CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS

This CONTRACT OF LEASE is made and executed this ___ day of

_____________________by and between:

OSCAR H. BALOY represented by his Attorney-in-Fact LEO LUIS

B. GANIBE hereinafter referred to as “LESSOR”;

- and -

CHITO R. TORREFRANCA, married, of legal age, with postal

address at 4A San Andres St. Ramos Compound, Brgy Sun Valley St.
Paranaque City, hereinafter referred to as “LESSEE”

WITNESSETH: That –

WHEREAS the LESSOR is the true and lawful owner of a parcel of land situated
in Marulas, Kawit, Cavite with an area of more or less Two Hundred Sixty Three square
meters and presently covered by Title No – T128290 which lot shall hereinafter referred
to as the “LEASED PREMISES”.

WHEREAS, the LESSEE has offered to lease from the LESSOR and the latter
has accepted such offer to lease the above-described parcel of land.

NOW, THEREFORE, for and in consideration of the payment of the

rentals and the faithful compliance of the terms, provisions, conditions and covenants
hereinafter contained, the LESSOR hereby leases, lets and demises unto the LESSEE
and the LESSEE does hereby accept the LEASED PREMISES pursuant to this
Contract of Lease

1. PERIOD OF LEASE:

1.1 The Term of this Contract shall be Three (3) years commencing on
February 8, 2023 to February 8, 2026.

1.2 It is understood, however, that the Term is always subject to the

term of the lease (“Lease Period”) provided in the Lease Contract.

2. RENTALS

2.1 LESSEE shall pay the LESSOR a monthly rental of Ten Thousand
Pesos (Php10,000.00).

2.2 Rental on the leased Premises shall be paid by LESSEE to

LESSOR on the (8th) calendar day of each and every month
without need of notice of demand, through Twelve (12) postdated
checks deposited every year to LESSOR upon signing of this
Contract.

3. RENT FREE PERIOD: The Construction Period shall be One (1) month from
January 8, 2023 – February 7, 2023, during the construction period, the LESSEE
shall not pay the LESSOR the rentals set forth herein. Should the construction of
the LESSEE be not completed after the expiration of the rent-free period, the
LESSEE shall inform the LESSOR for possible extension of construction period
of not more than 15 days.

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 In the event the LESSEE shall surrender the Leased Premises prior to the
expiration of the terms of this Contract, LESSEE shall have no right to demand
the return or reimbursement of the rent or any part thereof already paid to the
LESSOR pursuant to this Contract and without prejudice to its rights to claim
damages and penalties from the LESSEE.

The failure of the LESSEE to pay the rentals when it falls due shall result
in the application of interest for the delay in payments at the rate of Two Percent
(2%) per month from the due date. Failure or default in payment of three (3)
consecutive monthly rental payments or total of Five (5) monthly rental
payments, whether consecutive or not, within a fiscal year shall be considered a
breach of this contract and a ground for the termination thereof and LESSEE
shall immediately vacate the Leased Premises without need of demand.

4. GUARANTEE DEPOSIT: Upon signing of this Contract, the LESSEE shall

pay to the LESSOR two (2) months security deposit and one (1) month
advance rental as follows:
Two (2) Months Deposit – Php 20,000.00
One (1) Month Advance – Php 10,000.00
TOTAL Php 10,000.00
5. UTILITIES:
During the existence of this Lease, the LESSEE shall pay or cause to be
paid, prior to delinquency, all necessary and applicable charges for the electricity,
water, sewerage, telephone, garbage collection and other similar services which
may be used by the LESSEE in the Leased Premises. It is that the LESSOR
shall not be liable for any stoppage, absence, failure or deficiency in such utilities
and services.

The LESSEE may at its own expense undertake the necessary utility
installations required by its business provided such installation does not
adversely affect the structural improvements. The additional installation for
electric, water and drainage system in the leased property shall be for the
account and expense of the LESSEE. The LESSEE shall undertake such
installation in accordance with applicable national and/or local laws, rules and
regulations.

6. BUSINESS PERMITS: LESSEE shall, at its own expense, secure all permits
and licenses as may be required by any national and/or local government
authorities in connection with its business and the use of the Leased Premises
and copies of said permits and licenses and any renewals thereof, shall be
furnished to LESSOR not later than 15 days after issuance of said permits and
licenses.

7. CARE OF THE UNIT: Lessee shall, at its sole expense, maintain the leased
premises in a clean and sanitary condition, free from noxious odors, disturbing
noises or other nuisances. Any injury or damages caused or done by the Lessee
shall be repaired for its own account.

The LESSEE shall be responsible for the maintenance and upkeep of all the
improvements it introduces in the Leased premises.

