Republic of the Philippines)

City of Calapan ) S.S.

CONTRACT OF LEASE OF COMMERCIAL BUILDING

KNOW ALL MEN BY THESE PRESENTS:

That this Contract of Lease, is made and entered into by and between:

DIOSA A. MAGANDA, of legal age, Filipino, single, and with residence

and postal address at Acacia Street, Brgy. Bulusan, Calapan City, Oriental
Mindoro herein after referred to as the LESSOR;

MARIKIT A. SOLOMON, of legal age, Filipino, single, and with residence

and postal address at Mangosteen Street, Brgy. Suqui, Calapan City, Oriental
Mindoro herein after referred to as the LESSEE;

TERMS AND CONDITIONS

1.PREMISES- LESSOR hereby leases to LESSEE and

LESSEE hereby leases from LESSOR approximately Twenty
(20) square meters more or less of total land area, as is
improvement, situated in Blk. 18, Lot 42, Acacia Village, Brgy.
Bulusan, Calapan City, Oriental Mindoro which shall be referred
to as the “Premises”.

2. USE OF THE PREMISES- The Lease is for the purpose

of operating a commercial or retail business which the
corporation is engaged in. The LESSEE, at his own expense
may put up improvements upon prior consultation and written
approval of the LESSOR within the premises hereby leased for
the purpose of storage, retail, wholesale and commercial in
nature and not for any purpose whatsoever. It is 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 the purposes other than what is stated,
the LESSOR has the option of either terminating the lease or
collecting increased rental as deemed appropriate from the date
of diversion of use of the premises or to compel the LESSEE to
stop the unapproved activity.

3. TERM OF THE LEASE- The term of this Lease Contract

is for a period of Three (3) years, renewable for an unspecified
duration at terms mutually agreeable to both parties,
commencing on March 16, 2024 and ending at midnight of March
17, 2027, In case of pre-termination by the LESSEE, for any
reason whatsoever, the LESSOR has the right to collect any
remaining rentals corresponding to the unexpired portion of
the LEASE period, or until such time a new LESSEE comes.

This LEASE shall not be deemed extended or renewed

beyond the period time above-mentioned for any cause or
reason whatsoever and unless the parties agree in writing to
extend or renew or enter into a new Contract to Lease upon such
terms and conditions acceptable to them, the possession of the
Premises by the LESSEE or any persons claiming rights through
the LESSEE, after the expiration of the term thereof, shall be
illegal.

Any renewal or extension of this Contract must be

expressly agreed upon by the LESSOR and LESSEE in writing
and under no circumstances can such renewal or extension be
considered as having made impliedly.

For this purpose, the LESSEE shall notify the

LESSOR to the latter’s office in writing, of this intent to renew or
extend the Contract at least sixty (60) calendar days prior to the
expiration of the Leased period, or any extension or renewal
thereof, provided, however, that the notice as aforesaid does not
in any way vest unto the LESSEE the right to demand for such
extension or renewal of the Lease Period or any renewal or
extension thereof.

4. RENT- The monthly rental shall be scheduled as

follows, inclusive of the twelve percent (12%) Expanded Value
Added Tax (EVAT) adjustable corresponding to the subsequent
and substantial tax policy changes by the local or national
government, with an escalation of five (5) percent after two (2)
years as illustrated below. All payments must be made only
through cash/check. Without necessity of demand, the
LESSEE shall pay the monthly rental within the first five (5) days
of each calendar month, at the office of the LESSOR.

a) PENALTIES- Payment made after the said date shall

be subject to a penalty charge of 5% per month.

b) WITHOLDING TAX- The LESSEE shall furnish

the LESSOR with the original and two copies of its certificate of
creditable income tax withheld at source BIR Form 2307, not
later than 5 days after the end of each month. Failure to submit
the documents shall authorize the LESSOR to automatically add
amount to the billing.

c) BOUNCING CHECKS- Issuance of checks with no

sufficient funds for three (3) instances shall compel
the LESSEE as having pre terminated the contract and as such
the security deposit shall be considered forfeited in favor of
the LESSOR.

d) NON-PAYMENTS OF RENTS- Failure of

the LESSEE to pay the rentals herein agreed upon for two (2)
consecutive months shall be ground for termination of this
Contract of Lease and upon which the LESSEE obligates itself to
vacate and clear the premises in such tenantable conditions
without need of notice from LESSOR.

5. SECURITY DEPOSIT and ADVANCE- upon signing of

the Contract of Lease, the LESSEE shall make a Three
(3) months deposit and Three (3) month advance rental in the
total amount of Eight Thousand
Pesos (Php 8,000.00) Philippine Currency for the full and
faithful performance of each and every term, provision, covenant,
and condition of this lease, except that said deposit shall not
constitute or substitute payment of any rent.

The deposit, which is non-interest bearing, shall remain

intact during the entire term of this lease and shall not be applied
as payment for any monetary obligations of the LESSEE under
this contract, and shall be refunded to the LESSEE upon
completion of the lease.
 a) The amount deposited shall answer for any unpaid
accounts of the LESSEE at the expiration of the contract as well
as for any damages which the LESSOR or any of its employees,
agents or guests might suffer by reason of the wrongful acts or
actuation, negligence, and or malfeasance of the LESSEE. It
shall not be applied to pay for the last months of occupancy of
the premises.

b) Any unappropriated amount of such deposit shall be

refundable to the LESSEE within sixty (60) days from the
termination of the contract.

c) In the event that the LESSEE terminates its contract

before its term expires, the deposit shall be deemed forfeited and
refundable, regardless of the reason for its pre-termination and
whether a sixty-day notice was given or not.

