CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract, executed by and between:

MIRAFLOR MANSUETO, of legal age, Filipino, and with

postal address at No. 519 NS Amoranto Street corner Pao Street,
Quezon, hereinafter referred to as the LESSOR;

- and -

DRA. JANET D. ONGPAUCO, of legal age, Filipino, and

with postal address at No. 417 Capitan Gonzaga Bldg. Estero
Cegado Street Quiapo, Manila, hereinafter referred to as the
LESSEE.

WITNESSETH:

That the LESSOR is the owner of the a furnished property located at No. 519 NS
Amoranto Street corner Pao Street, Quezon City. That the LESSEE agrees to rent the
SECOND FLOOR of the said premises under the following terms and conditions, to wit:

1. That the term of this lease contract shall be for a period of ONE (1) YEAR
effective from July 7, 2016 until July 7, 2017 at the option of the LESSOR, in case the
LESSOR deems necessary to terminate the contract, a notice shall be given to the
LESSEE at least three (3) months before the expiration of this contract;
2. That the premises shall be used for commercial purposes only. That the
LESSEE shall pay a monthly rental of TEN THOUSAND PESOS (P10,000.00) for the
first three (3) months while the same shall be increased at the amount of FOURTEEN
THOUSAND PESOS (P 14,000.00) at the 4th month until the end of this contract. Such
payment shall be made on or before the 7th day of each month.
3. That the LESSEE shall pay the amount of THIRTY THOUSAND PESOS (P
30,000.00) representing two (2) months security deposit and one (1) month advance
rental. That the deposit shall never be applied as payment of any monthly rental;
4. That the LESSEE shall likewise pay the amount of FIFTY THOUSAND
PESOS (P50,000.00) AS RENOVATION FEE FOR THE LEASED PREMISES FOR A
PERIOD OF FOUR (4)

1. TERM – The term of this lease is five (5) years commencing on

___________________, 2014 and ending on ___________________, 2019 subject to
renewal or extension by mutual agreement of the parties in writing.

2. RENT – The monthly rent for the leased premises is One Hundred Thousand
Pesos (P100,000.00), Philippine currency, that the rentals shall be paid in advance by
means of 12 postdated checks, on the 11 th month of each year the LESSEE shall issue
another 12 postdated checks as advance rental payment for the succeeding year.

(a) Any rent not paid, in whole or in part, within the stipulated period shall be
subject to a penalty of three percent (3%) per month computed from the first day of delay
or default until full payment thereof.

(b) The five percent (5%) Creditable Withholding Tax shall be for the account of
the LESSEE which shall be paid to the LESSOR together with the monthly rental.

(c) The monthly rental shall be subject to 10% increase on Fourth (4 th) and Fifth
th
(5 ) year based on the latest applicable rent.

3. RENTAL & SECURITY DEPOSIT - Upon the signing of this contract, the
LESSEE shall pay to the LESSOR the following amounts:

(a) An amount equivalent to six (6) months’ rentals as advance rentals to be

applied to the payment of the agreed rental for the first six (6) months under this contract;
and

(b) An amount equivalent to six (6) months’ rentals as security deposit to answer
for damages and other obligations, if any, and due and collectible from the LESSEE at
the termination of this contract subject to refund sixty (60) days after such termination
less such damages and obligations, if any. It is agreed that this deposit shall not be
applied to the payment of current or overdue rentals or any other obligation of the
LESSEE to the LESSOR during the effectivity of this contract. It is also understood that
this deposit shall not earn interest and not subject to Article 1250 of the New Civil Code
in case of the extraordinary inflation or deflation of the Philippine currency.

If the LESSEE preterminates this contract without the fault of the LESSOR, the
entire security deposit shall be forfeited in favor of the LESSOR as liquidated damages.

4. USE OF THE LEASED PREMISES – The LESSEE shall use the leased
premises solely and exclusively for ___________________________________________
______________________________________________________. The LESSEE shall
not divert the leased premises, in whole or in part, to any other use or purpose without the
prior written consent of the LESSOR.

5. IMPROVEMENTS - The LESSEE accepts the leased premises in their

present condition. The LESSEE, subject to the prior written consent of the LESSOR,
may make or introduce additions, alterations, improvements, or modifications suitable or
appropriate for his/her/its purpose at his/her/its sole expense. With the exception of those
that can be removed without causing undue damage to the leased premises, such
additions, alterations, improvements, or modifications shall become integral parts of the
leased premises and shall belong in ownership to the LESSOR upon the termination of
this contract without any obligation on the part of the LESSOR to compensate or
indemnify the LESSEE for the cost or value thereof.

6. EXTENT OF LEASE – It is expressly understood that the lease extends only

to the portion of the building corresponding to the floor spaces herein specified and does
not, in any way, include or cover the exterior/outside portion of the building.

7. SIGNAGE – The LESSEE shall not make or put up any notice, sign,
announcement, or any other advertisement on any part of the building outside the leased
premises without the prior written consent of the LESSOR, which consent shall not be
unreasonably withheld. The LESSOR’s consent to such notice, sign, announcement, or
advertisement shall not be construed as an extension of the lease to the external portion of
the building or the area within the property on which the building stands.

