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CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease (hereinafter referred to as the “Contract”), made and entered into by and between:

ZENAIDA R. ALCARAZ, Filipino, of legal age, with postal address at 684 National
Road, Poblacion, Muntinlupa City, hereinafter referred to as the LESSOR;

and

______________________________., a corporation duly organized and existing in

accordance with Philippine laws with principal address at
________________________________________, hereinafter represented by its
____________ _____________________________________________, of legal
age, Filipino, with address at _________________________________________,
hereinafter referred to as the LESSEE.

(The LESSOR and the LESSEE shall be collectively referred to as the Parties.)

WHEREAS, the LESSOR is the absolute and registered owner of the vacant lot located at Block 7, Lot 12
Magiting Street, United Subdivision Barangay San Antonio, San Pedro, Laguna (the Leased Premises);

WHEREAS, the LESSEE is desirous to lease and occupy a portion of the aforementioned land, with an
area of about 220 square meters, located at Block 7, Lot 12 Magiting Street, United Subdivision Barangay
San Antonio, San Pedro, Laguna

WHEREAS, the LESSEE is also desirous of including in its business activities to be conducted in the
Leased Premises, WELDING TESTING & TRAINING CENTER & FABRICATION SERVICES FACILITY;

NOW THEREFORE, for and in consideration of the payment of rental fees and in compliance with all the
conditions and covenants under this Contract and the provisions of the WHEREAS CLAUSES, the Contract
of Lease is hereby entered into by the Parties under the following terms and conditions:

1. Term of Lease. The term of the Contract of Lease shall be for a period of FIVE (5) years beginning
on July 15, 2018 until July 14, 2023, renewable thereafter upon mutual agreement of the Parties.
No renewal, amendment, or supplement to this Contract shall be valid unless reduced into writing
and ratified by both Parties. The LESSEE shall inform the LESSOR of its intention in writing to
renew this Contract within SIXTY (60) days before the expiration of this Contract.

2. MONTHLY NET RENTAL. The LESSEE shall pay the LESSOR a Monthly Net Rental for the use
of the Leased Premises not later than the 5th day of each month at the office of the LESSOR,
without necessity of prior demand with a net amount of THREE THOUSAND PESOS (PhP3,000),
exclusive of VAT and withholding tax. The monthly rental shall be subject to an escalation rate of
five percent (5%) every two years effective on the start of the 3rd year of the contract and on the
start of the 5th year of the contract.

Yr. PERIOD GROSS 5% NET

RENTAL ESCALATION RENTAL
1 July 15, 2018 to July 14, 2019 3,000.00 0 3,000.00
2 July 15, 2019 to July 14, 2020 3,000.00 0 3,000.00
3 July 15, 2020 to July 14, 2021 3,000.00 150 3,150.00
4 July 15, 2021 to July 14, 2022 3,150.00 0 3,150.00
5 July 15, 2022 to July 14, 2023 3,150.00 157.50 3,307.50

The LESSEE shall give an advance rental of 12 months in the form of post dated checks every
anniversary of the contract.

3. TAXES. The Monthly Net Rental to be paid by the LESSEE is exclusive of the computation of VAT
which is shouldered solely by the LESSEE, as may be applicable.
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4. ADVANCE RENTALS AND SECURITY DEPOSIT. The advance rentals in this Contract of Lease
shall be THIRTY SIX THOUSAND PESOS (PhP36,000.00) amounting to twelve (12) months
advance rentals to be applied on the 1st year of the contract.

Upon signing of this Contract, the LESSEE shall give six (6) months deposit in the amount of TEN
THOUSAND PESOS (PhP10,000) as payment for any utilities, electricity, water, internet
connection and other bills that might be charged against the LESSOR as a consequence of this
contract. If there are no expenses to be paid after clearance by the LESSOR, the LESSOR shall
return the security deposit to the LESSEE within a period of 30 days from termination of the
Contract.

5. FORFEITURE CLAUSE. Upon signing of this Contract, the LESSEE shall pay an aggregate
amount of FORTY SIX THOUSAND PESOS (PhP46,000.00) in order to comply with the SIX (6)
months deposit and TWELVE (12) months advance rental requirement. In case of pre-termination
of the Contract for whatever reason by the LESSEE, the security deposit and the advance rental
shall be automatically forfeited in favor of the LESSOR.

