CONTRACT OF LEASE OF BUILDING

This Contract of lease made and entered this ____ day of ___________ 2013, at Woodcrest Commercial Lane, Tagaran, Cauayan City, Isabela, Philippines, by and between:

WOODSIDE PROPERTIES AND LAND CORPORATION, a corporation duly organized and existing under and by virtue of the laws of the Philippines with office address at Woodcrest Commercial Lane, National Highway, Tagaran, Cauayan City, Isabela, represented herein by its President, Billy Virgilio S. Dy herein after referred as the LESSOR, And

MRS. SHARON M. CABAUATAN, married to July L. Cabauatan, of legal age, Filipino and with residence /postal address at # 142 Turayong, Cauayan City, Isabela hereinafter referred to as the LESSEE;

WITNESSETH THAT: Whereas, the LESSOR is the registered owner of a commercial building located along National Highway, Tagaran, Cauayan City, Isabela; WHEREAS, the LESSEE is desirous of leasing a portion of said building identified as Block 2 Lot 5, with an aggregate area of One Hundred Forty ( 140 sq.m) more or less ( the Leased Premises) and the LESSOR is willing to lease the same under terms and conditions hereinafter stipulated; NOW, THEREFORE, for and in consideration of the rent of the faithful performance of all the conditions and covenants hereinafter contained, the LESSOR has agreed to lease unto the LESSEE and the latter does hereby accept, under lease, the aforementioned leased premises under the following terms and conditions:

ARTICLE 1 RENT AND DEPOSIT

Section 1.01 The monthly rental in the amount of Ten Thousand Pesos (Php 10,000.00) shall be paid by the LESSEE at the office of the LESSOR on or before the Fifteenth (15th) day of each and every month thereafter. In case the monthly rental is paid after the 15th day of the month, an additional surcharge equivalent of one per centum (1%) of the monthly rental shall be charged against the LESSEE. It is expressly agreed and understood that the payment of the rental herein stipulated shall be made without the necessity of demand and without delay on any ground whatsoever.

Section 1.02- In addition, the LESSEE, upon execution of this Contract, shall pay the LESSOR the amount of Thirty Thousand (Php 30,000.00) representing advance rentals. Subject to the provisions of Section 5.04 hereof, these rentals shall be applied on the months applicable immediately preceding the expiration of the lease. Section 1.03- The LESSEE, in addition to the advance rentals, shall upon the execution of this contract, pay the LESSOR the amount of twenty Thousand Pesos (Php 20,000.00) representing deposit. Subject to the provision of Section 5.04, this deposit shall be used to cover any amount arising from damages caused to the Leased Premises other than ordinary wear and tear and/or furnishings by the LESSEEs negligence and/or fault and such other costs and expenses chargeable to the account of the LESSESS under this contract, and should there remain a balance thereafter, the same shall be returned to the LESSEE upon the expiration of the term of the lease. The putting up of this deposit does not relieve the LESSEE in any way from paying the required rental within the stipulated period. Section 1.04 The LESSOR shall not be obliged to return any amount of deposit to the LESSEE when there has been breach or default of the terms and conditions of this contract based on any of the grounds enumerated in Section 5.02 hereof. The LESSEE shall not, at anytime, assign, mortgage or otherwise, encumber said deposit or any rights thereto.

