C O N T R A C T O F L E A S E-atty New.docx

CONTRACT OF LEASE

This CONTRACT OF LEASE, made and entered into this ______________, 2014 in Digos City, Philippines, by and between: PEPSOR CORPORATION represented by Maria Cristina P. Tionko, of legal age, Filipino with an office at Door O, TMNT Bldg., #8 Dona Vicenta Drive, Bajada, Davao City referred to as the LESSOR. AND ______________________________________of legal age, and a resident of_____________hereinafter referred as the LESSEE. WITNESSETH: WHEREAS, the LESSOR is the lawful and absolute owner of the commercial building rental business designated as: One unit commercial space located at PEPSOR BLDG-MMV Catalunan Grande, Davao City, hereof 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 unto the LESSEE FOR THE BUSINESS OF ___________________to the terms and conditions hereinafter specified. NOW, THEREFORE, for and consideration of the payment of the stipulated and the LESSOR is willing to lease the same unto the LESSEE, and the latter has agreed to accept as it hereby accepts under lease the LEASED PREMISES under the following terms and conditions. 1. That the lease shall be a term of one (1) year commencing expiring on with option to renew upon THIRTY (30) DAYS notice and upon mutual agreement of both parties, and with a monthly rental for each unit of Philippine Currency , payable in advance no later than the first (1st) day of the month. An Official receipts will be issued upon payment of rent. Renewal will only be accepted if all arrears including penalties and additional security deposit are paid no less than THIRTY (30) DAYS before renewal date. The office will make the unit available for rent to other people if renewal requirements are not met THIRTY (30) DAYS before the expiry of the contract. “FOR RENT” sign will be placed if in front of the unit. 2. That the LESSEE shall pay a three months security deposit_________________________to the LESSOR in CASHIER’S CHECK before transferring to the rented space and to be withdrawn only TWO MONTHS (60) DAYS after the LESSEE has vacated the said unit, after satisfying any delinquency and after satisfying this contract. This deposit can never be applied to the monthly rental of the said space. In the event the LESSEE pre-terminates the lease contract, the security deposit will be forfeited as a penalty to the said cause. The LESSEE shall also settle all

utility bills and damages (if any) incurred up to the last day of occupancy. THE SECURITY DEPOSIT CANNOT BE TRANSFERRED TO ANOTHER PERSON OR RENTER. 3. Postdated checks shall be required to cover the entire term of the contract NO POSTDATED CHECKS, NO RENTAL ALLOWED. In the event that the post dated check will be dishonored by the bank, the LESSEE will be liable for all bank charges plus a penalty of ONE HUNDRED (P100.00/day) for each day after the 1st of the Month. The office will deposit the rental check promptly on its due and REQUEST for the delayed deposit of the check will be entertained. Rent is due on the 1st of the month and so postdated checks must be dated every 1st of the month. If rent starts after the 1st of the month a pro-rated rent will be computed for the month. A penalty of PhP100.00 PER day will be incurred if payment is received after 1st for whatever reason. 4. Postdated checks must payable to PERSON CORPORATION and be submitted to tionko Office before the start date of the contract. The Tionko Office is located at DOOR O, TMNT Bldg., #8 Dona Vicenta Drive, Bajada, Davao City. In the event bank account where Postdated checks are to be paid from is closed, then the LESSEE has to give a new set of Postdated Checks to avoid the bouncing of checks. Failure to do so will cause the termination of this contract. 5. If additional payments have to made (penalties due to bounced checks), then cash or check payments must be deposited by the LESSEE no later than the 1st of every month to: UNIONBANK of the Philippines, Victoria Plaza Branch, JP Laurel, Davao City, Account #00-065-002239-7 for Account Name of PEPSOR CORPORATION. The renter may deposit the rental at any BPI branch. A clear copy of the deposited slip validated by the bank should be brought to the Tionko Office at the address stated above. An official receipt will be issued upon verification of the deposit made by the renter. 6. Rent is due on the 1st of the month and so postdated checks must be dated every 1st of the month. If rents starts after the 1st of the month a pro-rated rent will be computed for that month. A penalty of Php100.00 per day will be incurred if payment is received after the 1st for whatever reason. 7. That the LESSEE is responsible for paying the withholding tax every month to the BIR on or before the due date. At the end of each quarter, the LESSEE will give to the LESSOR the withholding tax certificate no later than 10 days after quarter end. FAILURE TO MEET THIS REQUIREMENT WILL CAUSE THE IMMEDIATE TERMINATION OF THE CONTRACT. 8. Payment received by the LESSOR from the LESSEE will be first applied to the penalties and oldest arrears, if any, before applying to the current charges. 9. That the LESSEE understakes to make the monthly rental herein above mentioned punctually at any BPI branch in the Philippines without the necessity of demand or the demand or the services of a collector. 10. In the event a change in the LESSEE’s name in the contract will have to be done, than the new LESSEE will be considered a new renter and will have to be approved by the LESSOR. The new LESSEE will have to provide his own Security Deposit.

