CONTRACT OF LESSEE

CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease (the "Contract") is made and entered into at

PAVIA, PROVINCE OF ILOILO, this 01 FEBRUARY 2024, by and
between:

ALFREDO H. FAJARDO, Filipino, of legal age, with address at Zone 4

Brgy. Jibao-an Pavia, Iloilo, Philippines hereinafter referred to as the
"LESSOR"

- and -

JEFFREY BARNESA FACTO, Filipino, of legal age, with address at

Block 57 Lot 32 Centro Verde Subd. Brgy.Pandac Pavia, Philippines
herein after referred to as the "LESSEE"

LESSOR and LESSEE shall hereinafter be referred to collectively as

the "Parties"

WITNESSETH THAT:

WHEREAS, LESSOR is the registered owner of the following property

(the "Property"):

A two (2) Storey Residential/Commercial Property with an area

approximately 400 square meters located at Zone 4 Brgy. Jibao-
an Pavia, Iloilo, Philippines

WHEREAS, the Property is located at the following address:

Zone 4 Brgy. Jibao-an Pavia, Iloilo, Philippines

WHEREAS, LESSEE desires to lease a portion of the Property;

NOW THEREFORE, for and in consideration of the foregoing premises

and the terms and conditions herein stipulated, the Parties agree as
follows:

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I. SUBJECT OF THE LEASE

LESSOR shall lease to LESSEE a portion of the property, said portion

specifically described as follows (the "Leased Premises"):

Front Space located on the Ground Floor of the Property located

in front of the Two(2) storey residential house with front access
from the National Road

The Leased Premises equals Fifty (50) Square Meters, more or less.

II. TERM OF THE LEASE

The term of this lease shall be for a fixed period beginning on 01

FEBRUARY 2024 and ending on 01 AUGUST 2024. This lease may be
renewed upon terms and conditions mutually agreed upon by the
parties.

III. RENT

The rent shall be Fifteen Thousand Philippine Pesos ( ₱8,000.00) per

month.

LESSEE shall pay the rent every 1st of the month in advance.

The rent shall be paid to LESSOR at the following address:

Zone 4 Brgy. Jibao-an Pavia, Iloilo, Philippines

The rent is subject to withholding taxes which LESSEE shall deduct

and withhold. However it does not include other taxes which may be
levied or imposed such as but not limited to the Value Added Tax
("VAT") and Documentary Stamp Tax ("DST") which, if applicable,
shall be for the account of LESSEE.

LESSEE shall remit the withholding tax to the Bureau of Internal

Revenue on behalf of LESSOR in accordance to the applicable laws
and regulations. LESSEE shall submit a copy of the Certificate of
Remittance of the withholding tax to LESSOR within Five (5) Days
from the payment of the tax.

The rent shall be due and payable without need of demand.

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IV. SECURITY DEPOSIT

LESSEE shall pay a Security Deposit of Eight Thousand (₱8,000.00)

as guarantee for the full and faithful compliance of each and every
provision, term, and covenant of this Contract. The Security Deposit
shall be paid on 01 FEBRUARY 2024

The Security Deposit shall not earn interest nor can LESSEE demand
that the same be used to fulfill any monetary obligation under this
Contract.

Upon LESSEE's full and faithful compliance of each and every

provision, term, and covenant of this Contract, the Security Deposit
shall be returned to LESSEE Thirty (30) Days after LESSEE has
vacated and surrendered the Leased Premises, provided the same is
accepted by LESSOR and all the unpaid obligations and charges
incurred by LESSEE has been fully settled and proof of payment has
been presented to LESSOR. If there are any unpaid obligations and
charges, LESSOR shall present a written demand to LESSEE to
settle said unpaid obligations and charges within Fifteen (15) Days
from receipt otherwise the Security Deposit shall be utilized to
settle any and all unpaid obligations and charges. LESSOR shall
present a detailed list with proper documentation for all deductions
to the Security Deposit.

