CONTRACT OF LEASE

This CONTRACT OF LEASE, made and entered into this ____ day of June,
2014, at , Philippines, by and between;

, of legal age, Filipino and a resident of

___________________________________ and hereinafter referred to as the
“LESSOR”

-and-

______________________________, a corporation duly organized and existing

under and by virtue of the laws of the Republic of the Philippines, with principal office
address located at_____________________________, represented herein by its and
hereafter referred as the “LESSEE”.

WITNESSETH:

WHEREAS, the LESSOR is the owner in fee simple of a parcel of land described
in Transfer Certificate of Title No. 060-2014004760 hereafter referred to as “the land”,
situated in the Barrio of Salo , Municipality of Cabuyao , Province of Laguna with an
aggregate area of TWO HUNDRED SIXTY SIX (266) SQUARE METERS, more
or less and more particularly described below as follows:

WHEREAS, the LESSEE has intimated unto the LESSOR its desire to lease the
aforementioned parcel of the land.

WHEREAS, the LESSOR has graciously accepted the offer of the LESSEE to lease
the subject parcel of the land.

NOW, THEREFORE, it is agreed that in consideration of the rents herein

stipulated as well as in compliance with the covenants, conditions and restrictions
herein imposed as to the use and occupancy of the land on the part of the LESSEE, the
LESSOR hereby rents and delivers unto the LESSEE the land described above which
shall hereinafter be referred to as the “Leased Premises”.

The LESSEE hereby accepts this lease subject to the following terms, covenants,
conditions and restrictions:

1. TERM – The term of the lease for the Leased Premises shall be fifteen (15)
years from the time of the LESSEE’S occupancy of the same. Subject to the approval of
the LESSOR, the LESSEE may renew the lease for another fifteen (15) years by giving
written notice to LESSOR of its intention to renew at least One Hundred Twenty (120)
days before the expiration of the original term of the lease .

2. RENT – The rent for the Leased Premises shall be FORTY THOUSAND
PESOS ONLY (Php 40,000.00), per month. Withholding tax shall be for the account of
the LESSOR.

For the payment of the rental under this Contract, the following provisions shall
apply:

2.1. There shall be an incremental increase of the rental rate per month which
shall commence on the third (3rd) year which shall be by Five (5%) percent per
annum.

2.2. There shall be paid in advance rental payment equivalent to Four (4)
months, or in the total sum of ONE HUNDRED SIXTY THOUNSAND PESOS
(Php 160,000.00), payable upon signing of this Contract.

2.3. The amount mentioned in the immediately preceding sub-paragraph shall be

used and deducted from the rental obligations of the LESSEE corresponding to the last
year of this Lease Contract, regardless of whether this contract shall be renewed or not.

2.4 The rent shall be paid to the LESSOR at his residence or in any place as
may be agreed upon by the parties.

2.5. The rent shall be subject to the mandatory withholding tax which shall be for
the account of the LESSOR.

3. INTEREST AND PENALTY – Without the prejudice to the exercise of the

LESSOR of its rights under the penal provisions herein, the LESSEE shall pay to the
LESSOR interest or any amount herein provided to be paid by the LESSEE that is not
paid on time, at an interest rate equivalent to Three Percent (3%) per month to be
computed from the date of delinquency until the amount due is paid in full.

3.1. A payment made by the LESSEE to the LESSOR shall first apply to the
preceding interest charges, if any and thence to all arrearages in the amount herein
provided to be paid by the LESSEE before it is applied to the current rental.

3.2. In the fulfillment of obligations involving the payment of money, and

without prejudice to the imposition of interest charges mentioned above, the LESSEE is
hereby given a grace period of fifteen (15) days from the due date within which to
make good the breach or default, after which period the LESSOR may exercise its
absolute right to rescind and cancel this Contract of Lease for breach or non-
performance of essential conditions.

3.3. In case of cancellation or termination of this Contract on account of breach

of its terms by either of the party , the offending party shall pay all commercially
reasonable attorney’s fees, costs, expenses of litigation and other incidental damages
that may ne incurred by the aggrieved party in enforcing its right under this Contract.