11. The LESSOR has to option to lease any the available commercial spaces to any type of business which may include types of business which may already been existing in the building. 12. All miscellaneous payments should be paid directly to Bank of Philippine Island. It is hereby understood that other miscellaneous cash payments or checks made payable to “CAST”, paid directly to agents or any collector, shall be under sole and exclusive responsibility and risk of the LESSEE. 13. That the LESSEE should have a valid Business Permit as required by the Bureau of Internal Revenue for all and other business located at the leased premises. The LESSEE shall consistently and immediately submit, provide and verify all needed information and documents required by any government agency such as but not limited to TIN Number, Authority to Permit Number, Official Receipt Copy, Business Permit, etc., as long as it necessary and in accordance with the Laws of the Philippines. 14. That the LESSEE will always keep and maintain the decent and peaceful atmosphere of the commercial building. 15. That the LESSEE shall keep the unit in good, clean condition during the term of this lease and will comply with any all sanitary and administrative regulations of the government and the LESSOR. 16. That the LESSEE, after continuously renting for 30 days, will be liable for all costs of minor and major repairs of the unit including all clogged up damages,etc., of the unit, without any obligation on the part of the LESSOR to reimburse whatsoever cost incurred by the LESSEE. 17. That the LESSEE, during the term of this lease shall not make any alternation or paint the unit in another color other than white or beige without any written consent of the LESSOR and should any improvement be introduced by the LESSEE with or without consent by the LESSOR, all the improvements shall automatically and absolutely belong to the LESSOR. It is also agreed that the LESSEE will not make any extensions or construct any structure or store things outside the leased area. If the unit repainted another color, cost of restoring the unit to a white or beige color will be charge to the LESSEE. If holes or openings (for exhaust fans, doors, etc.) are made, these have to be restored back by the end of the lease; if not, then the cost restoring these will be charged to the LESSEE. 18. WAIVER BY LESSEE-It is acknowledged and agreed by the LESSEE that the water and electric meters connections of the leased premises must be in the name of the LESSOR; in case of termination of the lease and/or any default/ violation by the LESSEE of any terms and conditions of this contract the LESSOR has the sole option to have the water and/ or electric services of the leased premises be disconnected upon notice served to the LESSEE by the LESSOR and for this matter, the LESSEE agree to hereby waive, for whatever reason, all his/ her to be notified of any disconnection of electricity and/ or water services by the Davao Light and Power Company and/ or by the Davao City Water District. Notice from LESSOR alone is sufficient to cause the disconnection; The LESSEE acknowledges and assumes responsibility and obligation on the terms and conditions of the contract signed by the LESSOR with the Davao Light and Power Company Inc. and with the Davao City Water District for the electric and

