CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease is made and entered into this _____ day of July,
2021 at _______ City, Philippines, by and between:

___________, of legal age, Filipino, married and a resident of _____

City, hereinafter referred to as the LESSOR;

- and -

___________, of legal age, Filipino, married and a resident of ___________

City, hereinafter referred to as the LESSEE.

W I T N E S S E T H:

That for and in consideration of the payment of the rent and the
compliance with all the conditions and covenants hereinafter contained, the
LESSOR, has agreed to lease, demise, as it does hereby lease, let and demise,
unto the LESSEE, and the latter has agreed to accept, as it does hereby accept,
under lease, the promises know and designed as:
 “ The 2nd and 3rd Floors of
___________ City as per agreed
Floor plan hereto attached as Annex “A” plus two
(2) allocated parking spaces on the premises.”

1. This lease shall be for a period of FIVE (5) years which shall commence
on the 1st day of September, 2021 and shall expire on the 31 st day of
August, 2026.

2. For the first two (2) years of the lease period, the LESSEE agrees to pay
the LESSOR or his authorized representative for the use of the leased
premises, a monthly rental of ___________plus twelve percent (12%)
VAT and less five percent (5%) withholding tax or a net rental of
___________ per month. The above-stated lease rate shall be increased
at the rate of seven percent (7%) on the third year of the lease period and
every year thereafter until the fifth and last year.

Upon signing of the contract, the LESSE shall pay an advance

rental of ___________ (3) and nine (9) post-dated checks payable in
favor of the LESSOR to cover each month’s corresponding rental per
year. The said checks shall be dated within the first five days of that
particular month and new post-dated checks shall be issued before every
end of one (1) lease year in order to cover the succeeding lease year.

Without prejudice to the exercise by the LESSOR of its right under

paragraph 18 and 24 hereof nor to the right of the LESSOR to terminate
this agreement and/ or take such other measures to protect his right, for
failure to pay the monthly rental within the period stipulated, should the
herein post-dated checks be dishonored for whatever reason or cause
attributable to the LESSE or should any of the above monthly rental not be
paid on the days specified, said monthly rental shall draw a penalty in the
 sum equivalent to ten percent (10%) of the same, which penalty shall be
imposed once a month until paid.

It is further understood and agreed herein by the parties that any

and all rentals the payment of which being in arrears must first be paid
before this contract is renewed.

Also due will be the sum equivalent to ___________ rental which

will serve as a security deposit. The deposit which is not interest bearing
shall not be applied to current rental due but will serve as deposit to
answer for any damages to the leased premises.

The rental provided herein shall be paid in advance be the

LESSEE to the LESSOR of the latter’s office in ___________ City, the
first (5) days of each month during the lifetime of this contract without
necessity of demand or the treasurer, as its representative, in collecting
and receiving payment from the LESSEE.

3. The premises hereby leased shall be used exclusively for the following
commercial purposes only: ___________. The premises hereby leased
by the LESSEE and the latter shall not divert the premises to other use
without the prior written consent of the LESSOR, it being expressly agreed
that if, at any time during the existence of this lease, and without the
previous written consent of the LESSOR, the said premises are used for
other purposes, the LESSOR has the choice to (a) rescind this contract in
accordance with Par. 24 hereof, or (b) increase the rent, or (c) compel the
LESSEE to stop the new activities;

4. Upon turnover of the leased premises by the LESSOR to the LESSEE,

the LESSEE is hereby allowed to undertake any renovation/alteration or
improvements in the leased premises without the need of permission from
the LESSOR for one (1) month. Except as specifically provided, any and
all such improvements/renovations made by the LESSEE that is
permanently attached to, or incorporated in the leased premises shall be
considered an integral part of the leased premises to be owned by the
LESSOR.

5. To insure uniformity of design, the LESSEE shall not cause to be affixed,

inscribed or painted any notice, sign or other advertising medium on any
part of the building without the express authority and consent of the
LESSOR.
6. The LESSEE shall, at LESSEE’s expense, maintain the leased premises
in a clean and sanitary condition, free from noxious odors, disturbing
noises or other nuisances and upon the expiration of the lease shall
surrender and return the premises and fixtures in as good condition as
they are actually found at the beginning of the lease, ordinary wear and
tear expected. The LESSEE shall not drive nails, screws, hooks, or other
abutments on the walls, frames, or other portion of the building nor in any
manner deface or damage the leased premises. Any damage or injury
arising from a violation of this provisions caused for done by the LESSOR
requiring restoring, remodeling, renovation or rebuilding, shall be for the
account of the LESSEE.

