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CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE, made and executed by and between:

ROGELIO O. CONG of legal age, Filipino, married and resident of POBLACION 8,


CABADBARAN CITY, AGUSAN DEL NORTE, PHILIPPINES and hereinafter referred to as
LESSOR.

-and-

LUIS CALES COLE, JR., of legal age, Filipino, married and resident of G. FLORES AVENUE,
BUTUAN CITY, PHILIPPINES and hereinafter referred to as the LESSEE.

WITNESSETH

That for and in consideration of the stipulation hereinafter set forth and the compliance of all
the conditions and covenants herein, the LESSOR hereby leases, lets and delivers by way of lease unto
the LESSEE a commercial building owned by LESSOR located at Brgy. 5, Monteroso Street,
Cabadbaran City, covered by Tax Declaration Nos. 5821-C (Land) and 5822 (Building);

and subjected to the following terms and conditions:

1. TERM This lease shall commence on October 2, 2017 and shall expire on October 1, 2018
unless sooner terminated for cause and under the manner hereafter provided and renewed for
other terms by agreement of the LESSOR or LESSEE at least three (3) months before vacating
the premises. The termination of this contract by the LESSEE before aforementioned
expiration period midnight of October 1, 2017 would result to the forfeiture of the three (3)
months deposit. Should the LESSEE desire to renew this contract, it should indicate such
intention to renew in writing, at least three (3) months prior to expiry date hereof;

2. DEPOSIT The LESSEE shall make TWO months advance rentals as deposits upon
execution of this instrument. Said deposit will answer for any damage on the leased premises or
remaining utility bill that the LESSEE may incur after the termination of the lease. In the event,
however, that there aren't any damage and / or remaining utility bill after the LESSEE vacates
the leased premises, the amount shall be returned to him, provided that there aren't any rental
arrears. Said amount shall be returned within a period of sixty (60) days after the expiration if
this Contract of Lease provided, there is no damage done in the premises or obligation still
remaining there at from the LESSEE.

3. RENTAL RATE The monthly rental rate shall be in the sum of FIFTEEN THOUNSAND
PESOS (15,000.00) per month which amount shall be paid every fifth (5 th) day of the month.

4. LOCKOUT In case if the LESSEE fails to pay the monthly rental for a period equivalent to
two (2) months the, LESSOR shall have the right to disconnect all the facilities after LESSEE
has been notified in writings for a period of ten (10) days and the LESSOR shall likewise have
the right to lockout and padlock the doors and the leased premises until the rentals in arrears are
fully paid. The LESSEE shall not remove the office equipment and furniture's stored in the
premises without the consent of the LESSOR and such furniture's and equipment shall serve as
security for the payment of the rentals in arrears and of other obligation of the LESSEE to the
LESSOR arising from this contract.

5. TERMINATION The LESSOR has the right to terminate this contract when the LESSEE'S
overdue rental account consist of two (2) months unpaid rental or if there is a breach of any of
the stipulations of these contract. Aside from termination of the contract, the LESSOR has the
right to forfeit in his favor the three (3) months rental deposit. In such case, the LESSEE vacate
peacefully the leased premises and thereupon the LESSOR shall immediately take over the
possession thereof, in which event it shall be lawful for the LESSOR or any of his authorized
representative to enter the leased premises though the terms of the Lease Contact has not
expired and removed all the properties of the LESSEE. Upon removal of the properties of the
LESSEE, the LESSOR shall not be held liable for any loss or damage cause to the properties
that the LESSOR removed and deposited.

6. TAXES, ASSEMENT AND IMPOST The LESSOR reserve the right to revise the rental
agreed upon in case of change in the present taxes or assessment of the leased premises. In case
of extraordinary inflation or in the event of a levy of special assessment on the property, the
parties herein by mutual agreement shall revise the rental agreed upon. The LESSOR shall pay
all the state taxes and such other taxes of the leased premises.

