CONTRACT OF LEASE

This CONTRACT OF LEASE, “this Contract” made and entered at Makati City
on this ____ day of __________ 2019 by and between:

Lyceum of the Philippines University – Batangas, Inc.

a corporation duly organized and existing under and by
virtue of Philippine laws, with principal office at Capitol
Site, Batangas City, represented herein by its President,
Peter P. Laurel and Treasurer, Josefina P. Laurel and
hereafter referred to as “LESSOR”;

and

Meyer’s Food and Services, Inc., a corporation duly

organized and existing under and by virtue of Philippine
laws, with principal office at 99 Dapitan Street corner Biak
na Bato, Brgy. Sto. Domingo, Quezon City, represented
herein by its President, Flordeliza A. Vasquez hereinafter
referred to as “LESSEE”.

WITNESSETH: that

For and in consideration of the mutual stipulations and covenants herein, the
LESSEE accepts under lease, those portions of the premises known as the:

a) Lyceum of the Philippines University Student Canteen located at the

lower ground floor of the Sotero H. Laurel Building, LPU-Batangas,
Inc., Capitol Site, Batangas City

together with the equipment, furniture, fixtures, and installations, lightings, etc. listed in
Annex “A” which forms part of this Contract under the following terms and conditions:

1. LEASE TERM

Subject to the receipt of the deposits and bond mentioned in provision # 4 and all
required PDCs mentioned in provision # 5, this Contract shall be for a period of one year
beginning on September 1, 2019 and ending on August 31, 2020 unless sooner
terminated as provided herein. Said term shall be renewable at the option of LESSOR.

2. HOLDING OVER

Should LESSEE continue in possession of the leased premises after the end of
the term herein agreed to with the permission of the LESSOR, it is agreed that the
occupancy thus created shall be on a month to month basis which may be terminated by
either party giving the other party not less than thirty (30) days written notice from the
first day of the month in which the vacancy is to occur. In so continuing such occupancy,
the remaining terms and conditions of this lease shall continue in force and shall govern
such occupancy provided, however, LESSOR reserves the right to renegotiate new
terms and conditions; and provided, further, that a notice of any change by LESSOR in
any terms and conditions of this lease shall constitute a notice to vacate the premises,
and such notice of change shall be given in accordance with the terms of this lease.

3. NOTICE FOR PRE-TERMINATION

Should the LESSEE voluntarily give up the leased premises, a three- month prior
written notice must be received by the LESSOR. In the event the lease is given up by
the LESSEE, it shall forfeit the entire security deposits, as provided in No. 4 herein,
without prejudice to the right of LESSOR to recover any and all damages, actual or
consequential, for which the LESSEE shall be liable to the LESSOR.

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4. REFUNDABLE SECURITY DEPOSIT/PERFORMANCE BOND

Upon the signing of this Contract, without necessity for a demand, the LESSEE
shall deposit with the LESSOR an amount equivalent to two and a half (2½) months
rental or ________________________________Pesos (P_________) as security
deposit covered by Check No. ________ dated __________. This deposit shall be
applied, upon the termination of this Contract, for any cause whatsoever, against any
unpaid rental, CUSA, electricity, water, permits, other utilities and any damage to
Lessor’s property, all of which are for account of the LESSEE, charges or other
obligations which the LESSEE may owe to the LESSOR; provided, however, that should
the termination of the Contract be due to the fault of the LESSEE, any balance of deposit
remaining after such applications shall be forfeited to the LESSOR, without prejudice to
the right of the LESSOR to recover any and all damages, actual or consequential, for
which the LESSEE may be liable to the LESSOR.

LESSEE likewise agrees to post a Construction Bond amounting to

___________________Pesos (P_______) equivalent to ½ month rental payable prior to
the start of the construction to answer for all violations or non-compliance of any
guidelines, requirements and deviations from the approved plans. This bond is covered
by Check No. __________ payable to Lyceum of the Philippines University-Batangas,
Inc. dated ______________ which is carried over from last year’s contract and shall be
refunded at the end of the contract.

LESSEE shall also be required to post a Performance Bond to be secured

through the Owner’s Insurance Agency, Infinity Insurance Agency with coverage
equivalent to TWO MILLION PESOS (P2,000,000.00) and shall remain and continue in
full force and effect throughout the duration of the contract.

