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KNOW ALL MEN BY THESE PRESENTS: This Contract of Lease, made and entered into this day of AUGUST 01, 2008 at Balanga City, Philippines by and between: MR. CHARLIE F. MELANO herein referred to as the LESSOR. And MARIA ANGELICA C. ESCUDERO, Filipino of legal age, with postal address, Hillbross st. Kapihan subd.Cupang, Balanga city, Bataan, herein referred to as the LESSEE. WITNESSETH THAT: Whereas, the Lessor is the owner of the premises known and located at No. 1 Lerma cor. Banzon Street, IBayo, Balanga City. Now therefore, for and in consideration of the foregoing and the mutual covenants therein contained, the Lessor has let and by these presents does hereby let and lease unto the lessee the Leased Premises, and the Lessee hereby accepts the same by way of lease subject to the following terms and conditions: 1. LEASE PERIOD This lease shall be for a period of one Year to commence on the 1st day of AUGUST 2008 to 30th day of july 2009, renewable at the option of the Lessee under such terms and conditions as may be mutually agreed upon by the Parties hereto. In case the Lessee intends to renew this Contract, it shall notify in writing the Lessor of its intention to extend within Three (3) months before the expiration of the Lease Period. 2. RENTAL The parties agree that the Monthly Rental of the Leased Premises shall be EIGHT THOUSAND FIVE HUNDRED (Ph8,500.00), Net of Five Percent (5%) Withholding Tax and Ten Percent (10%) Value Added Tax, due and payable on or before 5th day of each Month; the 5% Withholding Tax and the 10% VAT imposed on this Lease shall be paid by the Lessee directly to the Bureau of Internal Revenue. Lessed area located beside SMART/PLDT, approx 10SQM. The amount of said rent shall be subject to an Annual Increase of Ten Percent (10%) which shall commence on 1ST day of AUGUST 2009, upon renewal of contract and for the succeeding years. Consequently, the Lessee agrees to upgrade its SECURITY DEPOSIT and ADVANCE RENTALS for the aforementioned years of the Lease. The Monthly rental shall be paid for One (1) Year to be covered by Twelve (12) Monthly Post Dated Checks (PDC) of the Agreed Amount of Rental. 3. DEPOSIT Upon signing of this Contract, the Lessee agrees to deliver the amount of forty two thousand five hundred pesos (Php 42,500.00) Philippine Currency in favor of the Lessor equivalent to TWO MONTHS ADVANCE RENTAL (AUGUST and SEPTEMBER) and three months as Security Deposit. The security Deposit shall be use as rental, three months prior the expiration of the contract, without interest, less Payment, if any, for unpaid bills, damages to the Leased Premises not attributed to natural wear and tear, and other additional charges, penalties and obligations as provided in this contract. If incase the lessee pre terminate the contract, the security deposit equivalent to three months shall be considered forfeited and waived. 1

