CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease (the “Contract”) made and executed this _____ day of
__________________ 2023 by and between:

JERIC TIBAYAN ARBOLEDA, Filipino, of legal age, with residence at 18 M. Kiamzon St.,
Silang, Cavite, Philippines (hereinafter referred to as, the “LESSOR”);

-and-

FRANCISCO ACOSTA, III, Filipino, of legal age, with principal business address at Block 1
Lot 1 Eugenia Heights, Tubuan Silang, Cavite, Philippines, (hereinafter referred to as the
“LESSEE”).

(hereinafter individually referred to as a “Party” and collectively as the “Parties”)

WITNESSETH:

WHEREAS, the LESSOR is the declared owner and actual possessor of the Leased Premises, as
particularly described below, located at Tibig, Silang, Cavite;

WHEREAS, the LESSOR has agreed to lease unto the LESSEE, and the LESSEE hereby agrees to
lease, the Leased Premises, subject to the terms and conditions set out in this Contract;

NOW, THEREFORE, for and in consideration of the terms and conditions stipulated in this
Contract, the Parties hereby agree as follows:

1. LEASED PREMISES. The LESSOR shall lease to the LESSEE a portion of the land located at Tibig,
Silang, Cavite, approximately measuring not more than ONE THOUSAND (1,000) SQUARE
METERS, out of the total area of approximately SEVEN THOUSAND SEVEN HUNDRED TWENTY
FIVE (7,725) SQUARE METERS, more or less, identified as Lot 9862-A, Cad-452-D, of the
Approved Silang Cadastre, (Csd-04-015425-D) and currently declared for real property tax
purposes under TAX DECLARATION ARP 18-059-00021, issued by the Office of the Municipal
Assessor of Silang, Cavite (“Leased Premises”). A certified true copy of the Tax Declaration and a
copy of the Segregation Plan are attached to this Contract as Annexes “A”, and “B”,
respectively;

2. LEASE TERM. This Contract shall be for a period of THREE (3) years which shall commence upon
handover to the LESSEE on _______________ 2022 (“Commencement Date”) and shall expire
on ________________ 2025.

LESSEE is given a two (2) month grace period prior to the commencement date of
the lease for mobilization and construction of the building;

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 Prior to the expiration of the first Lease Term, this Contract may be renewed under such
terms and conditions agreeable to the parties.

3. MONTHLY RENTAL. For and in consideration of the use of the Leased Premises, the LESSEE shall
pay the LESSOR a monthly rental of Twenty Thousand Pesos (₱20,000.00), Net of VAT and Net
of Withholding Tax. The parties hereby agree that a penalty of 5% will be imposed for the delay
in paying the rent 5 days after the due date becomes due. It is understood that the reporting
and withholding of tax for BIR purposes shall be for the account of the LESSEE;

4. POST DATED CHECKS. The LESSEE shall deliver to the LESSOR the total of THIRTY-FOUR (34)
post-dated checks with the amount of Twenty Thousand Pesos (₱20,000.00) written on the face
of each check. This represents the rental payments becoming due every month for the entire
remaining duration of the PERIOD OF LEASE;

The LESSOR shall provide the LESSEE a receipt acknowledging any and all payments at the
time such payment is made.

5. DEPOSIT AND ADVANCE RENT. Upon singing this Contract of Lease, before actual occupancy of
the premises, the LESSEE shall deliver two (2) months advanced rental in the amount of Forty
Thousand Pesos (₱40,000.00) to be applied on the last two months of the period of rent and
two (2) months deposit in the amount of Forty Thousand Pesos (₱40,000.00). The security
deposit will answer for whatever damages that may be caused to the leased premises and shall
not be consumed to pay for unpaid rental;

The security deposit shall be returned to the LESSEE at least one (1) month from the
expiration of this contract after deducting therefrom all outstanding obligations of the LESSEE
to the LESSOR including the costs of satisfactory repair or replacement of any damaged portion
of the leased premises. The LESSEE must first also submit all Official Receipts of payments for
utilities availed of, accomplish physical abandonment of the leased premises, return or
surrender all of the keys thereof, and execute actual, complete and effective surrender of
possession of the leased premises to the LESSOR;