Any deficiencies should be corrected within thirty (30) days from start of
operations. Failure to correct the deficiencies will result in the forfeiture of the
performance bond in favor of the LESSOR. Correction of any deficiencies shall then be
undertaken by the LESSOR at LESSEE’s account.

5. RENTAL, COMMON UTILITIES SERVICE AREA (CUSA), ELECTRICAL AND

WATER CHARGES

5.1 RENTAL

The LESSEE shall issue to the LESSOR, postdated checks payable to Lyceum of
the Philippines University – Batangas, Inc., covering monthly rental, as follows:

Monthly Rental Name of Bank /

Period Check No Check Date Amount
Sept., 2019 160,000.00
Oct., 2019 160,000.00
Nov., 2019 160,000.00
Dec., 2019 160,000.00
Jan., 2020 160,000.00
Feb., 2020 160,000.00
March, 2020 160,000.00
April, 2020 160,000.00
May, 2020 160,000.00
June, 2020 160,000.00
July, 2020 160,000.00
Aug, 2020 160,000.00
Total
All rates are inclusive of 12% VAT.

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5.2 CUSA (COMMON UTILITIES FOR SERVICE AREAS)

LESSEE shall likewise issue to the LESSOR, postdated checks payable to

Lyceum of the Philippines University-Batangas, Inc. covering CUSA as follows:
Name of Bank /
Monthly Rental Check No Check Date Amount
Period

Sept., 2019 5,000.00

Oct., 2019 5,000.00
Nov., 2019 5,000.00
Dec., 2019 5,000.00
Jan., 2020 5,000.00
Feb., 2020 5,000.00
March, 2020 5,000.00
April, 2020 5,000.00
May, 2020 5,000.00
June, 2020 5,000.00
July, 2020 5,000.00
Aug, 2020 5,000.00
Total 60,000.00

This CUSA charges shall cover janitorial services outside the perimeter area of
the canteen, use of tables, chairs and kitchen equipment and fixtures, which are being
lent to the LESSEE by the LESSOR.

5.3 Electrical/Water

The charges for utilities such as electrical and water bills shall be covered by
PDCs payable to Lyceum of the Philippines University – Batangas, Inc., based on
estimated monthly consumption.
Name of Bank /
Monthly Rental Check No Check Date Amount
Period

Sept., 2019 25,000.00

Oct., 2019 25,000.00
Nov., 2019 25,000.00
Dec., 2019 25,000.00
Jan., 2020 25,000.00
Feb., 2020 25,000.00
March, 2020 25,000.00
April, 2020 25,000.00
May, 2020 25,000.00
June, 2020 25,000.00
July, 2020 25,000.00
Aug, 2020 25,000.00
Total 300,000.00

At the end of the contract, any difference between the actual charges and the
amount written in the PDC shall be paid by the LESSEE to LESSOR within ten (10) days
of billing by the LESSOR or LESSEE will have to pay a penalty of one percent (1%)
compounded per day of delay.

6. SCHEDULE OF PAYMENTS

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 Monthly rental, CUSA, electrical, water and all other charges for utilities for the
account of the LESSEE shall be paid in advance either in cash or by PDCs as stated in
provision # 5.

7. INTEREST ON RENT

In case any of the post dated checks issued by the LESSEE is dishonored for
whatever reason, the amount of rent owing shall bear interest at the rate of ONE
PERCENT (1%) compounded per day of delay, computed daily from the date of default
until fully paid without prejudice to the right of the LESSOR to terminate this Contract
immediately and to recover all damages incurred by termination of Contract including
deficiency in rent between the period of unoccupancy and period of reletting.

8. ADJUSTMENT IN RENT

The LESSOR reserves the right to revise and adjust the rent herein agreed upon
every year thereafter, at an annual escalation equivalent to 10%-15% of the rent agreed
upon, taking into consideration increases in operating expenses, including cost of labor,
utilities taxes and insurance, as well as any abrupt increase in the inflation rate or
substantial change in the official dollar/peso exchange rate, or in case of a change in the
assessment of the land on which the student center is erected, or in the event of the levy
of a special assessment on the property.

9. USE OF PREMISES

The leased premises shall be used exclusively by the LESSEE in connection with
the operation of its cafeteria/canteen business and shall not be diverted to any other
use.