In the event that LESSEE terminates the contract through no fault of

LESSOR, abandons the Leased Premises before the expiry date, or
LESSEE violates any provision, term, or covenant of this Contract,
the Security Deposit shall automatically be forfeited in favor of
LESSOR as liquidated damages unless the termination of the
contract is due to any civil or political disturbances.

V. ADVANCED RENT

LESSEE shall pay the amount of Eight Thousand Philippine Pesos

(₱8,000.00) as advanced rent equivalent to One (1) Months rent. The
advanced rent shall be applied to the first month rent.

The advanced rent should be paid on 01 FEBRUARY 2024

VI. USE OF THE LEASED PREMISES

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LESSEE shall use the Leased Premises for the following purpose and
all activities related thereto:

For the business of the LESSOR of operating a food

establishment which includes food preparation and dine-in, take-
out and delivery services.

LESSEE shall not use the Leased Premises for any other purpose nor
shall the use of the Leased Premises be converted without prior
written authorization from LESSOR.

LESSEE shall not use the Leased Premises for any illegal or immoral
purpose nor shall LESSEE expose or use the Leased Premises to any
extra-hazardous activities, regardless of whether the same is within
or outside the scope of the purpose or use of the Leased Premises.

VII. EXCLUSIVITY

LESSEE shall have the exclusive right to conduct their primary

business on the Property. LESSOR shall not, directly or indirectly,
lease any space on the Property to or permit the use or occupancy
of any such space by any person or organization including LESSOR,
whose primary business is in, or may result in, competition with
LESSEE's primary business activity without the prior written consent
of LESSOR.

VIII. SERVICE AND UTILITIES

The lease shall include the following services and utilities :

1. Electricity;
2. Internet and Wi-Fi services;

All bills and expenses incurred by LESSEE' s use thereof shall be for
the account of LESSEE.

All other services and utilities shall be obtained by and for the
account of LESSEE. LESSOR shall extend all assistance to LESSEE
in securing any other services and utilities including executing,
signing, and submitting any documents required by the service or
utility companies.

IX. ALTERATIONS, ADDITIONS, AND IMPROVEMENTS

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LESSEE shall be authorized to make renovations on the Leased
Premises in accordance with plans and specifications previously
agreed upon by both Parties to suit the business of LESSEE provided
that the same has also been approved by the local authorities, if
necessary. Said renovations shall be for the account of LESSEE.
LESSEE shall not make other alterations, additions, and
improvements on the Leased Premises without prior written consent
of LESSOR.

LESSOR reserves the right to prescribe or limit the weight of any

machinery and other equipment or furniture that LESSEE may bring
and keep in the Leased Premises.

LESSEE shall not drive nails, screws, hooks, etc. on or into the walls
or any part of the Leased Premises or in any way damage any part
thereof.

Any alterations, additions, and improvements on the Leased

Premises, except movable property and fixtures put in at the
expense of LESSEE and can be removed without damage or
destruction to the Leased Premises, shall remain on and be
surrendered as part of the Leased Premises upon the termination of
the lease and the same shall become the property of LESSOR
without compensation to LESSEE.

X. CARE OF THE LEASED PREMISES

LESSEE shall maintain the Leased Premises in a clean and sanitary

condition, free from noxious odors, disturbances and other
nuisances at their expense.

LESSEE shall be responsible for the maintenance and upkeep of the

Leased Premises including the maintenance of plumbing and
electrical fixtures therein.

All signs, advertisements, and displays shall be approved by LESSOR

before the same is installed in the Leased Premises. LESSOR
reserves the right to require LESSEE to remove any sign,
advertisement, and display which LESSOR, in good faith, considers
to be inappropriate or improper for the general appearance of the
Property.

The prior written consent of LESSOR shall be required before

LESSEE can bring in or take out any machinery, office furniture,
office machine, or any type of equipment or accessories of any kind.