7. The LESSEE shall provide himself/itself with, at LESSEE’s own cost and
expenses, with receptacles which the city ordinance require to hold and
contain waste matter, garbage and refuse, and shall deposit them with the
leased premises or such places as not be designated by the LESSOR.

The sidewalks, entries, passages, corridors, and stairways of the

building shall not be obstructed or used by the LESSEE for any purpose
other than ingress or egress from the office of the building.

The LESSEE shall not bring into or store in the leased premises
anything of highly flammable or explosive nature, nor install therein any
apparatus, machinery or equivalent which may cause obnoxious tremors
or noise, or which may expose the leased premises to fire or increase the
fire hazard of the building or change the insurance rate of the buildings, or
any other article which the LESSOR may reasonably prohibit: it being
understood and should be the LESSEE do so, not only shall the latter be
responsible for all damages such violation may cause the LESSOR and/or
its other tenants by the LESSOR shall, in addition thereto, have the right
to cancel this contract. If the LESSEE shall so use the building, or deposit
therein any such matter as to result in any increase in the rate of the
insurance payable, the increase shall be for the account of the LESSEE.

For the convenience and protection of all tenants, the LESSOR

reserves the right to fix the hours and prescribe the manner by which
 furniture, equipment and/or bulk supplies may brought in or out of the
building. In case the LESSEE has an outstanding obligation under this
contract, they, as well as its employees, agents or representatives,
whether by force or otherwise, can be prevented from taking furniture,
fixture, or equivalent from the leased premises.

The LESSEE shall comply with all reasonable rules and safety
regulation which may be promulgated from time to time by the LESSOR or
the administration of the building and with all the rules, regulations,
ordinances and laws made by the health department or any other fully
constituted from or regarding the use, occupancy and sanitation of the
leased premises.

The LESSEE shall indemnify and hold harmless the said LESSOR
against all actions, suits, damages and claims, by whomsoever they may
be brought or made by reason of the non-observance or non-performance
of the said rule, regulations, ordinance or laws or of any of the covenants
of this section, without prejudice to the right of the provisions hereinafter
contained.

The LESSEE shall be responsible for acquiring the extinguishers in

quality determined by the LESSOR.

8. That the LESSEE shall apply on its/his/her own and pay for its/his/her
electric, water and/or telephone services or other utilities not provided by
the LESSOR, the LESSEE specifically binds its/his/herself that it/he/she
will pay the rental, water and electrical bill on due date and that time is of
the essence in the payment of the same, failure of the LESSEE to pay the
rental, water and/or electric bill on the due date will authorize the LESSOR
to cut-off or disconnect the water/electrical connection of the LESSEE
after the LESSOR has given the LESSEE a 24 hours prior notice, the
LESSEE shall not render LESSOR to any liability for damage sustained or
may be sustained by the LESSEE by reason of or connected therewith.

9. The LESSEE hereby assumes full responsibility for any damages which
may be caused to the person or property of third persons while remaining
either casually or on business in any part of the premises leased to the
 LESSEE and further binds himself to hold the LESSOR free from any
such claims for injury or damage unless such injury or damages in due to
the gross negligence of the LESSOR.

The LESSOR shall not be liable nor responsible:

a) For the presence of bugs, vermin, ants, anay, insects if any, in the
leased premises; or
b) For the failure of water supply and/or electric current; or
c) For any article delivered or left to any of the employees; or
d) For any injury, loss or damage which the LESSEE, his agents or
employees might sustain in the premises due to any cause
whatsoever.
e) For any damage done or occasioned by, or arising from plumbing,
water, and/or pipes, or the bursting, leaking or destruction of any
cistern, tank, waste stand, water closet, or water pipe in, above,
upon or about the leased premises, nor for any damages arising
from acts, or negligence of the LESSEE or its against employees,
representatives or any and all other person.