10 SCOPE OF ALLOWABLE BUSINESS

The operation of the school cafeteria is limited to selling and serving prepared
meals, food items, snacks, candies, and other edibles. The LESSEE may only sell and
serve any non-alcoholic beverages authorized by PEPSI as well as, hot coffee and tea,
provided, however, that goodwill payment and any other incentives of PEPSI shall be for
the account of the LESSOR. Further, the LESSEE shall submit to the LESSOR monthly
summary of delivery receipts/sales invoices as proof of purchases from PEPSI. The
LESSEE shall not sell any non-edible or dry good items, such as but not limited to toys,
school supplies, uniforms and other dry goods.

11. AREA LIMITATION

The LESSEE shall operate the cafeteria only within the leased premises. The
LESSEE shall not establish or set up stalls or branches elsewhere within the school’s
environs and surroundings.

12. SUBLEASE

The LESSEE shall have the right to sublease or sublet any part of the leased
premises allocated for kiosks operations to kiosk operators of its choice subject to the
prior approval of the LESSOR.

13. INSURANCE

The LESSEE shall obtain and maintain at all times insurance for the leased
premises against fire, earthquakes and other natural calamities, with the LESSOR as the
designated beneficiary. A designation in the policy of a beneficiary other than the
LESSOR is null and void.

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14. ALTERATIONS, ADDITIONS, OR IMPROVEMENTS

The LESSEE shall not make any alterations or improvements on the leased
premises without first obtaining, in each case, the written approval of the LESSOR of the
LESSEE’s plan and specifications. Upon such approval being obtained, such alterations,
additions, or improvements shall be undertaken by the LESSOR or by Contractors,
and/or workmen of the LESSEE satisfactory to and approved in writing by the LESSOR,
and shall be for the account of the LESSEE, subject to the final approval in writing of the
LESSOR upon completion.

All such alterations, additions, and improvements, except movable furniture,

equipment and effects put in at the expense of the LESSEE and removable without
defacing, damaging, or injuring the leased premises, shall at once become the property
of the LESSOR and shall remain upon and be surrendered with the premises as part
thereof at the termination of this Contract without compensation to the LESSEE.
However, the LESSOR may, at its option require their removal and restoration of the
affected areas to its original state at the expense of the LESSEE.

15. JANITORIAL

The LESSEE shall be responsible for the cleanliness of the leased premises and
its immediate surrounding areas.

16. HEALTH AND SANITATION POLICY

All cafeteria personnel shall be required to undergo annual medical and dental
examination and they shall observe the rule of the strict sanitation. Prompt collection and
daily disposal of the cafeteria’s garbage shall also be insured by the LESSEE.

17. CARE OF PREMISES

The LESSEE shall, at its expense, keep and maintain the leased premises and
surrounding areas in clean, sanitary, and orderly condition. This includes the semi-
annual siphoning and de-clogging of the grease tank as well as the cleaning and
maintenance of the drainage used by the Lessee. Should the LESSEE fail, for any
reason whatsoever, to keep the leased premises in such condition, the LESSOR may, at
its option, undertake the cleaning and maintenance for the account of the LESSEE,
without prejudice to the right of the LESSOR to terminate this Contract.

18. GOVERNMENT RULES AND REGULATIONS

The LESSEE shall comply with all the rules, regulations, ordinances, and laws
which may be promulgated by any government authority and all rules and regulations
which, from time to time, may be issued by the LESSOR, regarding the use, occupancy
and sanitation of the premises.

The LESSEE agrees to hold the LESSOR free and harmless from all actions,
suits, damages and claims, which maybe brought by reason of the non-observance of
the LESSEE of such rules, regulations, ordinances, or laws, or negligence of the
LESSEE in the conduct of its business.

19. ACCESS TO LEASED PREMISES

The LESSOR or its agents shall have the right to enter the leased premises, at
any time, to inspect the same, to make repairs, alterations, or improvements which it
may deem necessary for the proper operation and maintenance of the premises. The
LESSOR or its agents may enter leased premises without consent of the LESSEE in
case of emergency.

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20. INJURY TO THIRD PERSONS

The LESSEE assumes full responsibility for any damage or injury which may be
caused by the person or property of its employees, agents, clients, or third persons while
remaining either casually or on business in any part of the leased premises, and further
binds itself to hold the LESSOR free and harmless from any claim for such injury, death
or damage. The LESSEE shall procure adequate third party liability insurance for this
purpose. Insured amount shall be designated by the LESSOR.

