CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

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

______________, of legal age, Filipino, married to _________

and a resident of _____________, hereinafter referred to as “LESSOR”.

-and-

PACIFICA AGRIVET SUPPLIES, INC. , a corporation duly

organized and existing under Philippine laws, with offices at Vel-Ouano Bldg.,
A.S. Fortuna St., Mandaue City, herein represented by MARIO L.
MONTELLANO & VERONICA T. LABAJO, hereinafter referred to as “
LESSEE”.

-WITNESSETH-

WHEREAS, LESSOR is the owner of a commercial building known as

standing on his own lot covered by Transfer Certificate of Title No. _______
located at __________________.

WHEREAS, LESSEE is desirous of leasing form LESSOR, the ground

floor of the said commercial building with a frontage of ______ ( ) meters,
more or less and depth of ______ ( ) meters, more or less for a total area of
________ ( ) square meters, more or less, and the LESSOR is willing to give
unto the LESSEE by way of lease under the following terms and conditions to
wit;

1. The Contract of Lease shall be a period of Two ( 2 ) years starting

from ________ to expire on __________;

2. Upon the execution of the Contract of Lease, LESSEE shall pay

LESSOR advance rental in the amount of __________ and another
amount ___________ less 5% withholding tax shall be applied the
rentals for the first three ( 3 ) months of the lease period. The deposit
of _________ equivalent to two ( 2 ) months rental shall answer for
damages and or losses that the leased premises might suffer during
the lease period through the fault, negligence, and or lack of foresight
of LESSEE, its agents or employees. The deposit shall be refunded
to LESSEE after the expiration of the original term of this Contract,
less whatever amount LESSEE may owe to LESSOR;
3. LESSEE shall pay LESSOR monthly rentals within the first seven ( 7
) days of each month without need of any demand;

4. LESSEE shall make sure that the second floor of the said building
and its occupants shall be free from any untoward effects of the feeds
and goods stocked in the ground floor like its smell and harmful
pests arising from its storage;

5. LESSEE shall give LESSOR sixty ( 60 ) days written notice before

pre-termination of the contract or sixty ( 60 ) days written notice to
renew the Contract of Lease;

6. LESSEE shall permit LESSOR to inspect the leased premises at any

reasonable hour of the day and to make such necessary repairs for the
protection and reservation of the building. LESSEE shall not claim
any loss or damage on account of the necessary work by LESSOR
which shall not in any way interrupt its use of the premises leased;

7. Should LESSOR decide to sell the property subject matter hereof

during the term of the lease, LESSEE shall have the first option to
buy under terms and conditions acceptable to LESSOR. Should
LESSEE refuse to exercise said option to buy within sixty ( 60 ) days
from written notice to that effect by LESSOR, any sale or transfer to
a third party or any mortgage or encumbrance of the above property
that may be made by the LESSOR shall be subject to the condition
that the purchaser, mortgagee, or any person acquiring a right or lien
on the subject property by virtue of any such contract shall honor the
Contract of Lease;

8. LESSEE shall keep the premises in good condition making all

necessary repairs and replacement in the electrical and plumbing
installation and/or the general condition and cleanliness of the leased
premises;

9. LESSEE shall use the leased premises exclusively for business

purposes and shall not use it for family dwelling or like purposes and
shall not sublease any portion or the whole of the leased premises
without the permission of the LESSOR. LESSEE however, may
provide a space in the leased premises as a rest and relaxation area for
its employess;
10. LESSOR shall keep LESSEE a peaceful occupation and enjoyment
of the leased premises and LESSOR guarantees LESSEE that no
competing business shall be allowed by LESSOR within the building
as long as this Contract of Lease is in effect;

11. Real estate taxes on the land and building shall be for the account of
LESSOR while taxes, fees, and permits on the business contracted by
LESSEE to the leased premises shall be for the account of LESSEE
who shall comply all laws, ordinances, and regulations relative to the
use and occupation of the leased premises;

12. LESSEE shall solely be liable for the cost of water, gas, electric
current, telephone, and other utilities that it may cause to be
connected or installed in the leased premises;

13. LESSEE may upon notice to and with the written consent of the
LESSOR introduce useful improvements on the leased premises
according to its needs and purposes. Upon the expiration of the
original term of the contract, all permanent improvements on the
leased premises introduced by LESSEE which cannot be removed
without any harm or injury therein shall become absolute property of
LESSOR without any obligation on the part of LESSOR to pay or
reimburse LESSEE of its expense and without need of executing any
document;

14. In the event of the destruction of the leased premises for any reason
whatsoever resulting in the termination of this lease, LESSEE shall
have the option to use the same after reconstruction thereof;

15. In the event that the LESSEE shall be forced to stop business
operations in view of the construction or serious damage to the
leased premises, payment of rentals shall be suspended until the
leased premises shall have sufficiently repaired and normal business
operation shall have resumed therein and the lease shall be extended
by the period of suspended operations;

16. Upon expiration of the original term of this Contract, LESSEE shall
have the option to renew this Contract of Lease foe another period
of Two ( 2 ) years under the same terms and conditions except for
the rate of rentals which shall be subject for another negotiation
mutually acceptable to both parties. Should the parties did not agree
on the rate of rental, the same shall be submitted to a group of
arbitrators composed of three ( 3 ) members, one to be appointed by
 the LESSOR, another by the LESSEE, and the third one to be
agreed upom by the two arbitrators previously chosen and the parties
thereto shall submit to the decision of the arbitrators;

17. That parties hereto agree on a peaceful execution of the provision

hereof and to settle differences that may arise therefrom amicable.
Should any controversy arise which parties hereto cannot resolve, the
same shall be to a group of arbitrators mentioned in paragraph 16
hereof and the parties hereto shall submit to the decision of the
arbitrators;

18. LESSOR warrants its title to the leased premises and that it has the
right to lease the same to LESSEE and shall render LESSEE free and
harmless from any and all claims of third parties to the property
and/or to the rentals.