CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Cotract of Lease, made and entered into this day of , at ,by
and between:

LIEZL BARCENAS PEGGY, of legal age, Filipino, widower, and resident of 174 Gil Tudtud St.,
Mabolo, Cebu City, hereinafter referred to as the “LESSOR”;

- And –

HERZL R. CARAGAN, of legal age, Filipino, married and a resident of 700 M.L. Quezon St., Cabancalan,
Mandaue City, hereinafter referred to as the “LESSEE”;

(Collectively, the Lessor and the Lessee shall be referred to as the “Parties”)

WITNESSETH

WHEREAS, theLessor is the absolute and registered owner of parcel of land situated at Corner Jakosalem
St. & Colon St., Cebu City, covered by TCT No. issued by the Register of Deeds, Cebu City with
a commercial building likewise built by the Lessor thereon as an improvement;

WHEREAS, the Lessee desires, and the Lessor is willing to lease a space to the former in the above-
mentioned commercial building, under the terms and conditions hereinafter set forth;

NOW THEREFORE, for and in consideration of the foregoing premises, the Lesor hereby leases unto the
Lessee and the latter hereby accepts to lease the Leased Premises subject to the following the terms and conditions;

1. Leased Premises- The leased premises consist of a commercial space with a total area of 193 square
meters, more or les, hereinafter collectively referred to as the “Lease Premises”;

2. Lease Term- The lease shall be for a period of 3 YEARS, to begin on JULY 20, 2018 and shall expire
ofJULY 20, 2021 and renewable for another period subject to the terms and conditions as may be
mutually agreed upon by the parties. The Lessee, however, shall have the right to pre-terminate the
lease without incurring any penalty for such pre-termination, provided a thirty (30) day prior written
notice is given by the Lessee to the Lessor;

3. Lease Rental- The Lessee shall pay to the Lessor for the use and occupancy of the Leased Premises a
monthly rental of Pesos: SIX THOUSAND PESOS ONLY (P 6,000.00), Philippine Currency, payable
on the 20th dayof each month and every month thereafter. The rent shall not be adjusted or revised by
the Lesor for any reason whatsoever during the period of this Lease Contract;

4. Security Deposit- Upon execution of this Contract of Lease, the Lessee shall pay to the Lessor a
security deposit in the sum of Pesos: EIGHTEEN THOUSAND PESOS ONLY (P18,000.00),
Philippine Currency, as fixed security deposit, which shall be applied to whatever obligation the Lessee
may have to the Lessor at the expiration or termination of the lease term, or in the absence thereof, such
or whatever remainder shall be immediately returned to the Lessee without need of any demand within
two (2) months from the expiration or termination of the lease. “ The Lessee shall have the option of
applying said security deposit to the two (2) months of this renewed lease.”;

5. Advance Rental- Upon execution of this Contract of Lease, the Lesee shall pay to the Lesor the sum
of Pesos: SIX THOUSAND PESOS ONLY (P6,000.00), Philippine Currency, as advance rental to be
applied as rental payment for the first month of the lease.
6. Improvements and Alternation- The Lessee may, during the existence of the lease, make renovations,
alterations, additions, installations such as power utilities and telephone lines and other improvements
on the Leased Premises as may be necessary for the Lessee’s purpose. All such renovations, alterations,
additions, installations and movable improvements, which may be removed without causing substantial
damage to the Lease Premises shall be removed by the Lessee upon the expirations or terminations of
the Lease Contract. The Lessee agrees to return and surrender the Leased Premises at the expiration or
termination of lease term without delay whatsoever, devoid of all occupants, equipment, furniture,
fixtures, articles, among other Lessee’s belongings;

7. Signages, Pylons and Advertisements- The Lessee may display or put on the exterior of the Leased
Premises such signs an/or pylons as it may deem necessary or appropriate for the proper conduct of and
to publicize its business. The Lessee can affix, inscribe or print any notice, sign or other advertising
medium on the exterior or the Leased Premises without need of prior approval of the Lessor;