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LESSEE shall be liable for all damages to the Leased Premises
unless said damage occurred without the fault or negligence of
LESSEE. Any damage shall be presumed to be caused by the fault or
negligence of LESSEE unless the same was caused by fortuitous
events, acts of God such as typhoons, earthquakes, etc., or other
events that could not be foreseen or could not be reasonably
prevented. LESSEE shall likewise be liable for damages arising from
the fault or negligence of LESSEE's employees, customers, guests,
visitors, or other persons that are on the Leased Premises as if the
same arose out of LESSEE' s own fault or negligence.

LESSEE shall repair any damage to the Leased Premises within

thirty (30) days from the occurrence of the damage. Failure to do so
shall be considered a breach of this Contract which shall entitle
LESSOR to terminate the lease.

LESSEE shall immediately inform LESSOR of any damage or

usurpation of the Leased Premises.

LESSOR shall undertake any major and extraordinary repairs which

are related to those which affect the structure of the Leased
Premises. LESSEE shall allow access to LESSOR to the Leased
Premises for the purpose of renovations, repairs, or other work on
the Leased Premises. LESSOR shall not be liable to pay any
compensation or claims by reason of any inconvenience or
annoyance to LESSEE by reason of said renovations, repairs, or
other works provided that the same does not unreasonably prevent
LESSEE from using the Leased Premises for the purposes provided
in this Contract.

XI. DANGEROUS AND HAZARDOUS MATERIAL

LESSEE shall not keep or have, in the Leased Premises, any

material, article, or thing of a dangerous, flammable, or explosive
nature that might substantially and unreasonably increase the risk
of fire or explosion on the Leased Premises, or that might be
considered hazardous by a responsible insurance company, unless
the prior written consent of LESSOR is obtained and proof of
adequate insurance protection is presented by LESSEE to LESSOR.
Any increase in insurance payable by LESSOR from the storage of
any said material, article, or thing shall likewise be for the account
of LESSEE.

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XII. DAMAGE TO THE LEASED PREMISES

If the Leased Premises is partially destroyed or damaged, as jointly

determined by LESSOR and LESSEE, without the fault or negligence
of LESSEE, LESSEE may choose between a proportional reduction of
the rent or the rescission of the lease.

If the Leased Premises is partially destroyed or damaged due to the

fault or negligence of LESSEE, LESSEE shall repair any said damage
in accordance with the preceding Section.

If the Leased Premises is totally destroyed or cannot be used for the

purpose of LESSEE, as determined jointly by LESSOR and LESSEE,
then the lease will be terminated and the Security Deposit and any
unused Advanced Rent shall be returned to LESSEE within Thirty
(30) Days from the determination by LESSOR and LESSEE that the
Leased Premises is totally destroyed or cannot be used for the
purpose of LESSEE.

If the Leased Premises is totally destroyed or cannot be used for the

purpose of LESSEE, and the same was due to the fault or negligence
of LESSEE, or its employees, agents, visitors, etc. then, without
prejudice to other actions that LESSOR may take against LESSEE,
LESSEE shall repair the damage or the same shall be repaired by
LESSOR at the expense of LESSEE and LESSEE shall be liable to pay
rent.

XIII. PROPERTY INSURANCE

LESSOR and LESSEE shall each maintain appropriate insurance for

their respective interests in the Leased Premises and property
located in the Leased Premises. LESSEE' s insurance shall be in an
amount equal to the maximum insurable thereof with such insurance
company or companies that are reasonably satisfactory to LESSOR.
LESSOR shall be added as the joint beneficiary to any such
insurance policy and said policy shall be assigned and delivered to
LESSOR within Thirty (30) Days from the date of this Contract.
LESSEE shall, at its own expense, also maintain property insurance
on its own furniture, equipment, and other property found inside the
Leased Premises, a copy of which shall likewise be delivered to
LESSOR within Thirty (30) Days from the date of this Contract.

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XIV. LAWS, RULES, AND REGULATIONS

LESSEE shall observe all the rules and regulations of LESSOR and all
applicable laws and ordinances during the duration of the lease.
LESSOR shall provide LESSEE with a copy of the rules and
regulations of the Property and any changes and amendments
thereto.

