CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease, made and executed this _____February 2016_________

Metro Manila, Philippines, by and between:

MANUEL L. DY, of legal age, Filipino, with office address at 93 Guirayan

St., Araneta Subd., Quezon City Metro Manila and represented by its, President,
Manuel L. Dy, hereinafter referred to as the LESSOR,

- and -

GLORIA R. TENG, of legal age, Filipino presently residing at 96

Greenmeadows Ave., Greenmeadows Subdivsion, Quezon City,
hereinafter referred to as the LESSEE

WITNESSETH:

WHEREAS, the LESSOR is the absolute and registered owner of a house and lot
25 Sparrow St., Greenmeadows Subd., Quezon City. Metro Manila Philippines,
together with its appliances and fixtures found herein and listed in an Inventory List of
Furnitures, Appliances and Fixtures which is attached hereto as “Annex A”

WHEREAS, the LESSOR has offered to let and the LESSEE desires to lease the
abovementioned house and lot with swimming pool and appliances as per Annex “A” for
the exclusive use of the immediate family of MS. GLORIA R. TENG

NOW THEREFORE, for and in consideration of the covenants and agreements

hereinafter set forth, the LESSOR agrees and consents to lease unto the LESSEE the
subject house and lot, hereinafter referred to as the “LEASED PREMISES”, under the
following terms and conditions:

1. TERM OF THE LEASE – The term of this lease shall be for a period of TWO (2)
YEARS commencing on March 1, 2016 to February 28, 2018. The LESSOR
and LESSEE may upon mutual agreement, renew the lease upon termination of
the original lease period under the terms and conditions set forth herein,
including the monthly rental rate which may then be set by mutual agreement.
Provided. The LESSEE gives the LESSOR written notice at least sixty (60) days
before the above expiration date. There shall be no tacit renewal of this contract,
notwithstanding the continuation of LESSEE in the possession of the Leased
premises for any length of time after expiration of the Term.
2. RENTAL RATE AND PAYMENT TERMS – The monthly lease rental shall be
ONE HUNDRED SEVENTY THOUSAND PESOS (P170,000.00) Philippine
currency for the 1st and 2nd year and exclusive of Value Added Tax , or any
government taxes, fees, surcharges (if any)

The LESSEE shall pay the LESSOR the amount of SIX HUNDRED EIGHTY
THOUSAND PESOS (P680,000.00) Philippine currency to be paid on or before
March 1, 2016 or upon signing of the Contract of Lease

The LESSEE shall issue three postdated checks in favor of the LESSOR and
shall be given on or before March 1, 2016 or upon signing of the Contract of
Lease in the amount of ONE MILLION ONE MILLION THREE HUNDRED
THOUSAND PESOS (P1,360,000.00) Philippine currency to be dated
September 1, 2016, and the amount of ONE MILLION TWENTY PESOS
(P1,020,000.00) Philippine currency to be dated March 1, 2017 and September
1, 2017

3. HOMEOWNERS’ ASSOCIATION DUES – The Greenmeadows Association

DueS shall be for the account of the LESSEE

4. SECURITY DEPOSIT –Upon signing of the Contract of Lease, the LESSEE

shall pay the LESSOR the amount of THREE HUNDRED FORTY THOUSAND
PESOS (P340,000.00) Philippine currency representing two (2) months
refundale security deposit to assure payment of utility charges and/or cost of
damages to the leased premises due to the fault or negligence of the LESSEE,
members of his household, guests, employees and assigns:

The LESSEE agrees to settle all bills such as but not limited to telephone toll
charges, water, electricity, cable, internet and other utilities up to the date of
turnover of the leased premises and to provide the LESSOR at the same time
proof of such payment. Further, the LESSEE shall allow the LESSOR &/or
LESSOR’S representative/s to enter the leased premises in the presence of the
LESSEE within the sixty (60) days prior to the expiration or termination of the
lease, in order to determine any damages beyond normal wear and tear caused
by the fault or negligence of the LESSEE, members of her household, guests,
employees and assigns and to establish the cost of such damage, if there be
any, for the purpose of deducting said cost from the security deposit.

The LESSOR shall deduct from the security deposit the LESSEE’s unpaid utility
charges and/or cost of said damages and refund to the LESSEE the balance if
any, sixty (60) days upon the expiration or termination of the lease or of its
renewal or extension.

