CONTRACT OF LEASE

This Contract of Lease is made and entered into this _______ day of ___________ at
_____________, Metro Manila, by and between

RODOLFO P. DERECHO and CECILIA M. DERECHO, both of legal

age, Filipino and residing at Lot 9 Block 4 Arkansas St., Metrovilla
Subdivision, Mapulang Lupa, Valenzuela City, hereinafter referred to
as the “LESSOR”.

- and -

_________________________, of legal age, Filipino, and residing in

_________________________, hereinafter referred to as the “LESSEE”.

WITNESSETH:

WHEREAS, the LESSOR is the absolute and registered owner of a condominium unit
located at Unit __________, ______________, ___________________ hereinafter
referred to as the “Leased Premises”;

WHEREAS, the LESSEE desires to lease the above-mentioned property and the
LESSOR is willing to lease the same, subject to the terms and conditions hereinafter
specified;

NOW, THEREFORE, for in consideration of the foregoing premises and mutual

covenants hereinafter contained, the LESSOR hereby leases unto the LESSEE the
aforementioned Leased Premises under the following terms and conditions:

1. Term of Lease – The lease shall be for a period of One (1) Year commencing
on _________ until ____________, subject to a renewal or extension upon
expiration, under such terms and conditions mutually agreed upon by both
parties.

2. As-is Lease – The LESSEE acknowledges that he/she has inspected the Leased
Premises prior to the execution of this contract and prior to the term of the
lease and that the same is in a good and tenantable condition. The LESSEE also
acknowledges that he/she is leasing the Leased Premises "as-is" without any
warranty or representation, and that the LESSOR has not made, and is not
hereby making any warranties or representations pertaining to the physical
condition of the Leased Premises, any part thereof or any improvements
thereon.

3. Amount of Rental – The parties have herein agreed that the total rental for the
Leased Premises for the agreed period of use of the same shall be

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 ____________________ (PHP________) per month, in Philippine Currency,
inclusive of condominium dues, exclusive of value-added tax (VAT).

Upon signing of this contract, the LESSEE shall issue ELEVEN (11) POST
DATED checks to the LESSOR dated every ____ of the month, in the amount
of rent as mentioned in the next preceding paragraph. A surcharge of five (5%)
percent per month shall be applied on any bounced check thereafter until the
rental payments have been paid and updated.

4. Advance Rent and Security Deposit – Further, upon signing of this contract,
the LESSEE shall pay the LESSOR a security deposit in an amount equivalent
to two (2) months security deposit or _______________ (PHP____________)
AND one (1) month advance rent, or
_______________________(PHP_______________). Advance deposit will be
consumed on the first month of the lease.

The security deposit will be refunded by the LESSOR in favor of the LESSEE,
without interest, within thirty (30) days after the date of expiration of the
contract less any amount of liabilities, penalties, cleaning fee, unpaid utilities,
and/or damages that the LESSEE may have incurred in the leased premises.
Said damages shall include the misuse and/or destruction of the Leased
Premises or any of the furniture, fixtures, appliances, and equipment therein
(see ANNEX A – Inventory of furniture, fixtures, appliances, equipment, etc.) by the
LESSEE, his/her representatives, guests, or any member of its household.

Damages incurred due to ordinary wear and tear and/or damages due to acts
of God such as typhoon, earthquake, flood, fire, etc., shall not make the
LESSEE liable, provided that the latter exercised utmost diligence in
preventing and/or averting such damage.

In case of early termination of the contract by the LESSEE, the

abovementioned security deposits, advance rentals, and all other issued
checks for the term of the lease shall be forfeited in favor of the LESSOR.

5. Real Estate Taxes and Insurance– All taxes and insurance premiums on the
Leased Premises shall be for the account of the LESSOR.

6. Utilities– The LESSEE shall be responsible for the payment of all utilities, bills
and/or charges such as but not limited to water, electricity, internet, and
telephone as reflected in its water and electric consumption meter and
telephone bill, to take effect upon turnover/delivery date of the Leased
Premises. Any penalties and surcharges arising from the non-payment or
delay in the payment of the foregoing will be for the account of the LESSEE.
The LESSOR shall not be liable for the failure of water supply and/or electric
current due to the LESSEE’S non-payment thereof.