XV. INSPECTION OF PREMISES

LESSOR shall have the right to access the premises for inspection or
to provide necessary services or make necessary repairs or
renovations for the maintenance of the Leased Premises, or to show
the Leased Premises to prospective buyers or lessees upon a Two
(2) Day Notice to LESSEE. LESSOR shall likewise have the right to
display a "For Rent" sign during the last Three (3) Months of the
lease. Finally, LESSOR shall have the right to access the premises
without notice or consent in case of an emergency.

XVI. QUIET ENJOYMENT

LESSEE shall have the right to the enjoyment and peaceful

possession of the Leased Premises during the period of the lease
without interruption from LESSOR or any person claiming under him
provided that LESSEE complies with all the terms, provisions, and
conditions of this Contract.

XVII. LATE PAYMENT OF RENT

For any payment that is not paid on the due date, LESSEE shall pay a
late fee of Two Hundred Fifty Philippine Pesos ( ₱250.00) per day,
starting on the day after the due date until the rent is fully paid.

XVIII. ABANDONMENT OF LEASED PREMISES

LESSEE shall be considered to have abandoned the Leased Premises

if the same remains unoccupied for a continuous period of Thirty
(30) Days at any time during the period of the lease and LESSEE fails
to pay the corresponding rent for the said period. Upon such
abandonment, LESSOR shall have the right to lease the Leased
Property to other persons or organizations and LESSEE shall

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continue to pay rent for the Leased Property until a new lessee has
been found for the Leased Premises. The Security Deposit shall
likewise be forfeited in favor of LESSOR by way of damages.

Further, LESSEE hereby empowers LESSOR and/or LESSOR's

authorized representatives, to padlock, open, enter and occupy the
LEASED PROPERTY and take an inventory of LESSEE's properties in
the presence of a peace officer, barangay official or notary public.
LESSEE also authorizes and empowers LESSOR and/or LESSOR's
authorized representatives to take full control and possession of the
LEASED PROPERTY and to remove and store LESSEE's properties at
LESSEE's cost. LESSEE also authorizes LESSOR to retain LESSEE's
properties as security for the payment of LESSEE's obligations and
dispose of the same, the proceeds thereof will be applied to satisfy
LESSEE's unpaid obligations under this Contract without prejudice
to any appropriate action which LESSOR may take to recover any
deficiency.

For purposes of this section, LESSEE expressly constitutes LESSOR

and LESSOR's authorized representatives as LESSEE's attorneys-in-
fact and all actions performed by them in the exercise of their
authority are hereby ratified by LESSEE.

XIX. EARLY TERMINATION

LESSEE shall have the option to terminate the lease prior to the end
of the term provided that LESSEE pays a penalty of Sixteen
Thousand Philippine Pesos (₱16,000.00).

XX. CONDEMNATION AND EXPROPRIATION

LESSEE shall peacefully deliver the Leased Premises or any portion

thereof to LESSOR if, during the term of this Contract, the
Government, or any of its instrumentalities or political subdivisions,
or any public utility company, expropriates or condemns the same or
any affected portion thereof. LESSEE shall not have any claim or be
entitled to any compensation or indemnity from LESSOR by reason
of such expropriation or condemnation.

XXI. DEFAULT BY LESSOR

If LESSOR fails or neglects to perform any term or condition of this

Contract within Thirty (30) Days after receipt of written notice,

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LESSEE may rescind this Contract and terminate the lease, without
prejudice to any appropriate action that LESSEE may take against
LESSOR as a consequence of the said failure or neglect. LESSOR
shall also return the Security Deposit and any unused Advanced
Rent within Fifteen (15) Days from the termination of the lease.

XXII. DEFAULT BY LESSEE

If LESSEE fails to pay any monetary obligations, including rent,

taxes, etc., or violates any provision of this Contract, LESSEE shall
be given Thirty (30) Days from the due date of the rent or the date
that the violation occurred to pay said monetary obligations or to
cure or remedy said violation otherwise LESSOR shall have the right
to rescind this Contract and terminate the lease.

