CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This contract is entered into by and between:

MR. TEOFILO P. MAGHUYOP, Filipino, of legal age, married and a

resident of Poblacion 1, Sikatuna, Bohol, hereinafter referred to as LESSOR;

- and -

MR. RYAN Q. SUAREZ, Filipino, of legal age, married and a resident of

Poblacion, Sagbayan, Bohol, hereinafter referred to as LESSEE;

- WITNESSETH THAT -

FOR AND IN CONSIDERATION of the covenants and agreements

herein contained to be observed, kept and performed by the respective
parties, the LESSOR does hereby lease, let and demise unto the LESSEE, and
the LESSEE does hereby lease and hire from the LESSOR, that certain
property more particularly described as follows:

TRANSFER CERTIFICATE OF TITLE NO. 19554

A parcel of Land (Lot 33 of the subdivision plan Psd-07-

016545, being a portion of Rs-07-02-000061), situated in the
Poblacion, Municipality of Sikatuna, Province of Bohol, Island of
Bohol. Bounded on the E., points 1 to 3 by Blumentritt Street; on
the W., points 3 to 4 by Lot 44; Rizal Street; on the W., points 4
to 5 by Lot 34; and on the N., points 5 to 1 by Lot 32, all of the
subdivision plan. Beginning at a point marked 1 on plan, being
S. 27 deg. 40W., 108.30 m. from B.L.L.M. No. 2, Sikatuna, Bohol;

Thence S. 11 deg. 40W., 4.00 m. to point 2;

Thence S. 65 deg. 53W., 6.39 m. to point 3;
Thence N. 78 deg. 44W., 16.01 m. to point 4;
Thence N. 11 deg. 04E., 7.40 m. to point 5;
Thence S. 79 deg. 33E., 21.27 m. to the point of beginning;

containing an area of ONE HUNDRED FIFTY ONE (151) SQUARE

METERS, more or less. All points referred to are indicated on the
plan and are marked on the ground as follows: points 4 and 5 by
P.S. Cyl. Conc. Mons. 15 x 40 cm., and the rest by old P.S. Cyl.
Conc. Mons. 15 x 60 cm.; bearings true; date of original survey
executed by Eulogio P. Remoreras, Geodetic Engineer, on April
10-11, 1987 and approved on January 8, 1998.

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 NOW THEREFORE, for and in consideration of the foregoing premises,
the parties agree to the said Lease Contract under the following terms and
conditions, to wit:

ARTICLE I
Property for Lease

1. The LESSOR hereby transfers and conveys by way of LEASE in favor

of the LESSEE the parcel of land above described. It is mutually
agreed that the purpose for this lease is for the construction of a
fuel refilling station of the LESSEE. In furtherance of the above
purpose, the LESSEE, shall have the liberty to construct the gasoline
station in such a way that would be effective, efficient and safe
according to government and industry standards. He shall also be
allowed to make the necessary excavations, soil and ground tests,
establish utility connections for electric, power and communication.

2. Both parties hereto mutually agree that the property covered under
this Lease Contract is specifically the land only which is hereto
above described. The LESSOR hereby agrees that he shall not
interfere with the construction and operation of the fuel refilling
station. All permits, compliances and other requisites for the fuel
refilling station shall be for the account and the sole responsibility of
the LESSEE. As such, any injury, loss to life or damage to property
as a result of or in pursuance of the business of the LESSEE shall
make the LESSOR exempted from any liability therefore. However,
any insurance proceeds which were secured by the LESSEE for
protection against any contingencies, man-made or natural shall be
for the sole account and benefit of the LESSEE.

3. The LESSEE hereby declares that he has inspected the property to

be leased prior to the execution of this Lease Agreement, and
acknowledges that he is fully satisfied with the conditions thereof.
The LESSOR warrants he is the absolute owner of the above-
described property and shall protect and uphold the peaceful
enjoyment of the property, and shall defend the lessee against any
claims against his interest relative to the LESSORs ownership of the
property.

ARTICLE II
Consideration

1. Monthly Rent The consideration for this lease is a monthly rental

at the rate of TEN THOUSAND PESOS (P10,000.00).

2. Manner of Payment The monthly rent shall be paid to the LESSOR

by way of regular monthly deposits to the Personal Account of the
LESSOR which shall be specified by the latter, on or before the

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 regular periods specified above. The LESSEE shall be required to
regularly inform the LESSOR of the deposits made through
electronic mail of the proofs of deposits.