10. In any case of damage to the leased premises or it appurtenance by fire,

earthquake, war or any other unforeseen case, the LESSEE shall give
immediate notice thereof to the LESSOR. If the leased premises shall be
damaged by fire or other cause without fault or negligence of the
LESSEE, of agents, employees, or visitors the injury shall be repaired at
the expense of the LESSOR within a reasonable time after such notice;
but if the building or the leased premises be destroyed to such extent as to
make it untenable, without the fault or neglect of the LESSEE, either party
may demand the recession of the contract.
 The LESSEE shall be fully liable to the LESSOR in all cases where
damage of any nature or kind is caused by the fault or negligence of the
said LESSEE, its employees, agents or visitors.

No compensation or claim shall be allowed against the LESSOR by

reason of the inconvenience, annoyance or injury to the LESSEE’s
business arising out of the necessity or repairing any portion of the
building, however, the necessity may arise.

11. The LESSOR or its authorized agents shall by previous arrangement with
the LESSEE, have the right to enter the leased premises at any time to
examine the same, or for any purpose which it may deem necessary, for
the operation or maintenance of the building or its installations, and,
during the last three months of the term of the lease, to exhibit the leased
premises to prospective tenants.

12. The LESSEE shall at all times allow and give access to the LESSOR to
the leased premises for the purpose of making repairs, remodeling, or
repainting, or to undertake all works necessary for the prevention,
conservation, improvement or decoration of the building or any part
thereof. No compensation or claims shall be allowed against the LESSOR
by reason of the inconvenience, annoyance or injury to the LESSEE’s
business that may arise by virtue of the undertaking any work under this
provision.

13. That the LESSEE specifically binds himself/herself/itself to pay the rentals
water and electric bills on due dates as time is of essence in the payment
of the same. Failure of the LESSEE to pay the current electric/water bills
within the 10th days of the next proceeding month will authorize the
LESSOR to cut off or disconnect the water/electric connection of the
LESSEE after the LESSOR has given the LESSEE, a 24 hours prior
notice. Should the LESSEE still refuse and fail to update his account with
 the LESSOR, the LESSEE by virtue hereof, hereby expressly appoints the
LESSOR as his agent with authority to open, enter and take full
possession of leased premises padlock it, if necessary, and in the
presence of any peace office, or policeman, to take inventory of the
LESSEE’s equipment, furniture, articles, effects, and merchandise etc.,
and to place the same in its (LESSOR) possessions for safekeeping. In
case the LESSEE fails to claim said equipment, furniture, articles, effects
and merchandise or liquidate his/her/its liabilities with the LESSOR within
thirty (30) days from the date of taking possessions, by the LESSOR, shall
automatically confer right upon the LESSOR, to dispose of said properties
in a private sale and to apply the proceeds thereof to satisfy whatever
indebtedness the LESSEE may have with the LESSOR in connection
therewith and the balance, if any shall be given to for taking above
remedial actions;

14. The LESSEE shall not assign or transfer its right in this nor sublease or
sublet all for any party of the leased premises without the prior written
consent of the LESSOR, and no title or interest thereto shall be
considered on or vested in anyone other than the LESSEE without such
written notice.

15. In the event that the expropriation proceedings are instituted during the
period of this lease by any instrumentality of government or by any other
entity with authority to exercise such power, either party may rescind this
contract should the leased premises become no longer useful for the
purpose of the lease, upon giving the other party thirty (30) days previous
written notice thereof. In case of such expropriation proceedings, without
prejudice to whatever recourse the LESSEE may have against the
expropriating entity on account of damage done or caused to its
properties.

16. The LESSOR reserves the right to revise the rent agreed upon on the next
lease renewal in case of increase in utility charges, insurance rate, wages,
City and/or National fees, taxes, cost of living and consumer’s index as
well as in the case of change in the present assessment of the building or
land, or both on which it is erected, or in the event of the levy or special
 assessment on the property and to apportion such assessment among all
the tenants of the building.

17. In case extraordinary inflation or deflation of the currency stipulated should

supervene during the effectivity of this contract, the value of the building
materials at the same time of the establishment of the obligation shall be
the of payment.

18. The LESSEE agrees to return and surrender the leased premises at the
expiration of the term of this lease in as good condition as reasonable
wear and tear will permit and without any delay whatsoever, devoid of all
occupants, furniture, articles and effects of any kind other than such
alteration, installations, additions or improvements which the LESSOR
may elect to take.

