CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease made and entered into by and between:

NORTHGATE PROPERTIES HOLDING INC, a

corporation duly organized and existing under Philippine Law
with postal address at 041 Lower Northern Hills Brgy.
Malhacan Meycauayan City, Bulacan represented hereinafter
by its President ARTHUR C. DY. Referred to the LESSOR

- and -

LUCAS AND ALEXYN TEXTILE TRADING., a duly

organized and existing under Philippine Law with postal
address at Unit B Lim Tan Bldg. Lot 1 Highway 2000 San
Juan Taytay, Rizal represented hereinafter by its Owner
HERJOY ARAZA. Referred as the LESSEE.

WITNESSETH: That

WHEREAS, the LESSOR is the absolute registered and beneficial owner of a parcel of land
having an area of Thirty-Six Thousand Five Hundred Ninety-Eight square meters (36,598
sq.m.), more or less, located at #041 Upper Northern Hills Bgy. Malhacan, Meycauayan
City, covered by Transfer Certificate of Title No. No. 040-2015030585 issued by the Registry
of Deeds of Meycauayan Bulacan,and declared under Tax Declaration No. 2006-13016-
09595.

WHEREAS, the LESSOR is the owner of 23 warehouses located in Malhacan Meycauayan,

Bulacan, hereinafter referred as the “LEASED PREMISES”.

WHEREAS, the LESSEE is interested to lease one (1) warehouse unit, particularly No. 8
with an area of 1,177 sq.m.

WHEREAS, the LESSOR and the LESSEE are willing to let and lease, subject to terms and
conditions hereinafter set forth.

NOW, THEREFORE, for and in consideration of the foregoing premises and such mutual
consideration, clauses and stipulation, the LESSOR agrees to lease and let unto the
LESSEE, and the latter agreed to accept, as it accepts to lease the premises with the
following conditions:

A. TERM OF LEASE AND RENTAL:

The lease period will be fixed only for Three (3) years starting November 15, 2019 up
to November 15, 2022.

The monthly rental will be computed based on the actual square meter of the
warehouse.

Price of Lease per square meter will be Php 120.00/sq.m. plus Value Added Tax for
the year.

The LESSEE shall deliver to the LESSOR immediately upon execution and signing
of this Contract of Lease the refundable sum amounting to Php 282,480.00
representing two (2) month security deposit, to answer for any and all obligations
that the LESSEE may incur under the terms and conditions of this Lease Contract.

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 The LESSEE shall issue and deliver Twelve (12) Post Dated Checks (PDC) dated
every 15th day of the each month amounting Php 158,188.80 VAT included.
Subsequently, the issuance for the second year up to the last year of the Lease
Contract shall be issued and delivered at least one (1) month before the last issued
check.

B. USE OF THE LEASED PREMISES:

The LESSEE hereby accepts and acknowledged that the leased premise is in good
and tenable condition and agrees to keep and maintain the same.

The LESSEE hereby agrees and binds himself to undertake all necessary expenses
that may incur such as repairs and other fortuitous event, given that said expense or
repair is not due to the structural soundness and integrity of the leased premises,
provided, proper notification was made to the LESSOR.

The LESSEE shall maintain the Leased Premises in clean and sanitary condition.

The LESSOR shall have access to the Leased Premises 24 hours a day, 7 days a
week, 52 weeks a year.

C. IMPROVEMENTS AND RENOVATIONS:

The LESSEE shall take good care of the Leased Premises. The LESSEE shall have
the right to make improvements, alterations, and renovations in the Leased
Premises, which the LESSEE may deem necessary for its use subject to prior notice
to the LESSOR. Such improvements made by the LESSEE will be exclusively
owned and acquired by the LESSOR at the end of the Contract of Lease.

D. REPAIRS AND MAINTENANCE:

All expenses for ordinary repairs and maintenance found necessary in the operation
of its business shall be for the account of the LESSEE. Such ordinary repairs and
maintenance may be performed by the LESSEE without any need of approval from
the LESSOR.

E. UTILITIES:

All charges of water, electricity, and similar services and utilities in the Leased
Premises shall be for the exclusive account of the LESSEE based on the LESSEE’s
actual consumption.

F. SECURITY GUARD SERVICES:

LESSEE is obligated to share a proportionate amount based on the area of the

leased premises in the payment of Security Guard Services for guarding the
common areas in the compound like the Entrance Gate, driveways, streets, etc. in
the compound.

