CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

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

WYMVICO REALTY & DEVELOPMENT CORPORATION, a domestic

corporation duly organized and existing under Philippine laws with postal
address at No. 178 WBI Building, 6 th St., 9th Ave., Caloocan City, Metro Manila,
represented by ROBERTO CU, (attached as Annex “A” is the Secretary’s
Certificate), herein referred to as the “LESSOR”;

-and-

AS & JS TRADING also a domestic corporation duly organized and existing

under Philippine laws with postal address at No.105 Dangat St., Project
7,Veterans Village 1, represented by ALONA FERRER SALES (attached as
Annex “B” is the Secretary’s Certificate) herein referred to as the “LESSEE”;

WITNESSETH: That –

WHEREAS, the LESSOR is the owner of Warehouse Unit 9 situated

along, 9010 M. Villarica Road, Prenza 1, Marilao, Bulacan, hereinafter
referred to as the Leased Premises;

WHEREAS, the LESSEE desires to lease the Leased Premises of

1,252.50 sq.m for Warehouse and 180.60 sq.m. for Parking with approximately
total floor area of 1,433.1 square meters, subject to the terms and conditions
hereinafter specified;

WHEREFORE, the LESSOR, in consideration of the rent, covenants,

conditions and restrictions herein embodied on the use and occupancy of the
property, the LESSOR hereby DELIVERS, by way of lease unto the LESSEE,
the Leased Premises subject to the following terms and conditions:

1. Term of Lease – This Contract of Lease shall be for a period of

One (1) year/s commencing on June 1, 2021 and ending on
May 31, 2022. The contract shall be renewable thereafter upon
mutual agreement of both parties, provided a written notice of
renewal is given by the LESSEE to the LESSOR at least THIRTY
(30) days before the expiration of the Contract.

2. Rental - The parties herein agree that the monthly rental for the
Leased Premises shall be PESOS: One Hundred Sixty One
Thousand One Hundred Thirty Six Pesos Only (161,136.00)
VAT exclusive, payable without the necessity of demand on or
before the 1stth day of the month. A penalty of Ten Percent (10%)
for every bounce check issued by the LESSEE. The rent herein
provided is exclusive also to net of EWT, and/or other applicable
taxes. However, realty and other property taxes due on the
Leased Premises shall be for the account of the LESSOR. For this
purpose, the LESSEE shall issue 11 post-dated checks to cover
the One (1) year lease period made payable to WILLIAM CU.
3. Security Deposit – Upon execution of this contract, the LESSEE
shall deposit to the LESSOR a cash deposit in the sum of Three
Hundred Twenty Two Thousand Two Hundred Seventy Two
Pesos Only (322,272.00) equivalent to Two (2) months rental to
guarantee faithful compliance of all the LESSEE’s obligation under
this contract. The existence of such deposit, does not and should
not excuse the LESSEE’s non-payment of rent on a regular
monthly basis. If at any time during the effectivity of the terms
hereof, the monthly rental is increased, the LESSEE shall deposit
with the LESSOR, on demand, as additional deposit, that said
amount in proportion to the rental increase (s). The deposit shall
remain intact during the entire term of this lease and shall not be
applied as payment for any monetary obligations of the LESSEE
to the LESSOR at or after the termination of the contract. Any
balance remaining thereafter shall be returned to the LESSEE
without interest, upon presentation by the LESSEE of proof that he
has already paid all water, electric, telephone bills and other bills
of the lessees at the leased premises.

The deposit shall be forfeited in the favor of the LESSOR upon the
occurrence of the following events: (i) the LESSEE fails to occupy
leased premises for the full term of the lease or any extension or
renewal thereof, or (ii) if this contract is terminated by the LESSEE
for whatever reason prior to the expiry date of its terms.

4. Advance Rental – Upon the signing of this Contract, the LESSEE

shall pay the amount of PESOS: One Hundred Sixty One
Thousand One Hundred Thirty Six Pesos Only (161,136.00)
representing advance rental of One (1) month, which shall be
applied to the first month rental.

