CONTRACT OF LEASE

This Contract entered into this ___ day of __________________ at Cabarroguis, Quirino,
Philippines by and between:

PROVINCIAL GOVERNMENT OF QUIRINO, a local government unit established and existing under
and by virtue of the laws of the Republic of the Philippines, with seat of government and address
at Provincial Capitol, Capitol Hills, San Marcos, Cabarroguis, Quirino, represented by the Provincial
Governor, JUNIE E. CUA, hereinafter referred to as “LESSOR”;

and

LAND BANK OF THE PHILIPPINES, a government financial institution organized and existing under
and by virtue of R.A. No. 3844, as amended, with principal office address at LANDBANK Plaza,
1589 M.H. del Pilar cor. Dr. J. Quintos Sts., Malate, Manila represented by its President and CEO,
GILDA E. PICO, further represented by JOSEPH L. CALIGUIRAN, Head of its Cabarroguis Branch,
hereinafter referred to as the “LESSEE”.

W I T N E S S E T H:

WHEREAS, the LESSOR is the absolute owner of Capitol Commercial and Bank Building situated at
Capitol Hills, San Marcos, Cabarroguis, Quirino, together with the land on which it is constructed and
covered by Transfer Certificate of Title No. T-8903 (the “Property”);

WHEREAS, the LESSEE desires to lease from the LESSOR, and the LESSOR agrees to lease unto the
LESSEE, a portion of the Property located at its ground floor with a total floor area of two hundred ten
(210) square meters, more or less, (hereinafter referred to as the “Leased Premises”), a sketch plan is
hereto attached as Annex “A”.

NOW, THEREFORE, for and in consideration of the foregoing premises and by virtue of the obligations
and undertakings herein stated, the parties have agreed as follows:

1. TERM- The lease shall be for a period of five (5) years beginning May 1, 2018 and ending April 30,
2023, renewable by mutual agreement of the parties. The LESSEE may request for the renewal of
the lease by giving at least ninety (90) calendar days notice to the LESSOR before the expiration
of the lease.

2. RENT- The LESSEE shall pay rent in the amount of FIVE HUNDRED FIFTY (PhP 560.00) PHILIPPINE
PESOS per square meter per month, inclusive of VAT, and all other taxes and charges, subject to
annual escalation rate of five (5) percent (5.0%) effective at the start of the second (2nd) year and
annual thereafter.

Further, LESSOR hereby authorizes LESSEE to deduct from the lease rentals and to remit to the
Bureau of Internal revenue (BIR) the five percent (5.0%) withholding tax on rentals as provided
for under the BIR Revenue Regulation No. 6-85, as amended. The rent shall be payable within the
first five (5) calendar days every month, less any tax required by law or regulation to be withheld
by the LESSEE. The obligation of the LESSEE to pay rentals for the Leased Premises shall cease
upon the expiration/pre-termination of the lease as herein provided.

Payments accruing to the LESSOR shall be credited to an interest-bearing current account opened
and maintained by the LESSOR at LANDBANK- Cabarroguis Branch for the purpose. All payments
shall be subject to the accounting and auditing rules and regulations of the Commission on Audit
(COA) and the LESSEE.

1
3. SECURITY DEPOSIT- The LESSEE shall deliver the amount of PHILIPPINE PESOS: Seven hundred five
thousand six hundred (PhP 705,600.00) representing six (6) months security deposit. The LESSOR
shall place the security deposit in an interest-bearing current account opened and maintained by
the LESSOR at LANDBANK- Cabarroguis, Branch. The security deposit shall also be subject to the
additional increase of five percent (5.0%) each year to maintain the required amount of such
security deposit. The said increase shall be deposited to the account of the LESSOR within the first
week of May every year.

The security deposit shall answer exclusively for any unpaid rental, electricity, water and
telephone bills, if any, and for no other purpose, subject to the provision relating to the option of
the LESSEE for the application of the security deposit to reimburse the cost(s) of repair or
restoration, as set forth in Section 14.

This amount is refundable to the LESSEE free of any interest thirty (30) days after the termination
of this Lease Agreement subject to deduction for whatever utility bills and monthly rentals,
interests, penalties that have remained unpaid and damages that may have even incurred,
provided, that the LESSEE shall still be liable for any and all bills, rentals, interests, penalties and
damages that may exceed this security deposit. The LESSEE shall be allowed to offset or use its
security deposit as its monthly rental payment. The LESSOR shall pay two percent (2.0%) monthly
interest starting from the date the security deposit is due for release until returned to the LESSEE.
Any excess in the retained amount shall be released by the LESSOR to the LESSEE after final
resolution of the cost of restoration. The LESSEE’s obligation to pay the utility bills on the final
month of the term of lease shall be determined by pro-rating the total payable amount per utility
bill to the actual days the lease is still effective which are included in the utility bill’s coverage
period. The LESSOR shall pay two percent (2.0%) monthly interest starting from the date the
security deposit is due for release until returned to the LESSEE.