4. UTILITY CHARGES All expenses of water, electricity, telephone and other services of utilities shall be for the account of the Lessee. 5. USE AND CARE OF LEASED PREMISES The lease premises shall be used for rtw, accessories, food snack AND SALES OR ALIKE and for no other purpose without the consent of the Lessor. The Lessee shall be responsible at all tines for all acts done by its agents or employees and other persons entering the Leased Premises insofar as the enforcement of the provisions of this Contract is concerned. Any damage or injury to the Leased Premises due to the fault of the Lessee, its agents, employees and or the other Third Persons who may have gained access to the Leased Premises shall be repaired promptly by the Lessee at its exclusive expense. The Lessor, however, shall not be responsible for any loss or damage which the Lessee may sustain in the premises, due to any cause whatsoever. The Lessee may not assign of sublease the premises. The Lessee hereby expressly recognizes the Absolute Right of the Lessor to sell the Leased Premises, and in the event of the sale, the Lessor shall be under the obligation to honor the terms and conditions of this Contract. 6. WARRANTY Lessor represents and warrants that it will keep the Lessee in peaceful and quiet possession of the Leased Premises. 7. IMPROVEMENTS The Lessee shall not make any changes, alterations or improvements in the Leased Premises without the consent of the Lessor; and any such alterations or improvements made or introduced by the Lessee in the Leased Premises with the consent of the Lessor shall be upon the termination of this Contract, automatically form part of the Leased Premises, and become property of the Lessor without any obligation on the Lessor to pay or refund its value or costs to the Lessee. Movable properties installed or placed by the Lessee in the Leased Premises shall belong to the Lessee and shall be removed there from upon the expiration or termination of the Lease Contract. 8. SANITATION AND REPAIRS The Lessee shall keep the Leased Premises clean and in sanitary condition. The Lessee shall inspect and maintain the Leased Premises in good and tenantable condition. The Lessee shall comply with any and all laws, ordinances, 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 said laws, ordinances, regulations or orders shall be at the exclusive risk and expense of the Lessee. 9. THIRD PARTY LIABILITY The Lessee during its occupancy of the leased premises, shall hold the Lessor free and harmless from the damage to person or property arising out of or as a consequence of the of the Leased Premises by the Lessee, its agents, employees, visitors and guest; when such damages or liability is caused by fortuitous events or acts of God such as typhoon, earthquake, flood, etc. which are beyond the control of the Lessee, the latter shall not be held liable to the Lessor. 10. ABANDONMENT Should the Lessee, abandon the Leased Premises during the existence of this contract, then, the, Lessor is given the right break open the Leased Premises and take possession of the same. The advances rentals and security deposits shall be forfeited in favor of the Lessor by way of liquidated damages. 11. TERMINATION OF THE CONTRACT Either party may upon violation of any terms and conditions of this Contract, terminate the same upon notice of the aggrieved party to the offending party without prejudice to the legal. Remedies that the aggrieved party may avail under the circumstances; provided, however, the Lessee may terminate this Contract at anytime upon sixty (60) days prior written notice to the Lessor of its intention to do so.

12. RETURN OF PREMISES Upon the termination of this contract for any reason whatsoever, the Lessee shall immediately vacate the Leased Premises and return possession thereof to the Lessor without the need of demand, unless this contract of lease is extended. 13. NON WAIVER The failure of the Lessor to insist upon a strict performance of any of the terms, conditions and covenants hereof shall not be deemed a relinquishment or waiver of any right or remedy that said Lessor may have, nor shall it be construed as a waiver of any subsequent breach or default of the terms, conditions, and covenants herein contained, which shall be deemed in full force and effect. No waiver by the Lessor shall be deemed to have been made unless expressed in writing and signed by the Lessor. 14. PENAL PROVISIONS Any violation of the terms provided for in this contract on part of the Lessee of Lessor shall be sufficient ground for the termination of this Contract of Lease by the aggrieved party. The Lessee agrees that if default or breach be made of any such covenants and conditions herein contained, the Lessor shall have the right or option to terminate and cancel this Contract of Lease and to take possession of the premises immediately, without need of any court order if it be shown that the breach was on the part of the Lessee. Likewise should be default or breach be on the part of the Lessor, the Lessee shall be immediately refunded the unused portion of the advanced rentals and security deposit without need of any court order. The Lessee shall be given ample time to remove and collect all of their personal belongings from the Leased Premises. IN WITNESS WHEREOF, I have hereunto set my hand this _______ day of ____________________, 2008 at the City of __________________________________.

__________________________ CHARLIE F. MELANO LESSOR Signed in the presence of: _____________________________

________________________ MARIA ANGELICA C. ESCUDERO LESSEE


ACKNOWLEDGMENT Republic of the Philippines) City of _______________)S.S. Before me, a Notary Public for in the City __________________ this _______ day of _________________________, 2008 personally appeared Mr. Charlie F. Melano with community tax certificate number __________________________ and Mr. Raymund Raceno with community tax number ________________ issued at _________________________ on __________________________. Known to and to me to be the same persons who executed the foregoing instrument and they acknowledged to me that the same is their free and voluntary act and deed and that of the entity and persons they and persons they respectively represent. Witness by my hand and seal at the place and on the date first above written.


Doc No. _________ Page No. _________ Book No. ________ Series of 2008.