CONTRACT OF LEASE

This contract of Lease dated January 14, 2015 (the “Contract”) by and between:

BERNARDO A. URBIZTONDO, a Filipino of legal age, married and a resident of

Barangay 3, San Francisco, Agusan del Sur, Philippines, hereinafter referred to as the “
LESSOR”;

-and-

LECIL B. BUTON, a Filipino of legal age, single and a resident of Purok 11,
Poblacion, Prosperidad, Agusan del Sur, Philippines, hereinafter referred to as the
“LESSE”.

WITNESSETH: That

WHEREAS, the LESSOR is the owner of one (1) storey Privately Construction
Block Tiendas Nos. 73 and 74, located at Public Market, Prosperidad, Agusan del Sur (the
“Leased Premises’);

WHEREAS, for and in consideration of the payment of the rent herein stipulated and
of the faithful compliance of all the conditions and covenants hereinafter contained, the
LESSOR has agreed to lease unto the LESSEE and the LESSEE does hereby accept under
lease, the Leased Premises which is the entire building, under the following conditions:

1. Period of Lease

This lease shall be for a period of one (1) year commencing on January 1, 2015 and
ending at midnight on December 31, 2015 (‘Lease Period”). This lease is renewable by
written agreement between the parties and under such terms and conditions as may be
mutually agreed upon by them, provided that the LESSEE gives written notice to the
LESSOR of its request to renew the lease at least sixty (60) days before the expiration of
this lease. For the avoidance of doubt, the LESSOR shall not be obliged to agree to the
renewal of this lease, nor shall the LESSOR have any obligation or liability whatsoever
to the LESSEE if this lease is not renewed as a result of the parties being unable to agree
upon the terms and conditions for the requested renewal.

The LESSEE acknowledges having inspected the Leased Premises to his satisfaction
and agrees to accept the Leased Premises as is, in good order and condition.

2. Amount of rent

a. The LESSE shall pay to the LESSOR a monthly rental for the Leased Premises
of Fifteen Thousand Pesos (Php15,000.00). The LESSEE shall pay one (1)
month advance, in the amount of Fifteen Thousand Pesos (Php15,000.00),
Philippine currency, upon the execution of this Contract;
b. The rental shall be payable every 01st day of the month by the LESSEE to the
LESSOR without need of prior demand;
c. The above-stipulated rentals shall be paid by the LESSEE to the LESSOR in
cash/check;
d. That the one (1) month advance rental shall be applied to the first one (1)
month rental ;
 3. Use of Leased Premises

It is agreed that the LESSEE shall use the Leased Premises for commercial purposes
only;

4. Care of Leased Premises

a. The LESSEE shall keep the Leased Premises in good sanitary and habitable
condition, fair wear and tear excepted, at all times. The LESSEE shall follow such
instructions as may be promulgated by the LESSOR relative to the use, care,
preservation and internal maintenance of the Leased Premises;

b. The LESSEE shall be liable for any damage to the Leased Premises unless it
proves to the satisfaction of the LESSOR that the said damage was not due to the
fault or negligence of the LESSEE, its employees, agents, visitors or customers;

c. The parties hereby agree that the LESSEE shall renovate the aforementioned
building at her own expenses;

If the LESSOR, if their reasonable opinion, determines that any damage to the
Leased Premises is due to the fault or negligence of the LESSEE, its employees,
agents, visitors or customers and the LESSEE fails or refuses to repair the damage,
then the LESSOR may enter the Leased Premises (upon prior notice to the LESSEE)
to effect the appropriate repairs. In such event, the cost of the repairs shall be for the
account of the LESSEE and shall be paid by the LESSEE forthwith on demand.

5. Inspection of Leased Premises

The LESSOR or his authorized representatives shall, with prior notice to the LESSE,
have the right to enter the Leased Premises during reasonable hours to examine the same, or
make alterations or repairs thereon, or for any purpose which he may deem necessary, and,
during the last one (1) month of the term of the lease, to exhibit the Leased Premises to
prospective tenants.