4. DELIVERY OF LEASED PREMISES- The LESSOR shall deliver the Leased Premises to the LESSEE in
good, sanitary and tenantable condition, with electrical power, water supply and necessary
plumbing and sanitary facility which must be in good working condition during the term of the
lease.

5. USE OF LEASED PREMISES- The Leased Premises shall be used exclusively for office purposed in
line with the LESSEE’s branch banking operations and all allied or related business or services of
the LESSEE, and not to be diverted to any other purpose without the prior written consent of the
LESSOR.

The LESSEE shall be entitled to the use, free of charge, of building spaces for document and
supplies storage at the back of the Leased Premises and generating set on designated space
nearest to the Leased Premises and for parking along the driveway, in front and back of the Leased
Premises for its officers, employees and clients.

6. IMPROVEMENTS AND ALTERATIONS- Alterations, permanent improvements or addition in, or

about, the Leased Premises shall require the prior written consent of the LESSOR. Alterations,
permanent improvements or addition in, or about, the Leased Premises shall remain part of the
Leased Premises and shall belong to the LESSOR at the expiration of the lease. The LESSEE,
however, may remove the vault/s, vault door/s, room air conditioners, teller cages, new accounts
counter, generator set and other movable furniture, fixtures and improvements which could be
removed without causing damage to the Leased Premises or where the damage could be repaired
or restored to the condition as when delivered save for ordinary wear and tear.

2
7. POWER CONSUMPTION AND CHARGES FOR UTILITIES- All electric consumption and charges, fees
and costs for telephone, water and other utilities shall be for the account of the LESSEE. It may,
at its discretion, install separate watt-hour meter and convenience outlets and electrical
connections as may be necessary after prior written notice to the LESSOR. LESSEE shall employ
the services of a licensed electrician for such electrical installation jobs.

In the event that bills on utilities shall remain payable by LESSEE after the surrender of the Leased
Premises to the LESSOR, the LESSOR shall deliver the utility bills to the LESSEE for payment.

8. SIGNS AND ADVERTISMENTS- The LESSEE may affix, inscribe, paint or cause to be affixed, inscribed
or painted any notice, sign or other customary advertising medium inside or outside of the Leased
Premises, subject to the extent permitted by law.

9. CARE OF LEASED PREMISES- The LESSEE shall maintain the Leased Premises in a clean and sanitary
condition, free from noxious odors and disturbing noises and upon expiration of the lease, shall
surrender and return the Leased Premises in as good condition as were actually found at the
beginning of the lease, ordinary wear and tear excepted.

10. RULES AND REGULATIONS, ETC.- The LESSEE shall comply with municipal ordinances and national
laws governing health and safety in the administration, use and occupancy of the Leased
Premises.

11. INSPECTION OF THE LEASED PREMISES- Subject to the security rules and regulations of the LESSEE,
with prior written request and after presenting his/her authority, the LESSOR or his authorized
agent may inspect the Leased Premises at any reasonable time. Subject to the same conditions,
the LESSOR may exhibit the Leased Premises to prospective tenants during the last two (2) months
of the term of the lease, except when this lease has been renewed as herein provided. It is
understood that such right shall be exercised by the LESSOR in such manner as not to impair the
need to maintain strict confidentiality of bank transactions of the LESSEE.

12. REPAIRS- The LESSOR shall make necessary repairs on the Leased Premises, including, but not
limited to, plumbing, electrical and building structures. The LESSEE shall maintain the Leased
Premises in good tenantable condition.

Minor repairs, which refer to repairs involving cost for labor and materials of less that Philippine
Pesos: Five Thousand (PhP 5,000.00) and up, and those involving structural engineering,
foundation, roofing construction, columns, concrete walls aspects, etc., which for major repair
shall be for the account of the LESSOR.

