CONTRACT OF LEASE

THE PUBLIC IS INFORMED:

This Contract is made and executed on this ___ day of ____________ 20___ at
_____________ by and between:

MR. CESAR A. BORJA, of legal age, Filipino, married, with postal address
at #41 Cadiz St., Alabang Hills Village, Muntinlupa City, hereinafter referred
to as the LESSOR;

- and -

PHILIPPINE POSTAL CORPORATION (MEGA MANILA AREA), a

Government Owned and Controlled Corporation (GOCC) duly organized and
created under Republic Act No. 7354, with principal office at 5 th Floor,
Philippine Postal Corporation Central Building, Liwasang Bonifacio, 1000
Manila, represented by its incumbent Area Director, OSCAR V. LAZO,
hereinafter referred to as the LESSEE.

Both LESSOR and LESSEE shall hereinafter be collectively referred to as

the PARTIES.

ANTECEDENTS:

1. The LESSOR is the registered owner of a certain parcel of land located at Alabang
Viaduct, with a two-storey commercial building erected thereon;

2. The LESSOR is willing to lease five units of the said building, namely UNITS R, S, T, U,
& V, 2/F KLC BUILDING, Alabang-Zapote corner National Road, Alabang, Muntinlupa
City;

3. The LESSEE accepts the units for the conduct of its business, with business name
PHILIPPINE POSTAL CORPORATION.

ACCORDINGLY, the LESSOR hereby leases unto the LESSEE the above-mentioned
units, subject to the following terms and conditions:

1. PURPOSE OF THE LEASED PREMISES. The Leased Premises shall be used

exclusively by the LESSEE for postal business and office purposes, in line with its operations,
and shall not be diverted to any other purpose without the prior written consent of the LESSOR.

2. PERIOD OF LEASE. This Contract of Lease shall be effective for a period of one
(1) year commencing on 1 February 2017 until 1 February 2018, renewable upon such terms
and conditions as may be mutually agreed upon by both parties.

In the event the LESSEE desires to renew this Contract under this paragraph, or
decides to transfer its postal office or acquire its own postal site, the LESSOR shall be notified
AT LEAST THREE (3) MONTHS before the expiration of this Contract, or before the intended
relocation, as the case may be.
 3. MONTHLY RENTAL. The LESSEE shall pay to the LESSOR the amount of
FIFTEEN THOUSAND PESOS (₱15,000.00) per unit, or a total of SEVENTY-FIVE THOUSAND
PESOS (₱75,000.00) for the five above-mentioned units per month, and an annual increase of
10% on the following year, inclusive of VAT, as rental on the Leased Premises. Said rental shall
be payable by the LESSEE to the LESSOR within the first five (5) calendar days of each
applicable month during the entire term of this Lease as computed below, upon express
demand by a Statement of Account (SOA) by the LESSOR.

Php 15,000.00 - Rental/Unit

X 5 units - (Units R, S, T, U, & V)
Php 75,000.00
8,035.71 - Less 12% Input Tax
66,964.29 - Total
3,348.21 - Less 5% VAT
3,348.21 - Less 5% EWT
Php 68,303.58 - Payable to the LESSOR monthly

The LESSEE shall provide the LESSOR receipts and necessary documents
pertaining to the above taxes paid.

4. POWER CONSUMPTION AND OTHER UTILITIES. All actual electric

consumption and other utilities used by the LESSEE in the Leased Premises shall be for its
account. LESSEE may, at its discretion, install separate meters as may be found necessary.

LESSEE agrees to pay and defray all monthly charges for the actual
consumption of electric and other utilities used by the Post Office. Payment of such utilities shall
be on a monthly basis, and shall be delivered to the administration office of herein LESSOR,
within five days upon demand through the Statement of Account (SOA).

5. SECURITY DEPOSIT. Upon execution of this Contract, the LESSEE shall

deposit with the LESSOR the amount of TWO HUNDRED TWENTY-FIVE THOUSAND PESOS
(₱225,000.00), equivalent to three (3) months’ rent, refundable without interest upon termination
of this Contract.