6. EXPIRATION OF TERM. The LESSOR shall return any remaining security deposit within sixty (60)
days from expiration of the term of lease or after all unpaid obligations of the LESSEE are
deducted accordingly. The LESSEE shall turnover the Leased Premises in the same condition it
had during the start of the lease except for ordinary wear and tear. All property real or personal left
at the Leased Premises after thirty (30) days from expiration of the term of the lease shall belong to
the LESSOR. The LESSEE, upon written request, may be given another non-extendible 30 days
extension to remove any improvements the LESSEE has left in the Leased Premises and to return
the Leased Premises in its original condition during the start of the lease. If the LESSEE will take
more than thirty (30) days from expiration of the contract to remove its improvements to the Leased
Premises, with or without consent from the LESSOR, the LESSEE will pay the latest rate of
Monthly Net Rental for its continued occupation of the Leased Premises.

Any permanent improvements that the LESSEE shall construct on the LESSOR’s property shall
become property of the LESSOR without need of payment to the LESSEE. Permanent
improvements are those which cannot anymore be removed from the property leased.

7. USE OF LEASED PREMISES. The LESSEE warrants that it shall use the Leased Premises for
the conduct of a WELDING TESTING & TRAINING CENTER & FABRICATION SERVICES
FACILITY only. The LESSEE shall not use the Leased Premises for any illegal, unlawful, or
prohibited purpose.

8. ASSIGNMENT AND SUBLEASE. The LESSEE shall have no right to transfer its rights under this
Contract or to sublease the Leased Premises without the written consent of the LESSOR.

9. PROHIBITIONS. The LESSEE, his assigns, heirs, employees, representatives, guests, clients,
agents, and visitors, whenever applicable, shall NOT be allowed to commit any of the following
acts:

a. Disturbing the neighbors, drunkenness, unruly behavior and noisiness;

b. Storing contraband, combustible, inflammable, or explosive materials in the Leased
Premises;
c. Keeping of materials or substances in the Leased Premises which give out obnoxious
odor, smoke, or cause air pollution;
d. Leaving the Leased Premises by the LESSEE for more than thirty (30) days without
written notice or payment of the MONTHLY NET RENTAL to the LESSOR, which shall
be considered as abandonment and the Contract shall be terminated without need of
notice to the LESSEE;
e. Alteration of the Leased Premises or making improvements thereon without the prior
written consent of the LESSOR;
f. Use of the Leased Premises for other purposes other than that authorized under this
Contract, unless prior written consent of the LESSOR is obtained;

Violation of any of the prohibitions in this Section shall cause the termination of the Contract which
will take effect upon notice to the LESSEE, except for 9(d) which termination shall take effect
immediately.
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10. The LESSEE, his assigns, heirs, employees, representatives, guests, clients, agents, visitors, and
all persons under him shall maintain peace and order and shall be responsible for all acts or
omissions, negligence, or mistake that shall cause any damage to the Leased Premises or to any
person in the Leased Premises.

11. It is agreed that the LESSEE will construct the structure on the vacant lot for the use of lessee in
its welding, testing & training center & fabrication services facility. The LESSEE will shoulder all
expenses for the construction of the structure within the vacant lot.

The structure being constructed by the LESSEE will be turned over to the LESSOR at no cost once
contract of lease is expired and not renewed.

12. The LESSEE will then apply for water and electric connection at its expense and the LESSOR shall
assist the LESSEE in its application.

13. The LESSEE shall pay the electric and water bills promptly so as not to cause the disconnection of
services and to avoid unnecessary expenses for reconnection. In case of termination of the
Contract for whatever reason, the latest paid electric bill, water bill and other utilities due shall be
presented to the LESSOR before leaving the Leased Premises.

14. The LESSEE shall hold the LESSOR free and harmless from any claim, liability, damages or injury
to any person or entity, or from damages to property caused by, explosion, fire or earthquake or
other incidents or events, resulting from the use of the Leased Premises.

15. LAWS. The LESSEE shall comply with all laws, ordinances, orders or regulations of the National
Government or the Local Government arising from or regarding the use of signage, occupation,
and sanitation of the Leased Premises. Failure to comply with the laws, ordinances orders or
regulations of the National Government or Local Government shall be at the risk and expense of
the LESSEE.

16. RIGHT TO INSPECT. The LESSOR shall have the right to enter into the Leased Premises at any
reasonable hour of the day to inspect the Leased Premises or for any other lawful purpose.