8. REPAIRS – The LESSEE agrees to keep the leased premises in good

condition for which purpose, the LESSEE obligates himself/herself/itself to undertake all
ordinary and necessary repairs in the leased premises to maintain the same in such good
condition.

9. NO SUBLEASE – The LESSEE shall not directly or indirectly sublease,

assign, or transfer his/her/its right of lease over the leased premises in whole or in part
under any circumstance whatsoever without the prior written consent of the LESSOR.
Any agreement made in violation of this stipulation shall be null and viod.

10. NOTICE OF DAMAGE – In case of damage to the leased premises or the

appurtenances thereof, the LESSEE shall immediately give notice thereof to the
LESSOR.

11. UTILITIES – All charges for water, light, telephone, and other utility
services in the leased premises shall be for the exclusive account of the LESSEE.

12. RULES AND REGULATIONS – The LESSEE shall observe and comply
with any and all laws, ordinances, regulations or orders promulgated by the proper
government authorities and the LESSOR regarding or affecting the use, occupancy, and
sanitation of the leased premises. Non-compliance therewith shall be at the sole risk of
the LESSEE.

13. NO STORAGE OF HAZARDOUS MATTERS – The LESSEE shall not

store or keep in the leased premises any obnoxious, inflammable, or explosive goods,
articles, or materials which may unnecessarily expose the leased premises to fire or
increase the fire hazards.

14. RIGHT OF INSPECTION – The LESSOR’s authorized representative

shall have the right to inspect the leased premises at any reasonable hour of the day to see
the condition thereof.

15. TERMINATION OF LEASE – If, after this lease shall have terminated for
any reason whatsoever, the LESSEE continues to occupy the leased premises without the
written consent of the LESSOR, such extension of lease shall be deemed only tolerated
as running from month to month under the same terms and conditions herein set forth and
may be terminated by either party by means of a written notice served upon the other at
least thirty (30) days in advance.

16. NON-WAIVER – The failure of the LESSOR to insist upon a strict

performance or observance of any of the terms and conditions of this agreement shall not
be deemed a relinquishment or waiver of any right or remedy that the LESSOR may
have, nor shall it be construed as a waiver of any subsequent breach or default of the
terms and conditions herein contained which shall be deemed in full force and effect all
the time. Under no circumstance shall the LESSOR be deemed to have waived any of its
rights under this contract unless such waiver is expressly made in writing.

17. TERMINATION WITHOUT COURT ACTION – In case of violation or

infringement of any of the terms and conditions of this agreement by the LESSEE, the
LESSOR hereby reserves the right to terminate immediately this lease and the LESSEE
hereby agrees to vacate forthwith the leased premises without any need of court
proceedings; provided, however, that if for any reason it shall become necessary for the
LESSOR to institute appropriate court action for the enforcement of its right under this
contract, the LESSEE shall be liable to the LESSOR for liquidated damages in the sum
of not less than One Hundred Thousand Pesos (P100,000.00) exclusive of and in addition
to unpaid rents, if any, attorney’s fees and costs of suit.

18. RIGHT OF RETENTION – In the event of the LESSEE’s failure to pay the
stipulated monthly rentals of the leased premises and other obligations under this
contract, the LESSOR shall have the right to hold or retain possession of any or all
merchandise, furniture, appliances, equipment, and other belongings or properties found
in the leased premises as security for the payment of such unpaid rents and/or obligations
of the LESSEE with right to dispose of the same.

19. RIGHT TO OPEN ABANDONED PREMISES – If the LESSEE fails to

pay the monthly rentals stipulated herein and the leased premises have been left locked
for thirty (30) days without written notice to the LESSOR and the present whereabouts
of the LESSEE are unknown to the LESSOR, the LESSEE hereby grants authority to
the LESSOR to consider the leased premises and all things found therein as abandoned
by the LESSEE, force open the leased premises, and occupy or lease the same to another
person. In such case, the LESSOR may appropriate for itself such abandoned things as
payment of the LESSEE’s obligations or dispose of the same in any manner the
LESSOR may deem best in the circumstances and to apply the proceeds thereof to
LESSEE’s obligations to it, it being agreed and understood that the LESSEE hereby
expressly waives any right of action or claim for any and all damages against the
LESSOR by reason thereof.

20. RIGHT TO EXPEL OR LOCK OUT – Without prejudice to the exercise

by the LESSOR of its other rights and remedies under this contract and existing laws,
should the LESSEE default in the payment of the agreed monthly rentals for any two (2)
successive months, the LESSOR, without resorting to judicial action, shall have the right
to expel or lock out the LESSEE from the leased premises and padlock the same. In
such event, the LESSOR may exercise the right of retention and disposal of any or all
things found therein as stipulated in the preceding paragraphs hereof.

21. RIGHT TO DISCONNECT UTILITIES – The failure of the LESSEE to

pay the rent for two (2) successive months shall entitle the LESSOR to cut off or
disconnect electric, water, telephone, and other utility services connected to the leased
premises

22. RETURN OF PREMISES – The LESSEE agrees to return and surrender

the leased premises to the LESSOR upon the termination of this contract in as good a
condition as possible save only from deterioration due to ordinary wear and tear. The
LESSEE shall be responsible for the repair or restoration of any undue damage caused to
the leased premises.