If additional bills for the LESSEE’s account are presented after the above
refunds have been made, the LESSEE warrants to pay such bills within five (5)
 days from receiving from the LESSOR notice and proof of the same. If the
LESSEE fails to pay such bills within the time allowed above due to causes
attributable to the LESSEE and the LESSOR is compelled to take legal action to
obtain payment of the same, the LESSEE shall pay, in addition to the amount of
the bills to be paid, interest computed at 3% per month of the amount of the
bills, plus twenty-five percent (25%) of the same amount as and for liquidated
damages, plus the costs of suit and litigation, plus twenty percent (20%) of the
same amount as and for attorney’s fees.

5. PRE-TERMINATION –The LESSEE hereby guarantees two (2) years rent.

Should the LESSEE decide to pre-terminate the Contract before the end of the
second year, the unused advance rentals of the lease and the security deposit
shall be forfeited in favor of the LESSOR as a penalty for pre-terminating the
Contract.,

6. GOVERNMENT ASSESSMENTS, CHARGES, TAXES – The LESSOR shall be

solely responsible for all assessments, taxes, duties, levies, fees, fines and any
other charges of a public nature which are or may be levied against the leased
premises.

7. USE OF THE LEASED PREMISES – The LESSEE shall use the leased
premises exclusively for residential purposes of one single family of six (6)
persons. ,At any given time, a maximum of eight (8) members of LESSEE’s
household may occupy the Leased Premises.. Furthermore, the subject
premises must not be sub-leased to any party or used for any profit, gain,
commerce such as but not limited to lodging, boarding house, gambling,
manufacture of illegal products and the like. No commercial activity of whatever
nature shall be allowed in the Leased Premises. Notwithstanding, it is
understood and accepted that the LESSEE is free to use the premises for his
home office.

It is expressly understood and agreed that the personal character of this Lease
and/or Contract and the nature of utilization of the Leased Premises are special
considerations for LESSOR’s grant of this lease to LESSEE. Accordingly,
LESSEE shall not assign or transfer his rights under this Contract. LESSEE
shall have no right whatsoever to sub-lease the Leased Premises or any portion
thereof or enter into any arrangement whereby the use of possession of any part
of the Leased Premises is transferred to or enjoyed by any person.

8. UTILITIES – Expenses for electricity, water, telephone service, cable television

and other services rendered in the LESSEE’s favor shall be for the LESSEE’s
account. This provision notwithstanding, the LESSOR shall, prior to the
occupancy by the LESSEE, provide the LESSEE proof that all utilities are free of
back accounts. Any and all outstanding accounts on the utilities prior to the
LESSEE’s occupancy shall be the LESSOR’s liability.
9. REPAIRS AND IMPROVEMENTS – Minor repairs, including repairs due to
ordinary wear and tear up to the limit hereunder stated, and those due to the
fault and/or negligent use of the leased premises by the LESSEE, members of
his household or her guests, shall be for the LESSEE’s account. For the
purposes of this clause, each single repair amounting to FIVE THOUSAND
PESOS (P5, 000.00) Philippine currency or less per instance shall be deemed a
minor repair. Provided that, any and all repairs, regardless of the cost, which
are undertaken in the leased premises within thirty (30) days from the
occupancy of the LESSEE and not caused by the fault and/or negligence of the
LESSEE, members of her household and her guests shall be for the LESSOR’s
account.

All major repairs except those caused by the fault and/or negligent use of the
leased premises by the LESSEE, members of her household or her guests and
all repairs due to structural defects in the leased premises shall be for the
LESSOR’s account. The LESSOR shall undertake to start repairs within five (5)
days from receipt of written notice from the LESSEE and have them completed
within reasonable time. Should the LESSOR fail to make the repairs within the
time herein specified, the LESSEE may, at his option, have the repairs done for
the LESSOR’s account.

The LESSEE shall not introduce any permanent alternation, addition, or

improvement on the leased premises that cannot be removed without destroying
or defacing the leased premises without the previous written consent of the
LESSOR. Should such consent be given, the same shall become the property
of the LESSOR upon the termination of the lease without any right to
reimbursement of the cost to the LESSEE. The LESSEE shall, however, have
the right to introduce furniture, carpets, drapes, paintings, appliances, movable
improvements, ornamental and decorative objects or fixtures, and to remove
said objects at the end of the lease.

