CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed by and between:
MERLYN U. GUTIERREZ, of legal age, single, Filipino and with
address at Neo Calapan, Calapan City, Oriental Mindoro, now and hereinafter
referred as the LESSOR;
AND
JOHN Y. DEPP, Filipino, of legal age, single and with address at Neo
Calapan, Calapan City Oriental Mindoro, now and hereinafter referred as the
LESSEE.

WITNESSETH; That:
WHEREAS, the LESSOR is the owner of a parcel of land, situated at
Acacia Village, Neo Calapan Subdivision, Sto. Niño, Calapan City, Oriental
Mindoro, embraced by TCT NO. 064-2017003893, containing an area of 1,236.00
square meters;

WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE

and the LESSEE is willing to lease the same;
NOW THEREFORE, for and in consideration of the foregoing premises,
the LESSOR leases unto the LESSEE and the LESSEE hereby accepts from the
LESSOR the LEASED premises, subject to the following terms and conditions: 
1. COMMENCEMENT AND DURATION OF THE LEASE. – This lease
shall be for an initial period of ten (10) years starting January 15, 2020 up
through January 15, 2030. Upon its expiration, this lease may be renewed
subject to new term of another ten (10) years on agreement acceptable to
both parties and the terms and conditions agreed under this contract of
lease.

2. TERMS AND CONDITIONS OF PAYMENT. – LESSEE hereby agrees

to pay the LESSOR the amount of TWENTY THOUSAND PESOS (Php
20,000.00) as monthly payment for the contract of lease subject to increase
stated in paragraph 3. Said payment of lease shall be made by the LESSEE
every six (6) months starting in the amount of ONE HUNDRED TWENY
THOUSAND PESOS (Php 120,000.00) by way of money transfer to the
bank account of the LESSOR.

3. INCREASE. – The parties agreed on the following increase:

YEARS OF LEASE INCREASE
1-3 years No increase
4-6 years 3%
7-10 years 4%
11-13 years 13%
14-16 years 3%
17-20 years 3%
4. USE OF PREMISES. – LESSEE shall use the Lease Premises and has the
irrevocable rights to enter into and use the said leased premises. The leased
premises has present existing structures, which the parties agreed that the
LESSEE may use in accordance with needs and use of the LESSEE. The
LESSEE shall be allowed to sub-lease and/or assign the rights in this
contract to any third person, provided that notice and consent of the
LESSOR is secured, which shall not be unreasonably withheld by the latter.

5. ADVANCE PAYMENTS. – Advance payment shall be paid on January

10, 2020, the amount of ONE HUNDRED TWENTY THOUSAND
PESOS (Php120, 000.00) which shall be applied from January 15, 2020 to
June 15, 2020.

6. DEPOSIT PAYMENTS. – The LESSEE agrees to pay a deposit on

January 15, 2020, the amount of ONE HUNDRED TWENTY
THOUSAND PESOS (Php120, 000.00) representing six (6) months
deposit. The deposit rental shall be applied on the last year on the amounts
of utilities and payments for the unpaid bills of the lessee on the leased
premises. Any difference shall be paid by the LESSEE to the LESSOR.

The deposit shall be returned to the LESSEE, without interest, upon

termination of this Agreement less whatever amount or amounts the
LESSESS may owe to the LESSOR at the time of the termination of this
Agreement.

7. TAXES. – All real property tax on the leased land shall be paid by the
LESSOR. Any other taxes including the Expanded Withholding Tax of
Five Percent (5%) shall be paid by the LESSEE. The payment of real
property tax on the new buildings to be constructed by the LESSEE on the
leased premises shall be on the sole account of the LESSEE without any
reimbursement from the LESSOR.

