of such allowance is for the account of
the Lessee. Lessee is responsible for all maintenance, service, repairs of the
vehicle. Lessee will maintain the vehicle in good working order and see that all
maintenance, service, and repairs are performed when needed, but at least as
often as set forth in the owner’s manual or as requested by the manufacturer in
connection with any program.

7. THE LESSOR’S OBLIGATIONS

The Lessor hereby agrees:

a. To grant the Lessee exclusive use and possession of the Vehicle during the
duration of this agreement;

b. To grant the Lessee quiet possession of the Vehicle;

c. To keep the Vehicle comprehensively insured with a reputable insurance

company throughout the duration of this agreement;

8. THE LESSEE’S OBLIGATIONS

The Lessee hereby agrees:

a. To ensure that the motor vehicle is used in a skilful and proper manner
and only driven by persons that bear a valid driving permit;

b. To ensure that no alterations are made to the motor vehicle or any

component removed unless it is immediately replaced by the same
component or by one of the same like, make and model or an improved
or advanced version;

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 c. To report to the nearest police and inform the Lessor within twenty-four
(24) hours of any damage to or loss of the motor vehicle;

d. To be responsible for costs relating to fuel, tyre puncture and oil topping
up between services as well as any costs of parking fines and towing
expenses for illegal parking;

e. To ensure that the motor vehicle is only used for authorized and legal
purposes;

f. To yield the vehicle to the Lessor in good mechanical condition on the

expiration of the contract, save for normal wear and tear of the same.

9. DISCLAIMER OF WARRANTIES. The only express warranty to which the vehicle is

subject is the standard manufacturer’s warranty on the vehicle; Lessor is leasing
the vehicle to Lessee “AS IS” and Lessor doesn’t make any express warranties or
representations. In addition, there are no implied warranties of merchantability,
fitness for any particular purpose or any other implied warranties by Lessor.
Lessor shall have no responsibility o Lessee or to any other person with respect
to any interruption of service, loss of business or anticipated profit or
consequential damages. Any statement concerning the model year is for
identification only.

10. DEFAULT. Lessee will be in default of obligations under this lease if any of the
following events or conditions occur:

a. Lessee fails to make any payment under this lease when it is due;
b. Lessee becomes the subject of a bankruptcy or insolvency proceeding;
c. Lessee fails to maintain the required insurance coverage.
d. Lessee voluntarily resigns or is terminated from employment.

11. OPTION TO PURCHASE: For good & valuable consideration, the receipt whereof
is hereby acknowledge from the Lessee. The Lessor hereby extends an option to
the Lessee to purchase for the amount of PESOS: [P __________________] of
Lease on the 18th month or the period from 1st to _____ of __________,
_______. The LESSEE/BUYER, at his/her/its exclusive option, conditioned on
faithful compliance with all payments and undertakings contained herein, may
convey his/her/its decision to avail of option to purchase in writing to the
LESSOR/SELLER who thereafter shall credit all rental payments up to the
__________ (___) month stated above to down-payment.

12. BALANCE AFTER THIS LEASE AGREEMENT: If the Lessee complied with all terms
and conditions stated above, inclusive of payment of realty taxes, power, water
and association dues, the outstanding balance of the Lessee shall be 70% of the
Total Selling Price amount equivalent to PESOS:
_____________________________________ [P_____________], Philippine
currency. The Lessee hereby agrees to execute the Deed of Absolute Sale upon
payment in full amount of the TOTAL PURCHASE PRICE. Failure of the Lessee to
exercise his right to purchase within the period of ____ (__) months from the
execution of this contract shall mean forfeiture and abandonment of his right to
purchase. In such case, all payment made during the term of this lease are
considered rentals.

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 13. TRANSFER EXPENSES: Documentary stamp tax, capital gain tax, registration fees,
transfer tax, and other necessary expenses connected with the execution and
registration of the sale shall be for the account of and paid by the LESSEE/BUYER.

14. TAXES. Lessee will pay when due all sales, rental, or other taxes, and all fees and
charges of any nature (together with any interest or penalties not arising from
the negligence of Lessor) imposed in connection with this lease by any national
or local governmental authority.

15. TITLE. Legal title to the vehicle will be in the name of the Lessor. Lessee agrees to
pay all title and registration costs upon his exercise of his option to purchase.

16. VEHICLE USE. Lessee agrees to keep the vehicle free from all items and
encumbrances, except liens and encumbrances in Lessor’s favor. Lessee will not
use the vehicle illegally, sell it, lease it, or otherwise transfer it without Lessor’s
prior written consent. Unless Lessee has first received Lessor’s written consent,
Lessee will not place any sign or mark on the vehicle. If Lessor consents to the
placement of a sign or mark on the vehicle, Lessee will pay at the end of the
lease the cost to remove the sign or mark and all needed repairs that are caused
by the removal.

17. DAMAGE TO VEHICLE. Lessee agrees to be responsible for all damage to the
vehicle and for its loss or destruction form any cause. Lessee will immediately
notify Lessor and Lessee’s insurance company of any such event, or of any
accident, and Lessee will cooperate with and assist Lessor and Lessee’s insurance
company in any reasonable manner necessary as a consequence.

18. ASSIGNMENT. Lessor can assign Lessor’s interest in this lease and to the vehicle
without Lessee’s consent. Lessee agrees to make all payments thereafter to
assignee. Lesser understands that Lessee has no right to assign any of the
Lessee’s rights under this lease. Lessee also understands that Lessee has no right
to sublease, assign, or transfer the vehicle.

19. GOVERNING LAW. This lease shall in all respects be governed by Philippine laws.

This CONTRACT OF LEASE WITH OPTION TO PURCHASE shall be valid and binding,
between the parties, their successors-in-interest and assigns. No amendment of the
terms of the instrument shall be effective unless in writing and signed by the parties
therein.

IN WITNESS WHEREOF, we have hereunto affixed our signatures this

________________ in Imus City, Cavite, Philippines.

JARO DEVELOPMENT CORPORATION

By: ___________
LESSEE
________
LESSOR

SIGNED IN THE PRESENCE OF:

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 ____________________ ____________________

ACKNOWLEDGMENT

Republic of the Philippines }

City of Imus, Cavite }S.s.

BEFORE ME, this ________________, in Imus City, Cavite, Philippines, personally

appeared the following:

Name ID No. Date/Place of Issue

Jaro Development
Corporation
By
______________

known to me to be the same persons who executed the foregoing instrument and they
acknowledged to me that the same is their free and voluntary act and deed.

This instrument consists of ____ (__) pages including this page on which the
acknowledgment is written, having been signed by all parties and their instrumental
witnesses on the left margin of each page and all copies hereof.

WITNESS MY HAND AND SEAL on the date and place first above-written.

Doc. No. _____

Page No. _____
Book No. _____
Series of 2020.