CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

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

_ _ , Filipino, of legal age, and with postal address at _ _

Philippines, hereinafter referred to as the “LESSOR”;
- and -

_ _ , Filipino, of legal age, and with postal address at _ _

Philippines, hereinafter referred to as the “LESSEE”;

WITNESSETH:

WHEREAS, The LESSOR is the registered owner of a parcel of land covered by TCT No. _ _
, located at _ _ _ Quezon City, hereinafter referred to as the “PROPERTY”;

WHEREAS, The LESSOR has developed the PROPERTY for the purpose of establishing a commercial
business and has identified certain areas in the PROPERTY, measuring approximately _ _
square meters (_ sqm.), more or less, hereinafter referred to as the “LEASED PREMISES”;

WHEREAS, The LEASED PREMISES does not include the Utility Room which houses the security
system and CCTV recording equipment.

WHEREAS, The LESSEE has approached the LESSOR to rent the LEASED PREMISES, and the
LESSOR has agreed to grant the LESSEE the right to use the LEASED PREMISES, for the purpose of setting
up, operating, managing, and maintaining various commercial operations in compliance with provisions of
applicable laws and the terms, conditions, and guidelines stated hereinafter;

NOW, THEREFORE, for and in consideration of the payment of rents, the LESSOR hereby leases unto
the LESSEE, and the latter does hereby accept under lease the LEASED PREMISES, subject to the following
terms, covenants, conditions, guidelines, and restrictions:

1. PURPOSE AND USE OF LEASED PREMISES

A. The LEASED PREMISES hereby leased shall be used exclusively by the LESSEE for any legal
commercial purposes deemed fit. The LEASED PREMISES shall not be utilized for other purposes
unless permitted in writing by the LESSOR.

B. The LESSEE shall not store any hazardous, flammable, or illegal materials and such other materials as
may from time to time be prohibited in the premises by the LESSOR and are not to be utilized in
furtherance of any of the purposes for which the LEASED PREMISES is devoted for.

C. The LESSEE warrants that it is a duly registered owner, proprietor, or in-corporator of the business
entity that will operate and manage the LEASED PREMISES. The LESSEE warrants that it shall secure,
maintain, and keep updated, all appropriate government and business clearances, permits, licenses,
and certificates, and pay all dues, taxes, and fees, and shall indemnify the LESSOR for any failure on
its part to meet such obligations provided that such failure resulted to the prejudice of the LESSOR.

D. The LESSEE shall be authorized to operate on a 24-hours a day basis and put up signages in the
leased premises. No changes may be implemented without prior written consent by the LESSOR,
which consent must not be unduly withheld by the LESSOR.

E. The LESSOR shall be given complete access to the Utility Room without prior notice to the LESSEE.

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2. MOVE-IN, MOVE-OUT, AND INSTALLATIONS
A. Without the obligation to pay the agreed rental, the LESSEE is given a grace period of two (2) weeks
before the effeffective date of this Contract to move-in on the LEASED PREMISES for the exclusive
purpose of set-up, installation, and introducing improvements in a timely and orderly manner.

B. No permanent or structural modifications can be made without prior written consent by the LESSOR.
The LESSEE shall not affix, inscribe, or paint any notice, sign, display, or advertising medium outside of
the LEASED PREMISES, except upon written permission. Any cost of fabrication, purchase,
installation, and removal of signages, displays, equipment, lighting, fixtures, appliances, and
accessories, shall be for the account of the LESSEE.

C. Any alterations, additions, or improvements of a fixed or permanent nature shall, at the expiration or
termination of this Lease, become the property of the LESSOR without obligation to reimburse the
LESSEE for the latter’s expenses.

D. Should the LESSEE commence business operations before the effeffective date of this Contract, the
LESSEE shall pay the LESSOR a prorated rent for the remaining days of the grace period.

3. TERM & EXTENSION

A. The Lease Term shall be for two (2) years, starting on _ _ until _ _ .

B. The LESSEE shall notify the LESSOR in writing of any intention to renew this Contract of Lease at least
one (1) month prior to its expiration, and the LESSOR must signify agreement or non-agreement
thereto in writing within fifteen (15) days from notification. Failure of the LESSOR to signify written
agreement or non-agreement to the proposed renewal within the afore-stated period shall be deemed
as an acceptance or assent thereto.

C. In the event that the LESSEE fails to signify intention to have this Contract renewed within the agreed
period of time, the LESSOR shall have the right to offer the LEASED PREMISES to prospective tenants.
In the event that the Contract of Lease is not renewed or terminated, the LESSOR undertakes to grant
the LESSEE a period of fifteen (15) days to peacefully vacate and surrender the LEASED PREMISES.

