LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the Sta. Cruz, Davao del Sur, this day of
_______________, 2018, by and between:

HEIRS OF BENJAMIN A. LIM, represented by BRAULIO A. LIM, of legal age, widower, Filipino, and
with residence and postal address at 730 Lapu-Lapu St., Davao City, Philippines, hereinafter referred to
as the LESSOR.
-AND-
MERVIN M. SABANDAL, of legal age, Filipino, married and with residence and postal address at
Tuban, Sta. Cruz, Davao del Su, hereinafter referred to as the LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the owner and lawful possessor of THE LEASED PREMISES, a portion of land
consisting of 120 square meters situated at Tuban, Sta. Cruz, Davao del Sur;

WHEREAS, the LESSOR desires to lease the area to the LESSEE and the LESSEE is willing to lease the same;

NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE
and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following:

TERMS AND CONDITIONS

1. PURPOSES: That premises hereby leased shall be used exclusively by the LESSEE for Display area /
Parking Area of motor vehicles for sale and shall not be diverted to other uses without the prior written
consent of the LESSOR. It is hereby expressly agreed that if at any time the premises are used for other
purposes without the consent of the LESSOR, the LESSOR shall have the right to rescind this contract
without prejudice to its other rights under the law. The area to be leased and occupied by the LESSEE
shall be fenced by the LESSOR as soon as possible.

2. TERM: This term of lease is for ONE (1) YEAR, from July 1, 2018 to June 30, 2019 inclusive. Upon its
expiration, this lease may be renewed under such terms and conditions at the option of the LESSOR.

3. RENTAL RATE: The monthly rental for the leased premises shall be in PESOS: ______________________,
Philippine Currency. All rental payments shall be payable in advance and to be paid on or before 5th
day of each month at the office of the LESSOR in Tagabuli, Sta. Cruz, Davao del Sur, either by cash or
check to the LESSOR thru their authorized representative / Assistant Administrator GABRIEL G. LIM.

4. SECURITY DEPOSIT/ADVANCE RENTAL: The LESSEE shall deposit to the LESSOR upon signing of this
contract and prior to move-in an amount equivalent to the rent for THREE (3) MONTHS or the sum
of PESOS: ______________ (P 00,000.00), wherein the two (2) months deposit shall be applied as rent for
the 11th and 12th months and the remaining one (1) month deposit shall answer partially for damages
and any other obligations, for utilities such as Water, Electricity, TV, Telephone, or resulting from
violation(s) of any of the provision of this contract.

5. DEFAULT PAYMENT: In case of default by the LESSEE in the payment of the rent, such as when the
checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The
LESSOR has the right to padlock the premises when the LESSEE is in default of payment for One (1) month
and may forfeit whatever rental deposit or advances have been given by the LESSEE.

6. SUB-LEASE: The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be
occupied in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights
hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on
or vested in anyone by the LESSEE without the LESSOR'S written approval.

7. IMPROVEMENTS and ALTERATIONS: The LESSEE is not allowed to make any permanent improvements
like living quarters in the leased premises. Any other improvement to said leased premises made by the
LESSEE shall be removed by the LESSEE at his own expense without reimbursement of cost by the LESSOR
upon termination of the Contract, provided that at the expiration of the term of this lease or termination
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thereof, the LESSEE will promptly deliver to the LESSOR the leased premises in good condition as the
SAME AS NOW, ordinary wear and tear exempted, devoid of all major improvements or alterations done,
occupants, light material improvements, movable fixtures, articles and effects of any kind.

8. PUBLIC UTILITIES: The LESSEE shall pay for electric, water bills, and all other public services or utilities
during the duration of the lease.

9. FORCE MAJEURE: If whole or any part of the leased premises shall be destroyed or damaged by fire,
flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause or acts of God,
as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE,
then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by
notice in writing to the other.

10. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent shall after giving due notice to the
LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at any
reasonable hour to examine the same or make repairs therein or for the operation and maintenance of
the area or to exhibit the leased premises to prospective LESSEES, or for any other lawful purposes which
it may deem necessary.

11. QUIET ENJOYMENT: The LESSOR warrants that the LESSEE shall enjoy and have the peaceful possession
of the premises during the term hereof without interruption by LESSOR or any person claiming under him
except when the disturbance is caused by natural calamities or acts outside the LESSOR’s control.

12. USE OF THE LEASED PREMISES BY THE LESSOR: In the event when the LESSOR will need the leased
premises, notice to this effect shall be given to the LESSEE at least 60 days and/or reasonable time, where
by the LESSEE agrees to peacefully surrender and vacate the said premises.

13. BREACH OF CONDITIONS: In case of breach by the LESSEE of any of the conditions and covenants of
this lease as herein stipulated, the LESSOR at its option, may forthwith terminate and cancel this lease
and the LESSEE shall be liable for any and all damages as a result of such default, breach and
termination.

14. FORFEITURE OF RENTAL PAYMENT: Forfeiture of whatever rental deposit and advances shall apply to
any of the following:
a. When the LESSEE is in default or such as when the checks are dishonored. In such a case, the
LESSOR shall also have the right to prohibit entry of the LESSEE, visitors, guests and his employees in the
premises until indebted is satisfied;
b. When LESSEE/BUYER pre-terminates lease with or without cause; and
c. When LESSEE/BUYER violates any of the provisions of this contract.

15. EXPIRATION OR CANCELLATION OF LEASE: At the expiration of the term of this lease or cancellation
thereof, as herein provided, the LESSEE/BUYER will promptly deliver to the LESSOR/SELLER the leased
premises in as good condition as the SAME IS NOW.

16. NON-WAIVER OF LESSOR’S RIGHT: Failure of the LESSOR to enforce strict performance by the LESSEE
of any of the terms, conditions and covenants of this agreement shall not be construed as waiver of any
right or remedy that the LESSOR may have, nor shall it be deemed as a waiver of any
subsequent breach of the terms, conditions, and covenants contained therein. No waiver by the LESSOR
of its rights hereunder shall be deemed to have been made unless expressed in writing and signed by
the LESSOR.

17. JUDICIAL RELIEF: Should LESSOR be compelled to seek judicial relief against the LESSEE, the latter
shall pay an amount of Twenty (25) % of the amount clamed in the complaint as attorney's fees which
shall in no case be less than P10,000.00 pesos in addition to other cost and damages which the said
party may be entitled to under the law.

18. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest
and assigns.

19. Both parties have executed this Agreement by their own voluntary act and deed and in their
mutually agreed terms. Both parties shall comply with the terms and conditions of this contract in good
faith and warrant further, that they did so with the full understanding of its nature and its consequences.

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 IN WITNESS WHEREOF, the parties have hereunto set our hands on this_________ 2018 at Digos
City, Davao del Sur, Philippines.

HEIRS OF BENJAMIN A. LIM, MERVIN M. SABANDAL

LESSOR LESSEE
I.D. No. _____________________ I.D. No. __________________

represented by:

BRAULIO A. LIM
SIGNED IN THE PRESENCE OF:
____________________ & _____________________

Acknowledgement

REPUBLIC OF THE PHILIPPINES)

CITY OF DIGOS )
X - - - - - - - - - - - - - - - - - - - - - - - -/

BEFORE ME, a Notary Public for and in the Province of Davao del Sur, on this _____________, 2018
in Sta. Cruz, Davao del Sur, Philippines, personally appeared the above-named parties, all known to me
and o me known to be the same persons who executed the foregoing instrument consisting of three (3)
pages including this acknowledgement and acknowledge to me that the same are their free acts and
voluntary deed.

WITNESS my hand and notarial seal on the date and place ut supra.

Doc. No._______;
Page No._______;
Book No._______;
Series of 2018.

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