CONTRACT OF LEASE

KNOW TO ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made, executed, and entered into by and between:

NIDA N. MELOCOTON, of legal age, married, Filipino, and with residence and
postal address at Rizal St., Poblacion 3, Midsayap, North Cotabato. Herein after referred to
as the LESSOR;
and

BRIGADA MASS MEDIA CORPORATION (BMMC), a duly registered

business establishment and existing under the laws of the Republic of the Philippines
with main office address at Brigada Complex, NLSA Road, Purok Bayanihan, Brgy. San
Isidro, General Santos City duly represented by the its President – CEO, ELMER V.
CATULPOS, of legal age, married, Filipino and a resident of Puork Masunurin, Brgy. San
Isidro, General Santos City to as the LESSEE.

-WITNESSETH -

WHEREAS, the LESSOR is the absolute and registered owner of a commercial building
known as KINC Building situated at Crossing, Poblacion 8, Midsayap, North Cotabato,
particularly described as follows:

TRANSFER CERTIFICATE OF TITLE NO. T-118903

(LOT NO. 3930-E-2-B-1, PSD-12-045722)

“A parcel of land Lot 3930-E-2-B-l of the subdivision plan PSD-12- 045722 being a portion
of Lot 3930-E-2-B, PSD-12-003589, situated in Poblacion 8, Municipality of Midsayap,
Province of Cotabato, Island of Mindanao, containing an area of THREE HUNDRED
ELEVEN (311) square meters more or less.”

WHEREAS, the LESSOR leases unto the LESSEE a portion of the 2nd floor with a total
area of 41.2 m² (square meters) and the roof deck of the said building with a total
area of ____m² (square meters).

NOW THEREFORE, for and in consideration of the foregoing premises under such
conditions and covenants herein set forth below, the parties agree as follows:

ARTICLE I - TERM

This contract shall exist a period of ten (10) years commencing o n N ov em be r 1, 2 02 0

t o October 31, 2030 and renewable at the option of the parties in such terms and conditions
acceptable to both parties. Provided that the LESSEE shall notify the LESSOR of its
intention to renew the Lease Contract at least sixty (60) days prior to the expiration of the
original period.

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ARTICLE II – RENTAL PAYMENT AND ESCALATION CLAUSE

Section 1. Within the first Three (3) years, the LESSEE shall pay the LESSOR a monthly
rent at the rate of FIFTEEN THOUSAND PESOS ONLY (₱ 15,000.00) payable every
fifteenth (15th) day of the calendar month without the necessity of the expressed demand. The
monthly rental shall be the net of all withholding taxes.

Section 2. In addition, the monthly rent shall escalate yearly by ten percent (10%) of the base
monthly rent starting on the fourth (4th) year and each year thereafter until the termination of
the contract, the base rent being understood to be the monthly rent applicable for the said year
as opposed to the original rent provided above.

Section 3. The LESSEE agrees to pay the LESSOR and the LESSOR agrees to accept,
during the term hereof, at such place as the LESSOR shall from time to time direct by notice
to the LESSEE, monthly rent set forth in the following table:

From To Monthly Rental

2021 2023 ₱ 15,000.00
JAN 2024 DEC 2024 ₱ 16,500.00
JAN 2025 DEC 2025 ₱ 18,150.00
JAN 2026 DEC 2026 ₱ 19,965.00
JAN 2027 DEC 2027 ₱ 21,961.50
JAN 2028 DEC 2028 ₱ 24,157.65
JAN 2029 DEC 2029 ₱ 26,573.42
JAN 2030 DEC 2030 ₱ 29,230.76

Payment is in the form of Post-Dated Cheques (PDCs). Twelve (12) PDC’s each in the
amount equal to the monthly rent shall be given to the LESSOR.

ARTICLE III – PURPOSE

The leased premises shall be used for FM radio studio, office and tower site of the LESSEE.

ARTICLE IV – SECURITY DEPOSIT

The LESSEE shall make a deposit equivalent to two (2) months rental of THIRTY
THOUSAND PESOS ONLY (₱30,000.00) to be paid upon the signing of this contract and
said deposit shall answer for any damage done on the premises and/or for any damage to the
LESSOR by reason of any violation of the terms and conditions herein by the LESSEE. In
no case shall the LESSEE apply and use the deposits as rental form any month during the
existence of the lease. The cash deposit shall be returned in full amount to the LESSEE only
upon the termination of this lease, and after the LESSEE shall have fully paid their electric,
water and other utility consumption in the leased premises and the corresponding receipts
surrendered unto the LESSOR less deductions for damages caused.