8. PRE-TERMINATION. – In the event that the LESSEE pre-terminates this

Agreement, any and all payments made to the LESSOR including advance
and/or deposits shall be forfeited in favor of the LESSOR. Furthermore, the
LESSEE shall NOT be liable to pay for the amount equivalent to the
remaining term of the lease. In case of pre-termination, the LESSEE shall
send a written notice to the LESSOR THREE (3) months prior to the
effectivity of the pre-termination of the lease.

9. ASSIGNMENT AND SUBLEASE. – In the event of Sublease and/or

assignment, the LESSEE shall discuss the sublease and/or assignment to the
LESSOR and the LESSEE, shall not directly or indirectly assign, sub-lease,
transfer, convey, mortgage, or in any manner encumber its right of lease
over the Leased Premises or any portion thereof without the prior written
consent and approval of the LESSOR, which shall not be withheld
unreasonably by the LESSOR.

10. RIGHT TO ENTER AND INSPECT LEASE PREMISES. – The

LESSOR shall have the right to enter and inspect the LEASED PREMISES
 at any reasonable time of the day to inspect and LEASE PREMISES upon
notice to the LESSEE.

11. UTILITIES. – The LESSEE shall pay for and defray at their own expense
the consumption of water, electricity, telephone, other utility expenses and
services in the leased premises.

12. LESSOR’S EXEMPTION FROM LIABILITY. – The LESSEE shall

undertake any and all safety and precautions in the LEASED PREMISES
and its surrounding areas.

13. NON-DISPOSAL OF PROPERTY. – In consideration of the various

improvements to be undertaken by the LESSEE on the premises, the
LESSOR binds himself not to sell the property during the effectivity of this
lease and it is understood that the terms and conditions of this contract shall
be respected by all parties during said period.

14. RETURN OF PREMISES UPON TERMINATION OF LEASE. – At

the expiration of the terms of this lease or upon cancellation thereof as
herein provided the LESSEE, shall promptly surrender the premises to the
LESSOR in as good when taken ordinary wear and tear excepted, devoid of
all occupants furniture, articles and effect of any kind of all improvements.

15. APPLICABILITY TO HEIRS AND ASSIGNS. – The terms and

conditions of this Contract shall be binding on the parties’ heirs, assigns
and successors in interest. However, in the untimely and unexpected
demise of the LESSOR, Merlyn U. Gutierrez, the LESSEE must hereby
recognize and acknowledged that he shall continue paying of the yearly rent
to the surviving heirs of the herein lessor to receive the corresponding
rental.

16. JUDICIAL RELIEF. - Should any one of the parties herein be compelled
to seek judicial relief against the other, the losing party shall pay an amount
of One Hundred (100) % of the amount clamed in the complaint as
attorney's fees which shall in no case be less than Php50, 000.00 pesos in
addition to other cost and damages which the said party may be entitled to
under the law.

IN WITNESS WHEREOF, the parties have hereunto set their

hands this February 8, 2020 in the Municipality of Calapan, Oriental
Mindoro, Philippines.

MERLYN U. GUTIERREZ JOHN Y. DEPP

LESSOR LESSEE

Signed in the presence of:

______________________ ______________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CALAPAN CITY ) S.S.

BEFORE ME, a Notary Public for and in the City of Calapan, personally
appeared:
 
Name                           ID Number               Date/Place Issued   
 
MERLYN U. GUTIERREZ          PRC ID: 0106477      Jan. 15, 2019 / Quezon
City
JOHN Y. DEPP                 PRC ID: 0106479      Jan. 18, 2018 / Quezon
City
 
Known to me and to me known to be the same persons who executed the
foregoing instrument and acknowledged to me that the same are their free act and
voluntary deed.
 
This instrument, consisting of 4 pages, including the page on which this
acknowledgment is written, has been signed on the left margin of each and every
page thereof by the concerned parties and their witnesses, and sealed with my
notarial seal.

 
ATTY. SAV U. GUTIERREZ
NOTARY PUBLIC
Until December 31, 2021
Roll No. 77790
IBP No. 093459 10-18-19
PTR No. 0556040 01-13-20

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