7. USE OF THE PREMISES The premises hereby leased shall be used exclusively by the
LESSEE for the purpose of operation a retail establishment and the LESSEE shall not use the
leased premises for other purpose except with the written consent of the LESSOR. It is being
expressly agreed upon that, if, at anytime during the existence of these and without the previous
written consent of the LESSOR, the LESSOR has the option of either terminating the lease or
collection an increase rental equivalent to double the monthly rate for the date of diversion of
use of the premises or to compel the LESSEE to stop the new activities.

8. CARE OF THE LEASED PREMISES The LESSEE shall examine the leased premises
before taking the possession thereof, and LESSEES entry into possession shall constitute
compelling 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 himself to
keep and maintain the leased premises clean and free from rubbish and dirt at all times and
arranges for the regular removal of trash and garbage and shall not burn any trash or garbage in
or about the leased premises or anywhere within the premises.

The LESSEE shall not cause, allow or permit any noxious, disturbing, or offensive odors,
fumes or gases or any smoke, dust, steam or vapor, or any loud or disturbing noise, sound or
vibration to emit or originate from said leased premises.

The LESSEE shall maintain the leased premises clean and free of rodents, bug and vermin, and
at the request of the LESSOR, participate and cooperate in carrying out any problem of
extermination that the LESSOR may direct and the LESSEE shall bear the cost thereof, or if,
conducted in accordance with or in cooperation with other tenants in the commercial center, on
the basis of the floor areas involved.

The LESSEE shall be responsible for the maintenance and repair of plumbing, electrical
fixtures (such as faucets and its parts, door knobs, keys, socket, switches, etc.) within the leased
premises but upon LESSOR'S supervision; hence, LESSOR must be notified before such
activity is undertaken by the LESSEE.

9. RULES AND REGULATION The LESSEE shall comply with any and all reasonable and
safety regulations which maybe promulgated from time to time by the LESSOR or the building
administrator and with all the rules, regulations, ordinance and laws made by the city, provincial
and national government arising from or regarding the use, occupancy and sanitation of the
leased premises or to pay the pertinent inspection fees as may be required.

10. LIABILITY FROM SUITS The LESSEE shall hold harmless the LESSOR against all
action claims for damages that LESSEE, his agent, employees or persons over whom LESSEE
has responsibility maybe cause by reason of the non-observance or non performance of the said
rules and regulations, ordinances or laws without prejudice of the right to the LESSOR to
cancel this lease in accordance with the penal provision hereinafter contained.

11. ALTERATION, ADDITION, IMPROVEMENTS, ETC. - At the commencement and during


the term of the lease, and upon prior written permission of the LESSOR, the LESSEE at its
own expense may provide install and maintain necessary lighting fixtures, stone fixtures,
carpets, rugs, electrical fixtures, escalators, sound system, air conditioning system, door and
inferior painting and other facilities required and desirable to the nature and purpose of its
business. The LESSEE shall not make any alteration or improvements in or about the premises
without the prior written consent of the LESSOR.

All permanent or fixed alterations, additions or improvements installed by the LESSEE, on or


upon the leased premises, except the movable furniture's and fixtures (including air conditioning
unit) put in at the expense of the LESSEE shall become the property of the LESSOR shall
remain upon and be surrendered with the premises as a part thereof at the end of the lease with
compensation to the LESSEE, provided that the LESSEE may remove all his movable fixtures
and facilities at his own expense only when it is not in default in the performance of any terms
and conditions and covenants herein contained.

12. ADDITIONAL OUTLETS - The installment of additional electric water, telephone or gas
connection in the leased premises shall be for the account and expense of the LESSEE who
shall make only such connection after obtaining the written consent of the LESSOR. Such
installation shall be made in such a way as to cause no injury or damage to the premises;
PROVIDED, however, that in the installation if additional electrical appliances such air
conditioner, fans, etc., wherein extra outlets are needed, the LESSEE shall first furnish the
LESSOR with a plan of such additional outlet for its approval and the LESSEE shall employ
only the service of the licensed electrician or otherwise here the licensed electricians of the
LESSOR so that the additional load or current shall be within the capacity of the main switch
of the panel of each respective floor, hereby minimizing fire hazards and further comply with
the safety requirements of the building code.