D. If the LESSEE fails to peacefully vacate and surrender the LEASED PREMISES within the period
granted herein, the LESSEE shall be liable for rent, utilities, and other sums due during the period that
they continue to occupy the leased premises until such a time as possession of the LEASED
PREMISES has been peacefully vacated and surrendered to the LESSOR.

4. RENTAL RATE, ADVANCE RENT, AND SECURITY DEPOSIT

A. The LESSEE shall pay the LESSOR the rental amount, net of withholding tax, of ________
Pesos (Php _ ) per month for the first year, and _
Pesos (Php _ ) per month for the second year of this agreement. Any applicable Value
Added Tax (VAT) shall be for the account of the LESSEE.

B. The LESSEE shall pay the LESSOR Advance Rental in the sum of _
Pesos (Php _ ) equivalent to one (1) month rent, net of withholding tax. This Advance
Rental shall be applied against the twenty-fourth or final month of this LEASE, whichever comes
later.

C. The LESSEE shall provide a Security Deposit of _ Pesos (Php_ )

equivalent to one (1) month rent, to answer and stand as security for the proper and due performance of
the LESSEE’s obligations under this Contract, unpaid utilities, and for damages to the LEASED PREMISES,
or resulting from violation(s) of any of the provisions of this Contract.

D. Any remaining Security Deposit shall be returned to the LESSEE, without interest, within thirty (30) days
after the LESSEE shall have completely and satisfactorily vacated and delivered the LEASED
PREMISES to the LESSOR, less of whatever amount as may be mutually agreed upon by the parties
that shall be deducted therefrom. Any outstanding balance after the Security Deposit has been applied
must be paid in full to the LESSOR prior to the LESSEE vacating the property.

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 E. The LESSOR agrees to abide by the mandates of any law or proclamation with respect to guidelines on
rent, grace period, and waiver of penalties applicable to micro, small, and medium enterprises
(MSMEs) that cover sectors not permitted to operate during government declared Quarantine periods.

5. SUB-LEASE:

A. The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in
whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights
hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on
or vested in anyone by the LESSEE without the LESSOR'S written approval.

6. UTILITIES

A. The LEASED PREMISES is equipped with electrical outlets and its own separate sub-meter. For safety
and prevention of overheating, the combined load for each electrical outlet is limited to a maximum of
1,500 watts (10a x 220v) or a continuous load limited to 80% or 1,200 watts. The LESSEE undertakes
to keep the electrical outlets and sub-meter in good running condition and not tampered.

B. All electric and water utilities for the LEASED PREMISES shall be for the sole account of the LESSEE.
All utilities must be paid on time to avoid service interruption for issues of safety and security. Upon
moving-in and moving-out, the LESSEE shall note the reading on the electrical sub-meter. The LESSEE
shall be responsible for paying the utilities of the LEASED PREMISES throughout the duration of
occupancy until the LEASED PREMISES is vacated and turned over to the LESSOR.

C. The LESSEE, at his own expense, may apply for other utilities needed to operate their business such
as mobile, telephone, cable, or Internet service. In the event that the LESSEE intends to avail any of the
aforesaid utilities, the LESSOR undertakes to extend unto the LESSEE all the cooperation that may be
required from the LESSOR. All related fees, dues, and taxes associated with the foregoing utilities shall
be for the sole account of the LESSEE.

7. PAYMENT METHOD, DELINQUENCY, AND LATE FEES

A. Upon signing of this Contract, the LESSEE shall issue payment in favor of the LESSOR in this wise:
(1) Advance Rent - Equivalent to one month (credited to the twenty-fourth or final month of the lease)
(2) Security Deposit - Equivalent to one month
(3) Post Dated Checks (23 checks) - For rent due from the first (1st) to twenty-third (23rd) month,
dated on the first day of the Contract Term and every month thereafter

B. All checks shall be solely issued under the name of________________________________and shall be
deposited by the LESSOR on even date as that of the aforesaid post-dated checks.

C. In the event that any of the post-dated checks is dishonored upon presentment, the LESSEE shall be
given a grace period of three (3) days from notification to pay the same, after which a late penalty shall
be charged at the rate of three percent (3%) per month, computed pro rata on a daily basis from the
date of delinquency, until such amount is paid in full.