Default shall automatically take place upon the failure of LESSEE to

pay or to cure or remedy any violation without need of further action
or demand. If no period is given, then within Ten (10) Days from the
receipt of the written notice or demand by LESSEE.

LESSOR shall have the right to rescind this Contract and terminate
the lease if LESSEE is in default and the Security Deposit shall
likewise be forfeited in favor of LESSOR by way of damages, without
prejudice to any other action or right which LESSOR may take
against LESSEE as a consequence of LESSEE's default.

XXIII. NOTICE OF TERMINATION

If one party is in default, the other party may terminate this lease
judicially or extra-judicially. It is sufficient to send a Fifteen (15) Day
written notice of the intention to terminate the lease in order to
terminate the lease extra-judicially, without prejudice to the claims
for any and all damages resulting from such default or termination.

XXIV. RETURN OF LEASED PROPERTY

Upon the termination or expiration of the lease for any cause,

LESSEE shall, without need of demand, immediately vacate and
peacefully and completely surrender the Leased Property to LESSOR
in a good and habitable condition, save for the natural wear and
tear, and devoid of any occupants, furniture, or other articles of any
kind, save for any permanent improvements and fixtures that cannot
be removed without damage to the Leased Premises which shall be

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surrendered in good condition to LESSOR with the Leased Premises
without compensation to LESSEE.

If LESSEE fails to vacate and surrender the Leased Premises upon

the termination or expiration of the lease, for any reason such as but
not limited to default or the end of the lease period, LESSEE hereby
empowers LESSOR and/or LESSOR's authorized representatives, to
open, enter and occupy the Leased Premises and take an inventory
of LESSEE's properties in the presence of a peace officer, barangay
official or notary public. LESSEE also authorizes and empowers
LESSOR and/or LESSOR's authorized representatives to take full
control and possession of the Leased Premises and to remove and
store LESSEE's property or any equipment, furniture, etc. found at
the Leased Premises at LESSEE's cost. If LESSEE or other owners
thereof fail to collect the property, equipment, furniture, etc. and to
settle all liabilities to LESSOR, LESSEE authorizes and empowers
LESSOR to dispose of the same, the proceeds thereof will be applied
to satisfy LESSEE's unpaid obligations under this Contract without
prejudice to any appropriate action which LESSOR may take to
recover any deficiency.

For purposes of this Section, LESSEE hereby constitutes LESSOR

and LESSOR's authorized representatives as LESSEE's attorneys-in-
fact and all actions performed by them in the exercise of their
authority are hereby ratified by LESSEE.

XXV. HOLDOVER

There shall be no implied renewal of the lease if LESSEE retains the

Leased Premises despite the termination of the lease, for any cause.
However, LESSOR shall be entitled to collect the rent for the period
that LESSEE retains the Leased Premises (the "Holdover Period").
Said collection of rent after the termination of the lease of shall not
be construed as evidence of consent for LESSEE to retain the
LEASED PROPERTY nor shall it be proof of an implied renewal of the
lease.

XXVI. RENEWAL OF CONTRACT OR EXTENSION OF LEASE

LESSEE shall notify LESSOR in writing of the desire to renew the

lease at least Ninety (90) Days prior to the expiration of the lease,
provided, however, that mere notification by LESSEE shall not be
deemed as an automatic renewal of the Lease.

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Failure of LESSEE to give the written notice of their intention to
renew the lease within Ninety (90) Days or a failure to agree on
terms and conditions for the renewal or extension of the lease at
least Sixty (60) Days before the end of the Lease entitles LESSOR to
show the Leased Premises to prospective lessees in the manner
provided above and, if proper, to hand a "For Rent" sign on the
Leased Premises.

If the contract is renewed or the lease is extended, the rent for the
extended period will be based on the fair market value. Provided,
however, that the rent cannot be increased or decreased by Five
Thousand Philippine Pesos (₱5,000.00).