13. PUBLIC UTILITIES Charges for water consumption, electricity, telephones and other utility
services in the premises as well as the repairs in the utility system be for the exclusive account
of the LESSEE.

14. INJURY OR DAMAGE The LESSEE has rented the premises after examination of the
building and the leased premises thereof and without ant representation and warranty on the part
of the LESSOR. The LESSEE hereby assumes full responsibility for any damage which may
be cause to any person or property of any third persons while remaining causally or in business
on any part of the leased premises and further binds themselves to hold the LESSOR and its
agents free and harmless from any such claim from injury or damage, unless such injury or
damage is due to the gross negligence or fault of the LESSOR

Upon actual possession by the LESSEE of the leased premises, the LESSOR or its agents shall
be liable or responsible,

a) For the presence of bug, vermin, ants, termites, or any insects if any in the leased premises;
or
b) For the failure of the water supply or electric current inside LESSEE'S premises; or
c) For any injury, loss or damage which the LESSEE, its agent or employees might sustain on
the leased premises due to any cause other than the fault or gross negligence of the LESSOR;
d) For any damage done or occasioned by or arising from plumbing, gas, water and or pipes, in
the bursting, leaking or destruction cistern tank, wash stand, water closet or water pipe, in
above, upon or about the leased premises, nor for any damage arising from acts of negligence of
the LESSEE or its agents, employees, representatives of any other person.

15. INSURANGE TAKEN BY THE LESSEE The LESSEE may be allowed and authorized, at
the discretion of the LESSOR, to insure his or its own property taken inside the leases
premises. The LESSEE shall ask the approval from the LESSOR to insure its own property
and shall inform the LESSOR about the kind of insurance over the property, provided, that the
LESSEE shall not over insure the same and shall not cause to be insured his or its property over
and above its actual cost and value. Any violation or this undertaking shall entitle the LESSOR
to cancel or rescind the contract and to allow the LESSOR to lease the premises to other
LESSEE.

16. INSPECTION OF THE PREMISES The LESSOR or its authorized agent shall, by
previous notice to the LESSEE, have the right to enter the leased premised at any reasonable
hours of the day to examine the same or the make alterations or repairs or for any other purpose
which is necessary for the operation and maintenance of the building or its installation and
during the last three (3) months of the term of the lease, to exhibit the leased premises to
prospective LESSEES.

Provided, however, that such inspection shall be conducted in such a manner as to cause the
least possible disruption to the business operation of the LESSEE.

17. SUB-LEASE OR TRANSFER OF RIGHTS The LESSEE shall not assign or transfer his
rights in this contract nor shall lease or sublet all or any part of the leased premises without the
written consent of the LESSOR. If the planned transfer is to the affiliate or parent of the
LESSEE, such consent shall not be unreasonable withheld. In case of sale or transfer of rights
of ownership of the building all rights and obligation if this contract shall remain valid and
subsisting and shall be respected by the transferee until the expiration of the contact.

18. REPAIRS The LESSEE shall allow the LESSOR to make repairs in the building or the
leased premises.
19. TERMINATION OF LEASE The LESSEE agree to return and surrender the lease premises
at the end of the term of this contact in as good condition as reasonable wear and tear will
permit and without delay whatsoever devoid of all occupants, furniture's article and effect of
any kind subject to the provision of paragraph thirteen (13) hereof. Provided, however, that
noncompliance of this clause shall give the LESSOR the right to compel the LESSEE to pay
rent at the same rate of rental plus damage.

20. DISTURPANCE OR POSSESSION Disturbance or discontinuance of possession if the


leased premises of the LESSEE by any cause beyond the control of the LESSOR shall confer
no right of any kind of the LESSEE as against the LESSOR.