6. DELIVERY OF LEASED PREMISES. The LESSOR shall deliver to the LESSEE

the Leased Premises with all the necessary electrical outlets, ceilings, floorings, etc., and in
good and sanitary and tenantable conditions. The LESSOR shall likewise provide the Leased
Premises with electrical, water, and plumbing facilities in good working condition during the term
of the lease.

7. ACCEPTANCE OF PREMISES. LESSEE shall accept the Leased Premises

upon a finding that the same are in good sanitary and tenantable conditions as provided under
provision of item 6.

8. INSPECTION OF PREMISES. The LESSOR or its authorized agent shall by

previous arrangement with the LESSEE and after presenting his/her authority, have the right to
enter the Leased Premises at any reasonable time to examine the same subject to security
requirements of LESSEE; and during the last two (2) months of the term of the lease, to exhibit
the Leased Premises at any reasonable time to prospective tenants except when this lease has
been renewed as herein provided. It is understood that such right shall be exercised by the
LESSOR in such a manner as not to impair the need to maintain strict confidentiality of
transactions.
 9. CARE OF LEASED PREMISES. The LESSEE shall maintain the Leased
Premises in a clean and sanitary condition, free from noxious odors and disturbing noises and,
upon expiration of this lease, shall surrender and return the Leased Premises and fixtures in
good condition as the Leased Premises were actually found at the beginning of the lease,
ordinary wear and tear excepted.

10. IMPROVEMENTS AND ALTERATIONS. Alterations, permanent improvements

or additions in or about the Leased Premises shall require the prior written consent of the
LESSOR and, upon the termination of this Lease, the portion of the Leased Premises altered
shall be restored to the original conditions as when delivered to the LESSEE. Permanent
improvements introduced by the LESSEE which cannot be removed without damage to the
property shall remain part of the Leased Premises and shall belong to and be owned by the
LESSOR.

11. REPAIRS. The LESSEE shall maintain the Leased Premises in good and
tenantable conditions, and no major alterations or repairs shall be undertaken without prior
written approval of the LESSOR.

During the existence of this lease, the LESSEE shall pay for the cost of repairs,
replacement, and/or restoration of the damages caused on the Leased Premises by herein
LESSEE, its employees, representatives, agents, clients, and/or visitors.

It is understood that, if during the term of this lease, it should become necessary
for the LESSOR to make urgent major repairs on the Leased Premises which cannot be
postponed until the expiration of this lease, the LESSEE shall allow LESSOR to make said
urgent repairs. Should the LESSEE be deprived of the use of the entire Leased Premises or a
substantial portion thereof for more than fifteen (15) calendar days, LESSEE may request
LESSOR for adjustment of rentals or rescind this Contract of Lease, subject to the other
provisions thereof.

12. DAMAGE TO LEASED PREMISES. In the event of fortuitous event or force

majeure causing great damage to the Leased Premises and rendering it untenantable, this
lease shall automatically become ineffective or terminated. However, the PARTIES herein may
enter into appropriate agreement in case they decide to execute a new lease covering the
dilapidated or renovated premises, as the case may be.

13. SIGNS AND ADVERTISEMENTS. The LESSEE may affix, inscribe, paint or
cause to be affixed, inscribed, or painted any notice, sign or other customary advertising
medium inside or outside the Leased Premises with the approval of the LESSOR.

14. USE OF COMMON AREAS AND PARKING SPACE. The LESSEE shall be
entitled to the use, free of charge, of common areas and parking space which are necessary for
postal services and LESSEE’s officers, employees and customers, up to a maximum if three (3)
vehicles.

15. SUBLEASE/ASSIGNMENT OF LEASE. It is understood that the Leased

Premises shall not in any manner be subleased, transferred, conveyed or assigned to any
person/s or entities, without the express written consent of the LESSOR.

16. PAYMENTS OF REALTY TAXES. It shall be the duty of the LESSOR to pay the
realty taxes on the land where the property is constructed as well as the property itself.
 17. INSURANCE. LESSEE may insure at its expense its property/improvements
brought into the Leased Premises, against perils it may want to be insured against.