21. NON-LIABILITY OF LESSOR

The LESSOR shall not be responsible:

(a) For the presence of bugs, vermins, ants, anay, and other insects, if any in
the leased premises;
(b) For the failure of water supply and/or electric current;
(c) For any disruption or interruption of other services or facilities due to
accidents, strikes, repairs, alterations or improvements, inability to secure labor
supplies, or any other cause beyond the reasonable control of the LESSOR;
(d) For any damage done or occasioned by, or arising from plumbing, gas,
water, or other pipes, or the bursting, leaking, or destruction of any cistern, tank wash
stand, water closet, or water pipe in, above, upon or about the leased premises;
(e) For any inquiry, loss or damage which the LESSEE its agents or employees
might suffer in the premises due to any cause whatsoever;
(f) For any disturbance or discontinuance of the possession of the leased
premises by the LESSEE due to causes beyond its control.

22. CUSTOMER COMPLAINT

Valid customer complaint must be addressed to and acted upon by the LESSEE
within 2 days upon receipt of such complaint if it can be easily corrected within the
normal course of business and seven (7) days if it is a major one and needs longer time
to correct. Unattended valid customer complaints and unfavorable result of survey on
customer satisfaction measurement may result to immediate pre-termination of this
contract or non-renewable of the contract for the following contract period.

23. BREACH OF CONTRACT

In the event of violation by the LESSEE of any of the forgoing terms and
conditions, and in particular the payment of rentals on due date LESSEE hereby
authorizes LESSOR to terminate this Contract without need of judicial proceedings and
to immediately repossess the leased premises.

24. RETURN OF PREMISES

Upon termination of this Contract, whether by reason of the expiration of the term
or any breach or default of the LESSEE, the LESSEE shall without delay, return and
surrender the leased premises and in as good and tenantable condition as they were at
the beginning of the lease, ordinary wear and tear excepted, devoid of all occupants,
furniture, articles and effects of any kind other than such alterations, additions, and
improvements as the LESSOR may elect to take.

25. FAILURE TO RETURN

If the leased premises together with the furnishings listed in Annex “A” are not
returned at the termination of the lease, the LESSEE shall be responsible to the
LESSOR for all damage which the LESSOR may suffer by reason thereof, and shall
indemnify the LESSOR against any and all claims which may be made by any
succeeding lessee against the LESSOR arising from delay in delivering possession of
the premises by the LESSOR to such succeeding LESSEE.

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26. NON-WAIVER

The failure of the LESSOR to insist upon a strict performance of any of the terms,
conditions and covenants of this Contract shall not be deemed a relinquishment or
waiver of any rights or remedy that the LESSOR may have, nor shall it be construed as
a waiver of any subsequent breach or default of the terms, conditions and covenants,
hereof. No waiver by the LESSOR or any of its rights under this Contract shall be
deemed to have been made unless in writing and signed by the proper officer of the
LESSOR.

27. LICENSES

Obtaining the necessary government licenses and permits shall be the

responsibility of the LESSEE, and the LESSOR does not warrant that they may be
obtained.

IN WITNESS WHEREOF, the parties hereto affixed their hands and seals; and
the LESSOR has caused this instrument to be duly executed in this _____ day of
___________ , 2019 at the City of Makati, Philippines.

LYCEUM OF THE PHILIPPINES MEYER’S FOOD AND SERVICES,

INC.
UNIVERSITY – BATANGAS, INC.

BY:

PETER P. LAUREL FLORDELIZA A. VASQUEZ

President President

JOSEFINA P. LAUREL
Treasurer

SIGNED IN THE PRESENCE OF:

_________________________ __________________________

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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF MAKATI ) S.S

BEFORE ME, a Notary Public for and in the City of Makati personally appeared:

Name Reference / ID No.

PETER P. LAUREL 03-4695382-4

JOSEFINA P. LAUREL 03-2582347-0
FLORDELIZA A. VASQUEZ EC

known to me to be the same persons who executed the foregoing instrument, referring
to a CONTRACT OF LEASE, consisting of Eight (8) pages including the page upon
which this acknowledgment is written, signed by the parties and their instrumental
witnesses and they acknowledged to me that they executed the same on their own free
and voluntary act and deed and that they are duly authorized to sign the same.

WITNESS MY HAND AND SEAL.

NOTARY PUBLIC

Doc. No.
Page No.
Book No.
Series of 2019.