5. Compliance with Government Regulation - The LESSEE shall

secure on his own account all permits and licenses as may be
required by the national and or local authorities in connection with
his business and the use of the premises. The LESSEE shall also
guarantee faithful compliance with all government regulations.

6. Use of Premises – The LESSEE agrees that the Leased

Premises shall be used exclusively as a WAREHOUSE. No
residence shall be allowed in the property leased. The LESSEE
agrees not to do or permit to be done in or about the premises any
act that is illegal or unlawful or is in any danger to life, limb or
property, such as but not limited to the following: prostitution,
gambling, cabaret, smoking dens, and pot sessions. Likewise, the
LESSEE should not use the Leased Premises for the storage of
any illegal substance, prohibited drugs, counterfeit goods or
products. The Lessor frees himself from any liability arising out of
these prohibited acts and reserve the right to prosecute the
LESSEE if the circumstances warrant.

7. Authority to Padlock, close and to take immediate possession

of the Leased Premises and to cut off supply of water and
electricity - The LESSEE is given a grace period of Five (5) days
from the date of default within which to make the necessary
payment.In the event the LESSEE should default in payment of
its monthly rentals or the check corresponding the monthly rental
bounced and after the lapsed of the given grace period, the
 LESSOR, without prejudice to all other remedies in this contract,
shall be authorized to padlock, close and take immediate
possession of the leased premises. The default on the part of the
LESSEE further gives authority to the LESSOR to cut off the water
and/or electricity supply to the Leased Premises.

1. Escalation Clause — The lease rate herein agreed upon shall

escalate by 10 percent (%) of the base monthly rent starting on
June 1, 2023 and each year thereafter until the termination of this
contract.

8. Utility bills – All expenses for the utility bills such as, but not
limited to, LPG/gas, water, electric current, cable TV, telephone,
and aircon maintenance shall be for the account of the LESSEE.
The LESSEE shall provide the necessary metering devices and
enter into separate contracts with utility companies. The LESSOR
shall not be liable for any failure of electric power, water supply,
telephone services or other utilities.

The LESSOR should have paid in full all existing electrical, water
and telephone connections found in the leased premises as of
date of signing of this Contract. The Lessor shall extend full
assistance to LESSEE in obtaining said utility connections.

9. Alteration and Improvements – The LESSEE shall not make any

major structural changes, alterations or improvements in the
Leased Premises without the prior written consent of the LESSOR.
However, any major alterations or improvements made or
introduced by the LESSEE in the Leased Premises with the written
consent of the LESSOR shall, upon the termination of this
Contract, automatically inure to the benefit of the said premises
and become property of the LESSOR without any obligation on its
part to pay or refund its value or cost to the LESSEE.

No structural improvements or alterations shall be made to the

leased property. Any structural improvement or alterations made
by the LESSEE shall be considered a breach of contract which
entitles the LESSOR to a. order the LESSEE to undo all the
improvements done with damages b. bring back the property to its
original state at the expense of the LESSEE with damages c.
terminate the lease agreement plus damages.

All partitions to be made within the leased property shall be made

with the prior written approval of the LESSOR.

At the end of the Lease Term, or upon any pre-termination by the

LESSEE without fault of breach of the LESSOR, all additions
placed or constructed by the LESSEE as authorized by the
LESSOR during the Lease Term or any extension or renewal
thereof shall automatically become the property of the LESSOR in
the condition it is then found, wear and tear expected, without
obligation on the LESSOR to reimbursed or pay the LESSEE for
the cost or value thereof, subject to the following conditions: (1)
costs and expenses of turning over and transferring any and/or all
improvements including all taxes, fees and charges imposed by
the national government, local government unit or any agency or
body or both or any private entity shall be for the sole and
 exclusive account of the LESSOR; (2) the LESSOR shall be solely
and exclusively responsible for securing any permit, consent or
any other documentation to effect such ceding and transferring; (3)
LESSOR shall bear all expenses for notarization, registration fees,
documentation expenses and other expenses incident thereto (4)
LESSOR shall be responsible for payment of real property taxes
and other taxes imposed by the national government, local
government unit or agency or body or both on the improvement
from the time of turnover of the improvements to the LESSOR; (6)
improvements shall be turned over on an “as is, where is” basis.

