CONTRACT OF LEASE

Know All Men By These Presents:

This CONTRACT OF LEASE is made and entered into by and between:

The LESSOR

FEBE CELIA S. DANGANAN, of legal age, Filipino, and with

address at 2025 Gen. T. De Leon St., Valenzuela City;

and

The LESSEE/FRANCHISEE

APPLE LIN M. BALBIDO, of legal age, Filipino, and with

address at 165 20TH Ave. Escalades East Twr, Brgy. San Roque,
Cubao, Quezon City.

RECITALS:

The LESSOR, as the owner of a commercial space with an area of

__________ square meters (_____ sq.m.) located at 2025 Gen. T. De Leon
St., Valenzuela City(the “leased premises” or “Property”), which is covered
by [Transfer or Condominium] Certificate of Title No. _________
issued in the name of the Lessor by the Register of Deeds of
______________, a copy of which is hereto attached as Annex “A”, hereby
leases unto the LESSEE the said commercial space under the following terms
and conditions:

1. AMOUNT OF RENT and SECURITY DEPOSIT

1.1. The LESSEE shall pay the LESSOR Rent of TEN THOUSAND PESOS
ONLY (P 10,000) per month.

1.2. Upon signing of this contract the LESSEE, shall add the amount of Two
Thousand Pesos (Php 2,000.00) to the original Two (2) months
SECURITY DEPOSIT of Eighteen Thousand Pesos (P 18,000) the total
Two (2) months Security Deposit shall be Twenty Thousand Pesos Only
shall be given to the LESSOR, to be applied for the payment of any
unpaid rental, bills or damage to the leased premises. In case of
abandonment of the leased premises or termination or expiration of
the lease, any excess of such amount (security deposit fund for
electricity, water and telephone) after payment of the unpaid bills shall
be refunded to the LESSEE within ONE (1) month from date of
abandonment or termination or expiration of lease. The Security
Deposit will be carried over to any renewal of the Contract of Lease.

2. TERM

This Lease shall have a period of One (1) YEAR beginning on January
1, 2020, and shall expire at midnight of January 1, 2021. This Lease
may be renewed at the option of the LESSEE under such terms and
conditions as may be agreed upon by the LESSOR and LESSEE
provided the LESSEE notifies the LESSOR in writing of his intention to
renew at least thirty (30) days before the expiration of the term.
3. USE OF PREMISES

3.1. The LESSOR acknowledges that the LESSEE is a Franchisee of

B.I.V.M.C. and that the operation of the Franchisee’s BRENT Gas outlet
in the leased premises is also covered by the provisions of the
Franchise Agreement between the LESSEE and B.I.V.M.C.

3.2. The LESSEE warrants that the Property shall be used exclusively for
selling Liquefied Petroleum Gas (LPG) products and accessories.

3.3. The LESSEE shall be responsible for the observance of sanitary and
electrical regulations required by the city or local government
authorities regarding the use and habitation of the leased premises.

4. INSTALLATIONS, ADDITIONS, RENOVATIONS, IMPROVEMENTS

and REPAIRS

The LESSEE shall keep the property clean and in good sanitary
condition. The LESSOR shall be responsible for all major repairs on the
leased premises including water, electrical and sewerage installation
caused by ordinary wear and tear, except for repairs due to the fault
or negligence of the LESSEE. Expenses for ordinary repairs of the
leased premises that arise from the daily use thereof shall be for the
account and expense of the LESSEE without right to reimbursement.

5. UTILITIES

All utility services on the Property such as water, telephone and

electricity during the term of the Lease shall be solely for the LESSEE’s
account. All repairs in the utility service or system shall be made by
the LESSOR for the exclusive account of the LESSOR.

6. WARRANTIES and REPRESENTATIONS

7.1. The LESSOR warrants and represents that the LESSOR and his/her
representative herein have the full right and authority to enter into
and fully perform this Contract and grant the right herein granted to
the LESSEE. The LESSOR further warrants that the LESSEE shall have
peaceful possession and enjoyment of the Property for the entire term
of this lease and any extension or renewal thereof.

7.2. The LESSOR warrants that he/she will indemnify and hold the LESSEE
free and harmless from any claim, demand loss, liability, damage or
expense arising from any breach by the LESSOR of the foregoing
warranties, or from any claim by any third party that may cause
disturbance of the LESSEE’S right as lessee and lawful possessor of the
Property.

7.3. That LESSOR expressly acknowledges that B.I.V.M.C., being the

Franchisor of the LESSEE, shall have the absolute right to immediately
acquire and take assignment of the LESSEE’s interests and rights
under this Lease Contract in the event of the termination or
cancellation or expiration of the Franchise Agreement between
B.I.V.M.C. and the LESSEE.

7. TERMINATION OF LEASE and BREACH OF CONTRACT

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 8.1. Should the LESSEE desire to terminate the lease, the LESSOR shall be
notified in writing thereof at least thirty (30) days in advance or prior
to the effective date of termination thereof.

8.2. In case of breach of any provision of this Contract, and such breach is
not cured or remedied despite written notice to do so within thirty (30)
days from notice, the non-defaulting party shall have the right to
terminate the Contract upon thirty (30) days prior written notice to the
defaulting party.

8.3. In the event of non-payment of rent or other breach by the LESSEE of

any provision of this Contract, the LESSOR shall immediately give
B.I.V.M.C. a written notice of such breach or default by the LESSEE. A
breach by the LESSEE of any provisions of this Lease Contract shall also
constitute a breach by the LESSEE of the Franchise Agreement with
B.I.V.M.C.

9. TRANSFERS and ENCUMBRANCES

9.1. This Contract of Lease shall be valid and binding between the Parties,
their successors-in-interest and assigns.

9.2. In the event that the Property is sold, assigned, or otherwise conveyed
or mortgaged or otherwise encumbered by the LESSOR to a third party
during the term of the Lease or any renewal thereof, the LESSOR shall
notify in writing the said third party of the existence of this Contract
prior to the execution of the conveyance or encumbrance and require
said third party to respect likewise in writing and under oath all the
terms and conditions of this Contract.

10. ENTIRE AGREEMENT

This Contract constitutes and embodies the entire and complete

agreement between the Parties and no other terms and conditions,
verbal or otherwise, not herein expressly contained, shall affect,
change, modify, be added to or in any manner alter the provision
herein agreed upon unless such change, modification, addition, or
alteration is expressly stipulated in writing and duly executed, signed
by both Parties and notarized.

IN WITNESS WHEREOF, the Parties have signed this CONTRACT OF

LEASE on ____________ 2017 in ____________.

The LESSOR The LESSEE/FRANCHISEE

FEBE CELIA S. DANGANAN APPLE LIN M. BALBIDO

Signed in the presence of:

And

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 ACKNOWLEDGEMENT

Republic of the Philippines)

 SS.
)

BEFORE ME, a Notary Public in _______________ on __________ appeared:

Name I.D. Date/Place Issued

FEBE CELIA S. DANGANAN SSS 3311310208
APPLE LIN M. BALBIDO

known to me to be the same persons who executed the foregoing

instrument, presenting competent evidence of their identities as indicated
above, and they acknowledged to me that the same are their free act and
deed and of the Corporation represented.

This CONTRACT OF LEASE consisting of Four (4) pages, including the page on
which this acknowledgment is written, has been signed on the margin of each
and every page thereof by the Parties and their witnesses, and sealed with
my notarial seal.

WITNESS my Hand and Seal.

Doc. No. ____

Page No. ____
Book No. ____
Series of 2019.

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