10. MAINTENANCE, CARE AND SANITATION OF THE LEASED PREMISES –

The LESSOR shall give a thirty (30) day warranty on the electrical, plumbing,
and appliances. Prior to the execution of this Lease Contract, the LESSEE had
inspected the leased premises and found the same in good tenantable
condition.

The LESSEE at its own expense shall keep and maintain the leased premises in
a clean and sanitary condition as it has accepted it at the beginning of this lease
contract; shall promptly execute and comply with all the regulations and laws
now existing or which thereafter may be promulgated regarding the use of and
occupancy of the Leased Premises and furnishings. The LESSOR however
shall not be responsible for the following:

a) For the presence of bugs, vermin, termites, insects, mice, etc in the leased
premises;
 b) For the failure of water and/or electric supply or of the utilities to function
c) For injury, loss or damage befalling the LESSEE, his agents, guests,
representatives and employees sustained in the Leased Premises for
any cause whatsoever’

The LESSEE shall regularly maintain and repair the air conditioners and other
appliances and including the weekly maintenance of the garden, swimming pool
and regular pest control. .

The LESSEE agrees at all times to keep the leased premises in the same good
and tenantable condition as when originally received and for this purpose, the
LESSOR may, at reasonable times and with prior notice to the LESSEE, enter
the leased premises to inspect the condition of the same, provided the
inspection is done in the presence of the LESSEE and/or his representative in
accordance with paragraph 11 thereof.

11. INSPECTION OF LEASED PREMISES – LESSEE agrees that LESSOR or his

authorized representatives may at all reasonable times enter into and upon the
Leased Premises to inspect the same or observe the manner of its use
provided, however, the LESSOR hereby incurs no duty to make such inspection
nor any liability for not making the same. The LESSOR shall give the LESSEE
a twenty four (24) hours notice of the intended inspection unless the inspection
is of urgent nature.

12 SHOWING OF THE LEASED PREMISES - During the sixty (60) days

immediately prior to the termination or expiration of the lease, the LESSEE shall
allow the LESSOR or his representatives to show the leased premises to
prospective tenants but always at reasonable hours of the day and with prior
notice to the LESSEE, given at least twenty-four (24) hours in advance.

12. DAMAGE TO THE LEASED PREMISES - Should the Leased Premises be

artially or fully damaged by fire or any other cause attributable to fault or
negligence of the LESSEE, rendering the Leased Premises unsuitable for use,
the Lease Contract may be terminated and the LESSEE shall forfeit any two (2)
months advance rental and two (2) months security deposit.

13. PROHIBITIONS – The LESSEE is not allowed to use the premises for
business or commercial purpose, nor bring into or to store in the leased
premises anything illegal, highly flammable or explosive material in nature nor
shall LESSEE install therein anything which may expose the Leased Premises
to fire or increase the risk of fire to the same, it being understood that should the
LESSEE do so, not only shall she be responsible for the damages which such
violation may cause the LESSEE and the vicinity of the Leased premises and/or
neighbors, but the LESSOR shall in addition have the right to cancel the
Contract and forfeit all payments made by the LESSEE as and by way of
liquidated damages.
14. THIRD PARTY LIABILITY – The LESSEE during her occupancy of the leased
premises shall hold the LESSOR free and harmless from any damages or
liabilities or responsibilities to any person or property arising out of or as a
consequence of the use of the premises by the LESSEE, her agents,
employees, domestic helpers, guests, etc. including such damages caused by
fortuitous events such as floods, earthquakes, typhoons, lightning, etc which are
beyond the control of the LESSOR.

15. RULES AND REGULATIONS – The LESSEE during her occupancy agrees to
abide by the rules and regulations of the Second Valle Verde Association Inc.in
order to be able to enjoy all the privileges and rights in the use of common
areas, facilities and services of the said Association. Occupancy and use of the
premises are limited strictly to residential purpose, and shall house his family
driver and house helpers;

16. FIRE INSURANCE – The premium payment for the fire insurance of the building
and items listed under Annex A of this Lease Contract shall be for the account of
the LESSOR. Therefore, in the event of fire, all insurance payments pertaining
to the building coverage and Annex A shall accrue in favor of the LESSOR. The
LESSEE however may have the option of insuring for her own account, her
personal belongings within the leased premises;

17. MORTGAGE OR SALE OF THE PROPERTY – The LESSOR reserves the right
to mortgage, sell or dispose of the Leased Premises provided the LESSEE’s
rights under this Lease Contract are recognized and honored. The LESSOR
further binds to stipulate as of the conditions of the sale that the purchaser of the
property shall honor the terms and conditions of this contract of lease.
Otherwise, the LESSOR shall be liable for whatever damages the LESSEE may
suffer in the event the purchaser of the property chooses not to honor the
provision of this lease contract.