17. DEFAULT. In case of failure to pay the monthly rental or violation of any of the terms and
conditions of this Contract, the LESSEE shall be considered in default and the LESSOR has the
right to unilaterally terminate and cancel this Contract without need of judicial action. All advance
rentals and security deposit shall be forfeited in favor of the LESSOR. The LESSEE shall vacate
and turnover the Leased Premises to the LESSOR within fifteen (15) days from written notice
thereof.

18. EFFECT OF TERMINATION. Upon cancellation of this Contract due to the LESSEE’s default, the
LESSEE authorizes the LESSOR or any of its representatives to take possession of the Leased
Premises without need of any judicial or court action. Any property left at the Leased Premises
after due notice shall be considered property of the LESSOR. For this purpose and purposes of
Par. 9 hereof, the LESSEE shall be considered duly notified by leaving a copy of the notice at the
Leased Premises. However, this does not preclude the right of the LESSOR to enforce any legal
action to collect the unpaid obligations of the LESSEE. The LESSOR shall have the right to lease
the premises to third parties without any liability to the LESSEE.

After cancellation of the Contract for whatever reason, the LESSEE hereby appoints and grants to
the LESSOR a special power of attorney and authorizes the LESSOR to take possession of the
Leased Premises and to remove all the property of the LESSEE from the Leased Premises and to
place it anywhere at the option of the LESSOR or to sell the property of the LESSEE if the
LESSEE fails to remove any and all of its property after expiration of the period granted to vacate
the Leased Premises.

19. NON-WAIVER. Any extension of time granted by the LESSOR to the LESSEE to pay any amount
due, or to comply with any obligation stipulated therein, or any laxity on the part of the LESSOR in
its enforcement of any of the conditions in this Contract shall not be construed as a waiver or
renunciation of the rights of the LESSOR accrued or accruing under the terms and conditions of
this Contract. The LESSOR may, notwithstanding such extension or laxity, enforce its rights under
this Contract anytime it so elects to do so.
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20. PENALTY. In case the LESSEE shall refuse to vacate the Leased Premises upon termination or
early cancellation of this Contract after the period given by the LESSOR, the LESSEE shall be
liable to pay liquidated damages in the amount of FIVE THOUSAND PESO (PhP5,000), for each
and every day of delay, provided that, the LESSEE shall be entitled to a sufficient time of THIRTY
(30) days from the date of the expiration of this Contract within which to find a suitable location for
its transfer or relocation. The LESSEE shall peacefully vacate and return the Leased Premises to
the LESSOR after expiration of the Contract in good tenantable condition as when it was first
occupied by the LESSEE. Subject to Par. 6, it is understood that the LESSEE shall continue to pay
the MONTHLY NET RENTAL if it will take more than thirty (30) days to remove all the
improvements of the LESSEE and restore the Leased Premises in its original condition.

21. LITIGATION. In case the LESSOR shall institute any judicial or extrajudicial action to enforce its
rights under this Contract, the LESSEE shall be liable to pay attorney’s fees in an amount not less
than SIX MONTHS MONTHLY NET RENTAL, in addition to whatever amount is due in favor of the
LESSOR, including but not limited to, monthly rentals, damages, repairs, expenses, and costs of
litigation arising from this Contract. All actions or proceedings shall be filed and be held exclusively
in the courts of Muntinlupa City only.

22. SEPARABILITY. If any one or more of the provisions contained in this Contract shall be declared
by any court of competent jurisdiction as invalid, illegal or unenforceable in any respect under any
applicable law, the validity, legality or enforceability of the remaining provisions contained herein
shall not in any way be affected or impaired.

IN WITNESS WHEREOF, the Parties have affixed their signatures below on the __________ day of
______________________ at _____________________.

BY: ZENAIDA R. ALCARAZ

LESSOR LESSEE

SIGNED IN THE PRESENCE OF

______________________________ ____________________________

Acknowledgment

Republic of the Philippines)

City of Muntinlupa ) s.s.

BEFORE ME, a Notary Public in and for the City of _________________ this __________ day of
_______________________ personally appeared the following persons with their respective
GOVERNMENT ISSUED ID, to wit:
Name GOV. ID Date & Place of Issuance

ZENAIDA R. ALCARAZ

all known to me and to me known to be the same persons who executed the foregoing document and
acknowledged to me that the same is their free and voluntary set and deed and that they are the true and
authorized representatives of the Corporation they represent.

WTINESS MY HAND AND SEAL, on the date and at the place first above-written.

DOC NO._______
PAGE NO._______
BOOK NO._________
SERIES OF 2018.