CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE made and entered into by and between DR. INGRID ANN
C. CASTRO, of legal age, married, Filipino, and a resident of #598 Bonifacio St., Ormoc City,
Leyte, Philippines, hereinafter referred to as the LESSOR, and ALLIED TONGONAN ORMOC
MULTI-PURPOSE COOPERATIVE (ATOMCo), Brgy. Tongonan, Ormoc City, represented by
its manager MANUEL T. ABAÑO by virtue of the Board Resolution No. 2018- ___; hereinafter
referred to as the LESSEE,

-Witnesseth-

WHEREAS, the LESSOR hereby leases unto the LESSEE, the ground floor of a 2-storey
residential building with a floor area of EIGHTY (80) square meters, located at Lopez Jaena St.,
Ormoc City,

NOW THEREFORE, for and in consideration of the foregoing premises and of the terms
and conditions hereunder enumerated the LESSOR and LESSEE have mutually agreed, one with
the other as follows:

TERM OF LEASE

The periods of contract take effect from November 1, 2018 and to expire on October 31,
2019, unless sooner terminated by either party with prior notice of at least thirty (30) days prior
to date of termination. In the event of pre-termination by the LESSEE the deposit shall be
forfeited in favor of the LESSOR. The LESSEE has no right to demand for renewal and this
contract is renewable only upon agreement of both parties within the said period stated.

RENTAL – LESSEE shall pay the LESSOR for the use of occupancy of the premises a
monthly rental of TWELVE THOUSAND PESOS (PhP12,000.00) Philippine Currency, and five
percent (5%) withholding tax which LESSEE is liable to pay on or before the eight (8th) day of
each month without delay and without further notice and demand. In case of default, the
LESSEE agrees to pay a monthly penalty charge equivalent to ten percent (10%) of the monthly
rental and penalties shall bear interest at the rate of two percent (2%) per month to be
compounded monthly from the date of such default until paid without prejudice to the right of
the LESSOR to terminate this contract and eject the LESSEE as hereinafter set forth.

DEPOSIT – LESSEE shall pay to the LESSOR the sum equivalent to TWENTY FOUR
THOUSAND (PhP24,000.00) Philippine Currency representing one (1) moth of security deposit
and one (1) month advance rental upon signing of this contract. Deposit shall be applied against
rentals and other accounts owing to the LESSOR or any unpaid electric, water, telephone bill
etc., so as to keep the LESSEE account current. In the even pre-termination, the deposit shall be
forfeited in favor of LESSOR.

SUBLEASE/ENCUMBRANCE – LESSEE shall not directly or indirectly sublease,

assign, transfer, convey mortgage or in any way encumber the lease contract, lease rights and the
leased premises or portion thereof under any circumstances whatsoever without first obtaining a
written consent from the LESSOR.

ALTERATIONS – LESSEE hereby expressly acknowledge that the leased premises are
in good and tenantable condition. LESSEE shall not make an alterations in the leased premises
nor make any improvements without first obtaining a written consent from the LESSOR. With or
without consent, such alterations, improvements, or additions shall forthwith remain to the
benefit of the LESSOR at the end of the lease without need of reimbursement whatsoever to the
LESSEE.

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 LESSEE TO MAKE REPAIRS – LESSEE at his own expense make repairs necessary to
keep said premises and all appurtenances from deteriorating in value or condition during the said
lease.

DAMAGE EXEMPTION – LESSOR shall not be liable for any loss done or occasioned
by and arising from rats, termites, plumbing, gas leak, wall water closet, was stand roof and roof
gutter and all other natural and manmade calamities, in about, upon and/or including acts of
occupancy of said premises by LESSEE or third person and LESSEE hereby expressly
indemnify and be responsible for claims on account of any such loss or damage to the goods and
property or any injuries to persons.

PAYMENT OF UTILITY SERVICES – LESSEE shall pay for and defray at his/her
exclusive expense the consumption of water and electricity or other utility services in the leased
premises within five (5) days after receipt of the corresponding bill, furthermore, all repairs in
the utility service system therein shall be made by and for the sole account of the LESSEE.

In the event that the LESSEE fails to pay the rental/electricity/water/telephone bills, and
other fees herein agreed within fifteen (15) days from the due date, LESSEE hereby expressly
agrees and authorizes the LESSOR or his agent to cut off the electrical, water and telephone
connection of the leased premises without any notice and without any need of any judicial
intervention.

DAMAGES FOR NECESSARY WORK – LESSEE shall not claim any loss or damage
on account of necessary work that the LESSOR may order to be done in the lease premises and
which in any way may interrupt his/her use of the leased premises.

GOVERNMENT REGULATIONS – LESSEE shall comply with all government orders

or regulation affecting the leased premises and solely answer for any prohibited effects or articles
or contrabands which LESSEE may have in his/her possession therein. LESSEE shall at his/her
expense also provide the lease area with garbage bag which CITY ORDINANCE requires for
deposit of garbage and refuse, and shall deposit said receptacles within his premises.

CLEANLINESS – LESSEE shall at his/her expense maintain the leased premises and
nearby surroundings in a clean and sanitary condition and free from all obnoxious or unpleasant
odors or unnecessary loud noises or other nuisances.

INSPECTION RIGHTS – LESSOR or his agent is hereby given the rights to inspect the
leased premises and its surroundings for the purpose of determining compliance with the rules
and regulations of the government (Barangay, City and National) and the herein terms and
conditions. The inspection may be made at any time of the day and night/.

ARREARAGES, LIEN AND POWER OF ATTORNEY – In the event LESSEE shall

incur the delay of two (2) months in the payment of rentals or in case of any breach of any part
of the herein covenants on the LESSEE’s part, the LESSOR may extra judicially or without need
of court or security personnel, enter upon the premises without need of demand or court order or
judicial proceedings, physically expel the LESSEE from the leased premises or padlock the
premises including the LESSEE.

