LEASE CONTRACT

This LEASE CONTRACT is entered into by the LESSOR and the LESSEE named
hereunder, who agrees as follows:

SECTION 1: MEMORANDUM OF BASIC LEASE PROVISIONS

LESSOR RAMON Y. GERONGAY

ADDRESS OF LESSOR ________________

LESSEE MARLYN N. PATES

LEASED AREA ______________

PERIOD OF LEASE FIVE (3) YEARS

MONTHLY RENTAL FIFTEEN THOUSAND (P15,000.00) PESOS

SECURITY DEPOSIT FORTY-FIVE THOUSAND (P45,000) PESOS

SECTION 2: LEASED PREMISES

Section 2.1: Description LESSOR hereby leases to LESSEE and the latter hereby leases from
the former, the premises subscribed under Section 1 hereof as to area and location (or the Leased
Premises).

LESSEE hereby acknowledges that it induced LESSOR to enter into this Lease Contract upon
representation of the sound financial capacity, good business reputation, honesty and integrity of
the owners, shareholder, proprietors or managers of LESSEE. Therefore, any change in sale or
transfer of the equity or ownership or control, shall vest LESSOR with the option to cancel this
Lease Contract without prejudice to all the rights of the Lessor in this contract.

The LESSEE is further made to understand that should there be any changes to be implemented
in the premises of the entire building in which the leased premise is located, the LESSOR shall
have the right to make such necessary changes. Provided however, that the LESSOR will give
advance notice to the LESSEE.

2.2 Purpose and Use LESSEE agrees to occupy and use the leased premise for the term of
the lease exclusively for the purpose and under the trade style specified in the Basic Provisions,
unless otherwise agreed by the LESSOR in writing.

2.3 Approval of Plans for Leasehold Improvements The LESSEE shall not make any
alterations, repairs, additions or improvements without the prior written consent of the LESSOR;
provided, however, that all such alterations, repairs, additions or improvements made by either
party in or upon the leased premises, the movable furniture and fixtures, installed at the expense
of the LESSEE shall become the property of the LESSOR and shall remain upon and be
surrendered with the premises as part thereof at the termination of this lease without any
compensation to the LESSEE.

2.4 Business Permits; Compliance with Regulations LESSEE shall on its own and without
any aid or assistance by LESSOR, obtain all permits and licenses as may be required by national
or local government authorities in connection with its business and the use and occupancy of the
leased premises, and copies thereof and thereafter copies of renewals shall, without necessity of
demand, be furnished LESSOR not later than fifteen (15) calendar days from start of LESSEEs
business and every renewal date required by law, ordinance or regulations.

2.5 Fire Insurance - The LESSOR shall secure a fire insurance over the leased premise
for the whole duration of the effectivity of this lease contract. The expenses for the fire insurance
coverage, including but not limited to the annual premium shall be for the account of the LESSEE.

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Thus, the LESSEE obliged herself to deliver the payment for the mentioned expenses and
premium upon the demand of the LESSOR.

Failure to comply with this provision shall be a ground for the cancellation of this contract.

2.5 Facilities and Utilities- . The LESSEE is responsible for the upkeep of the movables found
therein and any damage shall be for the LESSEES account.

2.5.1 Individual Services and Utilities LESSEE shall pay in addition to the monthly rent
all charges for water, electricity, or other service utilities used which are rendered or supplied in
connection with LESSEEs possession of the leased premises. In addition to any assessment or
surcharge in respect thereof, and expect when the same is provided by LESSOR, shall contract
for the same in its own name and shall protect LESSOR and the leased premises from any other
charges.

Should LESSEE fail to pay any such bill LESSOR shall have the right to cancel this contract
without prejudice to other remedies that may be available to LESSOR in this Lease Contract.

The fees and expenses of power reconnection shall be solely for LESSEEs account.

2.6 Prohibitions The LESSEE shall be subject to the following prohibitions:

2.6.1 LESSEE shall not do or permit to be done in or about the leased premises, any act
which is illegal or unlawful, or which will pose a danger to persons or property.

2.6.2 LESSEE shall not bring into or store in the leased premises any highly inflammable
or explosive material, or any apparatus, machinery or equipment which may cause obnoxious
odors, vibrations or noises, or which may expose the leased premises to fire or increase the fire
hazard rating of the leased premises or of The Premises or the cost of insurance, or any other
article which LESSOR may prohibit in the interests of safety or security. LESSOR shall have the
right to cancel the lease contract should LESSEE violate this prohibition.

2.7 Destruction of leased premises or of The Premises

2.7.1 Should the improvements introduced by the LESSOR into the leased premises be
damaged or destroyed by LESSEE, LESSEE shall, whether or not indemnified by insurance,
immediately repair, or reconstruct said improvements to restore them to their original condition
prior to said destruction.