XXVII. INDEMNITY REGARDING USE OF PREMISES

LESSEE shall indemnify, hold harmless, and defend LESSOR from

any and all losses, claims, demands, liabilities, and expenses by
LESSEE or third persons for loss of life, injury, loss or damage to
property in connection with LESSEE's possession, use, or misuse of
the Leased Premises and the Property.

LESSEE hereby assumes full responsibility for any damage or injury

to the person or property of third persons while in the LEASED
PROPERTY.

XXVIII. SUBLEASE AND ASSIGNMENT

This Contract shall not be assigned and Leased Premises shall not
be subleased without the written consent of LESSOR.

XXIX. WAIVER

Failure of either party to insist, in one or more instances, the strict

performance of any of the terms of this Contract, or to exercise any
portion herein contained, shall thereafter not be construed as
abandonment or cancellation or waiver of such term. No waiver shall
be deemed to have been made unless expressed in writing and
signed by LESSOR or LESSEE. No waiver of any term or provision of
this Contract shall constitute a waiver of any other term or provision
or of the same provision on a future date.

XXX. NOTICES

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All written notices may be sent by registered mail or personal
delivery. All written notices by LESSOR shall be considered received
on the date of the actual receipt by LESSEE or LESSEE's authorized
representative. If LESSEE or LESSEE's authorized representative
refuse to receive the said written notices or if LESSEE or LESSEE's
authorized representative cannot be found on the Leased Premises,
the written notice shall be considered received by LESSEE on the
date of the posting of the written notice on the main entrance to the
Leased Premises.

XXXI. COUNTERPARTS

This Contract may be executed in counterparts, all of which

constitute a single agreement. If the dates set forth at the
signatures of this document are different, the Contract shall be
considered effective as of the date that both LESSOR and LESSEE
signed the Contract.

XXXII. REPRESENTATION OF LESSEE

LESSEE hereby represents and certifies that LESSEE has read and
fully understood the terms and conditions of this Contract, and that
LESSEE understands and is fully aware of the consequences
resulting from any breach thereof.

XXXIII. SEVERABILITY

The invalidity of any portion of this Contract will not and shall not be
deemed to affect the validity of any other provision. In the event that
any provision of this Contract is held to be invalid, LESSOR and
LESSEE agree that the remaining provisions shall be deemed to be
in full force and effect as if they had been executed subsequent to
the expungement of the invalid provision.

XXXIV. CUMULATIVE RIGHTS

The rights of the Parties under this Lease are cumulative and shall
not be construed as exclusive unless otherwise required by law.

XXXV. SUCCESSORS AND ASSIGNS

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This Contract shall be binding on the successors and assigns of both
Parties.

XXXVI. HEADINGS

Headings are for convenience only and do not affect the

interpretation of this Contract.

XXXVII. ENTIRETY OF AGREEMENT

This Contract represents the entire agreement between LESSOR and

LESSEE and supersedes all prior negotiations, representations,
agreements, either oral or written. This Contract may be amended
only by a written instrument signed and agreed upon by both Parties.

IN WITNESS WHEREOF, the Parties have hereunto affixed their

signatures on the date and place first stated above.

ALFREDO H. FAJARDO
Lessor

JEFFREY BARNESA FACTO

Lessee

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

PROVINCE OF ILOILO )
CITY OR MUNICIPALITY OF PAVIA )S.S.

BEFORE ME, a Notary Public, for and in the CITY OR MUNICIPALITY

OF PAVIA, ILOILO, this _______ day of ________________________, 20______,
personally appeared the following persons:

1. ALFREDO H. FAJARDO, with the following competent proof of

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 identification: Voter's ID with number
30360078AH2862AHF10000-7 which was issued on 2 June 2021

2. JEFFREY B. FACTO, with the following competent proof of

identification: Community Tax Certificate No. “Individual”
CC12021 24828551 which expires on 23 January 2025

all known to me and to me known to be the same persons who

executed the foregoing Contract of Lease constituting of _____12____
pages, including this page where the Acknowledgement is written,
and they acknowledged to me that the same is their free and
voluntary act and deed.

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

Doc No. ________;

Page No. ________;
Book No. ________;
Series of ________.

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