3. Escalation The parties hereby mutually agree that on the third

year from the signing of this contract, the monthly rental rate shall
be accelerated by FIVE PERCENT (5%) and yearly thereafter until
the full term of the lease contract shall have fully expired. The basis
for the accelerated rent shall be the previous years rate.

4. Advance Payment and Security Deposit The parties hereby agree

that a one month advance payment and a one month deposit shall
be given by the LESSEE upon the signing of the contract. The one
month advance and one month deposit shall be applicable to any
unpaid taxes, fees, charges, or unpaid utilities that the LESSEE
might leave behind in the event of an abandonment or expiration of
the term of this contract, if ever there would be any. However, after
the necessary deductions shall be applied, the same amount shall
be refundable to the LESSEE.

ARTICLE III
Term of Lease

1. Term. Unless earlier terminated for reasons specified herein, the

term of this Lease Agreement shall be for Fifteen (15) years which
shall commence on the 12th day of June 2017 up to the 14th day of
July 2032, renewable upon mutual agreement of the parties. Prior
to the termination of the contract, notice shall be given to the
LESSOR, of the intention of the LESSEE to extend or renew this
contract subject to terms and conditions that are mutually
acceptable by the parties. The LESSOR is hereby prohibited from
offering the lease contract to any other party unless and until the
LESSEE shall manifest his intentions not to renew or further pursue
this contract of lease over the above described property. On the last
year of this contract, the parties may renegotiate for new terms and
conditions for the extension or renewal of this Contract.

ARTICLE IV
Purpose of the Lease

1. Use of the Leased Property The LESSEE shall use the leased
property as a Fuel Refilling Station and/or for any other business
that the LESSEE may decide to put up, whether incidental or not/
directly related thereto.

In no case shall the leased property be used for immoral or illicit

purposes and illegal acts or purposes.

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2. Right to Sub-Lease The LESSEE is allowed to sub-lease the leased
property, upon a prior written consent of the LESSOR and for the
purpose/s provided in said written consent.

ARTICLE V
Purpose of the Lease

1. Grounds for Cancellation. The LESSOR may cancel or terminate

this Lease Agreement, upon the happening of any of the following
events:

1.1 The LESSEE fails to pay its monthly rent for twelve (12)
consecutive months after the same falls due;

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

ARTICLE VI
Purpose of the Lease

1. UTILITY SERVICES: All charges for electricity, water, and other

utility services to the leased property shall be for the sole account
of the LESSEE. LESSEE shall promptly pay all utility charges directly
to the utility company concerned. The LESSOR will not be liable for
the discontinuance of or interruptions in utility services to the
LESSEE due to any cause or reason whatsoever.

2. LOSS: It is hereby reiterated that the LESSOR is not liable to any

customer or client for injury, damage, or loss to person or property,
from any cause including fire, smoke, rain, flood, water leaks,
lightning, wind, explosions, interruption of utilities, pipe leaks, theft,
negligent or intentional acts of staff, employees, customers, or
criminal conduct of other persons including theft, burglary, assault,
vandalism or other crimes.

3. Signs and Advertisements The LESSEE may install, erect or affix

upon the leased property, signs or advertisements as may be
necessary to promote and/or advertise the business in which it is
engaged in.

4. TAXES, LICENSES and PERMITS: Lessee will pay all charges, taxes,
assessments and fees which may, at any time during the lease
term, be imposed or charged by any governmental authority in
respect of the LESSOR free and harmless from and against any
action or liability in respect of claims, actions, orders, fines,
charges, penalties or judgments imposed on the LESSOR on
account of LESSEEs violation of any law, decrees, ordinances, rules

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 and regulations relating to LESSEEs business in the Fuel Station. In
the same way, the LESSEE shall be free and without any fault or
obligation whatsoever with respect to any claims, actions, orders,
fines, charges, penalties, judgments imposed on the LESSOR for
violations of any law, decree, ordinances, rules and regulations prior
to the assumption of the LESSEE of the LESSORs property. In this
regard, the LESSEE shall be obliged to secure his business permits
and other licenses as may be required by law for the purpose of
operating a fuel refilling station, separate and distinct from the ones
secured by the LESSOR.