23. SOLIDARY OBLIGATION – If there is more than one (1) LESSEE under
this contract, their obligations hereunder shall be joint and several.

24. VENUE OF ACTION – The proper court of Quezon City shall have
exclusive jurisdiction over any and all legal actions arising from and under this
agreement or connected therewith.

25. ALTERATION OF CONTRACT – This contract supersedes and renders

null and void any and all agreements and understandings, oral or written, previously
entered into by the parties hereto with respect to the leased premises and this contract
may not hereafter be altered or modified except by another written instrument duly
signed by the parties hereto.
 IN WITNESS WHEREOF, the parties hereto have hereunto set their hand this
_______ day of _________________________, 20_____ at Quezon City, Metro Manila.

3. RENTAL RATE: The monthly rental rate for the leased premises
shall be in PESOS: AMOUNT IN WORDS (P 00,000.00), Philippine
Currency. All rental payments shall be payable to the LESSOR.

4. DEPOSIT: That the LESSEE shall deposit to the LESSOR upon

signing of this contract and prior to move-in an amount equivalent to the
rent for THREE (3) MONTHS or the sum of PESOS: AMOUNT IN WORDS
(P 00,000.00), Philippine Currency. wherein the two (2) months deposit
shall be applied as rent for the 11th and 12th months and the remaining
one (1) month deposit shall answer partially for damages and any other
obligations, for utilities such as Water, Electricity, CATV, Telephone,
Association Dues or resulting from violation(s) of any of the provision of
this contract.

5. DEFAULT PAYMENT: In case of default by the LESSEE in the

payment of the rent, such as when the checks are dishonored, the
LESSOR at its option may terminate this contract and eject the LESSEE.
The LESSOR has the right to padlock the premises when the LESSEE is
in default of payment for One (1) month and may forfeit whatever rental
deposit or advances have been given by the LESSEE.

6. SUB-LEASE: The LESSEE shall not directly or indirectly sublet,

allow or permit the leased premises to be occupied in whole or in part by
any person, form or corporation, neither shall the LESSEE assign its
rights hereunder to any other person or entity and no right of interest
thereto or therein shall be conferred on or vested in anyone by the
LESSEE without the LESSOR'S written approval.

7. PUBLIC UTILITIES: The LESSEE shall pay for its telephone, electric,
cable TV, water, Internet, association dues and other public services and
utilities during the duration of the lease.

8. FORCE MAJEURE: If whole or any part of the leased premises shall

be destroyed or damaged by fire, flood, lightning, typhoon, earthquake,
storm, riot or any other unforeseen disabling cause of acts of God, as to
render the leased premises during the term substantially unfit for use
and occupation of the LESSEE, then this lease contract may be
terminated without compensation by the LESSOR or by the LESSEE by
notice in writing to the other.

9. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent

shall after giving due notice to the LESSEE shall have the right to enter
the premises in the presence of the LESSEE or its representative at any
reasonable hour to examine the same or make repairs therein or for the
operation and maintenance of the building or to exhibit the leased
premises to prospective LESSEE, or for any other lawful purposes which
it may deem necessary.

10. EXPIRATION OF LEASE: At the expiration of the term of this lease

or cancellation thereof, as herein provided, the LESSEE will promptly
deliver to the LESSOR the leased premises with all corresponding keys
and in as good and tenable condition as the same is now, ordinary wear
and tear expected devoid of all occupants, movable furniture, articles
and effects of any kind. Non-compliance with the terms of this clause by
the LESSEE will give the LESSOR the right, at the latter's option, to
refuse to accept the delivery of the premises and compel the LESSEE to
pay rent therefrom at the same rate plus Twenty Five (25) % thereof as
penalty until the LESSEE shall have complied with the terms hereof.
The same penalty shall be imposed in case the LESSEE fails to leave the
premises after the expiration of this Contract of Lease or termination for
any reason whatsoever.

11. 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
P50,000.00 pesos in addition to other cost and damages which the said
party may be entitled to under the law.

12. This CONTRACT OF LEASE shall be valid and binding between the
parties, their successors-in-interest and assigns.

IN WITNESS WHEREOF, parties herein affixed their signatures on the

date and place above written.

(Name of Lessor) (Name of Lessee)

LESSOR LESSEE

Signed in the presence of:

_____________________________ ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

Name CTC Number Date/Place Issued

(Name of Lessor) 10000000 February 24,

20__ / Cavite City
(Name of Lessee) 10000000 January 07, 20__ /
Makati

Known to me and to me known to be the same persons who executed the

foregoing instrument and acknowledged to me that the same is their free
and voluntary act and deed.

This instrument consisting of ____ page/s, including the page on which

this acknowledgement is written, has been signed on each and every
page thereof by the concerned parties and their witnesses, and and
sealed with my notarial seal.
WITNESS MY HAND AND SEAL, on the date and place first above
written.

Notary Public

Doc. No.______;
Page No. ______;
Book No.______;
Series of 20___.