8. Damage to the Leased Premises- In case of damage to the building, the Leased Premises or its
appurtances by fire, earthquake, flood war or any other unforeseen cause, the Lessee shall bive
immediate notice thereof to the Lessor. The damage shall be repaired accordidng to the original plans
of the building at the expense of the Lessor, within a reasonable time after such notice. Provided,
however, that the Lessee may opt to rescind this Contract if the Leased Premises are destroyed to such
an extent as to make it incapable of meeting the needs of the Lessee upon its own determination;

9. Examination, Repair and Maintenance of the Leased Premises- The Lessor or its authorized
representative shall, by previous arrangement with the Lessee, have the right to enter the Leased
Premises during reasonable office hours enable the Lessor to examine the same or conduct activities
for purposes of making repairs and/or maintenance of the Leased Premises or any installations therin
belonging to the Lessor, and during the last month prior to expiration of the lease, to exhibit the Leased
Premises to prospective tenants, provided that such inspection, examination or maintenance shall not
cause unnecessary disturbances to the business of the Lessee;

10. Clean and Sanitary Condition of the Leased Premises- The Lessee shall, maintain the Leased
Premises in a clean and sanitary condition or other nuisances and upon the expiration of the lease,
surrender and return the premises to the Lessor;

11. Expenses and Taxes- The Lessee shall pay for its water, electricity, telephone services and other public
services or utilities/ Real property taxes on the land and building shall be for the account of the Lessor.
Documentary Stamp Tax on the Contract of Lease and/or any other tax on this lease Cotract of Lease
shall be for the account of the Lessor;

12. Expropriation- In the event that expropriation proceedings are instituted during the period of this lease
by any instrumentality of the Government or any other entity with authority to exercise such power, the
Lessee may rescind this Contract of Lease, if in its opinion the Leased Premises can no longer be useful
for the purpose for which it is being leased, and the Lessor shall be obligated to return or to reimburse
to the Lessee all amounts corresponding to the security deposit and any unapplied advance rental
payments;

13. Lessor’s Warranties- The Lessor warrants valid title and absolute ownership of the property and the
Leased Premises and warrants that the same is free from all liens and encumbrances of any kind
whatsoever. The Lessor warrants that the Lessee shall enjoy full, continuous and peaceful possession
of the Leased Premises for the entire period of lease including any renewal thereof. The Lessor warrants
to forever defend the property/Leased Premises in favor of the Lessee, its successors and assigns,
against any disturbance or discontinuance of its possession of the Leased Premises during the term of
this lease. The Lessor further warrants that it shall not, during the term and any renewal or extension of
this Contract of Lease, allow any portion of the said building to be used by any person or entity whose
business thereat shall be in competition with that of the Lessee. In the event of the Lessor’s breach of
any of its warranties herein, the Lessor shall be liable to the Lessee for all cost, expense, penalty and
damage sustained by the Lessee as a result of such breach including by not limited to, the Lessor’s
obligation to reimburse the Lessee for unapplied advance rentals, security deposits and whatever
amounts the Lessee may have spent for the improvements of the Leased Premises;
 14. Registration- The Lessee, if it so desires, may require the annotation of its rights under this Contract
of Lease on the appropriate certificate(s) of title and the registration of this lease with the appropriate
Register of Deeds;

15. Binding Effect- This Contract of Lease and any extension or renewal thereof shall be binding not only
between the Parties hereto but also upon their respective successors, transferees and assigns.

IN WITNESS WHEREOF, the Parties have signed this Contract of Lease on the date and at the place first
above-written.

LIEZL BARCENAS PEGGY HERZL R. CARAGAN

LESSOR LESSEE

SIGNED IN THE PRESENCE OF:

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU…………………….)S.S.

I certify that on , before me, a Notary Public duly authorized in the City named above to
take acknowledgments, personally appeared the following persons:

NAME Identification Presented

LIEZL BARCENAS PEGGY
HERZL R. CARAGAN DRIVER’S LICENSE NO.: G06-10-003313

Who were identified by me through competent evidence of identities to be the same persons described in the
foregoing instrument and who acknowledged before me that their respective signatures on the instrument were
voluntarily affixed by them for the purpose stated therein, and who declared to me that they have executed the
instrument as their free and voluntary act and deed.

The instrument refers to a CONTRACT OF LEASE consisting of three (3) pages, including this page,
signed by the parties and their material witnesses.

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

Page No.
Doc. No.
Book No.
Series of 2019