water connections of the leased premises; for this matter the LESSEE defends and holds LESSOR free of any damages in case of default by the LESSEE incurred against any terms and conditions of the above contract with the DLPC/DCWD. Furthermore, the LESSEE cannot condemn, disconnect and cut-off electricity and/or water connections services by the Davao Light and Power Company and/or by the Davao City Water District otherwise all and other costs of damages will be charged to the LESSEE. 19. That it is agreed upon by both parties the light and water bills of the space rented will be paid IN FULL religiously and monthly by the LESSEE directly to the DLPC/DCWD before the due date and without delinquency. Partial payments will not be acceptable to the LESSOR. In the event that any of these service (including any increase in the deposit required by the utility company) will be charged to the LESSEE. If telephone services is installed by the LESSEE, the LESSEE has the responsibility of paying the bill in full to the telephone company. 20. That the LESSEE, in any event, is not allowed to have any kind of domestic animals or pets such as dog, cat, pigs, chicken, etc. to roam around or be in the premises or kept inside the rented space. 21. That the LESSEE shall allow and will allow the LESSOR or his/her representative to enter and inspect the leased space once every two months or to enter more than once necessary at the discretion of the LESSOR upon serving notice to the LESSEE of the visit. 22. That the LESSEE hereby assumes full responsibility for any damages which may be caused to the person or property of the third person while remaining either casual or business in any part of the premises leased to the LESSEE and further binds itself to hold the LESSOR free and harmless from any such claim for injury or damages due to the negligence of the LESSEE. That the LESSOR shall not be liable or responsible for: a) The presence of bugs, vermin, ants, insects, if any in the leased premises, or: b) The failure of electric current, power, supply, brown-outs; c) Any article delivered or left to the LESSE’S leased premises that might be damaged or destroyed for any reason, or: d) Any injury, loss or damages which the LESSEE, his agents or employee might sustain in the premises due to any cause whatsoever, or: e) The damages arising from acts or negligence of the LESSEE or its agents, employees, representatives or any and all other persons: f) Any item, files, office equipment, personal effects left behind after the turnover of the unit or the termination of the contract. 23. That the LESSEE will be responsible for the installation/replacement of light bulbs, starter or ballast,etc. if necessary, during the term of their lease. 24. That the LESSEE is renting the leased area on as “AS-IS” basis. The LESSEE cannot remove, separate, re-arrange electrical lines such as but not limited to outlets, wires, DLPC meter, etc. and/or water lines such as but not limited to water pipes, DCWD meter, faucets, toilets, lavatories, etc.

25. Upon the termination of the contract, the keys have to be returned during the turnover. If keys are not returned then the LESSEE will be responsible for the additional rent and utilities until the keys are received by the notice. 26. That any item (files, equipment, furniture, personal item, etc.) left behind after the turnover will be disposed of by the LESSOR. The LESSOR will not be responsible for items left behind. 27. That the LESSEE will be responsible for getting adequate insurance (fire and theft) for the contents of their rented space. ONLY ELECTRICAL APPLIANCES AND LPG are allowed to be used for cooking methods are not allowed. In the event of any fire incident, the LESSEE takes full responsibility of all costs of damages. 28. That whatever consideration the LESSOR may concede to the LESSEE, as not exacting a strict compliance with any of the terms and condition of this contract, as well as any other consideration that the LESSOR may give to the LESSEE with regard to the obligation of the latter, the same should not be interpreted as a renunciation on the part of the LESSOR of any rights granted then by this contract, in case of any default or noncompliance by the LESSEE. 29. That any violation of any term and condition of this contract of lease by the LESSEE, shall constitute a valid ground for automatic cancellation of this contract by the LESSOR and the LESSEE shall voluntarily vacate immediately the leased space and all the permanent improvements such as but not limited to, glass/aluminum doors, windows, ceiling (“kisame”), wall cabinets, canopy etc. which they may have introduced in the leased space will automatically belong in absolute ownership to the pay the cost thereof to the LESSEE. 30. That the violation of any of the terms and conditions herein agreed shall cause the immediate termination of this contract, and should court litigation resulting to such violation be instituted, the LESSEE will pay for the attorney’s fees at no less than ONE HUNDRED THOUSAND PESOS (P 100,000.00) plus the cost of expenses of the case and such damages justified in the premises. 31. That the LESSEE cannot choose any person to take his/her place in case he/she vacates nor be allowed to sublease, or sublet or sell partly/wholly his right and interest on the premises without the LESSSOR’S written consent. No rights, title, or interest on the premises without then LESSOR’S written consent. No rights, title, or interest thereto or therein shall be conferred or vested in any other than the LESSEE without such written consent from the LESSOR. 32. That this Contract shall be considered terminated at the option of the LESSOR should the LESSEE fail to pay the rent due thereon for one month, or if the premises remained close for the same period of time. The LESSEE thereby agrees that his/her deposit______________________be forfeited as liquidated damages and the LESSOR may at his/her option, declare this lease terminated and take immediate possession of the premises, without the necessity of any ejection suit being previously field against the LESSEE. That at any time after one (1) month that the premises remained close, the LESSEE hereby constitute and names the LESSOR , as his/her duly authorized attorney-in-fact,