In the event of a bona fide sale of the leased premises, the LESSOR shall
transfer and pay to VENDEE the security deposit and any remainder of the
advance rentals which are yet to be applied to future rent under the terms of this
Lease Contract. The LESSOR shall see to it that the deed of sale provides that
the VENDEE shall treat and apply said security deposit and remainder of the
advance rentals in accordance with the terms of this Lease Contract.

18. EFFECTS OF BREACH OF CONTRACT – Should the LESSEE fail to pay the
rents in accordance with the terms of this Lease Contract within the period set
forth in Paragraph 2, hereof, the LESSOR may cancel the lease without prior
notice and forfeit the security deposit of the LESSEE as liquidated damages.
The LESSOR shall have the right to pre-terminate the Contract by giving written
notice of pre-termination but said pre-termination can only be effected in the
event of a violation of this Contract on the part of the LESSOR and the LESSEE
 shall return all un used advance rents paid and the two (2) months security
deposit

19. ASSIGNMENT OF LEASEHOLD RIGHTS – Without prejudice to the provisions

of para. 4, hereof, the LESSEE shall not assign, sell or transfer his leasehold
rights to the leased premises or any part thereof to any third person without the
prior written consent of the LESSOR.

20. RETURN OF THE LEASED PREMISES – The LESSEE at the expiration of the
Lease Contract or any renewal thereof shall quietly and peacefully deliver and
surrender the leased premises/furnishings/appliances listed in Annex “A” to the
LESSOR in the same condition in which the same was received, save what has
been impaired by lapse of time, ordinary wear and tear or by fortuitous events.
The LESSEE shall settle any unpaid bills.

21. LITIGATION AND LIQUIDATED DAMAGES – In the event of court litigation,

both parties agree that the venue of the litigation shall be in the courts of Pasig
City, Metro Manila, Philippines. Should the LESSOR be obliged to enforce any
of his rights under this contract by virtue of any violations of this Contract, the
LESSEE shall pay the LESSOR the cost of litigation and attorney’s fees in the
amount of PESOS: TWO HUNDRED THOUSAND PESOS (P200, 000.00)
Philippine currency plus any and all damages which the LESSOR may suffer on
account of the violation by the LESSEE of any provisions on this Lease
Contract.

In turn, should the LESSEE be obliged to enforce any of his rights under this
Contract by virtue of any violations of this Contract of Leasse, the LESSOR shall
pay the LESSEE the cost of litigation and attorney’s fees in the amount of TWO
HUNDRED THOUSAND PESOS (P200,000.00) Philippine currency plus any
and all damages which the LESEE may suffer on account of the violation by the
LESSOR of any provisions of this Contract of Lease.

22. NON-WAIVER OF RIGHTS AMENDMENT OF CONTRACT – The failure of

LESSOR to insist upon a strict performance of any of the warranties, terms,
conditions and covenants hereof shall not be deemed a relinquishment or
waiver of such terms, conditions or covenants granted to LESSEE, nor shall it
be construed as a condonation of any subsequent breach or default of the
warranties, terms, conditions and covenants hereof, which terms, conditions and
covenants shall continue to be in full force and effect. For the duration of the
contract period. The subsequent acceptance of rent or any portion thereof by
LESSOR shall not be deemed to be a waiver of any prior breach by the
LESSEE or any terms, covenant or condition for the lease, regardless of
LESSOR’s knowledge of such prior breach at the time of acceptance of such
rent or portion thereof. No waiver by LESSOR of any of LESSOR’s rights under
this Contract shall be deemed to have been made unless expressed in writing
and signed by LESSOR.
 IN WITNESS WHEREOF, the parties hereto have set their hands on the date
and at the place first abovementioned.