6. Sublease

The LESSEE may not sublease or sublet the whole or any portion of the Leased
Premises to any party without the prior written consent of the LESSOR.

7. Utility Charges

All charges for water, electricity, telephone, gas and such other public utility services
in the Leased Premises used by the LESSEE ( collectively, Utility Charges”) shall be
for the account of the LESSEE. The LESSEE shall pay the Utility Charges promptly.

8. Termination

In the event of a breach by the LESSEE of any of her material obligations,

representations, warranties or covenants under this Contract (such as but not limited
to a failure by the LESSEE to pay any Rental or any other amount of whatever nature
due hereunder to the LESSOR, by the due date thereof), and such breach is not
remedied within five (5) days from a written notice from the LESSOR regarding such
breach, the LESSOR shall have the right to:

a. Immediately terminate the lease hereunder by written notice to the LESSEE;

b. Eject the LESSEE from the Leased Premises, and /or enter into and occupy
the same, without being liable to any prosecution therefore; and;
 c. Collect immediately from the LESSEE the payment for all financial
obligations hereunder unpaid rentals for the year as liquidity charges and
effect the forfeiture of one (1) month advance and two (2) months deposit.

Upon termination of this Contract, the provision of paragraphs 9 shall apply.

Any outstanding obligation of the LESSEE at the effective date of termination

of the Contract shall bear interest at the rate of two percent (2%) per month, or
fraction thereof, from the date such obligation was due until it is fully paid.

If the LESSOR files a suit against the LESSEE to enforce his rights
hereunder, the LESSEE shall be liable to the LESSOR for attorney’s fees, costs of
suit and other related expenses.

9. Return of Leased Premises

Upon the expiration of the period of the lease or any renewal or extension
thereof, the LESSEE shall peacefully vacate the Leased Premises and restore
possession thereof to the LESSOR in as good condition as at the time of delivery to
the LESSEE, excepting ordinary wear and tear. The LESSEE shall turn over to the
LESSOR all keys to the Leased Premises, including all duplicates.

10. Waiver

No waiver by the LESSOR of any of his rights under this Contract shall be
deemed to have been made unless expressed in writing and signed by the LESSOR.

11. Resort to Arbitration

In case of disagreement on the terms and conditions of the Leased Contract,

the same shall be submitted to a group of arbitrators composed of three (3) members, one to
be appointed by LESSOR, another by LESSEE and the third one to be agreed upon by the
two arbitrators previously chosen and the parties hereto shall submit to the decision of the
arbitrators;

The parties hereto agree on a faithful execution of the provision hereof and to
settle difference that may arise herefrom amicably. Should any controversy arise which the
parties hereto cannot resolve, the same shall be submitted to a group of arbitrators and the
parties hereto shall submit to the decision of the arbitrators.

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be

executed as of the day and year first written above at San Francisco, Agusan del Sur,
Philippines.

BERNARDO A. URBIZTONDO LECIL B. BUTON

Lessor Lessee
CTC No. CTC No.
Issued on Issued on
At At

Signed in the presence of:

___________________________ ___________________________
REPUBLIC OF THE PHILIPPINES )
PROVINCE OF AGUSAN DEL SUR ) SS
MUNICIPALITY OF SAN FRANCISCO )

ACKNOWLEDGMENT

BEFORE ME, this January 14, 2015 at San Francisco, Agusan del Sur, personally
appeared the above-named persons presented to me to be the same persons who executed the
foregoing instrument, and they acknowledged to me that the same are their free act and deed.

WITNESS MY HAND AND SEAL, the day, year, and place above-mentioned.

LEON O. MONTILLA, JR.

Notary Public
Until December 31, 2015
Doc. No. IBP Lifetime No. 03110
Page No. PTR No. 5824271 on 1-6-15
Book No. 149 At Agusan del Sur
Series of 2015 Roll No. 44691