18. TRANSFER OF LEASED PREMISES BY THE LESSOR. LESSOR agrees that

in case of sale, transfer, or assignment of the ENTIRE PROPERTY or any part thereof affecting
the Leased Premises to any party other than the LESSEE, the LESSOR shall require the
purchasee, transferee, or assignee to respect the existence of this Contract. The LESSOR also
warrants the purchasee, transferee, or assignee’s commitments to honor the terms and
conditions of the Contract. The LESSOR also agrees that any document, i.e. deed of
conveyance, Transfer or Assignment of Ownership, etc. executed by herein LESSOR shall
include a clause respecting the leasehold rights of herein LESSEE for the entire duration of this
Contract.

19. PRETERMINATION/TERMINATION OF LEASE. Should by any reason, the

LESSEE shall preterminate this Lease Contract, LESSOR is not bound to compensate for any
improvements thus introduced by LESSEE on the Leased Premises. It is understood that the
LESSOR is not bound to return any deposits to the LESSEE.

Should LESSEE opt not to renew the lease, LESSEE agrees to return and
surrender to the LESSOR the Leased Premises at the end of the term of this lease in good
condition as reasonable wear and tear will permit and without delay whatsoever, devoid of all
occupants, furniture, articles, and effects of any kind other than such alterations, additions or
improvements which shall be subjected to the provisions of item 10.

20. OCCUPATION OF LEASED PREMISES. If after this lease has been terminated for
any reason whatsoever, the LESSEE continues the occupation of the Leased Premises with the
consent of the LESSOR, said extension of lease shall be understood as running from month to
month only, under the same terms and conditions herein stipulated and may be terminated by
either party by means of a written notice served upon the other party at least thirty (30) days
prior to the date of such termination.

21. RENEWAL CLAUSE. The right to renew or extend the period of term of this
lease contract shall be at the exclusive portion of herein LESSOR only. If, however, LESSOR
has no intention of renewing the said contract, LESSEE should be advised in writing at least
three (3) months prior to the expiration of this contract.

22. BREACH OR DEFAULT. Both parties agree that all terms and agreements
herein contained shall be deemed conditions as well as covenants and that if default or breach
is made of any such covenant or conditions, then this lease may be terminated and cancelled
and the defaulting party shall be liable for any and all damages, resulting from such default and
termination.

23. DISPUTES and VENUE. The parties agree that dispute/s arising from this
Contract shall be resolved first amicably within themselves by resorting to arbitration or any
available alternative modes of dispute resolution before seeking judicial relief. If not resolved,
any case/action arising from this Contract should be litigated in the courts of Muntinlupa.

24. ANTI-GRAFT AND CORRUPTION CLAUSE. Each PARTY hereby undertakes

that, at the date of entering into force of the Contract, itself, its directors, officers or employees
have not offered, promised, given, authorized, solicited, or accepted any undue pecuniary or
other advantage of any kind (or implied that they will or might do any such thing at any time in
the future) in any way connected with the Contract and that it has taken reasonable measures to
prevent subcontractors, agents or any other third parties, subject to its control or determining
influence, from doing so.

22. SEPARABILITY CLAUSE. In case any provision herein shall be declared

unconstitutional or void by a court of competent jurisdiction, it shall not render other provisions
in this lease contract null and void, and the PARTIES herein waive any claim or counterclaim
and hereby release each other from any damages or liability arising from the declaration of
unconstitutionality or nullity.

NOW, THEREFORE, the PARTIES have signed this document on the date and place
above-stated.

KLC BUILDING PHILIPPINE POSTAL CORPORATION

Lessor Lessee

Represented by: Represented by:

CESAR A. BORJA OSCAR V. LAZO

Proprietor Area Director, Mega Manila

Signed in the presence of:

 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

_____________________________ ) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction, this ___ day of
_______________ at __________________, personally appeared:

NAME ID NAME & NO. EXPIRY DATE

CESAR A. BORJA
OSCAR V. LAZO

who have satisfactorily proven to me their identity through their above-stated ID with name,
number, and expiry dates, that they are the same persons who executed and voluntarily signed
the foregoing Contract of Lease, which they acknowledged before me as their free and
voluntary act and deed.

This instrument consisting of ___ pages, including this page whereon the
acknowledgment clause is written, signed by the parties and their instrumental witnesses on
each and every page hereof, is sealed with my notarial sea.

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

NOTARY PUBLIC

Doc. No. ____;

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