2.7.2 Where such destruction amounts to virtual total destruction of the leased premises
or The Premises, the lease shall be deemed terminated and rent shall be apportioned on the basis
of time elapsed prior to said destruction.
The above provisions notwithstanding, should the leased premises or The Premises be
damaged by fire or other casualty caused by negligence of LESSE and/or its employees, agents
or other persons admitted to the leased premises with the express or tacit consent of LESSEE,
then without prejudice to other rights, remedies or causes of action LESSOR may have against
LESSEE. LESSOR may elect but without any under obligation to do so, to repair said damage
chargeable to the account of LESSEE but the latter shall in any event be liable to pay the minimum
rent during the period of repair or construction.

2.8 LESSORs Right of Entry LESSOR or its representative shall have the right to enter the
leased premises at any time in order to inspect it, to show it to prospective purchasers or LESSEEs
or to make such repairs, alterations, improvements or additions as LESSOR may deem suitable.

If LESSEE or its representative is not present to open and facilitate entry into the leased
premises at a time when for any of the above-stated reasons LESSOR seeks entry thereto,
LESSOR or its representative may enter the leased premises without incurring any liability to
LESSEE and without any manner affecting the obligations and covenants of LESSEE under this
Lease Contract. The LESSORs exercise of its right to enter the leased premises shall not impose
upon it any responsibility or liability for the care, supervision or repair of the lease premises other
than as otherwise provided in this Lease Contract.

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 SECTION 3 RENT; SECURITY DEPOSIT

3.1 Basic Rent LESSEE shall pay a monthly basic rent as described in Section 1.

3.2 Making Rental Payments The LESSEE is required to make an advance rental payment
of ONE (1) month and a security deposit of at least TWO (2) months, commencing on
___________. Payment shall be tendered every 1st week of the month beginning _______ at the
LESSORs Office or at any place designated by the LESSOR.

The warehouse shall be leased for a monthly rental price of FIFTEEN THOUSAND
(P15,000.00).
In case of delay in the payment for more than 10 calendar days, the LESSOR has the right
to cancel the contract and exercise all the rights and remedies stated herein.

3.3 Security Deposit For and as security for the due and faithful performance of each and
every term, condition and covenant of this Lease contract. The LESSEE shall deliver to LESSOR
in full, before __________ a security deposit as provided in section 1. The Security Deposit shall
be refunded after the expiration of the lease period and only when the covenants of this contract
have been faithfully complied with.

In the event that the LESSOR, pre-terminates this Lease Contract for reasons other than the
LESSEEs violation of this contract, the Security Deposit shall be refunded to the LESSEE after
the full payment of all obligations including but not limited to utilities.

In case the LESSEE pre-terminates the contract or the contract cancelled by the LESSOR due to
the non-observance of this contract by the LESSEE, the Security Deposit shall be forfeited in
favor of the LESSOR in the concept of damages. Notwithstanding said forfeiture, the LESSEE
shall remain liable for the unpaid monetary obligations other than the unexpired portion of the
lease contract.
SECTION 4 : TERM

4.1 Term of the Lease- This lease shall be for a period of three (3) years commencing on
________ until ________ and is not deemed extended or renewed beyond the term above-
mentioned for any cause whatsoever and unless the parties agree in writing to extend or renew
the lease or enter a new lease contract, the possession of the leased premises by LESSEE or any
person claiming rights through LESSEE after the expiration of the term thereof shall be unlawful.
Should LESSEE desire to extend or renew the lease beyond the stipulated term, it shall notify
LESSOR thereof in writing at least ninety (90) calendar days to the expiration of said term to
qualify it to negotiate the terms and conditions of a new lease with LESSOR.
Necessary expenses incurred for the renovation and repairs done to the warehouse shall be divided
equally among the LESSOR and the LESSEE, provided that the expenses incurred by the
LESSOR shall be subtracted from the monthly rental of FIVE THOUSAND (P5,000) PESOS
from the LESSEE until all expenses have been paid.
SECTION 5 : OUTGOING LESSEE
5.1 LESSEE who is to vacate their space shall be allowed to pull out their property upon
clearance from the LESSOR. All permanent fixtures are considered as LESSOR property & shall
not be taken out of the premises. Permanent fixtures shall refer to any fixtures or improvement
attached to the premises whether the same can be detached without injury or damage to the leased
premises.
The vacated premises shall be left clean and free of any garbage and any material
which may endanger life of people and the safety of the building.
LESSOR reserves the right to hold the pullout should any of the above requirements
be violated.