If the said premises be not surrendered at the expiration of the term, or

when this contract is rescinded or in any manner terminated, the LESSEE
shall pay, by way of penalty, a sum equivalent to the amount of the rentals
for the leased premises for the whole period of delay plus 20% of the
monthly rentals due. Payment such penalty shall likewise be without
prejudice to the attorney’s fee and other liabilities provided in this contract.
The LESSEE shall furthermore hold the LESSOR harmless from any
liability in respect to any and all claims made by any succeeding tenant
against the LESSOR, resulting from the delay of the LESSOR in
delivering possession of the premises to such succeeding tenant, in so far
as such delay is occasioned by the failure of the LESSOR to surrender the
premises on time.
19. Disturbance or discontinuance of the possession of the leased premises
by the LESSEE by causes beyond the control of the LESSOR shall confer
no right of any kind to the LESSEE as against the LESSOR.

20. This lease does not extent to the outside portion of the building
corresponding to or opposite the leased premises, and the painting,
putting or affixing or business notices, signs, or other advertising medium
in accordance with paragraph No. 4 of this contract shall not be construed
as an extension of this lease on the outside of this building.

21. In case the leased premises shall be deserted or vacated before the
expiration of this lease, the LESSOR shall have the right to enter the
same agent of the LESSEE either by force or otherwise, without being
liable to any prosecution therefore, the LESSOR shall furthermore have
the option to relet the same as the agent of the LESSEE, to receive the
rent therefore, and apply the same to the payment of the rent due
hereunder, holding the LESSEE liable for any deficiency.

22. That the LESSEE shall not make any connection for plumbing, water, gas
and/or other pipes without the permission of the LESSOR and shall be
liable for damages to the LESSOR for any such authorized connection
may cause the leased premises. Said LESSEE will likewise hold the
LESSOR free from any liability from any damage cause to third persons
by reason of the non-observance of this provisions.

23. The failure of the LESSOR to insist upon a strict performance of any of the
terms conditions and covenants hereof shall not be deemed a
relinquishment of waiver of any rights or remedy that said LESSOR may
 have nor shall it be construed as a waiver of any subsequent breach of
default of the terms, conditions and covenants hereof, which terms and
conditions 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.

24. The LESSEE agrees that all covenants and agreements herein contained
shall be essential conditions hereof and that if default or breach be made
of any such conditions then the LESSOR shall have the right to terminate
and cancel this contract, whether judicially or extra-judicially, upon six (6)
months prior written notice delivered at the leased premises or posted in
the main door thereof. Upon such termination or cancellation, the
LESSOR may forthwith the premises and exclude the LESSEE therefrom,
whether forcefully or otherwise, without incurring any civil or criminal
liability.

Should the LESSOR be compelled to seek judicial relief against the

LESSEE, the latter shall, in addition to any other damages that may be
awarded to the LESSOR, pay an amount equivalent to 20% of the amount
claimed in the complaint as and by way of attorney’s fee (with a minimum
of P500.00), aside from the costs of the litigation and other expenses
which the law entitles the LESSOR to recover form the LESSEE.

In case where this contract is terminated or cancelled, whether judicially or

extra-judicially, by reason of any default or breach committed by the
LESSEE, the said LESSEE shall be fully liable to the LESSOR for the
rentals corresponding to the remaining term of this lease as well as for any
and all damages, actual or consequential, resulting from such default and
termination. In the event of cancellation or termination of this contract, the
LESSOR is hereby authorized, as the Attorney-in-fact of the LESSEE, to
sell at public or private sale, without notice to the LESSEEE, any and all
goods, merchandise, furniture, fixtures and equipment located in the
leased premises, and to apply the proceeds of such sale to any damages
and outstanding obligation of the LESSEE under this contract. All
remedies granted to the LESSOR under this contract of lease shall be
deemed cumulative.
 25. This contract shall be extended only with the express written agreement of
the parties hereto at least one (1) month prior to the termination of the
lease period set forth.

IN WITNESS WHEREOF, the parties have hereunto set their

signature this day of ________________, 2021 at ___________ City,
Philippines.

_______________________ _______________________

Lessor Lessee

SIGNED IN THE PRESENCE OF:

_____________________ ________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

C I T Y O F ___________) S.S.
x……………………………………x

PERSONALLY APPEARED BEFORE ME, on this

_______________________, in the City of ___________, Philippines the
following:
 
Name  Government Issued ID         Issued at/on

both personally known to me to be the same persons who executed the

foregoing instrument and that they acknowledged before me that the same is of
their voluntary free act and deed.
 
WITNESS MY HAND AND SEAL on the date at the place first above written.
  
 

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2021.