7. Residential Purposes - The leased premises shall be used for residential

purposes only and shall not be used by the LESSEE for any other purpose. The

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 LESSEE shall not use the Leased Premises as a location for any commission of
any crime or any illegal conduct. A penalty of ONE HUNDRED THOUSAND
(PHP100,000.00) PESOS, including the forfeiture of the security deposits,
advance rentals, and all other issued checks for the term of the lease shall be
imposed for the violation of this provision.

8. Sub-lease - The LESSEE shall not sub-lease in whole or in part, the leased
premises nor assign this contract of lease to any other party, without prior
written consent of the LESSOR. Any sublease of the said premises or any
assignment of such contract shall be null and void, and the LESSOR shall have
the right to terminate this contract, to forfeit all payments and deposits made
by the LESSEE, and to demand the LESSEE to immediately surrender the
Leased Premises.

Should the LESSEE be authorized to sublease the property, the LESSEE shall
be solidarily liable with the SUB-LESSEE to the LESSOR for any liabilities,
penalties, and/or damages that the SUB-LESSEE may incur in the Leased
Premises. The LESSEE shall likewise be liable to the LESSOR for the payment
of the monthly rentals of the Leased Premises.

9. Fire Hazard and Noxious Substances – The LESSEE shall not keep, deposit,
or store in the leased premises any obnoxious, toxic waste, flammable material
and/or any substance that may cause constituent fire hazard. A penalty of
ONE HUNDRED THOUSAND (PHP100,000.00) PESOS, including the
forfeiture of the security deposits, advance rentals, and all other issued checks
for the term of the lease shall be imposed for violation of this provision.

10. Inspection of Premises –The LESSOR or his appointed representative is/are

shall have the right during reasonable hours, with prior notice to the LESSEE,
to enter and inspect the Leased Premises and to make necessary repairs
thereon, provided however, that minor repairs shall be the responsibility of
the LESSEE.

11. Maintenance - The LESSEE shall be responsible for the maintenance and
upkeep of the Leased Premises during his/her occupancy and shall be
responsible for the minor repairs such as but not limited to faucet leaks,
change of faucet, toilet clogging, drainage clogging, periodic aircon cleaning,
faulty bulbs, faulty switch, and the like.

Should the LESSEE require the LESSOR to undertake such minor repairs as
mentioned above, the LESSEE shall be liable to pay the LESSOR One
Thousand Pesos (Php1,000.00) as labor cost, cost of transportation, plus the
cost of the actual item to be replaced.

Should there be a need for any urgent and major repairs in the premises, the
LESSEE shall notify the LESSOR within five (5) days from such occurrence of
repair. Any repairs within the leased premises due to fault or negligence of the

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 LESSEE, members of his/her household, guests, or relatives shall be for the
account of the LESSEE.

12. Renovations- The LESSEE shall not paint the walls, furniture, install any
hanging furniture and/or equipment in the walls, make alterations or changes
in the electrical or plumbing installations, within the leased premises without
the prior written consent of the LESSOR.

13. Renewal - Should the LESSEE desire to renew the contract, written notice
shall be given to the LESSOR at least thirty (30) days prior to the expiration of
this Contract. Said renewal or extension shall be under such terms and
conditions to be agreed upon by both parties.

If no such notice of intent to renew is given thirty (30) days prior to expiration,
the LESSOR shall offer the premises to other parties, in which case the LESSEE
shall allow the LESSOR to exhibit the premises to prospective clients at any
time, with prior notice, during office hours within the said thirty (30) day
period.

14. Third Party Liability – The LESSEE, during the effectivity of this contract and
occupancy of the Leased Premises, shall hold the LESSOR free and harmless
from any damages, liability or responsibility to any person or property arising
out of or for such consequence of the use of the Leased Premises by the
LESSEE, his agents, employees, guests, relatives, and helpers as such.

15. Breach/Termination of Contract – The LESSEE hereby agrees that all

provisions contained herein shall be deemed as conditions and covenants
binding and enforceable between the parties herein and should the LESSEE
violate any or all said conditions, the LESSOR grants a settlement period of ten
(10) days from the written notice of breach by the LESSOR to the LESSEE, for
the latter to address and remedy such violation.

After the lapse of the ten (10)-day settlement period, and the LESSEE still fails
to remedy the violation, the LESSOR shall have the right to automatically and
unilaterally terminate this contract, without judicial intervention, and to forfeit
all security deposits, advance rentals, and checks made by the LESSEE in favor
of the LESSOR.