If during the lease it should become necessary for the LESSOR to make major repairs on the Leased
Premises, which cannot be deferred until the termination of the lease, depriving the LESSEE the
use of a portion of the Leased Premises, the rent shall be reduced in proportion to the time and
the part of the Leased Premises the LESSEE has been deprived. If the deprivation over the use of
the Leased Premises is total or substantial (more than one-half [½] of the Leased Premises), the
LESSEE may choose between the reduction of rent and to automatically and extra-judicially
terminate the lease. In case the LESSEE opts for a reduction in rent, the LESSOR shall promptly
repair any portion of the Leased Premises during the time and in the manner that may cause the
least inconvenience, annoyance, or disruption in the business of the LESSEE.

The LESSOR shall not alter the form of the Leased Premises in such a way as to impair the use to
which the Leased Premises is devoted under the terms of this Contract.

3
13. TERMINATION OF THE LEASE- This Contract of Lease may be automatically and extra-judicially
terminated by the LESSEE due to any reason or cause in the exercise of its business decision upon
ninety (90) calendar days prior written notice to the LESSOR without pre-termination charge or
penalty.

14. RESTORATION OF THE LEASED PREMISES- The LESSOR shall submit to the LESSEE a list for repair
or restoration not later than sixty (60) calendar days before the termination/expiration of the
lease, if the LESSEE has decided to renew the lease. The LESSEE shall have the option to undertake
or pass on the repair or restoration of the Leased Premises to the LESSOR. In case the LESSOR is
to undertake the same, the reimbursable amount shall not exceed the cost of labor and materials
at minimum wage levels and the lowest price materials at the Department of Budget and
Management (DBM) procurement site for supplies. Man-days for labor shall not exceed five (5)
man-days for all items to be repaired or restored in the Leased Premises. Deterioration of any
item in the Leased Premises due to ordinary wear is excepted under this provision. In no case shall
the cost of repair or restoration exceed the amount equivalent to the initial one (1) month rental
of the Leased Premises.

The LESSEE shall not be obliged to repair or restore the Leased Premises in its original condition
with respect to all alterations, additions, or improvements on the Leased Premises undertaken
with the prior written consent of the LESSOR.

15. SUB-LEASE; TRANSFER OF LEASE- The LESSEE may assign or sub-lease the Leased Premises to a
third party, subject to prior written consent of the LESSOR.

16. OCCUPATION OF THE LEASED PREMISES- If the LESSEE continues the occupation of the Leased
Premises after the expiration of the lease with the consent of the LESSOR, the lease shall run from
month to month only, under the terms and conditions herein stipulated and may be terminated
by either party by giving at least thirty (30) calendar days advance written notice to the other
party before the expiration of the extended lease.

17. INFLAMMABLE AND EXPLOSIVE MATERIALS- The LESSEE shall not bring or store or allow other
persons to bring or store into the Leased Premises anything of a highly inflammable nature or
explosive materials. However, the LESSEE may bring into the Leased Premises fuel, of sufficient
quantity, for use in any apparatus, machinery or equipment necessary in the voluntary course of
its operations.

18. INSURANCE- The LESSEE may insure, at its expense, its property interests on the Leased Premises
such as stocks, equipment or machinery installed by the LESSEE.

19. PAYMENT OF REALTY TAXES- Realty taxes on the land, building and improvements constituting
the Leased Premises shall be for the account of the LESSOR.

20. DAMAGE TO LEASED PREMISES- In the event of fortuitous event or force majeure rendering the
Leased Premises untenantable, the lease shall automatically terminate.

21. EXPROPRIATION- In the event that the expropriation proceedings are instituted during the period
of this lease by any instrumentality of the Government or by any other entity which is authorized
to exercise such power, this Contract of Lease shall be automatically and extra-judicially
terminated by either party by giving to the other party a written notice within the date of
termination indicated in the said notice.

4
22. REGISTRATION- This Contract of Lease shall be duly registered in the proper Registry of Deeds at
the expense of the LESSOR, with the LESSEE furnished a copy of the Property’s certificate of land
title whereon the Contract is annotated.

23. INJURY OR DAMAGES- The LESSOR shall not be liable for any damage or injury to any person or
property during the term of the lease by reason of the use or occupancy of the Leased Premises.

24. WARRANTY AGAINST EVICTION- During the term of the lease, the LESSOR warrants the peaceful
possession and enjoyment of the Leased Premises by the LESSEE.