and names authority to cause the premises opened, in the presence of any peace officer/ Barangay Captain requested for the Purpose, to inventory of all LESSEE’S merchandise and/or an equipment therein and for the removal to the LESSOR’S bodega; and in that event, the LESSEE hereby agrees to pay all reasonable expenses incurred by the LESSOR in the connection therewith including storage fee of TWO HUNDRED PESOS (200.00) a day, until the same claimed by the LESSEE and the corresponding back rents, light and water bills of the rental unit if any, are paid in full. In case the above merchandise, furniture, etc. and/or equipment are not claimed by the LESSEE after the lapse of 15 days from the date of the last day of removal of the LESSEE’S merchandise, furniture, etc., from the leased premises, the LESSOR at his/her discretion may dispose the same in a private sale or apply the proceeds/ the merchandise, etc., above accrued and payable, then to the reimbursement for the expenses incurred by the LESSOR by reason of transfer of the merchandise, furniture and etc. to the said LESSOR’S bodega storage, expenses for the sale and other costs connected thereon and balance if any will be applied as liquidated damages. 33.That the LESSEE acknowledge and confirm the ownership of all and whatever permanent improvements introduced to the leased premises by the LESSEE, or its representatives during the preceding terms of this lease contract will automatically be owned by the LESSOR. 34. That in the event that the LESSEE decides to vacate the premises during the lifetime of this contract, the deposit of the LESSEE as herein required shall be forfeited in favor of the LESSOR; it being emphasized that whatever deposit is forfeited shall not be applicable/applied to the rental due to the LESSOR for the duration of the contract not withstanding Paragraph 2 hereof; 35.That the LESSEE shall not claim any losses or damages on account of necessary work that the LESSOR may order to be done in the building and which, in any way, may interrupt his/her its use of the leased premises. 36. It is agreed upon by both parties that hereby LESSEE will never allow any other occupant of the same building or neighboring building to connect or to enjoy electricity/water services of the hereby LESSEE’S electric and water meters. 37.That the LESSEE would be the one to pay for the Notarization of the Contract, and that they must provide a clear copy of their Tax Identification Card Number (TIN) Card.

IN WITNESS WHEREOF, the parties hereunto have these presents on the date and at the place first abovementioned or written.

MARIA CRISTINA P. TIONKO LESSOR

___________________________ LESSEE SIGNED IN THE PRESENCE OF: GENIELYN OCAY SECRETARY ACKNOWLEDGEMENT

Republic of the Philippines ) Digos City

) s.s.

x. - - - - - - - - - - - - - - - - - x BEFORE ME. A notary Public for and in the City of Digos, personally appeared PERSOR CORPORATION with Res. Cert. No 00062658 issued in Davao City on January 14, 2014 NAD ____________________Res. Cert./Passport No.__________________issued in Davao City on _______________known to me to be same persons who executed the forgoing Contract of Lease and acknowledge to me that the same is their free and voluntary act and deed. I HEREBY CERTIFY that the document is consisting of four (5) pages including this page.

WITNESS MY HAND AND SEAL, this __________day of _____________in Digos City, Philippines.

Doc. No.__ Page No.__ Book No.__ Series of 2014