CONTRACT OF LEASE

KNOW ALL MENT BY THESE PRESENTS

This Contract of Lease made and entered into, by the following:

XYZ Suites represented by its Proprietor, ABC, Filipino, single, and a resident of
Ruste Drive, Sta. Maria, Zamboanga City, hereinafter referred to as the “LESSOR”;

-and-

123, registered proprietor of 456 Marketing with principal office address at City of
General Santos (Dadiangas), South Cotabato, Region XII (SOCCSKSARGEN) and
business branch office at Sta. Maria, Zamboanga City represented by its proprietor,
890, hereinafter referred as the “LESSEE”;

WITNESSETH:

WHEREAS, the LESSOR is the owner of three (3) storey residential building covered and
embraced under Tax Declaration No. _____________________________ with a total floor area of
ONE SEVENTY SEVEN HUNDRED and SIXTY THREE SQUARE METERS (177.63 sqm)
consisting of 2 townhouses- Townhouse A, consisting an area of ONE HUNDRED EIGHT
and 78/100 SQUARE METERS (108.78 sqm); and Townhouse B, consisting an area of
SIXTY EIGHT and 85/100 SQUARE METERS (68.85 sqm), a kitchen with maids quarter
with a floor area of TWENTY TWO and 7/100 SQUARE METERS (22.7), and parking area
with a floor area of FOURTEEN and 4/100 SQUARE METERS (14.4 sqm) situated at Sta.
Maria, Zamboanga City;

WHEREAS, the LESSOR agreed to lease-out the abovementioned property,

particularly UNIT 2 and one (1) parking area, described as follows-

UNIT 2, consisting an area of TWNETY FIVE (25 SQM) SQUARE METERS; and (2)
PARKING AREA good for one (1) vehicle to the LESSEE and the LESSEE is willing to lease
the same and the same is being referred to herein as “LEASED PREMISES”;

NOW THEREFORE, for and in consideration of the above premises, the parties have
mutually agreed as follows:

1) OBJECT OF THE LEASE:

The LESSOR hereby offers unto the LESSEE to lease the foregoing LEASED PREMISES, and
the latter hereby accepts. Further details of the LEASED PREMISES are indicated below:

(1) UNIT 2, consisting an area of TWENTY FIVE SQUARE METERS (25 sqm) and
(2) PARKING AREA good for one (1) vehicle to the LESSEE

Moreover, the LEASED PREMISES also has the following inclusions: a.) .75 Hp brand
new Panasonic air conditioner; and b.) brand new wooden double bed;

2) MONTHLY RENTAL:

The LESSEE shall pay the LESSOR a monthly rental in the amount FIFTEEN THOUSAND
PESOS (Php 15,000), exclusive of Percentage Tax and withholding tax and shall be increased
every year with a five percent (5%) increase of the prevailing monthly rental rate. Should
the LESSEE use or lease the abovementioned property on a daily basis, the rental fee shall
be computed on a pro rata basis;

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3) TERMS

This Contract shall be for a term of One (1) Year commencing on January 27, 2020 and
expiring on January 27, 2021.

4) DEPOSIT AND ADVANCE RENTAL:

Within thirty (30) days from signing of this Contract of Lease, the LESSEE shall pay to the
LESSOR the amount of ONE HUNDRED EIGHTY THOUSAND PESOS (Php 180,000.00) in
Philippine currency, exclusive of Percentage Tax and Witholding Tax, representing one (year)
advance rental payment. In addition thereto, the LESSEE shall also pay to the LESSOR three (3)
months’ worth of monthly rental as Security Deposit amounting to FORTY FIVE THOUSAND
PESOS (Php45,000.00). An Official Receipt shall be issued for the Advance Rentals, while an
Acknowledgment Receipt shall be issued for the Security Deposit.

MONTHLY RENTAL FEE (Exclusive of Percentage Tax and

Witholding Tax) Php 15,000

12 MONTHS ADVANCE RENTAL Php 180,000

3 MONTHS SECURITY DEPOSIT Php 45,000
TOTAL 225,000

The Security Deposit shall be returned at the termination or end of this contract, less
whatever amount might be owed to the LESSOR and/or for the unpaid electricity bill, water bill,
cable, telephone line, internet connection, and other utilities. However, for those unpaid bills that
the LESSOR needs to deduct from the Security Deposit, the LESSOR agrees to provide an Official
Receipt to justify the deduction.

The Security Deposit is separate and independent of the monthly rental of which the
LESSEE is obliged to pay the LESSOR in accordance with terms of this contract. The security
deposit shall never be applied to unpaid rentals. Thus, failure of the LESSEE to pay any rental as
they fall due shall constitute default or breach of this contract.

