CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease is made and executed by and between:

__________________________, of legal age, Filipino, single/married and

a resident of ____________________________, Davao City, Philippines,
hereinafter referred to as the LESSOR;
-a n d-

________________________________, of legal age, Filipino,

single/married and a resident of ______________________________,
Davao City herein referred to as the LESSEE;

-witnesseth-

1. That the LESSOR hereby leases unto the LESSEE, and the latter hereby accepts in
lease from the former, the following premises owned by the LESSOR:

“____________________________________________________________”

2. That the LESSEE will hold the leased premises for a term of one (1) year under the
following terms and conditions

a) That the term of the lease will commence on ______________ until

___________________ and may be renewed for another term of one (1) year
upon mutual agreement of the parties herein;

b) That the LESSEE shall pay a monthly rental shall be

_________________________________( P__________), Philippine Currency,
payable on or before the first five days of each month, without any express
demand whatsoever, at the office of the LESSOR at Davao City. In case the
LESSEE failed to pay the monthly rental fee during the first five days of the
month, the above rental fee shall incur a surcharge of FIVE HUNDRED
(P500.00) PESOS per month for payment of rental made after the fifth (5 th ) day
of each month. It is expressly agreed and understood that the payment of the
rentals herein stipulated shall be paid at the above stated address of the
LESSOR and shall be made without necessity of express demand and without
delay whatsoever, failure to pay the stipulated rentals for one (1) month will
cause the immediate termination of the Contract;

c) That is hereby understood that the LESSEE shall shoulder the payment of
withholding taxes due and the latter shall remit it without delay directly to the
Bureau of Internal Revenue (BIR) of Davao City. In connection thereto, the
LESSEE shall furnished the LESSOR a copy of the receipt of payment to the
LESSOR;

d) That if at any time before the termination of this Contract of Lease, the LESSEE
should decide to vacate the premises leased, he shall first pay all the
corresponding amount of rentals due for the unexpired period;
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e.) That the LESSEE shall upon the signing of this Contract make a non-
interest bearing security deposit in the amount of
__________________________________ (P_______________), as security deposit
for the strict performance by the LESSEE of the covenant, conditions and
agreements of this contract and for any damage which the LESSOR may sustain
by reason of the default by the LESSEE. The said deposit shall not be consumed
towards the rent within the term of the lease. At the end of the lease, the said
deposit shall answer for any unpaid rental and of any loss or damage that the
LESSEE or privies, employees or agents may cause to the premises leased.
Should there be no such unpaid rental, losses or damages or, if there be any
remaining balance of the amount deposited or so much thereof may remain
shall be returned by the LESSOR to the LESSEE after two (2) months the latter
shall have vacated and surrendered the premises leased in the same good
condition as when the LESSEE first occupied the same;

f.) That the LESSEE shall pay and defray at his exclusive expense the consumption
of water, electric power, telephone or other utility service in the lease premises;
and repairs in the utility service system therein for the sole account of the
LESSEE;

g.) That the LESSEE shall not directly or indirectly sublease, assign, transfer,
convey, mortgage or in any way encumber his rights of lease over the leased
premises or any portion thereof under any circumstances whatsoever, any
violation made of this particular provision shall automatically and
unequivocally terminate this Contract of Lease from the time such violation
occurs;

h.) That the LESSEE shall not bring into or store in the leased premises any
inflammable or explosive goods, or materials nor any article which may expose
the leased premises to fire or increase the fire hazard of the building or increase
the rate of insurance of the building, or any other which the LESSOR may
prohibit;

i.) That the LESSEE hereby agrees to use the leased premises principally to its
General Merchandise business and shall, at its own expense, maintain the
leased premises in a clean and sanitary condition free from obnoxious odor and
disturbing noises, and shall not in any manner deface or damage any part of
said premises or building housing the same. An injury or damage caused on
the leased premises shall be made good by the LESSEE, or they may be repaired
by the LESSOR at the expenses and for the account of the LESSEE;

j.) That the LESSEE expressly acknowledge that the leased premises are in good
and tenantable condition and agrees to keep the same in such good and
tenantable condition;