16. Non-Payment - In case of non-payment or failure to pay for two (2)

consecutive months by the LESSEE, the LESSOR has the option to consider
this contract as automatically cancelled and be of no further force or effect
without necessity of any judicial declaration to that effect. And to that end, the
LESSEE hereby agrees to forfeit all security deposits, advance rentals, and
checks made by the LESSEE in favor of the LESSOR.

Further, the LESSOR is hereby appointed as the Attorney-in-Fact of the

LESSEE, with full power and authority to open, enter, occupy, padlock,
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 secure, enclose, fence, or otherwise take full and complete physical and
control of the leased premises, to eject the LESSEE out of the premises, and to
take inventory and possession of whatever equipment, furniture, articles,
merchandise, appliances, fixtures, etc., from storage and liquidate his/her
responsibilities with the LESSOR. The LESSOR is hereby likewise authorized
and empowered by the LESSEE to sell and dispose said property in a public
auction sale through a notary public and to apply the proceeds thereof to
whatever liability and or indebtedness that the LESSEE may have incurred to
the LESSOR plus reasonable expenses for the sale including storage fees,
auction sale, etc. and the balance thereof, if any, shall be turned over to the
LESSEE.

17. Return of Leased Units - Upon the termination of this Lease Contract, the
LESSEE shall immediately vacate the Leased Premises and return possession
thereof to the LESSOR. In the event that the Leased Premises is not in good
and tenantable condition upon the end of the term of lease, the LESSEE shall
continue paying the Lease Rental until the time the Leased Unit have been
restored in good and tenantable condition and have been turned over to the
LESSOR.

18. Hold-Over Provision - In the event the LESSEE should fail to surrender the
Leased Premises to the LESSOR and continues to occupy the Leased Premises
beyond the end of the term without the benefit of a formal written extension of
this Leased Contract, the LESSEE shall be liable for three (3) times the monthly
Lease Rental as liquidated damages.

Should the hold-over period of LESSEE exceed thirty (30) days, the LESSEE
shall pay the LESSOR an amount equivalent to three (3) times the monthly
Lease Rental as substituted rental for every month of hold-over period. All
other terms and conditions of this Lease Contract shall continue in force
during the hold-over period.

19. Pre-Termination - The LESSEE shall have the option to pre-terminate this
Lease Contract provided that the LESSEE informs the LESSOR in writing at
least sixty (60) days prior to the actual date of termination of contract.
Moreover, upon pre-termination, the LESSOR shall have the right to forfeit all
security deposit, checks, payments, and/or advances paid by the LESSEE.
Other dues, utilities, common expenses as specified in this contract until the
day the LESSEE vacates the premises in full, shall remain to be for the
LESSEE’s account.

20. Miscellaneous Provisions - The LESSEE agrees to abide by the existing rules
and regulations promulgated by the Condominium Association of the Leased
Premises.

No amendment or modification of any of the provisions hereof shall be

binding upon the parties unless made in writing and signed by their duly
authorized representatives.
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 If any one or more of the provisions of this Agreement shall be invalid, illegal,
or unenforceable in any respect, the validity, legality, and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired.

21. Venue – Any dispute, litigation, or action arising from, or relating or

incidental to this contract shall be filed only with the proper courts of
Valenzuela City, Metro Manila, to the exclusion of all other courts or venues.

IN WITNESS WHEREOF, the parties have hereunto set their hands this _____
day of ________ 202___ at _________________ City.

RODOLFO P. DERECHO ________________________

Lessor Lessee

CECILIA M. DERECHO
Lessor

**ACKNOWLEDGMENT PAGE FOLLOWS**

ACKNOWLEDGEMENT

Republic of the Philippines)

) S.S

BEFORE ME, a Notary Public for and in the above jurisdiction personally
appeared on this ______ day of _________________ the following:
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 NAME GOVERNMENT ID NO.
RODOLFO DERECHO
CECILIA DERECHO

Known to me to be the same persons who executed the foregoing instrument

consisting of seven (7) pages including the page on which this acknowledgement is
written, signed by the parties and they acknowledged to me that the same is free and
voluntary act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand affixed my notarial

seal on the date and place first above written.

Doc. No. _________;

Page No. _________;
Book No. _________;
Series of 202___.

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