MANUEL L. DY. GLORIA R. TENG

LESSOR LESSEE

SIGNED IN THE PRESENCE OF:

______________________ ____________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF ) S.S.

BEFORE ME, a Notary Public for and in the City of , Philippines, on this
___________________, personally appeared the following with their respective
Community Tax Certificates/Passports, to wit:
Name Passport No. Date Place of Issue

MANUEL L. DY XX 0180030 11/29/12 DFA Manila

Drivers License

GLORIA RECUENCO TENG D14090023 2/20/13 LTO

Both known to me and to me known to be the same persons who executed the
foregoing Contract of Lease and who acknowledged to me that the same is their free
will and voluntary act and deed. The said Contract of Lease consists of eight (8) pages,
including the Annex (Exhibit A) and this page on which this acknowledgement is written,
duly signed by the parties and their instrumental witnesses on each and every page
thereof.

WITNESS MY HAND AND NOTARIAL SEAL on the date and place first above
written

Doc. No. __________

Page No. __________
Book No. __________
Series of 2016
 Annex A
Inventory List of Appliances, Furniture, Fixtures and Household Items

INVENTORY LIST OF APPLIANCES AND FIXTURES

25 SPARROW ST., GREENMEADOWS SUBD.

DEN 1 NATIONAL AIRCON

1 CEILING FAN

LIVING ROOM 1 PANASONIC AIRCON (SPLIT TYPE)

2 CEILING FANS WITH 5 BULBS EACH

DINING ROOM 1 CARRIER AIRCON (WINDOW TYPE_

1 LIGTHING FIXTURE W/ 5 BULBS

LANAI 4 CEILING FAN

KITCHEN 1 TELEPHONE (633 1553)

1 INTERCOM
1 ASAHI CEILING FAN
1 LA GERMANIA RANGE HOOD
1 LA GERMANIA 5 BURNER OVEN
1 ELECTROLUX REFRIGERATOR

DIRTY KITCHEN 1 FISHER PAYKAL WASHING MACHINE

STAIRWAY 1 LIGHTING FIXTUREE W/ 5 BULBS

FAMILY ROOM 1 CEILING FAN

MASTER BEDROOM 1 PANASONIC AIRCON (SPLIT TYPE)

1 CEILING FAN
1 INTERCOM

MASTER CLOSET 1 CEILING FAN W/ 4 BULBS

MASTER TOILET 1 PANASONIC WATER HEATER

BEDROOM 1 1 CARRIER AIRCON (WINDOW TYPE)

1 CEILING FAN
1 INTERCOM
BEDROOM 1 TOILET 1 ALPHA WATER HEATER

BEDROOM 2 1 CARRIER AIRCON (WINDOW TYPE)

2 CEILING FAN
2 INTERCOM

BEDROOM 2 TOILET 1 ALPHA WATER HEATER

POOL 1 VACUUM HOSE

1 TELESCOPIC HANDLE
1 NYLON SCOOP
1 VACUUM HEAD
1 NYLON BRUSH

Note : The Lessee shall maintain, repair and or replace appliances in case of damage

MANUEL L. DY
93 Guirayan St., Araneta Subd.
Quezon City
Tel. No., 705-15-57

February 24, 2016

ACKNOWLDGMENT RECEIPT

Received from MS. GLORIA TENG the following checks for the rental of the property
located at 25 Sparrow St., Greenmeadows Subd., Quezon City

Four (4) months Advance Rental from March 1, 2016 to June 30, 2016
China Bank___________
February 23, 2016 P 680,000.00

Two (2) months Security Deposit 340,000.00

China Bank___________
February 25, 2016

Eight (8) months Advance Rental from July 1, 2016 to February 28, 2017
China Bank__________
July 1, 2016 1,360,000.00

Six (6) months advance Rental from March 1, 2017 to August 31, 2016
China Bank__________
March 1, 2017 1,020,000.00

Six (6) months advance Rental from September 1, 2017 to

February 29, 2017
China Bank___________
September 1, 2017

Six (6)months Advance Rental fro March 1, 2017 to August 31, 2017 1.020,000.00
China Bank___________
March 1, 2017

Received by:

MANUEL L.DY
February 24, 2017

Re : Meter Reading 25 Sparrow St., Greenmeadows

Electric___________________

Water____________________

Noted by:

_______________________ ______________________