5. ABANDONMENT: Abandonment of the Fuel Station business

constitutes a violation of the terms and conditions of this Contract.
The LESSEE is deemed to have abandoned the leased property
when LESSEE has not responded for two (2) days to LESSORS
NOTICE left on the premises of the fuel station particularly on the
cashiers lounge, stating that LESSOR considers the Fuel Station
abandoned after any of the following have occurred: (1) all
occupants, staff and employees appears to have moved out from
the Fuel Station in LESSORs reasonable judgment; (2) Operational
facilities and other equipment have been substantially removed in
LESSORs reasonable judgment; and (3) LESSEE has been in default
in payment of rent for six (6) consecutive days from due date, or
water or electric service for the Fuel Station has been terminated.

6. Care of Leased Property The LESSEE shall, at its own expense,

maintain the leased property in a clean and sanitary condition free
from noxious odors, disturbing noises or other nuisances. The
LESSEE, its employees, agents or representatives shall not in any
manner damage or deface any part of the leased property.

The LESSEE shall comply with any and all reasonable rules and safety
regulations which may be promulgated from time to time by the
LESSOR, together with all the rules, regulations, ordinances or laws
made by the duly constituted authorities; either by the National or
Local government or any of its agencies and instrumentalities,
arising from or regarding the use, occupancy and sanitation of the
leased property.

7. General Maintenance, Sanitation, Repairs and Safety The cost of

general maintenance and upkeep of the leased property shall be for
the account of the LESSEE. The LESSEE shall keep the leased
property in a clean, safe and sanitary condition and introduce all the
needed repairs at all times. The LESSEE shall dispose all its
garbage, waste and other pollutants in accordance with the rules
promulgated by the national or local government.

8. Inspection of Premises The LESSOR reserves the right to enter

and inspect the leased property at reasonable times during business

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 hours and with prior notice. The LESSEE agrees to cooperate with
the LESSOR in keeping the leased property in good and tenantable
condition.

9. Return of Premises Upon the termination of this Lease Agreement

for any reason whatsoever, the LESSEE shall peacefully and
immediately vacate the leased property and return possession
thereof to the LESSOR in good and tenantable condition, devoid of
all occupants, equipment and effects of any kind. Provided, that the
LESSEE shall be allowed to remove and/or pull out all underground
tanks, pipes, tanks and other equipment/facilities owned by
LESSEE. Failure of the LESSEE to return the leased property as
provided herein shall make it liable to pay liquidated damages to
the LESSOR and/or such other remedies available to the LESSOR
under this Lease Agreement and/or under the law.

10. Warranty against Eviction from Third Parties The LESSOR hereby
warrants the LESSEE that the latter shall take possession of the
property subject of this Lease and shall be protected from any
claims or obligations of the LESSOR. The latter further warrants that
in the event of any third party claim, the LESSOR shall defend the
peaceful possession of the LESSEE over the property.

11. Transfer of rights The LESSEE shall not assign, or transfer or

encumber its rights under this lease without the propr written
consent of the LESSOR and no right, title or interest thereto or
therein shall be conferred on or vested to any other party other
than the LESSEE without such written consent.

12. Amendments Any amendments or additional terms and conditions

to this Lease Agreement must be in writing.

IN WITNESS WHEREOF, the parties have set their hands and affixed
their signatures this ______ day of _____________________ 2017, in the
City of Tagbilaran, Bohol, Philippines.

TEOFILO P. MAGHUYOP RYAN Q. SUAREZ

Lessor Lessee

SIGNED IN THE PRESENCE OF:

_________________________ _________________________

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Republic of the Philippines )
City of Tagbilaran ) S.S.
x--------------------------------/

BEFORE ME, a Notary Public for and in the City of Tagbilaran,

personally appeared the following persons with their respective proofs of
identity, as follows:

Name: Identification Presented: Expiry Date:

Ryan Q. Suarez Drivers License # G03-95-030408 12-15-2008

Teofilo P. Maghuyop Passport # 499855798 02-02-2023

known to me to be the same persons who executed the foregoing Contract

of Lease which contains seven (7) pages including this page and duly signed
on each and every page by the parties and they acknowledged to me that
the same is their free act and deed.

WITNESS MY HAND AND SEAL.

Doc. No.: ______;

Page No.: ______;
Book No.: ______;
Series of 2017.