8. GENERAL LEASED PREMISES GUIDELINES, AND WARRANTIES

A. The LESSEE and their representatives, employees, and agents shall be responsible for maintaining
safety, security, cleanliness, and order of the LEASED PREMISES. The LESSEE shall take reasonable
precautions for the security of the LEASED PREMISES, its contents, employees, representatives, and
customers and shall immediately report any safety, security, health, and sanitation concerns.

B. The LESSOR shall not be a guarantor of the safety or security of any of the LESSEE’s goods,
equipment, guests, employees, and customers but shall at all times keep the LESSEE in peaceful
possession of the LEASED PREMISES. The LESSEE hereby agrees to indemnify and hold the
LESSOR harmless for any loss of or damage to, any items, properties, accessories, or articles
left within the PROPERTY, or injury, illness, harm, or death to its employees, customers and
guests.

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 C. The LESSEE shall comply with all fire and safety guidelines enforced in Quezon City and shall have at
least two (2) units of fire extinguishers in the LEASED PREMISES.

D. Any activity that is illegal or prohibited, or may cause a disturbance or nuisance shall not be allowed
including, but not limited to, gambling, playing loud music or sounds, excessive smoke, strong odors,
or other activities that may result in inconvenience and discomfort to other tenants and guests.

E. Where reasonable and necessary, the parties, upon mutual agreement, may amend these guidelines as
a way of improving services, operations, security, safety, and comfort of its tenants and customers.

F. The LESSOR or its authorized agent, after giving due notice to the LESSEE, shall have the right to
enter the LEASED PREMISES in the presence of the LESSEE or its representative during reasonable
business hours, to check compliance with the provisions of this Contract, or examine the same, or
make repairs therein, or for the operation and maintenance of the PROPERTY, or to exhibit the LEASED
PREMISES to prospective tenants or for any other lawful purposes which it may deem necessary.

9. CONTRACTUAL LIEN, DEFAULT, PRE-TERMINATION, RIGHT OF FIRST REFUSAL AND

ABANDONMENT

A. The LESSOR shall have and is hereby granted a lien upon all non-exempt property of any kind found or
located in the LEASED PREMISES to secure payment of rent, utilities, or other obligations due under
this lease. In case of default, the LESSEE designates the LESSOR, its agents and employees, as
Attorney/s-in-Fact, with authority to enter into and take possession of the LEASED PREMISES and all
properties, to exercise this contractual lien.

B. The LESSOR shall have the right to cancel or terminate this Contract and eject the LESSEE without
need of legal or judicial action or order, upon the occurrence of any of the following events, by giving
written notice to the LESSEE of such breach or default:

1) The LESSEE shall have thrice successively failed to pay the monthly rent;

2) The LESSEE shall have failed to pay its utilities for at least three (3) successive billing periods;

3) The LESSEE shall have failed to correct, within the period agreed upon, any form of non-
compliance that the parties may have settled that the LESSEE had committed;

4) The occurrence of any other event which entitles the LESSOR to exercise its right to cancel or
terminate this Lease pursuant to provisions in this Contract or by law.

C. It is understood that both parties may pre-terminate this Contract of Lease for any legal reason as the
LESSOR or LESSEE may deem fit provided that a Notice of Pre-Termination is given unto the other
party at least Two (2) months prior to the intended date of pre-termination.

D. In the event that either party avails of the right to pre-terminate this Contract of Lease, the terminating
party shall pay the balance amount on the remaining lease to the other party, which shall be deemed
as compensation for the opportunity lost.

E. Any property seized and/or abandoned due to termination or eviction shall be applied as payment for
any outstanding obligation of the LESSEE to the LESSOR. The LESSEE shall continue to be liable for
obligations that cannot be covered by the value generated from the sale or liquidation.

F. That in case the LEASED PREMISES shall be abandoned, vacated or deserted for a period of one (1)
month, without any previous notice to the LESSOR and during the time the LESSEE is in default in the
payment of the monthly rental, then under such circumstances, the LESSOR can consider the leased
premises as legally abandoned and may enter the leased premises and take possession thereof without
prejudice to its right of action against the LESSEE.

10. EXPIRATION OF LEASE, EXTENSION, AND FORCE MAJEURE

A. The LESSEE agrees to promptly return and surrender the LEASED PREMISES to the LESSOR within
the period agreed upon herein at the expiration of the Lease Term or its agreed extension, without any
delay whatsoever, in as good and tenable condition as the same is now, ordinary wear and tear
expected, devoid of all occupants, movable furniture, articles and effects.
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 B. If any part of the PROPERTY, the LEASED PREMISES, or other leased premises shall be destroyed or
damaged by fire, flood, lightning, typhoon, earthquake, riot or other unforeseen disabling cause of acts
of God, as to render the it substantially unfit for use and occupation, then this Contract may be
terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.