8. OWNERSHIP AFTER EXPIRATION OR PRE-TERMINATION OR

CANCELLATION OF THE CONTRACT - After the expiration of term of this
contract or any extensions thereof, the parties agree that the LESSOR shall
become the owner of all the building structures and other fixed improvements,
except the equipment installed by the LESSEE which remained to be exclusively

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owned by the LESSEE and the removal of which shall not cause any material
damage to the Lease Premises without the need of paying the LESSEE any
value thereon residual or otherwise. The same rules shall apply if by fault of the
LESSEE the Lease Contract is cancelled or pre-terminated by the LESSOR
based on the grounds specified within this Lease Contract

9. WARRANTY OF THE LESSOR: The LESSOR warrants that it is the

absolute owner of the above-described property/leased premises and has the
right to lease the same. Furthermore, the LESSOR shall, in case of litigation or
controversy concerning the LESSOR’s right, title and interest in the premises,
defend and hold harmless the rights of the lease under the terms and conditions
of this Contract at the LESSOR’s expense.

10. TERMINATION OF LEASE: The LESSEE agrees to return and surrender

the Leased Premises at the expiration of the term of this lease in as good
condition; and without delay whatsoever,

After the termination of this lease, or any renewal or extension thereof

any/or all building, improvement and equipment erected, installed or owned by
the LESSEE which cannot be removed without damaging the “Leased Premises
shall become part of the LESSOR’s property without the need of paying the
LESSEE any value thereon residual or otherwise

11. FAILURE TO SURRENDER: If said premises be not surrendered at the

expiration of the term, and without any extension or renewal of the lease
contract, the LESSEE shall be responsible to the LESSOR for all damages which
the LESSOR may suffer by reason thereof and will indemnify the LESSOR
against any and all claims made by any succeeding tenant against the LESSOR
resulting from the delay by the LESSOR in delivering possession of the premises
to such succeeding tenant so far as such delay is occasioned by any failure or
delay on the part of the LESSEE.

12. PRE-TERMINATION: This Lease Contract is indivisible and inseparable

insofar as the areas of the “LEASED PREMISES” are concerned. It is
understood that neither party may pre terminate the lease on part or parts of the
LEASED PREMISES and retain certain portions thereof for Lease and
occupancy.

Pre termination of the contract by the LESSEE shall only be valid upon the
written consent of the LESSOR. Such written consent shall cause the
termination of the lease of the whole of the LEASED PREMISES and the Lessee
shall be obliged to surrender the premises subject to the forfeiture of the Security
Deposit in addition to the payment of arrears, expenses for damages to the
Leased Premises and utility expenses, among others.

13. BREACH AND DEFAULT

The LESSOR shall have the right to pre-terminate, rescind or cancel this
contract of Lease on any of the following grounds:

a. Non-payment of at least TWO (2) months rental when it falls due without need
of demand from the LESSOR. The LESSEE shall be considered in default
without need of demand from the LESSOR;

b. Non-payment of utility payments for more than three (3) months without need
of demand from the LESSOR;

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 c. Failure to settle bounced check rental payment/s within the period stated in
the notice of dishonor, which should be at least FIVE (5) days from receipt of
the notice of dishonor;

14. TAXES: Real Estate Tax on the land shall be for the account of the
LESSOR, Taxes on Improvements introduced by the LESSEE on the Leased
Premises shall be for the LESSEE's account.

15. It is understood that the provision of this Contract of Lease shall prevail
over any other contract required by the parties involving the leased premises. In
case of conflicts in the implementation and enforcement, the terms and
conditions or all provisions embodied herein shall bind against the parties and
shall prevail over other contracts.

IN WITNESS WHEREOF, the parties hereunto have set their hands on the date
and place hereinabove mentioned.

OSACAR H. BALOY CHITO R. TORREFRANCA

Lessor Lessee

By:

LEO LUIS B. GANIBE

Attorney-in-Fact

SIGNED IN THE PRESENCE OF:

___________________________ _______________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

________________________________) S.S.

BEFORE ME, a Notary Public, personally appeared:

Name CTC/Passport No. Date / Place of Issue

Chito R. Torrefranca
Leo Luis B. Ganibe

Known to me and to me known to be the same persons who executed the

foregoing instrument and acknowledged to me that the same is their free and voluntary
act and deed and that of the corporation they represent.

The foregoing instrument consists of four (4) pages including this page on which
the acknowledgment is written, signed at the left-hand margin of each and every page
thereof, by the parties and their instrumental witnesses.

IN WITNESS WHEREOF, I hereunto set my hand and affix my notarial seal this
______ day of _______________, 2023 in the city of ___________.

______________

Doc. No.____;
Page No.____;

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Book No.____;
Series of 2023