SECTION 6: DEFAULT; TERMINATION

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6.1 When Default Occurs Default shall automatically occur upon non-payment of the monthly
rent without necessity of demand after (10) calendar days from the 1st day of each calendar month.
In such case, LESSOR shall be entitled to declare the cancellation of this Lease Contract or
cancellation of the renewal or extension, if any, and require LESSEE to vacate the premises and
the forfeiture of the Security Deposit.
In addition, LESSOR is entitled to do the following acts; (a.) pad lock the premises
and refuse release of the improvements therein until all money claims of the LESSOR is satisfied
by the LESSEE (b.) enter into the leased premises and removed LESSEEs properties and cause
them to be deposited elsewhere at the expense of LESSEE and without liability to LESSEE
whatsoever; LESSOR shall have preferred lien in said properties with the right to retain the same
as security for the due performance of LESSEEs obligations under this Lease Contract or to
apply the same as payment for the LESSEEs obligation.
Should LESSEE continue occupying the leased premises after the lease shall have been
terminated on account of LESSOR having cancelled this Lease Contract for any of the causes
provided in this Lease Contract or due to the expiration of the term or any extension or renewal
thereof, or should LESSEE abandon, sublease or assign the use of, all or any part of the leased
premises, the LESSOR may enforce any or all of the rights stated in this section.
Nothing in this provision shall preclude LESSOR from suing LESSEE for damages and/or the
recovery of unpaid rentals/or other unpaid monetary obligations.
6.2 Termination by the LESSEE - The Lessee under justifiable grounds may pre-terminate this
contract, provided, a written notice shall be given to the LESSOR within ninety (90) days from
the effectivity thereof. In such case, the last paragraph of 3.3 shall then apply.
SECTION 7 : OTHER CONDITIONS
7.1 Indemnities LESSEE shall indemnify and hold LESSOR free and harmless from any
claim or demand by any third person for injury, loss or damage, including claims for property
damage resulting from any accident occurring in or about the leased premises or occasioned by
any nuisance made or suffered to exist in the leased premises, or by any fire therein arising out of
or caused by failure on the part of LESSEE to maintain the leased premises in a safe, sanitary and
secure condition, or by reason of LESSEEs violation, non-observance or no-performance of the
rules, regulations, ordinances, laws and other conditions of the Lease Contract concerning or
affecting the leased premises or the improvements thereon.
7.2 Sublease; Assignment of Rights LESSEE shall not directly or indirectly assign, sublease,
sell, transfer, convey, mortgage or in any manner dispose of or encumber of any or all of its rights
under the Lease Contract. LESSEE shall not directly or indirectly enter into any contract or
agreement with any third party in joint venture, partnership, corporation or any other business
arrangement, whereby said third party shall be allowed the use or occupancy of the leased
premises to transact business therein under any capacity or guise whatsoever, and that any such
contract or agreement made in violation hereof shall be void as regards LESSOR and shall be as
cause for the cancellation of the Lease Contract. LESSEE hereby declares and acknowledges that
it possesses no good will, patronage or incentive rights over the leased premises and that such
right exclusively belong to LESSOR and are inherent in the leased premises and that LESSEE has
no right to sell, transfer, assign or encumber or mortgage such goodwill to another.
7.3 Non waiver LESSORs failure to insist in one or more instances on the strict
performance of any of the terms, conditions or covenants of this Lease Contract, or to exercise
any right or option there under, shall not be construed as a waiver of any such term, condition,
covenant, right or option, which shall remain in full force and effect. LESSORs acceptance of
rent in arrears or its granting of an extension of time to pay such rent shall not be deemed a waiver
by LESSOR of the breach by LESSEE of any other terms, condition or covenant of the Lease
contract. No waiver shall be deemed to have been made by LESSOR unless executed by LESSOR
in writing.
7.4 Judicial relief; Penalty Should LESSOR be compelled to engage the services of counsel
to enforce all or any part of this Lease Contract, in addition to damages provided by other
provisions of this Lease Contract LESSEE hereby agrees to indemnify LESSOR in an amount
equal to twenty five percent (25%) of any and all amount due, for and as liquidated damages,
which in no case shall be less than Twenty Five Thousand Pesos (Php 25,000.00), and to pay an
amount equal to twenty five percent (25%) of the total amount claimed in the complaint, for and
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as attorneys fees, which in no case shall be less than Twenty Five Thousand Pesos (Php
25,000.00), plus the costs of suits and other expenses as a consequence of the filing of a case
before the courts.
Both parties agree that any suit arising from the Contract of Lease shall be brought exclusively
before the proper court where LESSORs residence is located, hereby waiving any other venue.
The penal provisions of this Lease Contract shall be considered cumulative and resort to one shall
not bar resort to the others.
7.5 Reading of Lease Contract; Separability of Provisions Lessee hereby certifies that it
has read or caused to be read all the provisions of this Lease Contract and that it fully understand
its contents; LESSEE acknowledges receipts of a complete and signed copy of this lease Contract.
Should any provisions of the Lease Contract be held invalid by any competent court, the rest of
the provisions thereof shall remain valid and enforceable.

IN WITNESS WHEREOF, The parties have executed and delivered this Contract of Lease, this
___day of __________________in the City of Cagayan de Oro, Philippines.

MARLYN N. PATES
LESSEE

and

RAMON Y. GERONGAY
LESSOR

Signed in the presence of:

________________________ ____________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF DAVAO) S.S

In the City of Davao, Philippines, on this ____day of June 2017 personally appeared
before me the following:
RAMON Y. GERONGAY _____________________________________.

Known to me and to be the same person who executed the foregoing instrument, and
acknowledged to me that the same is her free and voluntary act and deed, in the capacity in which
she appeared.
This document refers to a contract of lease which consists of FIVE (5) pages including
this page where the acknowledgement is written.

WITNESS MY HAND AND SEAL, this ____day of ________________, at the place first above
written.

Doc. No.____;
Page No.____;
Book No.____;
Series of 2017