5) USE OF THE PREMISES:

The LEASED PREMISES shall be exclusively for purpose in consonance with business of the
LESSEE, as stated in its Articles of Incorporation. The LESSEE shall not use the LEASED PREMISES
for any other purpose without prior written consent from the LESSOR, it being expressly agreed
that if any time during the existence of this lease and without previous consent of the LESSOR, the
said premises are used for other purposes or illegal purposes, the LESSOR is entitled to terminate
the Contract.

The LESSEE also undertakes to abide by the house rules imposed by the LESSOR for the
preservation and maintenance of the LEASED PREMISES.

6) PROHIBITION AGAINST SUB-LEASING:

The LESSEE shall not directly or indirectly sub-lease the LEASED PREMISES or any portion
thereof without the written approval of the authorized representative of the LESSOR. Any such
contract made in violation of this clause shall be null and void and be deemed to be gross violation
of this Contract. It is expressly understood and agreed by the parties that the personal character of
the LESSEE and conditions on the LEASED PREMISES as above the restricted and constituted are
the special consideration for granting of this lease by the LESSOR, consequently, any violation
directly and unequivocally terminates this contract of lease from the time such violation occur.

7) ALTERATION, ADDITION AND IMPROVEMENTS, ETC.:

The LESSEE shall not make any alterations, improvements or additions on the LEASED
PREMISES without the prior written consent of the LESSOR. All such alteration, improvements or
addition made and with the LESSOR’S written consent, shall be at the LESSEE’S expenses, and upon
the termination of the lease, shall belong to the LESSOR therefore, unless the LESSOR elects to
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compel the LESSEE to remove them forthwith, in which event the LESSEE shall undertake such
removal at his own expenses, restoring the premises in the same condition in which it was received
from the LESSOR.

8) CARE OF THE LEASED PREMISES:

The LESSEE acknowledges that prior to the commencement of this Contract, the LESSEE
has inspected the LEASED PREMISES and is satisfied that it is in good and tenantable condition.
The LESSEE shall, at his expenses, maintain the LEASED PREMISES in a clean and sanitary
condition, free from noxious odors, disturbing noises, or other nuisances and upon expiration of
lease, shall surrender and return the premises and fixtures in as good conditions as they were
actually found at the beginning of this lease, ordinary wear and tear expected.

The LESSEE shall not drive nails, screw, hooks or other abutments on the walls frames or
portfolio neither of the building nor in any manner deface or damage caused or done by the LESSEE
may be repaired by the LESSOR for the account of the LESSEE. The sidewalks, entrances, passages
and corridors of the building shall not be obstructed or used by the LESSEE for any purposes other
than for ingress to egress from the building.

The LESSEE shall comply with any and all laws, ordinances, regulations or orders of the
national or local government regarding the use, occupation, and sanitation of the LEASED
PREMISES. Expenses arising from the failure to comply with such laws, ordinances, regulations or
order shall be for the account of the LESSEE. The LESSEE shall likewise comply with any sanitation
and safety regulations, which may be promulgated by the LESSOR from time to time.

9) REPAIRS:

The LESSEE shall be responsible for minor repairs on the LEASED PREMISES or any parts
thereof. It is understood that the repairs made on the LEASED PREMISES amounting to Twenty
Thousand Pesos (Php20,000.00) or more shall be treated as major repair and shall be for the
account of the LESSOR unless where the repair is due to the fault or negligence of the LESSEE in
which case the repair shall be for the LESSEE’s account. Should the LESSOR fail to undertake the
repairs within a reasonable period of time after due notice thereof in writing from the LESSEE, the
LESSEE may undertake such repairs upon proper notification to the LESSOR, and upon
presentation of satisfactory evidence of reasonable cost incurred therefore, demand the
reimbursement thereof by the LESSOR, which reimbursement shall be made not later than fifteen
(15) days from the written demand from the LESSEE.

10) UTILITIES:

The LESSEE shall pay or defray at his exclusive expenses the consumption of electricity,
cable, telephone or other utility services in the LEASED PREMISES. The LESSEE shall pay to the
LESSOR the amount of FIVE HUNDRED PESOS (Php 500.00) in Philippine currency, per month,
for the LESSEE’s monthly water consumption.

All repairs in the utility service system therein are for the exclusive account of the LESSEE.
The LESSEE shall not paint, make an alteration or changes in electrical or plumbing installations
within the LEASED PREMISE, without the prior written consent of the LESSOR.

11) FIRE HAZARD:

The LESSEE shall not bring into or store in the LEASED PREMISES, any inflammable or
explosive goods or materials nor any article which may expose the LEASED PREMISES to fire or
increase the fire hazard or the rate of insurance of the LEASES PREMISES.

