CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease, made and entered into, by and between:

AVELINO B. FORTO, SR., of legal age, Filipino, and a resident of 322 San Pablo
St., Mt. View, Balibago, Angeles City, Philippines, hereinafter referred to as the
"LESSOR";

- and -

RALPH JEFFREY G. PAMINTUAN, of legal age, Filipino, and a resident of 3999

Ventura St., Doña Maria Subd., Dau Mabalacat City, hereinafter referred to as
the "LESSEE";

WITNESSETH

WHEREAS, the LESSOR is the registered owner of a building situated at 18-A Tarlac St. cor. Gueco, Mt.
View, Balibago, Angeles City, Philippines.

WHEREAS, the LESSOR desires to lease out a portion of the above described property in favor of the
LESSEE and the LESSEE accepts the lease agreement subject to the terms and conditions herein set forth.

WHEREAS, the LESSOR turned over the said property to the LESSEE on February 1, 2019. The 1st
monthly rental shall be paid by the LESSEE on March 15, 2019.

NOW, THEREFORE, for and in consideration of the foregoing premises and the covenants hereinafter
stipulated, the parties hereby agree as follows:

ARTICLE I
PROPERTY FOR LEASE

1. The LESSOR hereby transfers and conveys by way of LEASE in favor of the LESSEE a portion of the afore-
stated property (hereinafter referred to as the Leased Property) specifically described as follows:

Bldg. Portion App. Covered Flr. Area

Commercial Stall 28 feet x 12 feet

2. Inspection; No Warranty. - The LESSOR leases the Leased Property to the LESSEE on an "AS IS, WHERE IS"
basis. The LESSEE hereby declares that it has inspected the Leased Property prior to the execution of this
Lease Agreement, and acknowledges that it is fully satisfied with the conditions thereof. The LESSOR makes
no warranty as to the condition, operational or structural capability, or as to any hidden defects of the
Property which the LESSEE warrants to know by virtue of the LESSEE's duty to inspect.

ARTICLE II
CONSIDERATION

1. Rental Payment and Escalation Clause. - The term of rental payment shall be monthly in the amount of
TWENTY THOUSAND PESOS (P20,000.00). In addition, the monthly rent shall escalate by ten (10%) percent
of the base monthly rent. The escalation of the monthly rent will occur every year until the expiration of the
lease contract.

2. Advance Rental Payment. - Within the day at the signing of this Lease Agreement, the LESSEE shall remit
to the LESSOR an amount equivalent to one (2) months advance rent, or the sum of FORTY THOUSAND
PESOS (P40,000.00), one (1) month deposit, or the sum of TWENTY THOUSAND PESOS (P20,000.00),
 ARTICLE III
TERM OF LEASE

1. Term. - Unless earlier terminated for reasons specified herein, the term of this Lease Agreement shall be for
six (6) months to start on February 1, 2019 and to end at noontime on August 10, 2019 but renewable upon
mutual agreement of the parties.

2. Renewal. – This lease contract may be renewed upon the mutual agreement of the parties. In the event, that
the parties mutually agreed for the renewal of the contract, a ten (10) percent increase on the rent shall be
applied.

ARTICLE IV
PURPOSE OF THE LEASE

1. Use of the Leased Property. - The LESSEE shall use the Leased Property strictly and exclusively as Milk Tea
Shop. If the Leased Property is used for other purposes, the LESSOR has the choice to:

(i) Rescind the Lease Agreement; or

(ii) Increase the rent; or
(iii) Compel the LESSEE to stop the new activities.

In no case shall the Leased Property be used for immoral or illicit purposes and illegal acts or purposes.

2. Sub-Lease. - The LESSEE shall not sub-lease the Leased Property;

ARTICLE V
CANCELLATION

1. Grounds for Cancellation. - The LESSOR may cancel or terminate this Lease Agreement, upon the
happening of any of the following events:

2.1. The LESSEE uses the Leased Property for purposes other than those specified herein, without
prejudice to the options available to LESSOR under Section 1, Article IV hereof.

2.2. The LESSEE violates any of the other terms and conditions of this Lease Agreement or fails to
get the necessary permits from the national and/or local government units / agencies.

ARTICLE VI
PRE-TERMINATION OF LEASE CONTRACT

1. Pre-Termination. - The LESSEE may not pre-terminate this Lease Agreement except only upon on legal,
justified and compelling reasons.

2. Effect of Pre-Termination. – In the event that the LESSOR and the LESSEE mutually agreed on the pre-
termination of this lease agreement pursuant to item number 1 of this Article, the following conditions shall
apply:

2.1. If the pre-termination occurred within the period of the effectivity of this Lease Agreement, the
LESSEE shall pay the LESSOR the half of the remaining balance.
2.2. In addition thereto, the LESSEE shall pay One Hundred Thousand Pesos (P100,000.00) as liquidated
damages.

ARTICLE VII
MISCELLANEOUS

1. Amendments. - Any amendments or additional terms and conditions to this Lease Agreement must be in
writing.

2. Venue. - In case of any dispute arising in connection with this Lease Agreement, the parties hereby agree that
the venue for the settlement of the dispute shall fall exclusively within the jurisdiction of the proper courts in
Angeles City Philippines.
 IN WITNESS WHEREOF, the parties have set their hands and affixed their signatures this _____________ in
the City of _____________, Philippines.

AVELINO B. FORTO, SR.

LESSOR

RALPH JEFFREY G. PAMINTUAN

LESSEE

SIGNED IN THE PRESENCE OF:

ISRAEL C. FORTO RONEL CALMA

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for Angeles City, this ________day of _______, _____________, in Angeles City,
personally appeared the above-named parties who have satisfactorily proven to me their identities through
their identification cards above-noted below their respective signatures and that they are the same persons
who executed and voluntarily signed the foregoing Contract of Lease which they acknowledged before me as
their free and voluntarily act and deed.

The foregoing Contract of Lease consisting of three (3) pages including this page where the
acknowledgement is written have been signed on the left margin of each page and every page by the parties
and witnesses.

WITNESS MY HAND AND SEAL this ______________________ at Angeles City, Philippines.

NOTARY PUBLIC

Doc. No. ______;

Page No. ______;
Book No.______;
Series of 2019