C. This Contract may be terminated in accordance with terms and provisions related to eminent domain
or change in land use or at such other time as may be agreed to by the parties hereto in writing.

11. DAMAGE / REPAIRS TO THE LEASED PREMISES

A. Any cost or expense for any damage to the leased premises due to the fault or negligence of the
LESSEE shall be borne by the LESSEE. That the LESSEE shall not start or proceed with any repair
work nor in any case introduce improvements or make any alterations in the leased premises without
the prior written consent and approval of the LESSOR, and the parties agree that all improvements or
alterations of whatever nature that may be made thereon, shall upon completion thereof form integral
parts of the leased premises and shall not be removed therefrom but shall belong and become the
exclusive property of the LESSOR, without any right on the part of the LESSEE to the reimbursement of
the cost or value thereof. Necessary minor repairs shall be made by the LESSEE and for the exclusive
account of the LESSEE, which amount shall not be more than P5,000.00.

12. COMPLIANCE

A. That the LESSEE shall comply with any and all laws, ordinance, sanitary rules and safety regulations or
orders of the National or City Government authorities arising from or regarding the use, occupation and
sanitation of the leased premises. Failure to comply with the said laws, ordinances, regulations or
orders shall be at the exclusive risk and expense of the said LESSEE. The LESSEE is further obliged to
observe cleanliness and maintain peaceful condition inside and outside the leased premises.

13. ENTIRE AGREEMENT, AMENDMENTS, AND WAIVERS

A. This Contract shall constitute the entire agreement concerning its subject matter and shall be valid and
binding between the parties, their successors-in-interest and assigns.

B. This Contract shall supersede all prior agreements, oral and written declarations of intent and other
legal arrangements, whether binding or non-binding, made by the Parties in respect thereof.

C. No waiver, amendment, or modification of this Contract shall be effective unless made in writing and
signed by the party.

D. The acceptance of any rentals or other sums due shall not be construed as a waiver of any default or
breech by the LESSEE, nor shall such acceptance reinstate, continue, or extend the Contract Term or
affect any notice, demand, or suit in connection with such Contract.

E. Notice shall be deemed to have been given at the time the same is received by an o fficial duly
authorized representative of the LESSOR, or by the LESSEE and/or its authorized employees, or
placed by registered mail to either party at the address set forth above.

14. LESSOR'S RIGHT OF ENTRY

A. The LESSOR or its authorized representative, after giving due notice to the LESSEE, shall have the
right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour
to examine the same or make repairs therein or for the operation and maintenance of the building or to
exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem
necessary.

15. DISPUTE RESOLUTION & JUDICIAL RELIEF

A. The Parties agree to resolve any dispute that may arise between them with respect to this Contract,
within fifteen (15) days from notice thereof, through amicable settlement, such as, but not limited to,
mutual consultation and negotiation, prior to mediation or arbitration.

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 B. Should it be inevitable for the Parties to amicably settle, any dispute shall be referred to mediation or
arbitration exclusively in Quezon City, Philippines, prior to litigation. In the event of litigation, the venue
of action arising from this Agreement shall be exclusive to the proper courts of Quezon City, Philippines,
or the principal place of business of the LESSEE, and to the exclusion of all other courts of equal
jurisdiction.

C. Should any of the parties be compelled to seek judicial relief against the other party or any of its
employees, agents or representatives, or be required to employ legal counsel to enforce the terms,
conditions, and covenants of this Contract, the erring party shall pay the other party an amount
equivalent to Five Hundred Thousand Pesos (Php500,000.00) as and by way of liquidated damages.

IN WITNESS WHEREOF, the parties hereunto sign this Contract of lease this __ of_______________at
Quezon City, Philippines.

_ _
LESSOR LESSEE

Signed in the presence of:

ACKNOWLEDGEMENT

Republic of the Philippines )

Quezon City )

S.S.

BEFORE ME, a Notary Public for and in Quezon City, Philippines, personally appeared:

_ _ _

_ _ _

all known to me to be the same persons who executed and signed the foregoing Contract of Lease, and they
acknowledged to me that the same is their free and voluntary act and deed, for and in behalf of themselves
and the parties they represent.

I HEREBY CERTIFY that this instrument consisting of six (6) pages, including the page on which this
acknowledgement is written, has been signed on each and every page thereof by the concerned parties and
their instrumental witnesses, and sealed with my notarial seal.

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

NOTARY PUBLIC

Doc. No. ;
Page No. ;
Book No. ___;
Series of 2022.

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