6. SUBLEASE AND OR TRANSFER OF RIGHTS-

The LESSEE shall not directly or indirectly assign, sublease, sell,
transfer, convey, mortgage, demolish or in any manner dispose
of or encumber its right under the contract in whole or in part or
any interest thereto be conferred on anyone.

7. RIGHT TO INSPECT LEASED PREMISES-

The LESSOR or its authorized agent shall, by previous notice to
the LESSEE, have the right to enter the leased premises at any
reasonable hour of the day to examine the leased premises.

8. CARE OF THE LEASED PREMISES-

The LESSEE shall examine the Leased Premises before taking
possession thereof, and LESSEE’s entry into possession shall
constitute conclusive evidence or admission by the LESSEE that
as of the date thereof, the said Premises were in good order and
satisfactory tenantable condition. The LESSEE hereby binds
itself to keep and maintain the same in such condition as a
prudent person shall do under the circumstances, ordinary wear
and tear expected. The LESSEE shall at its own expense,
improve and maintain the Leased Premises clean and free from
rubbish and dirt at all times, store all trash and garbage in proper
containers and not burn any trash and garbage in or about the
Leased Premises or anywhere within the Premises.

9. SECURITY & SANITATION- The LESSOR shall

ensure the security of the premises and provide a security guard
for the whole commercial establishment where the leased
premises are located. The LESSOR must also ensure regular
collection of garbage through the barangay garbage collector or
any private entity which shall be to the account of LESSOR.
The LESSOR also agrees to make the septic tank of the leased
premises bigger in order to accommodate more waste volume in
anticipation of more customers using the toilet.

10. INSURANCE TAKEN BY THE LESSEE- The LESSEE

shall be required to insure at his own account any LESSOR
approved permanent structure or structures constructed within
the premises with the LESSOR as co-benefactor against fire or
total loss of property. The LESSEE although not required, is also
allowed and authorized to insure its own property taken inside
the leased premises, provided that the LESSOR shall be notified
in advance of any and all kinds of insurance over the property
therein.
 11. BUSINESS PERMITS, TAXES, AND COMPLIANCE
AND GOVERNMENT REGULATIONS- The LESSEE shall be
responsible for securing all the necessary governments permits
and licenses for the operation of its business and all costs
thereof shall be its sole account. Copies of the said permits and
licenses or any renewal date thereof shall be furnished to
the LESSOR not later than fifteen (15) days from the start of
the LESSEE’s business and every renewal date thereof as
required by law.

12. INTRODUCTION OF PERMANENT

IMPROVEMENTS- No permanent or fixed improvements shall be
introduced by the LESSEE on the leased premises unless with
prior written consent and approval of the LESSOR. Any such
permanent structures, if approved and allowed, shall be upon the
option of the LESSOR registered under the co-ownership of
both LESSEE and LESSOR. Furthermore, the LESSEE shall
bear the full cost of the annual real estate taxes of such
structures until expiry of lease contract and full cost of transfer of
ownership to LESSOR upon termination of contract;

13. UTILITIES AND SERVICES- The LESSEE shall be

responsible for the installation and maintenance costs of its
own electric current, telephone, water, security and other
utility services in the Leased Premises for the duration of the
lease. The LESSEE shall also clear all accounts with all
concerned utility companies upon pre-termination or expiration of
contract.

14. REVISION OF LEASE CONTRACT- Both parties may

revise this lease contract after six (6) months to one (1) year in
the event that LESSEE assigns the business with a newly-
registered business name.

IN WITNESSS WHEREOF, we have hereunto set our hands this 15th day of
March 2024 in the City of Calapan, Philippines.

DIOSA A. MAGANDA MARIKIT A. SOLOMON

LESSOR LESSEE

SIGNED IN THE PRESENCE OF:

JOY T SEGUROS BLOSSOM T. PADRILAN

Witness Witness

ACKNOWLEDGMENT

Republic of the Philippines)

City of Calapan ) S.S.
 BEFORE ME, a Notary Public, for and in the City of Calapan, this 16th
day of March 2024 personally appeared:

Name Identification Card Issued On/At

DIOSA A. MAGANDA Driver’s License 02/01/2020, Calapan City
MARIKIT A. SOLOMON Driver’s License 02/01/2022, Calapan City
JOY T. SEGUROS Driver’s License 02/01/2023, Calapan City
BLOSSOM T. PADRILAN Driver’s License 02/01/2023, Calapan City

all known to me to be the same persons who executed the foregoing instrument
and hereby acknowledged to me that the same is their free and voluntary act and
deed. This instrument consisting of five (5) pages, including this page on which
this acknowledgment is written refers to CONTRACT OF LEASE OF
COMMERCIAL BUILDING and has been signed by the parties and their
witnesses and sealed with my notarial seal.

WITNESS MY HAND AND NOTARIAL SEAL on the date and place

above written.

NOTARY PUBLIC

Doc. No. ____;

Page No. ____;
Book No. ____;
Series of 2024.