k.) That the LESSEE shall permit the LESSOR at any reasonable hour of the day to
inspect the leased premises and in order to make such repairs as necessary for
the protection and preservation of the premises;

l.) That all ordinary repairs within the premises that arise in the daily use of the
facilities therein shall be for the sole account and expense of the LESSEE,
without right to reimbursement;

m.)That the LESSEE shall not make any alteration or improvements on the leased
premises without prior written consent of the LESSOR; and all alteration,
addition or improvements made by the LESSEE, except the movable furniture
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and movable fixtures put in by it at its expense and which are movable
without defacing and injuring the leased premises or the building housing the
same, shall become the absolute property of the LESSOR an shall remain so
upon, and be surrendered with the premises as an integral part thereof at the
termination of this lease, without need to reimburse or compensate the LESSEE
;

n.) That the LESSOR shall not be liable for any damage or injury by water or
otherwise to any merchandise or property upon the premises;

o.) That the LESSEE at the expiration of the term of the lease or cancellation of this
lease as herein provided, will promptly deliver the said premises to the
LESSOR in as good and tenantable condition in all respects, as the same are
now, reasonable wear and tear excepted, devoid of all occupants, furnitures,
articles and effects of any kind: PROVIDED, HOWEVER, that non-compliance
on the part of the LESSEE with the terms of this clause shall give the LESSOR,
at its option, the right to refuse to accept delivery of the premises to compel the
LESSEE to pay rent thereafter at the same rate of rental as herein provided, plus
ONE HUNDRED (100%) PERCENT additional sum as penalty until the LESSEE
shall have complied with the terms thereof. This same penalty shall likewise be
imposed in case the LESSEE shall refuse to leave the leased premises after their
right of lease has expired or terminated for any reason whatsoever;

p.) That if said premises be not surrendered at the end of the term, the LESSEE
shall be responsible to the LESSOR for all damages which the latter may suffer
by reason thereof and will indemnify the LESSOR against all claims made by
any succeeding tenant, insofar as the such delay is occasioned by the failure of
the LESSEE to so surrender the premises;

q.) That the failure of the LESSOR to insist upon as strict performance of any terms,
conditions and covenants hereof shall not be deemed a relinquishment or
waiver of any right or remedy which said LESSOR may have, nor shall it be
construed as a waiver of any subsequent breach or default of the terms,
conditions and covenants, herein contained, which shall be deemed in full force
and effect, no waiver by the LESSOR shall be deemed to have been made unless
expressed in writing and signed by the LESSOR;

r.) That in case any of the parties to this contract will have to resort to judicial
action to enforce their respective rights under this contract, the defaulting party
agrees to pay twenty five (25%) percent of the amount involved, but which
amount shall not be less than P20,000.00 as attorney’s fees, aside from actual
damages.

s.) That it is hereby agreed that the interpretation of this Contract of Lease
whenever the context so permits, the expression “LESSOR” shall include and
embrace its heirs, administrators and assigns and the expression “LESSEE”
shall include and embrace the heirs, executors and administrators and that the
convenants and stipulations hereof shall be binding upon and shall inure to the
benefit of the persons included and embraced under the said expressions,
respectively as aforesaid.

t.) That it is expressly agreed that in case of court action, the venue shall
exclusively belong to the court of competent jurisdiction in the City of Davao;

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this
____________________ in the City of Davao, Philippines.
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_____________________ _______________________
Lessor Lessee

Signed in the presence of:

_______________________ _______________________

Republic of the Philippines)

In the City of Davao )Ss.
x--------------------------------x

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in the City of Davao, Philippines, this
____________________ personally appeared __________________ exhibited his/her
CTC/TIN/SSS/Driver’s License bearing No. ________________ valid until
____________________ and issued at/by _________________________and
____________________ who exhibited before me his _____________________________ and
issued at Davao City, known to me and to me known to be the same persons who executed
the foregoing instrument comprising of the four (4) pages including this page of the
acknowledgment and further acknowledged before me that the same is their free and
voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and place above stated.

Doc. No. ______;

Page No. ______;
Book No.______;
Series of 201____.