CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease, made and entered into this ____ day of _________, 2024 in
Argao, Philippines, by and between:

The CEBU TECHNOLOGICAL UNIVERSITY- ARGAO CAMPUS, an

educational institution, duly licensed and with principal office at Lamacan, Argao, Cebu
hereinafter referred to as CTU-Argao , represented by its University President, DR.
JOSEPH C. PEPITO of legal age, Filipino and a resident of Cebu City , hereinafter
referred to as the LESSOR;

- and -

HOTDOG, TEMPURA & ETC. (STALL 2), a single business proprietor organized
and existing under the laws of the Philippines, with principal office located CTU- Argao
Business Center with business address along Barangay Lamacan, Argao, herein represented
by its Owner, MR. JOHN ROMMEL BACALSO , hereinafter referred to as the LESSEE.

WITNESSETH: THAT -

WHEREAS, the LESSOR is the Campus Director of CTU-Argao where an office

building is located at Lamacan, Argao, Cebu wherein office spaces are available for lease;

WHEREAS, the LESSEE would like to lease from the LESSOR near Tennis Court,
one of CTU-Argao Business Center located at the Hi-way Road, Barangay Lamacan,
Argao.

NOW THEREFORE, for and in consideration of the foregoing premises and the
parties’ mutual covenants and promises, they do hereby agree as follows:

1. PREMISES: The LESSOR hereby leases unto the LESSEE near Tennis Court one
of CTU-Argao Business Center located at Hi-way Road barangay Lamacan, Argao.

2. RATE: The LESSEE hereby agrees to pay to the LESSOR as rentals the amount of
THREE THOUSAND PESOS PESOS (P3,000.00) per month, inclusive of the value-added
tax, net of the 5% expanded withholding tax.

Under this lease, LESSEE shall pay to the LESSOR the herein agreed rental in One
(1) month advance, and One (1) month deposit this shall be paid not later than the tenth (10 th)
day of every month.

Upon the signing of this contract, LESSEE shall pay to the LESSOR the initial lease
rental for the first month, and thereafter the succeeding rental shall be paid not later than the
tenth (10th) day of every month, without necessity of demand.

3. TERM: The term of the lease shall be for a period of five (5) years to commence
on August 1, 2024 and shall expire on July 31, 2029, renewable upon agreement of both
parties under the same terms and conditions except:

a) The amount of the lease rentals, which may be increased by the LESSOR by
not more than 10% and;
b) Such other terms and conditions, which any of the parties may request to be
amended upon written notice to the other party within ninety (90) days prior
to the expiration of the term of the lease.

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 4. RENEWAL OF LEASE. Written notice to extend the term or renew the lease
shall be given by the LESSEE to the LESSOR at least ninety (90) days before its expiration
date. Provided that the new contract of lease and/or amendment to the contract of lease be
duly executed by the parties at least thirty (30) days prior to the renewal of the term or
amendment of the provisions of the contract of lease. Failure of the LESSEE to comply with
the above requirement on the renewal of the lease shall entitle the LESSOR to offer the
leased premises to any interested person or entity.

If the Contract of Lease is not renewed or extended, the LESSEE shall vacate the
leased premises on or prior to the expiration of the term of the existing Contract of Lease,
without any demand from the LESSOR. If the LESSEE continues to occupy the leased
premises notwithstanding the expiration of the term, the LESSEE shall be charged rental as
determined by the LESSOR for such period the LESSEE had occupied the premises. Under
no circumstances that such continued occupancy without the new lease contract being signed
by the parties be interpreted as consent of the LESSOR to the renewal of the Contract.

5. SECURITY DEPOSIT: Upon signing of this CONTRACT, the LESSEE shall

deposit with the LESSOR the sum equivalent to one (1) month SECURITY deposit and one
(1) month advance based on monthly rental rate due for the said unit or a total amount of SIX
THOUSAND PESOS (6,000.00) by way of security deposit to answer for any or all of the
following:

a) For any unpaid utility bills;

b) For damages occurring in the premises due to the fault or negligence of the
LESSEE, its employees, agents or guests, and other costs arising from the fault or
default of LESSEE; and for violation/s of any provisions of this contract.

This security deposit shall serve as security for the faithful compliance of all the
terms and conditions of this contract of lease. This shall be refundable to the LESSEE,
without interest, upon expiration of the term of this lease contract, less deductions for the
abovementioned amounts, if applicable. If the deposit is not enough to cover for the above
bills or charges, the difference shall be paid to the LESSOR by the LESSEE.