12) INJURY OR DAMAGE TO THIRD PERSON:

The LESSEE hereby assumes full responsibility for any damage which may be caused to the
person or property of the third persons while remaining either casually in any part of the LEASED
PREMISES to the LESSEE and further binds himself to hold the LESSOR free and harmless from
such any claim, injury or damage is due to the negligence or act of the LESSEE. The LESSEE also

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assumes full responsibility of the furnishing provided therein. The LESSOR endorses the list of the
furnishing with good condition and thereby will accept the same termination of this contract.

13) PRE-TERMINATION:

The LESSEE may pre-terminate the contract with or without cause by serving a written
notice to the LESSOR within thirty (30) days prior to the intended date of termination: Provided
however, that the whole amount of the Security Deposit shall be forfeited in favor of the LESSOR to
answer for the loss of income opportunity, without prejudice to some other damages that may be
due to the LESSOR.

However, in case pre-termination of this lease shall be due to the fault, breach or instance of
the LESSOR or any 3rd party in authority, the forfeiture of any amount shall not apply. Furthermore,
the LESSOR agrees to give a 30-day notice to the LESSEE before the latter is expected to fully vacate
the premises.

14) AUTOMATIC TERMINATION OF THE LEASE:

If the rental stipulated, or in any part thereof, at any time, shall be in arrears or unpaid, or if
the LESSEE shall at any time fail or neglect to perform or comply with any of the covenants,
conditions, agreements or restrictions stipulated or if the LESSEE shall become bankrupt or
insolvent or shall compound with its creditors, or become legally questionable or is a fugitive of his
country of origin or any such above cases, this lease contract shall become automatically
terminated and cancelled and the premises shall be vacated peacefully by the LESSEE for the
LESSOR to hold and enjoy henceforth as if these presents have not been made and it shall be lawful
for the LESSOR or any person or persons duly authorized in his behalf, without any formal notice or
demand, to exercise to any of all rights from the contract of lease and the LESSEE shall have vacate
the place peacefully.

15) RIGHT TO SELL, CEDE, TRANSFER OR ASSIGN:

The LESSEE hereby expressly recognizes the absolute right of the LESSOR to sell, cede
transfer or assign the LEASED PREMISES. However, in the event of sale, the LESSOR hereby
undertakes to cause the purchaser to respect the terms and conditions of this Contract.

16) REAL ESTATE TAXES, FEE, ASSESMENTS:

Real estate taxes, fees and assessments due on the LEASED PREMISES shall be for the
account of the LESSOR.

17)INSPECTION OF PREMISES/RIGHT TO ENTER LEASED PREMISES

The LESSEE shall allow the LESSOR or its duly authorized representative to enter the
LEASED PREMISES during reasonable hours of the day with at least five (5) days prior written
notice to the LESSEE stating the purpose of entry and the name of the authorized representative
who will enter the LEASED PREMISES. The LESSEE likewise agrees to cooperate with the LESSOR
in keeping the said premises in good and tenantable condition at all times.

18) DESTRUCTION THROUGH FORTUITOUS EVENT:

In the event that the LEASED PREMISES is partially or wholly damaged by fire, earthquake,
severe flood or any other fortuitous event, or cause not attributable to the fault or gross negligence
of the LESSEE, its agents or personnel, either party may terminate this contract effective
immediately upon written notice thereof to the other party.

When such damage or liability is caused by fortuitous events or acts of God such as
typhoons, earthquakes, explosions, floods, etc. which are beyond the control of the LESSEE, the
latter shall not be liable to the LESSOR. In case this Contract of Lease needs to be terminated
because of the provisions of this clause, the LESSOR agrees to return to the LESSEE any advance
rentals and Security Deposits already made, less any amount owed to the LESSOR for the necessary
deductions in accordance with the pertinent provisions of Section 4 hereof.

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19) ABANDONMENT OF PREMISES.

Should the LESSEE abandon, vacate or leave the LEASED PREMISES for a continuous
period of THIRTY (30) DAYS or vacate the premises before expiration of this Contract without
notifying the LESSOR, the LESSOR may deem the LEASED PREMISES as permanently abandoned
and hence, LESSOR shall have the right to enter, break open and take possession of the LEASED
PREMISES without need of judicial action. This is without prejudice to LESSOR’s right to exercise
other rights, remedies and/or reliefs stated below or those provided by law.

In the event that the LESSOR elects to exercise its right to enter, break open and take
possession of the LEASED PREMISES, as stated in the preceding paragraph, the LESSOR shall,
before exercising the same, give five (5) days prior written notice to LESSEE at the address herein
provided by LESSEE informing the latter of the abandonment or breach of contract and its intention
to open, enter, occupy, padlock, secure, enclose, fence and/or discontinue public utilities or
otherwise take full and complete physical possession and control of the LEASED PREMISES on such
a date and time and in the presence of barangay representatives.