4. LESSOR’S OBLIGATIONS – The LESSOR is obliged:

(a)To deliver the Leased Premises to the LESSEE in such conditions as to render
them fit for the uses and purposes for which they are intended;

(b) To maintain the LESSEE in the peaceful and adequate enjoyment of the
Leased Premises for the entire duration of the lease Contract and any renewal term
without any disturbance from the LESSOR or from any person claiming through the
LESSOR;

(c) To allow access to the LESSEE, its employees and agents to enter upon the
Leased Premises at reasonable times for the conduct of its business;

5. LESSEE’S OBLIGATIONS – The LESSEE is obliged:

(a) To pay the water consumption, gas, telephone service, electricity and other
public services or utilities;

(b) To maintain, at its own expense, the Leased Premises in a clean and sanitary
condition, free from obnoxious odors, disturbing noises, or other nuisances;

(c) To return and/or surrender the Leased Premises, including the building
thereon unto the LESSOR, upon the expiration of the Leased Contract or the pre-
termination of the same, in good condition as they were found at the beginning of the
lease, ordinary wear and tear expected. Provided, however, that all removable fixtures
and improvements introduced by the LESSEE into the Leased Premises shall remain to
be the exclusive property of the LESSEE and can be removed by it after the expiration
of the term of the lease or cancellation of the same .

(d) To place or make on the Leased Premises such signs or advertisements as

may be necessary or incidental to its business.

6. TAXES – The LESSOR shall pay all the taxes, fees and assessments due or
imposable on the Leased Premises including, but not limited to real estate taxes
imposed or assessed thereon by the proper government authority.

The LESSEE however, shall pay all the taxes, fees and assessments due on the
machineries and equipment introduced, erected and/or installed by the LESSEE, as well
as on the business or activities carried on or conducted by it, on the Leased Premises.

7. USE OF LEASED PREMISES – The Leased Premises shall be used by the

LESSEE exclusively for the purpose for which it is primarily intended.
 The LESSEE shall comply with all laws and regulations of the national,
provincial and municipal authorities applicable to the business that may be conducted
in the Leased Premises. the LESSEE, at its sole expense, shall obtain all licenses or
permits which may be required for the conduct of its business and the making of
repairs, alterations, improvements, or additions thereto. The LESSEE, upon the
payment of the rent herein provided and upon the performance of all the terms and
conditions of this lease, shall at all times during the lease term and during any extension
or extensions thereof, peaceably and quietly enjoy the leased property without any
disturbance from the LESSOR or from any other person claiming through the LESSOR.

8. CONSTRUCTIONS AND IMPROVEMENTS TO BE ERECTED ON THE

LEASED PREMISES – The LESSEE shall construct the building on the leased
premises . Construction costs of the building to be erected on the Leased Premised shall
be at the expense of the LESSEE, including the comfort room, kitchen, vault and other
similar installations. All interior and exterior walls, fully plastered shall also be for the
expenses of the LESSEE. The Vault Door shall, be provided by the LESSEE. All the
interiors of the aforementioned building including the ceiling, flooring, divisions,
painting/counters, and all “finishing” shall be at the expenses of the LESSEE.

9. RENT- FREE- The LESSOR agreed that the LESSEE shall not be made to
pay rent during the construction of the building for FOUR months from the signing
of this contract. After the lapse of Four (4) months either the construction of the
building is completed or not the LESSEE shall pay its monthly rental obligation to
the LESSOR . Provided however, that should the LESSEE completed the construction
of the building and able to operate its business before the four (4) months , it shall
start to pay its monthly rental thereon, whichever comes first.

10. SUBLEASE TRANSEFR OF RIGHTS – The LESSEE is hereby expressly

ALLOWED to sublease the Leased Premises under this Contract.

11. SALE OF LEASED PREMISES – it is hereby agreed and understood that the
LESSOR has the absolute right to sell, dispose, assign, exchange, mortgage or otherwise
alienate the subject Leased Premises during the term of this Lease Contract. In
exercising the aforesaid right, the LESSOR is to notify the LESSEE in writing of such
intention of the subject Leased Premises, within sixty (60) days prior to such an
intention or the date of such disposition. The LESSEE shall have the right of first
refusal.

12. INSPECTION OF LEASED PREMISES – During the term of the Contract,

the LESSEE shall allow the LESSOR, its agents or representative to inspect the Leased
Premises during reasonable hours, with prior notice to LESSEE.