ARTICLE II LEASED PREMISES Section 2.01 The leased Premises shall be used exclusively for the business of the L ESSEE and shall not be converted to other uses without the written consent of the LESSOR. Section 2.02- The LESSEE shall not make any alterations, additions, or improvements without the prior written consent of the LESSOR, provided, however, that all such alterations ,additions or improvements made by either party in or upon the leased premises, except the movable furniture and fixture put in at the premises, shall become and remain the property of the LESSOR and shall be surrendered with the premises as part thereof upon the termination of the lease, without compensation to the LESSEE. Section 2.03- The LESSEE shall, at the LESSEEs expenses, maintain the leased premises in a clean and sanitary condition, free from obnoxious odors, disturbing noises or other nuisance, and make the necessary repairs hereon in order to keep it suitable for the use to which it has been devoted and upon the expiration of the lease, shall surrender and return the Leased Premises, including all the improvements thereon, in good condition, except ordinary wear and tear. The LESSEE shall comply with all the sanitary rules and safety regulations which may be promulgated from time to time by the LESSOR and shall be responsible for the disposal of all rubbish, waste matter, garbage and refuse at such place or places as designated by the LESSOR and/or as required by law or ordinance. Section 2.04- The LESSEE shall allow the LESSOR to make repairs, or to undertake those works for the preservation, conservation or decoration of the building or the Leased Premises. Ordinary repairs as well as extra-ordinary repairs caused by the fault or negligence of the LESSEE or his/her employees or agents, made in or upon the Leased Premises shall be for the account of the LESSEE. Any injury or damage

caused or done as herein provided may be repaired by the LESSOR for the account of the L ESSEE. Section 2.05 - The LESSEE shall not bring into or store in the Leased Premises any article which the LESSOR may reasonably prohibit or without prohibition, explosive materials or anything of commercial volume or quantity of a highly inflammable nature of explosive, chemicals or materials nor install therein any apparatus, machinery or equipment which may cause obnoxious odor, tremors or noise, or expose the Leased Premises to fire or increase the fire hazards of the building, including hot plates, hot irons and similar contrivances, except office equipment and such other equipment as needed by the LESSEE in the conduct of her business in the Leased Premises, it being understood that should the LESSEE do so, not only the latter be responsible for all damages with such violation may cause the LESSOR, its other tenants or third persons but the LESSOR shall, in addition thereto, have the right to cancel or terminate this Contract, without prejudice to whatever remedies the LESSOR may avail hereunder. Section 2.06 - All utilities, such s water, telephone, electric current, interoffice communication system and other expense and services in the Leased Premises including but not limited to expenses for the installation, repairs and replacement of such utilities, service and system shall be for the exclusive account of the LESSEE. For this purpose, it shall be the duty of the LESSEE to make the necessary representation with the electric and water utility companies concerned and file the required application thereof for the connection of the electric current and water in her own name. Subject to the provisions of Section 2.07 hereof, the LESSEE may install in the Leased Premises additional electric, water, telephone and/or gas connections provided, that he/she shall secure the prior written consent and approval of the LESSOR and provided, further that such additional utilities shall be for the exclusive account and expense of the LESSEE. It is expressly agreed and understood that the installation of additional utilities shall be made in such a way as to cause no injury or damages to the Leased Premises. In the installation of additional electric appliances such as water cobblers, refrigerators, fans, etc. wherein extra outlets will be needed, the LESSEE shall employ only the services of a licensed electrician or otherwise, hire the licensed electrician of the LESSOR so that additional loss of current shall be within the capacity of the switch on the Leased Premises, thereby minimizing fire hazards. The LESSEE shall further comply with the requirements imposed by the Fire Department and/or Electrician of the municipality/city concerned. All expenses arising such work shall be exclusively borne by the LESSEE. Section 2.07 The LESSEE may, upon written consent of the LESSOR, Install the necessary installation required by his/her business provided the strength and general structure of the building or the Leased premises are not thereby impaired or otherwise adversely affected and, provided further, that the other conditions of this Contract are not violated. In case the LESSEE wants to introduce or install additional facilities on the Leased Premises which will require the defacement of any portion thereof, the LESSEE, aside from seeking the written consent og the LESSOR, shall submit a plan detailing the outlay of the facilities to be added or introduced. The LESSOR shall have the right to reject the plan or revise the same to conform to whatever is necessarily required to maintain the strength, general structure of the building and external appearance or surface appearance of the Leased Premises.