It is hereby agreed that LESSOR shall also have lien over the appliances, furniture,
fixture, books and other equipment and supplies of whatever kind and nature found in the
premises and is empowered to take custody or retain physical possession thereof until the whole
obligations is fully settled. This lien shall automatically attach whenever the LESSEE has any
unpaid obligation subsisting during and even after the lifetime of the LEASE CONTRACT.

It is likewise agreed that should expulsion from the leased premises become necessary, or
if after the lapse of fifteen (15) days from the date of expiration or termination for any cause of
this lease on eviction, the LESSEE still fail to pay the whole obligation, the LESSOR shall have

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the right to cause the removal of the LESSEE’s property from the leased premises for said
LESSEE’s account, and for this purpose the LESSOR is hereby constituted as the LESSEE’s
irrevocable Special Attorney-in-Fact with full authority and power to sell, dispose or retain any
or all of the appliances, books, furniture and other equipment and supplies or such portions of the
LESSEE’s movable property as would be sufficient to secure funds to answer for the arrearages,
unpaid obligations, cost of hauling out the movable property from the lease premises, handling
freight and other charges against the LESSEE arising under this contract. It is understood,
however, that if from the proceeds of the sale of such LESSEE’s movable property by the
LESSOR, the whole obligation is already satisfied, then the LESSOR shall turn over the
LESSEE the unsold property.

This Special Power of Attorney shall continue to subsists for so long as the LESSEE has
unpaid obligations arising out of this contract, it being an integral part hereof and the LESSEE
hereby expressly ratifies any and all acts performed by the LESSOR in the exercise of this
power.

TERMINATION – LESSEE at the expiration or cancellation of this CONTRACT OF

LEASE as herein provided, will promptly and voluntarily deliver the said leased premises and all
the keys thereof to the LESSOR as good as tenantable condition in all respects, as the same now
are devoid of all occupants and effect of any kind other than such alterations, additions or
improvement which shall remain in the leased premises and become the LESSOR’s property in
accordance with the stipulation and provisions of this CONTRACT.

FAILURE FOR SUITS – LESSEE shall absolve herein LESSOR against all action, suit,
damages and claims by whomsoever that maybe brought or made by reason of the
nonobservance or nonperformance of said rules, regulations, ordinances or laws or any of the
covenants of this CONTRACT, without prejudice to the right of the LESSOR to cancel this lease
contract in accordance with the preceding provisions.

NOTICES/SUMMONS AND AGREED PLACE OF SERVICE – Deposit in the leased

premises of a notice to vacate and other notices and service of summons in the leased premises
shall constitute due and sufficient notices to the LESSEE as provided by law.

LIQUIDATED DAMAGES – In case of court litigation by virtue of non-payment of the

agreed rents or any other breach of this CONTRACT on the part of LESSEE, the LESSOR shall
be entitled to collect Fifty Thousand Pesos (PhP50,000.00) as liquidated damages in addition to
penalty of one hundred percent (100%) per month to be compounded monthly, moreover,
attorney’s fees plus litigation cost shall be imposed on the LESSEE.

SOLIDARY OBLIGATIONS – In the event there are two or more LESSEEs under this
CONTRACT OF LEASE, the obligations of the LESSEEs as herein agreed shall be deemed joint
and several, any act of anyone of the LESSEEs pertaining to this lease shall be binding upon
each and every one of the LESSEEs with the same force and effect as if each and all of them
made and executed such act.

VENUE – All litigation arising from this CONTRACT OF LEASE or relate thereto shall
be filed, tried, heard and decided exclusively by the competent court in Ormoc City to absolute
exclusion of courts in other venue.

NON-WAIVER – 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 right or remedy that herein LESSOR may have, nor shall it be construed as a waiver of any
subsequent breach or default of the terms, conditions and covenants herein contained, which
shall be deemed in full force and effect. No waiver by the LESSOR shall be deemed to have
been made unless expressed in writing and signed by the LESSOR.

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 SEP0ARABILITY – Invalidation of any one of the terms, conditions, restrictions or other
provision contained herein by final judgment or court shall no way affect any other provision
hereof and the same shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereunto affixed their respective signatures on the
st
31 day of October 2018, at the City of Ormoc, Philippines.

ATOMCo represented by:

DR. INGRID ANN C. CASTRO MANUEL T. ABAÑO

Lessor Lessee
TIN: 148-470-785 TIN:

SIGNED IN THE PRESENCE OF:

Witness 1. FIDEL D. BANZON Witness 2. ISAGANI R. BAÑEZ

TIN: 901-111-077 TIN: 180-495-891

ACKNOWLEDGMENT

Republic of the Philippines )

City of Ormoc ) s.s.

BEFORE ME, a Notary Public for and in the City of Ormoc and Municipalities of
Kananga, Matag-ob, Merida and Isabel, personally appeared DR. INGRID ANN C. CASTRO
and MANUEL T. ABAÑO, both personally known to me, whom all I have identified through
competent evidence of identity as written below their respective printed names and signatures,
and who represented that their signatures on the foregoing instrument were voluntarily affixed by
them for the purposes stated in the instrument and who declared that the foregoing instrument is
their free and voluntary deed.

This instrument consists of only Four (4) pages, including this page in which this
acknowledgment is written, duly signed by the parties and their instrumental witnesses on each
and every page hereof.

WITNESS MY HAND AND SEAL this ____ day of December 2018, at Ormoc City,
Philippines.

Doc. No. _____

Page No. _____
Book No. _____
Series of 2018