The payment by the LESSEE of the security deposit and the advance rental shall not
relieve the LESSEE in any way from paying, on due dates, the agreed monthly rentals.
Failure to pay the agreed monthly rentals, and all other fees as herein provided, on their due
dates, shall constitute a default or breach of this CONTRACT.

Should the LESSEE vacate the leased premises without giving due notice to the
LESSOR, the security deposit shall be forfeited in favor of the LESSOR, without prejudice to
the exercise of the LESSOR of the other rights granted under the law and this CONTRACT.

6. NON-PAYMENT OR DELAY IN THE PAYMENT OF RENTAL: In case of

delay in the payment of the rental herein agreed on the date stipulated in no. 2 above, the
LESSEE shall be liable to pay the LESSOR a penalty equivalent to three percent (3%) per
month of delay. If the delay continues for two (2) months, LESSOR shall have the right to
terminate the Contract of Lease, and a notice thereof shall be sent to the LESSEE at its last
known address. Upon such notice, the LESSEE shall immediately vacate the leased premises.
This shall be without prejudice to the right of the LESSOR to collect all unpaid rentals and
penalties. The same penalty applies to delays in the payment of the utility bills and
maintenance dues.

In addition, in case of delay in the payment of the monthly rentals and electric bill for
Ten (10) Days, the LESSOR shall charge the LESSEE interest in the amount equivalent to
two percent (2%) monthly.

7. USE OF PREMISES: The leased premises shall be used exclusively as an office

of the LESSEE or its place for business, and the LESSEE hereby warrants that it possesses

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all the necessary permits and licenses to operate its business pursuant to existing laws and
regulations.

8. ALTERATIONS: The LESSEE shall not make any alterations or improvements in

the leased premises without first securing the written consent of the LESSOR. If such
approval is granted, any and all such improvements or fixtures which cannot be removed
without damaging the leased premises shall automatically and without need of any formality
and compensation, belong to the LESSOR in ownership after the expiration of this contract
of lease. However, if the LESSOR at the end of the term of this Lease Contract, does not
desire the improvements or wishes that the improvements should be removed, the removal
shall be made in such a way that the LESSEE shall restore the leased premises in its original
condition, at the LESSEE’s own expense.

Permanent improvements which cannot be removed by the LESSEE at the expiration

of the term of this CONTRACT and which shall automatically belong to the LESSOR
without payment of any compensation to the LESSEE shall consist of electrical wirings and
installations, lightings, switches, office partitions that are attached to the floors or walls,
floorings, ceilings, toilet facilities, and the like.

9. CARE OF THE LEASED PREMISES: The LESSEE shall, at its expense,

maintain the leased premises, in a clean and sanitary condition and entirely free from any
obnoxious odors, disturbing noises, or other nuisances of whatever nature. Proper segregated
trash bins must be provided and emptied/disposed of periodically. Also, local campus
policies like the prohibition of single-use plastics must be strictly followed.

10. HEALTH/SAFETY/IN-HOUSE BUILDING RULES AND

REGULATIONS: The LESSEE shall faithfully comply with all rules and regulations made
by the Health Department, other duly constituted authorities, and the LESSOR with respect
to the use and utilization of the leased premises.

11. RULES AND REGULATIONS. The following rules and regulations shall
govern the use of the leased premises, the common areas and facilities, and the area
immediately surrounding the building including proper control of the parking areas and the
entry and exit thereto for security and other purposes. All these rules are to be strictly
adhered to by the LESSEE. Included among these rules and regulations are the following:

a) Signs and billboard. The LESSEE shall not post, install or attach, affix or exhibit,
display or show in any part of the building, any sign, name, mark or logo unless its size, color
and material and the manner it is displayed or exhibited and installed or attached has been
approved in writing by the LESSOR. The LESSEE shall, before making or installing any
sign, name, mark, consult with and obtain the written approval of the LESSOR as to the size,
color and material of any sign to be affixed or installed in any part of the building.

b) Use of Combustible Materials and other fire hazards. The LESSEE shall not
bring into or tolerate in the leased premises or allow others to bring into the leased premises
materials, chemicals, powders, liquids which are combustible, flammable, or could cause fire
except those exclusively used for cooking.

c) Limitations on the use of the leased premises. In using the leased premises, the
LESSEE shall faithfully abide by the following rules:

1) No heavy machineries or equipment or articles shall be placed in or stored in

the leased premises without the written consent of the LESSOR.

2) The LESSEE shall provide leased premises, as its own cost and expense, with
receptacles which the municipal ordinance requires to hold and contain waste
materials, garbage and refuse, and shall deposit them within its leased premises
or at such places as may be designated by the LESSOR.