Upon entry into the LEASED PREMISES, LESSOR shall, in the presence of barangay
representatives, conduct an inventory of all personal or movable properties found inside the
LEASED PREMISES and furnish a copy of the same to LESSEE. LESSOR shall not be liable for any
subsequent loss or damage to the personal or movable properties left by LESSEE in the premises.
Said personal or movable properties shall be released only upon settlement of all unpaid rents, bills
and charges, interest and penalties, if any, due and owing to the LESSOR.

A storage fee pro-rated per day based on the monthly rental shall be assessed for any
personal or movable properties left inside the LEASED PREMISES and after six (6) months,
provided that a five (5) days prior notice has been given to LESSEE, LESSOR may elect to dispose
the properties and the proceeds thereof be applied to all unpaid rents, dues, bills and charges.
LESSEE hereby hold LESSOR free and harmless from liability for any remaining properties
disposed after six (6) months.

20) SURRENDER OF THE PREMISES:

The LESSEE shall, at expiration or termination of this Contract, promptly deliver the
LEASED PREMISES to the LESSOR in as good and tenantable condition, reasonable wear and tear
excepted, devoid of all occupants, furniture, articles and effects. Non-compliance with the terms of
this clause by the LESSEE will give the LESSOR the right, at latter’s option, to refuse to accept the
delivery of the premises and to compel the LESSEE to pay therefrom rental at the same rate as
herein provided plus additional sum equal to Twenty Five (25%) percent thereof as penalty until
the LESSEE shall have complied with the terms hereof. The same penalty shall, likewise, be imposed
in case the LESSEE shall refuse to leave the LEASED PREMISES after the expiration of this Contract
or after termination for any reason whatsoever.

If after due notice has been given to the LESSEE of the termination/cancellation of the
Contract, the latter fails to comply with the LESSOR’s demand for the return the possession of the
LEASED PREMISES and the payment of the LESSEE’S accrued obligations pursuant to the
provisions of this Contract, the LESSEE hereby empower the LESSOR and/or his/her authorized
representatives to open, enter, occupy, padlock, secure, enclose, fence and/or discontinue or cut-off
public utilities and otherwise take full and complete physical possession and control of the LEASED
PREMISES without resorting to court action. For purposes of this provision and other pertinent
provisions of this Contract, the LESSEE hereby constitutes the LESSOR and its authorized
representatives as the LESSEE’S attorney-in-fact, and all acts performed by them in the exercise of
their authority are hereby confirmed.

In the event that the LESSOR elects to exercise its right to enter, break open and take
possession of the LEASED PREMISES, as stated in the preceding paragraph, the LESSOR shall,
before exercising the same, give five (5) days prior written notice to LESSEE at the address herein
provided by LESSEE informing the latter of the abandonment or breach of contract and its intention
to open, enter, occupy, padlock, secure, enclose, fence and/or discontinue public utilities or
otherwise take full and complete physical possession and control of the LEASED PREMISES on such
a date and time and in the presence of barangay representatives.

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 Upon entry into the LEASED PREMISES, LESSOR shall, in the presence of barangay
representatives, conduct an inventory of all personal or movable properties found inside the
LEASED PREMISES and furnish a copy of the same to LESSEE. LESSOR shall not be liable for any
subsequent loss or damage to the personal or movable properties left by LESSEE in the premises.
Said personal or movable properties shall be released only upon settlement of all unpaid rents, bills
and charges, interest and penalties, if any, due and owing to the LESSOR.

20) VENUE OF ACTION:

Any action arising from this contract, shall be brought exclusively to the proper court of the City of
Zamboanga only, to the exclusion of all other courts.

IN WITNESS WHEROF, the parties hereunto set their hands this ________________ at
____________________________ City, Philippines.

XYZ Suites 456 MARKETING

Lessor Lessee
TIN: ________________________
Proprietor: 123
____________________________________________ TIN: ___________________________
ABC
Proprietor

SIGNED IN THE PRESENCE OF

_____________________________ _____________________________

Republic of the Philippines )

City of Zamboanga ) s.s.

ACKNOWLEDGEMENT

BEFORE ME, a Notary Public for and in the City of Zamboanga this ________________,
personally appeared the foregoing parties with their respective competent evidences of identity,
known to me and to me known to be the same persons who executed the foregoing instrument
which they acknowledged to me to be their free voluntary act and deed, consisting of six (6) pages,
including this page in which these Acknowledgement is written, duly signed by them and their
instrumental witnesses on each and every page hereof.

WITTNESS MY HAND SEAL on the date and place first written.

Doc. No.___;
Page No.___;
Book No.___;
Series of 2020.

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