CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS: This Contract of Lease made and entered into this ______ day of _________, 2012 in Paranaque City, by and between: Henry E. Chan Jr., of legal age, Filipino, with residence and postal address at 1F, Lot 4193Jerusalem St., Multinational Village, Paranaque City, hereinafter referred to as the LESSOR, -And LESSEE WITNESSETH WHEREAS, the LESSOR is the owner of a residential house at No. 20 Yokohama St., BF Homes, Las Pinas City : WHEREAS, the LESSEE desires to rent the above-mentioned residential house and lot and the LESSOR is willing to lease the same unto the LESSEE subject to the terms and conditions hereinafter specified. NOW THERFORE, for and in consideration of the foregoing and mutual covenants hereto contained, the LESSOR has let and by these presents does hereby let and lease unto the LESSEE the residential house and lot located at No. 20 Yokohama St., BF Homes, Las Pinas City, and the LESSEE hereby accepts the same by way of lease subject to the following terms and condition; TERMS OF LEASE: The lease shall be for a period of one (1) year commencing from June 8, 2012 to June 8, 2013 and shall be deemed renewed only upon written mutual agreements by both parties and under such other terms and conditions agreed upon. 1). Amount of Rent: The parties herein agree that the monthly rental of the leased premises shall be THIRTY THREE THOUSAND PESOS (Php 33,000.00), Philippine Currency, with a ten (10 %) percent escalation every year. 2). Manner of Payment of Lease: Upon signing of this Contract of Lease, the LESSEE, shall have paid the amount of TWO HUNDRED SIXTY FOUR THOUSAND PESOS (Php 264,000.00) to be applied as follows; 2a). The amount of ONE HUNDRED NINETY EIGHT THOUSAND PESOS (Php 198,000.00) representing SIX (6) rental payment, covering the period of December 8,2012 to May 8, 2013; 2b). The amount of SIXTY SIX THOUSAND PESOS (Php 66,000.00) shall be considered as Security Deposit to cover cost of repairs aside from natural wear and tear, for unpaid electric, water, and Homeowners Association Dues, and any other bills which the LESSEE is obligated to pay under this Contract. This deposit does not relieve the LESSEE in any way from paying on their due dates the agreed monthly rental for the leased premises, as well as the bills for electricity, water, and telephone, and the LESSEES failure to do so shall constitute default or breach of this Contract. The Security Deposit or balance thereof, if any, shall be refunded by the LESSOR to the LESSEE within Sixty (60) days upon the expiration of this contract and/or after unpaid bills for the utilities stated above have been fully paid for. However, if the LESSEE vacates the premises before the expiration of the period of this Contract, the total amount of the Security Deposit or balance thereof, is forfeited in favour of the LESSOR 2C). In addition, the LESSEE shall, upon execution of this Contract, issue SIX (6) post-dated checks dated every 8th of each month covering the rental period from June 8, 2012 up to November 8, 2012. 3). Use of Leased Premises: The premises subject matter of this contract shall be used for residential purpose only. All Consumption of electricity, water, telephone, and other utilities, related to the rented space, shall be paid by the LESSEE. Furthermore, the LESSEE shall not convert or use the leased premises into a boarding house, home stay, dormitory or lodging house. It is being expressly agreed that if, at any time during the existence of this lease, and without previous written consent of the LESSOR, should the LESSEE violates this provision, LESSOR has the choice to do the following acts; a). RESCIND this contract and forfeit the Security Deposit, b). Increase the rental rate of the leased property, c) compel the LESSEE to stop such activity/ies.