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 3) The sidewalks, entries, passages, corridors, and stairways, of the building shall
not be obstructed or used by the LESSEE for any purpose other than for ingress
and egress from the leased premises or the building. In all cases, the
passageway leading to the fire escape, hallways, parking areas and other
common areas must not be blocked or used as storage by the LESSEE.

4) The LESSEE shall allow representatives of the LESSOR, including contractors,

service and maintenance, utilities personnel, etc. inside their leased premises to
perform such functions as inspection, improvement, maintenance and repair of
common facilities and utilities and installation works that require work to be
done in the leased premises or areas within the control of the LESSEE. These
include the removal of floor covering such as tiles, carpets, etc. and ceilings to
allow work on installation and utilities for units above and/or below the
LESSEE’s leased premises, provided these are restored or replaced in its
original condition. The LESSOR shall give the LESSEE advance notice and
shall endeavor to minimize inconvenience to the LESSEE. The requirement of
notice prior to entry to the leased premises shall be dispensed with in cases of
emergency, i.e., fire, etc.

5) No cars, motorcycles or vehicles shall be parked in the parking areas of the

CTU-Argao overnight. If LESSEE or any of its employees or guests parks
its/histh/her car overnight in the parking areas, LESSEE shall be charged a
parking fee of One Hundred Pesos (P100.00) per night. This is without
prejudice to the right of LESSOR to remove the parked car from the parking
area at the sole expense of the LESSEE. The charging of the P100.00 overnight
parking fee shall not be interpreted as consent of the LESSOR for the LESSEE
to park overnight their motor vehicles. Any loss or damage to the overnight
parked vehicles shall not hold the LESSOR liable whatsoever. No cars shall be
allowed to be washed or cleaned within the parking area or premises of the
CTU.

6) LESSEE is fully aware that the leased premises are exclusively for business
use. It shall not be used as sleeping quarters or for any illegal or immoral
activities by LESSEE, its employees or staff.

12. NON-LIABILITY OF THE LESSOR. The LESSEE shall indemnify and hold
harmless the LESSOR in any action or claim as a consequence of its non-observant or non-
performance of any laws, ordinances, rules and regulations, without prejudice to any other
remedy which the LESSOR have under this Contract.

The LESSOR shall not be liable for any loss or damage caused by rats, vermin,
termites and other natural causes. LESSOR shall not, except for its own gross negligence and
willful misconduct, be in any way responsible or liable in case of any accident or injury to
the LESSEE, its officers, employees, guests or to any person or persons in or about the leased
premises; and the LESSEE will indemnify and save harmless the LESSOR from all fines,
suits, proceedings, claims, demands, and actions, except those arising from or connected with
the LESSOR’s own gross negligence and willful misconduct.

13. UTILITIES: The LESSEE shall take care of applying for its own telephone
connections. For electric consumption, a monthly statement shall be submitted by LESSOR
to LESSEE, and the same shall be paid by LESSEE to LESSOR together with its payment of
the monthly rentals as provided under no. 2 hereof.

14. INSPECTION OF THE PREMISES. The LESSOR or its authorized

representative shall have the right to enter the premises during reasonable hours in order to
inspect the same or make necessary repairs thereon, or for the purpose of maintaining the
building or any appurtenances thereof.

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15. EFFECTS OF DEFAULTS.

a) Upon the happening of the events of defaults pertaining to the LESSEE’s

non-payment of rentals and other charges as provided herein, the LESSOR
shall, at its option, terminate and render without further force and effect this
contract. Upon such termination, the LESSEE shall vacate and deliver
possession of the leased premises to the LESSOR.

b) The LESSOR shall have the right to eject the LESSEE from the leased
premises and recover all amounts due as lease rentals, dues and other
expenses and impose interest thereon at the rate of three per cent (3%) per
month from the date of default as well as liquidated damages in an amount
equivalent to twenty percent (20%) of all accountabilities. The LESSOR
shall, in addition, charge attorney’s fees in an amount equivalent to ten
percent (10%) of all amounts due, but in no case be less than Ten Thousand
Pesos (P10,000.00) should the LESSOR be compelled to procure the services
of an Attorney for the purpose. The obligation of the LESSEE to pay rentals
shall cease only after the leased premises shall have been totally vacated by
the LESSEE.