25. REPRESENTATIONS- Each party hereto respectively represents that:

a. It has all requisite power, authority, and legal right to carry on the business that it now
conducts or proposes to undertake under this Contract;

b. It has full power, authority and legal right to execute and deliver this Contract of Lease and to
perform its obligations hereunder;

c. Its signatory to this Contract is of age, has full legal capacity and has been duly authorized to
sign, execute and deliver this Contract;

d. This Contract constitutes the legal, valid and binding obligation of the LESSOR/LESSEE,
enforceable against it in accordance with its terms and that it is in satisfactory and legal form
under the laws of the Republic of the Philippines;

e. The execution, delivery and performance of this Contract and the other documents herein
referred to do not violate any provision of law, rule, regulation, or order of any court, tribunal
or government authority, bureau or agency or of the charter, by-laws or corporate rules of
any corporation, or any indenture contract or other undertaking to which the LESSOR or the
LESSEE is a party.

26. GENERAL PROVISIONS-

a. The failure of either party to insist upon a strict performance of any of the term, conditions
and covenants hereof, shall not be deemed as relinquishment or waiver of any rights or
remedy that a party may have, nor shall it be construed as a waiver of subsequent breach or
default of the terms, conditions and covenants hereof, which terms, conditions and covenants
shall continue to be in full force and effect. No waiver by either party of any rights under this
Contract shall be deemed to have been made unless expressed in writing and signed by a
party.

b. Both parties agree that all the covenants, representations/warrantied and agreements herein
contained shall be deemed conditions as well as covenants and that if default or breach be
made in any such covenants and conditions, then this Contract, at the discretion of the
innocent party, may be automatically and extra-judicially terminated and cancelled and the
party at fault shall be liable for any and all damages, actual and consequential, resulting from
such default and termination.

c. This Contract constitutes the entire agreement of the parties and shall not be modified,
amended or varied in any manner unless such modification, amendment or variation is in
writing and executed by the parties.

5
 d. Each party shall upon request, promptly provide to the requesting party any and all
documents, which such requesting party may reasonably request for the purposes of or
concerning this Contract.

e. The declaration of any provision of this Contract as void, invalid or otherwise unenforceable
shall not invalidate the remaining provisions hereof, and the parties shall promptly amend
this Agreement and/or execute such additional documents as may be necessary and/or
appropriate to give legal effect to the void, invalid or otherwise unenforceable provision in
such manner that, when taken with the remaining provisions, will achieve the intended
purpose of the void, invalid or otherwise unenforceable provision.

f. Any notice, request, approval, consent or other communication required or permitted to be

given or made under this Contract shall be in writing, in English, and delivered to the
addresses of the parties at the beginning of the Contract or to such other address or facsimile
numbers as each party may have notified the other.

Such notice shall be deemed to have been duly given or made (a) in case of delivery in person
or by a facsimile transmission, as of the date of actual delivery to the recipient at such address
or facsimile number which is duly acknowledged, and (b) upon receipt by the sender of the
answer back code of the recipient at the end of the transmission.

g. The venue for any legal action or proceeding with respect to this Contract shall be in the
proper Courts of the Province of Quirino.

IN WITNESS WHEREOF, the parties have caused their respective representatives to execute this
Contract on the date and at the place first set above.

PROVINCIAL GOVERNMENT OF QUIRINO LANDBANK OF THE PHILIPPINES

By: By:

JUNIE E. CUA GILDA E. PICO

Provincial Governor President/CEO
Thru:

JOSEPH L. CALIGUIRAN
Head, Cabarroguis, Quirino

SIGNED IN THE PRESENCE OF:

LOLINDA PAGULAYAN AMELITA I. MANEJA

Acting Provincial Treasurer Acting Operations Supervisor

6
 ACKNOWLEDGMENT

Republic of the Philippines )

Province of Quirino )S.S.
Municipality of Cabarroguis )

Before me, a Notary Public in and for the above jurisdiction, on the above date and place,
personally appeared the following:

NAME Government-issued ID No.

JUNIE E. CUA 072045 issued by the Provincial Government of Quirino

(For Provincial Government of Quirino)

by JOSEPH L. CALIGUIRAN ________ issued by the Land Bank of the Philippines

(for Land Bank of the Philippines)

Known to me and to me known to be the same persons who executed the foregoing instrument and
they acknowledged to me that the same is their free and voluntary act deed and that of the entities
herein represented.

This instrument, referring to a Contract of Lease, consists of _________ (__) pages, including the
ACKNOWLEDGMENT is written, and signed by the parties and their witnesses on each and every page
hereof.

WITNESS MY HAND AND NOTARIAL SEAL ON THE DATE AND PLACE FIRST ABOVE WRITTEN.

Doc No. _________;

Page No. ________;
Book No. ________;
Series of 2018.