CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease made and entered into by and between:

PEDRO SANTOS, of legal age, Filipino, single, and a resident of
Brgy. 95-A Caibaan, Tacloban City, Philippines, (hereinafter referred
to as the "LESSOR");
- and -
JUAN CRUZ, of legal age, Filipino, single / married / widow, and a
resident of Brgy. 95-A Caibaan, Tacloban City, Philippines,
(hereinafter referred to as the "LESSEE");

WITNESSETH That:

That the LESSOR hereby leases unto the LESSEE and the latter
hereby accepts in lease from the former , an apartment unit located at
Brgy. 95-A Caibaan, Tacloban City,subject to the following terms and
conditions:
1. That the term of this lease shall be for a period of ONE YEAR (1)
year to commence upon the signing of this Contract and shall be
renewable for another ONE (1) year at the option of the LESSEE, and
thereafter renewable upon mutual agreement of the parties;
2. That the monthly rentals on the leased premises above-mentioned
shall be SIX THOUSAND FIVE HUNDRED PESOS (P6,500.00),
Philippine Currency for the first TWELVE (12) months of this
agreement, which shall be increased by THREE (3) percent every
year thereafter. The rentals shall be paid by the LESSEE to the
LESSOR on a monthly basis payable on or before the 7th day of the
every month;
3. That upon the signing of this Contract, the LESSEE agrees to pay
advanced rentals for ONE (1) month;
4. That the LESSOR shall pay the real property taxes levied of the
leased premises corresponding to the aforementioned parcel of land
while the LESSEE shall pay the real property taxes levied on the
apartment unit and other improvements that shall be introduced by
the latter;
5. It is expressly agreed by the parties herein that any fixed
improvements or renovations that will be introduced in the subject
stall shall become the property of the LESSOR after the expiration of
the term of this Contract.
6. The LESSEE shall pay for and defray their share in the electrical
and water consumption in the premises subject of this lease. The
monthly rental does not include said utility bills. If there be unpaid
utility bills upon the expiration of this contract, such shall be borne
and paid by the LESSEE.
7. The LESSEE can make leasehold improvements in the subject
space. However, any and all leasehold improvement at the LESSEE’s
expense shall not be deducted from the rent due upon expiration of
the contract. LESSEE can remove any and all leasehold
improvements provided the LESSEE returns the space to its original
condition, prior to rent.
8. TERMINATION and RENEWAL-
a. The LESSEE has the right of first refusal regarding the
lease wherein before expiry of the lease, the LESSEE has
the right to renew the lease subject to the agreement
between the parties, which shall be paramount to offers and
rights of third persons.

b. The LESSEE shall notify the LESSOR at least two (2)

months before the date when the LESSEE decides to
terminate the lease and the same shall surrender, without
delay, the leased premises at the termination of this
contract. If the LESSEE fails to surrender the premises at
the end of the term, the LESSEE shall be responsible to the
LESSOR for all damages which the LESSOR shall suffer by
reason thereof and will indemnify the LESSOR for such
damages incurred by reason of delay.

c. Failure on the part of the LESSEE to comply with the terms

and conditions of this contract shall be a ground for the
LESSOR to cancel or terminate this contract, without
prejudice to the latter’s right to collect damages for the
breach of contract and vice –versa, in case of failure to
comply by the LESSOR of the contract, it will be a ground
for termination by the LESSEE, also without prejudice to the
LESSEE’S right to damages in case of breach.

d. The lease contract shall also be terminated when as a result

of the occurrence of natural calamities, the leased premises
is rendered in a condition unfit for occupancy. If termination
ensues due to the destruction of the leased premises
without fault of the parties, the LESSOR shall return any of
 the advance rentals for the unexpired portion of the term
and the deposit constituted. The LESSOR shall not be
answerable or responsible for any damage or injury to the
properties or personalties of the LESSEE caused by the
destruction of the leased premises due to natural events or
to any cause that is beyond the LESSOR’S control.

IN WITNESS WHEREOF, the parties have hereunto affixed their

signatures this March 4, 2019 at Tacloban City, Philippines.

PEDRO SANTOS
LESSOR
Driver;s License No. 789164

JUAN CRUZ
LESSEE
SSS ID No. 12146987

Signed in the presence of:

_______________________ _______________________

ACKNOWLEDGEMENT

Republic of the Philippines )

City of Tacloban ) s.s.
X----------------------------------X

BEFORE ME, this 04 March 2019, at Tacloban City, Leyte,

personally appeared the following parties with their corresponding
evidences of identity. Known to me to be the same person who
executed the foregoing Contract of Lease, and they acknowledged to
me that the same is their free act and deed. This Contract consists of
FOUR (4) pages, including the page where the acknowledgement
appears, signed by the parties and that of their instrumental
witnesses on each and every page thereof. WITNESS MY HAND
AND SEAL, the day, year and place above written.

ATTY. JUNE VER

Notary Public
Until December 2021

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