13. WARRANTY OF THE LESSOR – The LESSOR warrants that it is the

absolute owner of the Leased Premises and has the right to lease the same.
Furthermore, the LESSOR shall, in case of litigation or controversy concerning its right,
title and interest in the Leased Premises, defend and hold harmless the right of the
LESSEE under the terms and conditions of this Contract at the expense of the LESSOR.
 14. NON-WAIVER – No failure of the LESSOR, no course of dealing with
respect to and no delay in exercising any right, power or privilege, under this Contract
shall be deemed a relinquishment or waiver of any right or remedy that said LESSOR
may have, nor shall be constructed as a waiver of any subsequent breach or default and
the terms and conditions herein contained shall continue to be in full force and effect.
No waiver by the LESSOR of any of its rights under this Contract shall be deemed to
have been made unless expressed in writing and signed by the LESSOR.

15. BREACH OF CONTRACT – Should the LESSEE fail to pay the rentals as
herein provided or fail or neglect to perform or observe any agreement, covenant or
condition herein provided, or should the LESSEE caused deliberate damage to the
Leased Premises, the LESSOR shall forthwith give notice to the LESSEE of the
occurrence of such default or breach giving the LESSEE a period of fifteen (15) days
from receipt of said notice to correct the breach. If after the lapse of the said period no
corrective actions taken, then the LESSOR shall have the option to terminate this
Contract without prejudice to the exercise of any and all rights of the LESSOR arising
from this contract and those provided by law.

16. SURRENDER OF PREMISES – No act or conduct of the LESSOR shall be

deemed to be or constitute an acceptance of the surrender of the leased premises by the
LESSEE prior to the expiration of the term hereof and such acceptance by the LESSOR
of surrender by the LESSEE shall only flow from and must be evidenced by a written
acknowledgement of acceptance of surrender by the LESSOR.

17. COSTS OF SUIT – The LESSEE agrees that if the LESSOR is involuntarily
made a party defendant to any litigation concerning this lease to the leased premises or
the premises of which the leased premises are a part by reason of any act or omission of
the LESSEE, the LESSEE shall hold harmless the LESSOR from all liability by reason
thereof including reasonable attorney’s fees incurred by the LESSOR in such litigation
and all taxable court costs. If legal action shall be brought by either of the parties hereto
for the unlawful detainer of the premises, for the recovery of any rent due under the
provision of this lease, or because of the breach of any term, covenant or provision
hereof, the party prevailing in said action shall be entitled to recover costs of suit and a
reasonable attorney’s fees which shall be fixed by the court from the party not
prevailing.

18. NOTICE – It is agreed between the parties hereto that any notice required
hereunder or by law to be served upon either of the parties shall be in writing and shall
be delivered personally upon the other or sent by registered mail, postage prepaid,
addressed to the principal office address of the LESSEE, and to the place where rental is
paid as provided in Par. 2 hereof, in the instance of the LESSOR, or to such other
address as may be from time to time furnished in writing by the LESSOR to the LESSEE
or by the LESSEE to the LESSOR, each of the parties hereto waiving personal or any
other service than as in this article provided for. Notice by registered mail shall be
deemed to be communicated after five (5) fays from receipt of registry notice.
 19. REGISTRATION OF LEASE – The parties hereto agree that at the expense of
the LESSEE, this lease shall be registered with the office of the proper Register of Deeds.
In the event of sale, transfer or disposition of the Leased Premises, the LESSOR shall
guarantee and warrants to have the transferee respect and abide by the terms and
conditions of this contract. The LESSEE shall bear the cost of documentary stamps and
registration costs.

20. PRE-TERMINATION LESSEE. It is agreed that the LESSEE may pre-

terminate this Contract of Lease at any time during the term of the lease , provided
that written notice of termination shall be sent to the LESSOR at least One Hundred
Twenty (120) days prior to the propose or intended termination date without any
penalty.

21. ENTIRE AGREEMENT – This Agreement constitutes the entire agreement

between the parties hereto and cannot be charged in any manner except in writing
subscribed by the parties through their duly organized officers.

22. BINDING EFFECT – This agreement shall be binding upon, and inure to the
benefit of the parties and their successor and assigns.

IN WITNESS WHEREOF, the premises hereto have subscribed their names and
executed this lease on the day and year first hereinabove written.

LESSOR LESSEE

SIGN THE PRESENCE OF:

___________________________ ______________________________

REPUBLIC OF THE PHILIPPINES)

_____________________________) S.S

Before me, a Notary Public for and in__________ personally appeared:

Name CTC No. Place/date/issued

1.
2.
 All known to me and to me known the same persons who executed the
foregoing instrument and acknowledged to me that the same is an act of their free will
and deed .

This documents consists of (____ pages including this page wherein this
acknowledgement is written.

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

NOTARY PUBLIC

Doc. No. _______;

Book No. _______;
Page No, _______;
Series of 2014