c) The LESSOR shall, in addition, have the power and authority to lock-out the
LESSEE from the leased premises, cut-off the power supply, padlock the
same and prevent the LESSEE or any of its employees, agents and guests
from entering and using the leased premises until all outstanding accounts of
the LESSEE are paid in full. The LESSOR has the right to retain by way of
pledge and store any pieces of furniture, fixture, equipment or material or
other personal property in the premises until settlement of such obligations. In
such event, the LESSOR shall take care to keep the LESSEE’s equipment,
furniture, fixture and other improvements in good condition, and to return the
same to the LESSEE in the same condition, following termination of such
lock-out. One (1) month after lock-out, and the LESSEE’s account not having
been paid such effects, furniture, equipment, etc. shall be disposed of in
accordance with Article 2112 of the New Civil Code of the Philippines.

d) In case of abandonment, the LESSOR shall also consider the contract of lease as
terminated. The LESSOR shall have the right and authority to open and enter
the leased premises in the presence of representative of the LESSEE or proper
authorities or a Notary Public, take inventory of any and all furniture, effects
and/or materials found within the leased premises, remove the same from the
leased premises and place them in storage at a cost of not less than Five
Hundred Pesos (P500.00) per day.

Provided further that should the amount deposited by the LESSEE as per
Section 4 hereof be insufficient to answer for such obligation, the effects
removed from the leased premises and placed in storage shall be considered
taken under pledge and shall be disposed of by public auction of pledge articles
after the lapse of thirty (30) days from the date the last unpaid account of the
LESSEE’s became due and proceeds thereof applied to LESSEE’s unpaid
obligations.

e) In any of the events of default, the LESSOR can apply the deposit against the
outstanding obligations of the LESSEE unless the LESSOR has opted to forfeit
said deposit in its favor as provided in Section 4 hereof.

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 16. SUBLEASE, ASSIGNMENT OF RIGHT, ETC.: The LESSEE shall not
sublease, assign, or sell its rights to the premises without the written consent or approval of
the LESSOR duly obtained.

17. INJURY OR DAMAGE TO THIRD PARTIES: The LESSEE shall hold

harmless or otherwise to indemnify the LESSOR against any or all actions, claims, or
demand, made by a third party who suffers injury or damage as a consequence of the fault or
negligence of the LESSEE’s employees or guests in or around the premises, due to the use or
operation of any of its properties, equipment, devices or articles in the leased premises. The
employees of the LESSEE shall be the latter’s own responsibility; any act that may be
committed by them is LESSEE’s sole and own obligation.

18. TERMINATION OF LEASE: This contract shall be automatically terminated

upon expiration of the term of the lease. The LESSEE shall peaceably return and surrender
the leased premises at the expiration of this Contract of Lease in as good a condition as
reasonable wear and tear will permit, devoid of all occupants, furniture, or effects of
whatever kind or nature, without delay, subject however to the paragraph number 8 hereof.
LESSEE shall repair any and all damages to leased premises caused by the removal of
LESSEE’s fixtures and equipment at LESSEE’s exclusive expense.

19. NON-WAIVER OF RIGHT OR REMEDY: Failure of the LESSOR to insist

upon the strict performance of any of the terms and conditions of this contract shall not be
deemed a waiver or relinquishment of any right or remedy available to LESSOR in case of
any breach thereof by the LESSEE.

20. VENUE OF ANY LEGAL SUIT: Any suit that may arise under this contract
shall be filed in the appropriate court in the City of Argao, to the exclusion of other venues.
Other venues of any court action are therefore hereby waived by the parties hereto.

IN WITNESS WHEREOF, the parties hereto have signed this instrument on the date
and place first above written.

CEBU TECHNOLOGICAL UNIVERSITY HOTDOG, TEMPURA &

ETC.

By: By:

JOSEPH C. PEPITO JOHN ROMMEL BACALSO

University President Owner

WITNESSES

EINGILBERT C. BENOLIRAO ______________________________

CTU-AC Campus Director

ACKNOWLEDGMENT

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REPUBLIC OF THE PHILIPPINES)
Province of Cebu ) S.S
Argao )

Before me, a Notary Public for and in the City of Argao, this _____ day of ________
2024, personally appeared the following:

Name ID
-------
JOSEPH C. PEPITO

JOHN ROMMEL BACALSO __________________

to me known to be the same persons who executed the foregoing instrument and they
acknowledged to me the same as to be their voluntary and free act.

This instrument refers to CONTRACT OF LEASE and consists of Seven (7) pages
including the page on which this acknowledgment is written and signed by the parties and
their instrumental witnesses on each and every page thereof.

WITNESS MY HAND AND SEAL on the date and at the place above written.

Doc. No. _________;

Page No. _________;
Book No. ________;
Series of 20____

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