In the event that any condition is not met and complied with,
LESSEE has the sole option but not the obligation to either (a)
waive said condition in writing, upon which waiver such
improvements shall automatically become the property of the
LESSOR on an “as is, where is” basis; or (b) removed or demolish
said improvements at LESSEE’s own expense, and thereafter
restore the Leased Premises free of debris.

However, it is hereby understood that said right in favor of the

LESSOR shall accrue and be conferred upon the LESSOR only
upon the termination of the Lease Term, provided that should this
Contract be extended or renewed, such further extension or
renewal shall defer the transfer of the alterations, additions or
improvements to the LESSOR until the end of the final extension
or renewal period.

10. Sanitation – The LESSEE shall keep the Leased Premises clean
and in sanitary condition and keep them at all times in very good
condition. The LESSEE shall be responsible for all the repairs on
the water, electrical and sewage installations caused by ordinary
wear and tear.

11. Repairs and Maintenance – The LESSOR shall be responsible

for major repairs, which effect the structure of the leased
premises. The LESSEE shall shoulder expenses for repairs of
damages to the Leased Premises due to its negligence or fault or
of its representatives, employees or guests. The LESSEE shall
surrender and return the Leased Premises in as good condition as
they were actually found at the beginning of the lease subject to
ordinary wear and tear.

12. Inspection of the Leased Premises – The LESSOR shall

maintain the Leased Premises in good and tenantable condition
and for such purpose, the LESSOR reserves the right at
reasonable times and with advance notice to the LESSEE to enter
and inspect the Leased Premises and to make the necessary
repairs thereof. The LESSEE likewise agrees to cooperate with
the LESSOR in keeping the said premises in good and tenantable
condition.

13. SUBLEASE, TRANSFER OF RIGHTS. The LESSEE shall not

assign or transfer its rights in this contract nor sublease or sublet
all or any part of the leased premises, without prior written consent
of the LESSOR and no rights, title or interests thereto or therein
shall be conferred on or vested in anyone other than the LESSEE
without such prior written consent.
 14. Strikes and Lock-outs – In case there is strike, lock-out or other
labor disputes in the premises and there is substantial interference
with the operation of the business of the other Lessee or tenants,
the LESSOR shall have the exclusive option to terminate this
lease to protect the business of the other tenants.

15. Encumbrances of Premises – In the event of sale, transfer,

mortgage, or any other encumbrances of the Leased Premises,
the LESSOR shall advise in writing the purchaser, mortgage or
encumbrance that all the terms and conditions of this Lease
Contract, including any provisions for renewal thereof shall be
respected.

16. Insurance – The LESSEE shall obtain fire insurance for their
stocks for the benefit of the LESSEE. The LESSEE shall then turn
over to the LESSOR a copy insurance policy for the purpose.

17. Force Majeure - In case any fortuitous events, force majeure or

any cause attributable to the LESSOR would render the leased
premises unusable, either party may terminate this contract
without any liability to the other. Upon such termination, the
LESSEE shall peaceably vacate the leased premises and
surrender its possession to the LESSOR within 15 days from the
termination of this contract.

18. Warranties – The LESSOR warrants that it has the absolute right
to lease the Leased Premises and shall keep the LESSEE in
peaceful possession of the same for the duration of this contract.

19. Termination of Lease – Both parties may unilaterally terminate

this contract provided at least Thirty (30) days advance written
notice shall be given to either party.

IN WITNESS WHEREOF, the parties hereto have signed these presents

on the date and at the place above-mentioned or written.

ROBERTO CU ALONA FERRER SALES

Wymvico Realty & Development corp. AS & JS TRADING

LESSOR LESSEE
 Signed in the presence of:

__________________ ___________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

___________________________ ) S.S.

BEFORE ME, a Notary Public for and in the City of

____________________, 2021, personally came and appeared the following:

Name Valid ID Valid until

ROBERTO CU _______________ ________________

ALONA FERRER SALES_______________ ________________

All known to me and to me known to be the same persons who executed the
foregoing document and acknowledged that the same is their own free act and
deed.

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

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