There shall be automatic forfeiture of the deposit in favor of the LESSOR in the event that
the LESSEE commits any violation of the terms and conditions of this Contract and/or in case
said LESSEE pre-terminates the lease;

6. USE OF LEASED PREMISES. LESSEE may occupy and use the Premises throughout the Lease
Term for any legal and lawful business purpose of operating as a hardware supply store and for
no other purpose whatsoever and shall not be diverted to other uses without the prior consent
of the LESSOR, which consent shall not be unreasonably withheld;

LESSEE shall only operate, construct and occupy within the area of leased property and
shall not be permitted to use the adjacent vacant lot for the construction of the commercial
building or establishment without the written consent of the LESSOR;

7. CARE AND MAINTENANCE OF PREMISES. The LESSEE shall, at its own expense and at all times,
maintain the Leased Premises in good and tenantable condition and shall surrender the

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 possession of the same at the expiration or the termination of this Contract, in the same
condition upon LESSEE’s occupancy, ordinary wear and tear excepted.

8. ACCESS AND REPAIR. LESSOR shall grant the LESSEE’s duly authorized agents, representatives
and third-party contractors’ access to the Leased Premises and to perform repair, maintenance,
installation and upgrading works twenty-four (24) hours a day and seven (7) days a week during
the Lease Term. The LESSEE shall be responsible for the repairs on the Leased Premises caused
by ordinary wear and tear.

9. UTILITIES. All applications and connections for necessary utility services needed by the LESSEE
on the Leased Premises shall be made in the name of the LESSEE. The LESSEE and/or its
authorized representative shall be liable for utility charges it has incurred for the use of the
Leased Premises as they become due, including but not limited to electricity, genset power
charges and water.

10. FORCE MAJEURE: If whole or part of the Leased Premises shall be destroyed or damaged by
fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause
of acts of God as to render the Leased Premises during the term substantially unfit for the use
and occupation of the LESSEE, then this Contract may be terminated by notice in writing to the
LESSOR, effective immediately upon receipt. The Security Deposit and any unused Rent shall be
returned by the LESSOR to the LESSEE within thirty (30) days from the date of termination of
the Contract under this Section less unpaid utilities and other obligations.

11. TERMINATION. The LESSEE can terminate this Contract for a valid cause by giving at least sixty
(60) days’ written notice to the LESSOR. Upon the termination or expiration of this Contract or
any extension or renewal thereof, the LESSEE shall immediately and peacefully return to the
LESSOR the possession of the Leased Premises in good, clean, sanitary and tenantable condition
as when the LESSEE received it from the LESSOR, reasonable and ordinary wear and tear
excepted. Permanent improvements which cannot be removed without defacing the Leased
Premises shall become the property of the LESSOR and shall not be removed, except for the
construction facilities, equipment, and accessories which shall remain the property of the
LESSEE, and shall be removed by the LESSEE at its expense. All damages or costs incurred in the
removal of the construction facilities, equipment, and accessories shall be for the account of the
LESSEE.

12. PRE-TERMINATION OF LEASE. The LESSEE may, without any penalty, pre- terminate this
Contract unilaterally, upon prior written notice to the LESSOR should any Government
Authority, local or national, refuse to grant the necessary permits or licenses or clearances for
the construction and operation of LESSEE’s tower and equipment or if the Government should,
in any other manner, prevent the LESSEE from successfully and profitably carrying on LESSEE’s
business including failed soil investigation test or the building fails the structural investigation.

13. VENUE OF SUIT. The Parties agree that the proper courts of Tagaytay City shall have exclusive
jurisdiction over any dispute or claim arising out of or in connection with this Contract.

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14. GOVERNING LAW. This Contract shall be construed in accordance with and governed by
Philippine law.

15. CONFIDENTIAL INFORMATION. No disclosure shall be made concerning the contents of this
Contract or any other agreement that may be entered by the Parties except as may be required
by law or any government authority or regulatory body and only with the prior written approval
of the Parties. All information that is exchanged in relation to this Contract shall remain
confidential.