Until and unless the LESSOR shall give its approval to the plan and also its written consent to addition, the LESSEE shall not undertake works on the Leased Premises for the introduction of the installation or additional facilities. Section 2.08 The LESSEE shall be responsible for the payment of electrical and mechanical inspection fees, garbage fees and other city and national fees collectible for the use of the Leased Premises, at his/her exclusive account.

Section 2.09 The LESSEE shall provide janitorial services in the Leased Premises, at his/her exclusive account. Section 2.10 In case of damage to the Leased Premises or its appurtenances by fire, earthquake, war or any other unforeseen cause, the LESSEE shall give immediate notice thereof to the LESSOR. If the Leased Premises shall be damaged by fire or other cause without the fault or negligence of the LESSEE, The LESSEE may opt to construct the Leased Premises, the cost of which as agreed upon the LESSOR and the LESSEE, will be applied on the monthly rentals commencing at the time the LESSEE restarts his/her business operations or the LESSEE may seek termination of the Contract. Notwithstanding any provision to the country, the LESSOR, however, shall not be responsible for any loss or damage which the LESSEE may sustain in the premises, due to any cause whatsoever. No compensation or claim shall be allowed against the LESSOR by reason of inconvenience, annoyance or injury to business arising out of the necessity of repairing any portion of the building, however, the necessity may arise. Section 2.11 The LESSOR or its authorized agent shall, by previous arrangement with the LESSEE, have the right to enter the Leased Premises at anytime to examine the same or make alterations or repairs, or for any purpose which it may deem necessity for the operation or maintenance of the building and to exhibit the Leased Premises to prospective tenants during the last month of the lease, in case the LESSEE opts not to renew the lease. Section 2.12 The LESSEE shall not, without the previous consent of the LESSOR, put up, affix, paint or inscribe any notice, signboard or other advertising medium in or outside the Leased Premises except only those for the conduct of LESSEEs business. Section 2.13 The LESSEE shall not make or permit any disturbing noise within the Leased Premises caused by LESSEE or by persons under his/her control, nor permit anything to be done by LESSEE or such other persons which will interfere with the rights, comfort or convenience of the other tenants. The LESSEE shall not pay or suffer to be played in the Leased Premises any musical instrument, phonograph, radio or loudspeaker or install any machinery or device which may cause or tend to cause any noise which may be heard outside the Leased Premises. Section 2.14 The LESSOR reserves the right to prescribe or limit the weight of any heavy, safe, equipment or other heavy articles which may be placed in the Leased Premises. No machinery, equipment or articles of any kind which exceeds 500 kilos, dead weight, shall be allowed inside the Leased Premises. The LESSOR shall have the right to designate the position or location for such heavy objects, within the Leased Premises for reasons of security.

ARTICLE III TERMS OF THE LEASE Section 3.01 The lease shall be for a period of one (1) year to commence on _____________________ and may be renewed for another year under such terms and conditions as may be mutually agreed upon between the herein parties. Should the LESSEE intend to renew the lease, the LESSEE shall notify in writing the LESSOR of the same at least sixty (60) days prior to the expiration of the lease. Section 3.02 after this lease has terminated for any reason whatsoever, if the LESSEE continues to occupy the premises in the absence of any lease renewal but with the consent of the LESSOR, said extension of lease shall be understood as running from month to month only, under the same terms and conditions herein stipulated. ARTICLE IV RETURN OF LEASED PREMISES Section 4.01 - Upon the expiration of the term of the lease or earlier termination thereof, the LESSEE, upon written notice by LESSOR, shall peacefully and voluntarily vacate, return and surrender the Leased Premises, as well as the improvements constructed thereon and restore possession thereof to the LESSOR, including the keys thereto, in as good, clean and tenantable condition as reasonable wear and tear will permit and without any delay whatsoever, devoid of all occupants, furniture, articles and effects of any kind, other than such alterations, additions or improvements introduced thereto in accordance with Section 2.02 hereof. Section 4.02 For the purpose of ensuring the return and surrender of the Leased Premises to the LESSOR upon the expiration of the term of the lease or earlier termination thereof by reason of pre-termination or pre-cancellation of this contract by the LESSEE as provided under Sections 5.02 and 5.03 hereof, the LESSEE hereby expressly authorizes in advance the LESSOR to enter the LESSOR to enter the Leased Premises, remove all personal property that may be found in the said premises and deposit the same in a bodega, the LESSEE further agrees to pay all costs for transfer and storage. Section 4.03- If at the expiration of the term of the lease, the premises are not surrendered, 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 any and all claims made by any succeeding tenant against the LESSOR, resulting from delay by the LESSOR in delivering possession of the premises to such succeeding tenant, so far as such delay is occasioned by the failure of the LESSEE to surrender the premises on time and the LESSOR likewise shall have the right to enter and dispose of whatever remains inside the premises and clean the area for the succeeding tenant.