4). Improvements, Alterations, etc.: The LESSEE shall not make any major alterations, structural changes or improvements in the leased premises without prior written consent of the LESSOR. However, any major alterations or improvements made of introduced by the LESSEE in said premises with the consent of the LESSOR shall, upon termination of this Contract shall accrue to the benefit of the LESSOR, without any obligation the latters part to pay or refund its value or cost to the LESSEE. 5). Third Party Liability: The LESSE, during the occupancy of the leased premises, shall hold the LESSOR free and harmless from any damages, liability or responsibility to any person/s, or property arising out of or as a consequence of fault or negligence of the members of the household, guests or visitors of the LESSEE. 6). Sanitation and Maintenance: The LESSEE shall at all time keep the leased premises clean, sanitary and in good condition. 7). Repairs: The LESSEE shall bear the following repairs and expenses for the overhead tank, motor pumps, valves and fittings, replacement of light bulbs, fuses, faucets, lost or breakages of cabinet handles, house keys, or any item due to natural WEAR & TEAR which does not exceed FIVE THOUSAND PESOS (Php5,000.00) for both labour and materials. 8). Inspection of Lease Premises: The LESSEE shall maintain the leased premises in good and tenantable condition, ordinary wear and tear expected. For such purpose, the LESSOR reserves the right to enter at reasonable hours of the day and with prior notice to the LESSEE in order to inspect the leased premises. 9). Fire and Hazardous and Obnoxious Substances: The LESSEE shall not keep, deposit or store in the leased premises any hazardous, obnoxious and flammable material and or substances that would constitute hazard to the leased premises. 10). Taxes and Insurance: The LESSE during his occupancy of the leased premises shall hold the LESSOR free and harmless from any liability or damages arising out of, or as a consequence of the use of the property by the LESSEE, its domestic helpers and guests. When fortuitous events or acts of God, such as typhoon earth quake, floods cause such damage or liability, etc. which is beyond the control of the LESSEE, the latter should not hold the LESSOR liable. Real Estate Taxes and governments assessments shall be borne by the LESSOR. 11). Return of Leased Premises: Upon the termination of this Contract of Lease, the LESSEE shall immediately vacate and return the premises to the LESSOR, unless the lease is extended for another year in accordance with the terms and condition the parties may mutually agree upon in writing. 12). Fortuitous Events and Rescission of Contract: The LESSEE is bounded by this One (1) year contract and if he decides for reasons other than force majeur to resides elsewhere with prior written notice to the LESSOR, or abandons the same before the expiration to this Contract, he shall forfeit as liquidated damages in favour of the LESSOR the Security Deposit in the amount of SIXTY SIX THOUSAND PESOS (Php66,000.00). The LESSEE shall also be deemed liable for any unpaid electric, water, telephone, Homeowners Association Dues, and other utilities due for the account of the LESSEE, likewise any damages and repairs to the premises excluding normal wear and tear, before the LESSOR could grant his clearance and release from this Contract. 13).Sublease, Transfer of Rights: The LESSEE shall not assign or transfer any rights in this Contract nor sublease or sublet all or any part of the leased premises without the prior written consent of the LESSOR, and no right, title or interest thereto or therein shall be conferred or vested in any one other than the LESSEE without such consent. 14). Sale, Transfer, Mortgage: The LESSOR reserves the right to sell, transfer, mortgage or otherwise dispose of the property, provided that the LESSES right under this Contract of Lease are respected. Furthermore the LESSEE reserves the right to first refusal should the property is for sale. The LESSEE binds himself to allow the LESSOR or her authorized representative to enter the premises together with a prospective buyer/s at reasonable hours and with the LESSORS prior notice and approve of the LESSEE .

This Contact of Lease shall be binding upon the heirs, executors, administrator, assignees, and legal representatives of both contracting parties herein named IN WITNESS WHERE OF, the parties hereunto have signed these presents on the date and at the place first written above.

_____________________________ HENRY E. CHAN Lessor

______________________________

Lessee

SIGNED IN THE PRESENCE OF

__________________________________ REALTOR Robert Manuel R. Miraflores PRC-REBL. No. 0007669

_________________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES ) ______________________________) S.S.

BEFORE ME, a Notary Public for and in ____________________________, this _____ day of May , 2012, personally came and appeared before me the following;

HENRY E. CHAN Residence Certificate No. _______________________ Issued at _____________________________________ Date of Issue _________________________________ NAME OF LESSEE Residence Certificate No. _______________________ Issued at _____________________________________ Date of Issue _________________________________ Known to me and to me known to be the same persons who executed the foregoing document and acknowledged that the same is their own act and deed. This document consists of FOUR (4) pages duly signed by the parties and their instruments witnesses at the left side portion. WITNESS MY HAND AND SEAL on the date and place stated.

NOTARY PUBLIC

Doc. No. _________ Page No. _________ Book No. ________ Series of 2012