21. ABANDONDMENT In case the leased premises are deserted or vacated before the
expiration if this lease even for thirty (30) days, or should the LESSEE be in arrears in payment
of rent or other account and the premises be closed for business or be unused without notice of
closure to the LESSOR, the LESSOR at its option or sole decision shall consider the premises
abandoned and the lease agreement terminated without notice. In case of abandonment, the
LESSOR shall have the absolute right to open the premises, remove the same from the
premises and place them in storage, the charges for which shall be for the account of the
LESSEE, PROVIDED that should the amount deposited by the LESSEE be insufficient to
answer for such obligation incurred by the LESSEE, the effects remove from the premises and
place in storage and may be disposed by the LESSOR under the applicable provision of the
New Civil Code on public auction of pledge articles and the proceeds of the sale shall be
respective in that should the amount realized form such sale be insufficient, the LESSEE shall
continue to be liable for the remaining unpaid balance.

22. INFLAMMABLE AND EXPLOSIVE MATERIAL The LESSEE shall not bring into or
store in the leased premises any of highly inflammable nature or explosive material nor install
therein an apparatus, machinery or equipment which may expose the leased premises to fire or
increase the fire hazard of the building, or any other article which the LESSOR may reasonably
prohibited. It is understood that should the LESSEE do such acts, not only shall the LESSEE
be responsible for all the damage which such violation may cause to the LESSOR and/or its
other LESSEES, but the LESSOR shall also have the right to cancel this contract. The
LESSEE likewise shall not store, bring into the keep contraband or illegal articles, merchandise
or item in the leased premises.

23. NON-WAIVER The failure of the LESSOR to insist upon strict performance of any of the
terms, conditions or covenants hereof shall not be deemed relinquishment or waiver of any right
or remedy the LESSOR may have, nor shall it be constructed as a waiver of any subsequent
breach or default of the terms, conditions or covenant herein contained, but the same shall be
deemed to have been made unless expressed in writing and signed by the LESSOR.

24. BEACH OR DEFAULT The LESSEE agrees that all the terms, conditions and covenants
herein contained are material and that if default or breach of any of the terms, conditions or
covenants is made by the LESSEE or his agent, then this lease, at the discretion of the
LESSOR, may be terminated and canceled forthwith and the LESSEE shall be liable for any
all damages, actual or consequential, resulting from default or breach.
25. JUDICIAL RELEIF AND PENALTIES Should the LESSOR be compelled to seek judicial
relief against the LESSEE, the LESSEE shall, in addition to the damages mentioned in the
proceedings paragraphs, pay an amount equivalent to TWENTY FIVE (25) % percent of the
amount claimed in the complaint but not the less than FIVE THOUSAND PESOS (Php
5,000.00) aside from the costs of litigation and other expenses which the law entitle LESSOR
to recover from the LESSEE.

Unpaid rental shall bear an interest rate of TWO (2%) PERCENT A MONTH COMPOUNDED
MONTHLY until the amount shall have been fully paid. The interest rate shall be computed
from the time the payment was due and shall be payable without necessity of seeking judicial
relief.

26. OTHER STANDARD PROVISIONS

a) SEPARABILITY the invalidity or unenforceability of any provision hereof shall not effect
or impair the other provisions which otherwise can be given full force and effect.

b) AMENDMENTS This contract may be modified or amended only in writing duly


executed by both parties.

c) NOTICE Any and all notices, corresponds or processes in connection with this contract
shall be directed, to the LESSEE at the leased premises and, to LESSOR at its office address
as herein above mentioned.

d) VENUE of all action arising from or in connection with this contract shall be in the proper
courts of Cabadbaran City, all other venues being expressly waived.

Provisions of the penal character in the other section of this contract shall be construed as
cumulative to the relief granted by this section.

IN WITNESSE WHEREOF, we have hereunto affixed out signatures on this ___________at


Butuan City, Philippines.

____________________________ __________________________
LESSOR LESSEE

____________________________ ___________________________

____________________________ ____________________________

_____________________________ ____________________________

Sign in the presence of:

______________________________ _______________________________

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