16. NOTICES. Any notice which either Party may, or is required to give, shall be made by mail,
postage prepaid, and/or by personal delivery to the following addresses; or at such other places
as may be designated in writing from time to time by the Parties.

Notice to the LESSOR shall be served at the address shown above.

Notice to the LESSEE shall be served on the following:

Attention: FRANCISCO ACOSTA, III

Address: Block 1 Lot 1 Eugenia Heights, Tubuan Silang, Cavite
Email : myesadmn@gmail.com

17. LESSOR’S WARRANTIES. The LESSOR warrants that he has legal and peaceful possession over
the Leased Premises and has full rights, title and interests on the Leased Premises to grant the
lease of the Leased Premises to the LESSEE during the term of this Contract.

18. AUTHORITY. The Parties hereto represent and warrant that they have full power and authority
to enter into and perform their obligations under this Contract.

19. SEVERABILITY. The declaration by any competent government agency or court that any
provision of this Contract is null, void or unenforceable shall not affect the other provisions of
this Contract. Any provision so declared null, void or unenforceable shall be replaced within ten
(10) calendar days with valid or enforceable provisions as closely aligned with the original intent
of the Parties upon mutual agreement of the Parties.
20. ASSIGNMENT OF RIGHTS AND SUBLEASE. Except as to its subsidiaries and affiliates, 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 prior written approval
which approval shall not be withheld unreasonably.

21. TAXES. All Real Property Taxes on the Leased Premises shall be for the account of the LESSOR.
In relation thereto, the LESSOR shall furnish the LESSEE adequate proof of the payment of the
said taxes every year and as may be required by the latter. The LESSOR shall likewise provide
the LESSEE of any updated tax declaration.

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 22. REGISTRATION. The LESSOR shall extend its cooperation in the signing of documents to enable
LESSEE to effect the registration of this Contract with the Register of Deeds at LESSEE’s expense.

23. EXPROPRIATION. In the event that expropriation proceedings, seizure or other similar
proceedings against the Leased Premises are instituted during the term of this Contract or any
extension or renewal thereof, the LESSEE hereby, unconditionally, relieves and releases the
LESSOR from any and all liability out of such expropriation, seizure or other similar proceedings,
without prejudice to whatever recourse the LESSEE may have against the expropriation
authority or entity on account of damage caused to it or its properties by reason of such
expropriation, seizure or other similar proceedings.

24. NON-WAIVER OF RIGHTS. Failure or delay of one Party to insist upon the strict performance by
the other Party of any of the terms, conditions and covenants herein and/or to exercise any
right or option herein shall not be construed as abandonment, withdrawal, waiver or
cancellation of such right, stipulation, condition or option.

25. ENTIRE AGREEMENT. The foregoing terms and conditions shall constitute the entire agreement
between the Parties and may be amended, suspended or modified only in writing and signed by
both Parties.

IN WITNESS WHEREOF, the Parties hereby affix their signatures this ______ day of ______ 2023 at
__________________, Philippines.

JERIC T. ARBOLEDA FRANCISCO ACOSTA, III

(LESSOR) (LESSEE)

SIGNED IN THE PRESENCE OF:

____________________________ ____________________________

Signature over Printed Name Signature over Printed Name

REPUBLIC OF THE PHILIPPINES)

_________________________) S.S.

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 ACKNOWLEDGMENT

BEFORE ME, a Notary Public, this ________ day of __________ 2021, at ___________,
Philippines, the following personas personally appeared:

Name Govt. Issued ID

JERIC T. ARBOLEDA __________________________
FRANCISCO ACOSTA, III ___________________________

known to me and to me known to be the same persons who executed this Contract of Lease
which they both acknowledged as their free voluntary act and deed, consisting only of ___
pages including this page in which this acknowledgement is written, duly signed by the parties
and their instrumental witnesses on each and every page hereof.

WITNESS MY HAND AND SEAL this _____________ at __________________, Philippines.

Doc. No._______;
Page No._______;
Book No._______;
Series of 2023.

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