G. PARKING:

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 The LESSOR will designate or allocate a specific parking space for purposes of
unloading/loading area in the leased premises. The LESSOR will not be held liable
for any damages, theft, loss of possessions during unloading/loading in designated
parking space. Overnight parking is not allowed.

H. NON-PAYMENT OF DUES:

The LESSEE hereby agrees that in case of non-payment of rental fee for at least two
(2) months, it will immediately become due and demandable. If in case of state of
bankruptcy by the LESSEE, neglecting, or any actions contrary within the stipulation
of this contract, will be automatically considered to be terminated and the LESSEE
must vacate the premises and return all the rights to the LESSOR.

I. INSURANCE:

During the term of this contract, the LESSOR shall, at its own expense obtain and
secure a necessary insurance coverage on the Leased Premises. The LESSEE may
likewise secure at its own expense, insurance coverage for its furniture, fixtures or
equipment used in the Leased Premises.

J. INSPECTION OF PREMISES:

The LESSEE shall allow any representative of the LESSOR to inspect the Leased
Premises during working hours or business days with prior notification to the
LESSEE; to examine, make alterations, repairs and maintenance for necessary
preservations and conservations, if any.

K. COMPLIANCE:

The LESSEE shall follow all the city ordinances made by the Local Government Unit
which have the jurisdiction over the place when it comes to permits and other
compliances. Non-compliance therewith will be the exclusive risk and expense of the
LESSEE.

L. SALE, TRANSFER AND MORTGAGE

The LESSEE hereby expressly recognizes the absolute right of the LESSOR to sell
the leased premises. In the event of sale, mortgage, or encumbrances of the Leased
premises, the LESSOR shall warrant that the purchaser, mortgagee, or
encumbrance shall respect and abide by all the terms and conditions of this Contract
of Lease including the provisions on renewal hereof.

M. PRE-TERMINATION:

In case that the LESSEE continues to occupy and enjoy the leased premise despite
of its termination, such extension will be on month to month basis only, under the
same terms and condition herein stipulated, either of the party must send to the other
party a written notice Thirty (30) days prior to the date of termination.

The Notice to Vacate shall constitute sufficient notification to the LESSEE to vacant
the premises. The LESSEE must surrender the possession of the property to the
LESSOR. If in case the LESSEE failed to do so, the LESSEE will be responsible for
all damages which the latter may suffer by reason thereof.

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 The LESSEE must notify the LESSOR in case of termination of lease contract prior
to the date of expiration. Otherwise, the LESSOR will require the LESSEE to pay its
obligation for the unexpired portion of the lease contract.

N. VENUE; ATTORNEY’S FEE

The venue of any action arising out of or based on this Contract shall be exclusively
in the proper courts of Meycauayan City.

In the event that either party is compelled to seek judicial relief against the other by
reason of the violation of, or failure to comply with, the terms and conditions of this
Contract, the party in breach shall pay the innocent party an amount equivalent to
twenty-five percent (25%) of the amount awarded by the court, but in no case less
than Fifty Thousand Pesos (Php 50,000.000), as and by way of attorney’s fee, in
addition to any other damages that may be awarded by the court.

O. AMENDMENT

No amendment or modification of this Contract of Lease shall be considered as

having been made unless executed in writing and duly signed by the parties hereto.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands this ___
day of ________________ at _________________, Philippines.

NORTHGATE PROPERTIES HOLDING INC. LUCAS AND ALEXYN TEXTILE

TRADING
(LESSOR) (LESSEE)

By: By:

ARTHUR C. DY HERJOY D.C. ARAZA

LESSOR LESSEE

SIGNED IN THE PRESENCE OF:

_________________________ _______________________

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REPUBLIC OF THE PHILIPPINES)
) S.S.

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in ___________________, personally

appeared:

Name Gov’t. Issued ID No. Date/PlaceIssued Expiry

Arthur C. Dy ____________________ ___________________

Herjoy Araza ____________________ ___________________

known to me and to me known to be the same person and entity who executed the
foregoing instrument and they acknowledged to me that the same is their true, voluntary act
and deed. This instrument refers to a Contract of Lease of an warehouse space located at
Malhacan Meycauayan, Bulacan consisting of Five (5) pages, including this page on which
the acknowledgment is written, signed by the parties and witnesses on each and every page
hereof.

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

NOTARY PUBLIC

Doc. No. _____;

Page No. _____;
Book No. _____;
Series of _____.

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