ARTICLE V TERMINATION AND/OR CANCELLATION OF CONTRACT

Section 5.01- Upon the expiration of the term of the lease without the benefit of any renewal or an extension with the consent of the LESSOR , this contract of Lease shall automatically be cancelled and/or terminated, without need of notice and shall, therefore, be without force and effect. Accordingly, the LESSOR or its authorized agents, shall have the right, without any formal notice or demand and as authorized by the LESSEE under section4.02hereof, to enter to and upon the said Leased Premises, or any part thereof without prejudice on the part of the LESSOR to exercise any and all rights granted to it under this contract of lease and/or those provided by law.

Section 5.02-The following instances shallconstitute breach or default of the termsand conditions of thisContract which shall entitle the LESSOR to terminate and cancel this contract,wehter judicially or extra-judicially, upon providing the LESSEE five (5) days writtennoticedeliveredat the Leased Premises or poseted on the main door thereof:
a. Where the monthly rental herein stipulated, or any part thereof, at any time, shall be in arrears or remain unpaid notwithstanding demands by LESSOR; b. Where the LESSEE, at any time, violates, failsor neglects to performor comply with any of the terms,conditions,covenants,agreements or restrictions herein provided, or c. Where the LESSEE shall have become bankrupt or insolvent or shall have compundedwith the LESSEs creditors; d. Abandonment of the leased Premises prior to the expiration of the leasewithout written notification to the LESSOR.

Upon such termination or cancellation, the LESSEE shall peacefully vacate the Leased Premises for the LESSOR to hold and enjoy henceforth as if these presents have not been made. Moreover, the LESSEE hereby authorizes the LESSOR or its authorized agents, in accordance with Section 4.02 hereof and without need of any formal notice or demand, to enter and take possession of the leased Premises, or any part thereof as though the term of this contract of lease has expired, without prejudice on the part of the LESSOR to avail of remedies in the exercise of its rights under this contract of lease and/or those provided by law. Section 5.03 Should the LESSEE, desire toterminate orcancel this Contract, prior to the expiration of the term of the lease, the LESSEE may do so by roviding written notice to the LESSOR thereof atleast sixty (60) days prior to the intended date oftermination orcancellation, subject to the LESSEEs

IN WITNESS WHEREOF, the herein parties affix their signatures on the date and place first above-written. WOODSIDE PROPERTIES AND LAND CORPORATION LESSOR: LESSEE:

By: BILLY VIRGILIO S.DY SHARON M. CABAUATAN

Signed in the presence of :

SUSANA P. ROSAL Accountant

JEMIMA VADIL Cashier

ACKNOWLEDGEMENT
Republic of the Philippines Cauayan City, Isabela

Before me, a notary public in Cauayan City, Isabela, on this _____ day of _________ 2013, personally appeared the following :

Names Billy Virgilio S. Dy Sharon Cabauatan

Comm. Tax Cert. No.

Issued at/ on

Who executed the foregoing instrument and they acknowledged to me that the same is their free and voluntary act and deed and of the corporation Mr. Dy represents. Witness my hand and seal on the date and place above written.

Doc. No. ________ Page No. ________ Book No. ________ Series of 2013