ARTICLE V – ADVANCE RENTAL

Upon execution of this contact, the LESSE shall pay two (2) months advance rental
amounting to THIRTY THOUSAND PESOS ONLY (₱30,000.00) which will be applied as

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payment for the last two (2) months of the lease period.
ARTICLE VI – CONSTRUCTION PEIOD

The LESSE is given by the LESSOR a grace period of thirty (30) days for the
renovation/improvements on the leased premises commencing on the date of the contract of
lease.

ARTICLE VII – PERIODIC INSPECTION

The LESSOR or any of his duly authorized representative shall have the right to enter and
inspect the premises leased to view the condition thereto at any reasonable hours of the day.

ARTICLE VIII – FIRE HAZARDS

The LESSE agrees not to bring or keep explosives or any highly inflammable materials in
the leased premises to fire or increase the fire hazard thereof or increase the rate of insurance.

ARTICLE IX – COMPLANCE WITH LAWS AND REGULATION

The LESSEE hereby undertakes to comply with all laws, ordinances, authorities arising from
or regarding the use, occupation and sanitation of the leased premises, failure to comply with
the said laws, ordinances, regulations, or orders shall be the exclusive risk and expense of the
LESSEE.

ARTICLE X – BUILDING PERMIT

The LESSOR hereby commits to comply with all the requirements for the processing of
the issuance of the building permit for the structures to be erected by the LESSEE in the
leased premises.

ARTICLE XI – SANITATION

The LESSEE shall always keep the leased premises in clean, good sanitary and
habitable condition.

ARTICLE XII – PEACEFUL POSSESSION

The LESSOR warrants the LESSEE's peaceful possession and enjoyment of the leased
premises for the entire duration of this contract lease.

ARTICLE XIII – VIOLATION OF THE TERMS OF THE CONTRACT

Should the LESSEE violate any provision of this contract or by its failure to pay the rent
as stipulated in Article II of this contract of lease, the LESSOR shall have the right to
terminate this contract, expel the LESSEE from the leased premises and to collect and
recover from him all unpaid rents and damages as a result thereof.

ARTICLE XIV – DELIVERY OF LEASED PREMISES

The LESSEE hereby expressly accepts and acknowledges that the leased premises is in good

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and tenantable condition.
ARTICLE XV – PRE-TERMINATION

Any violation of the herein provisions shall constitute a ground for the pre-termination or
termination on of the lease contract by either party to the herein contract. If the LESSEE
decides to pre-terminate this contract, it shall not be obligated to pay the monthly rentals for
the remaining portion of the lease period.

ARTICLE XVI – JUDICIAL RELIEF

Any conflict, dispute or case which may arise out of this Contract shall be filed only in the
court/s of competent jurisdiction within General Santos City, to the exclusion of all other
courts. In no case shall any of the parties herein file a case in court, without exhausting first
all available remedies of amicable settlement.

IN WITNESS WHEREOF, we have hereunto set our signature this ____ day of ____ 2021
at General Santos City, Philippines.

BRIGADA MASS MEDIA CORP. (BMMC)

LESSOR LESSEE

by:
NIDA N. MELOCOTON ELMER V. CATULPOS
VIN: 4709-0001A-L3166NNM20001-0 TIN: 948-628-576

SIGNED IN THE PRESENCE OF:

_____________________________ _____________________________

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for in the City of _________________, signed this_____ day
of ___________ 2021, personally appeared the following:

NIDA N. MELOCOTON VIN: 4709-0001A-L3166NNM20001-0

ELMER V. CATULPOS TIN: 948-628-576

Personally, known to me as the same persons who executed the foregoing Contract of Lease
consisting of Four (4) pages including this page on which the acknowledgement is written,
and acknowledged to me that they executed the same on their own free will and their
voluntary act and deed as well.

IN WITNESS THEREOF, I have Signed this instrument at the place and of the date first
written.
Doc. No.: ______
Page No.: ______ NOTARY PUBLIC
Book No.: ______
Series of _______

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