Contract of Lease

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the City of _________________, this
day of ___________________, 20____, by and between:

_______________________________ (Name of Lessor), of legal age, Filipino, and with residence and
postal address at ___________________________, hereinafter referred to as the LESSOR.

-AND-

___________________________________ (Name of Lessee), Filipino and with residence and postal

address at__________________________________________, hereinafter referred to as the LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the registered owner of a parcel of land, with an area of
____________________ square meters, situated at ____________________, covered by Transfer
Certificate of Title No. __________ of the Registry of Deeds for the City of __________, a copy of
which is attached herewith as Annex “A” (hereinafter referred as LEASED PREMISES);

WHEREAS, the LESSOR has offered for lease and the LESSEE desires to lease the LEASED
PREMISES;

NOW THEREFORE, for and in consideration of the foregoing premises and the mutual covenants
contained herein, the LESSOR hereby leases upon the LESSEE the LEASE PREMISES and the
LESSEE hereby accepts the same, under the following terms and conditions:

TERMS AND CONDITIONS

1. That premises hereby leased shall be used exclusively by the LESSEE for residential purposes
only and shall not be diverted to other uses without the prior written consent of the LESSOR it
being expressly agreed that if, at any time during the existence of this lease, and without the
previous written consent of the LESSSOR, the said premises are used for other purposes, the
LESSOR, has the right to exercise all or either of the following: (a) rescind this contract in
accordance with the herein provisions; or (b) increase the rent; or (c) compel the LESSEE to stop
such unauthorized activities in all such cases the LESSEE shall be liable to the LESSOR for
liquidated damages. In no case shall the leased premises be used for immoral or illicit purposes,
otherwise, the LESSOR shall eject the LESSEE in accordance with law.

2. This lease shall be for a period of _____ years, commencing on __________ and expiring on
__________, renewable only for one (1) year by giving written notice to renew at least seven (7)
days prior to the expiry date of the period herein agreed upon. It is hereby understood, however
that if, for any reason the LESSEE shall terminate the lease before the period herein agreed
expires, or abandons the same, the LESSEE shall pay unto the LESSOR an amount equivalent
to the un-expired term of the lease (deleted “in addition to the immediate forfeiture of his entire
deposit”). Deleted “Failure to vacate shall result in the locking of the leased premise and the
goods be placed under the custody of the LESSOR. The renewal of the lease is subject to 10%
increase per annum on the amount of rent, computed cumulatively, or in the amount and under
such terms and conditions as may be mutually agreed upon in writing by the parties.
3. The LESSEE shall pay every _____ day of the month, at the _____ of the LESSOR or its agent,
a monthly rental of __________, Philippine Currency, net withholding of tax and exclusive of VAT
without necessity of demand. The LESSEE shall start paying on __________ and continuously
thereafter in the same manner. No rental shall be recognized as having been paid unless
evidenced by the official receipt of the LESSOR. Payments made by check shall be deemed
effective only if check is honored upon presentment or deposit, notwithstanding issuance, if any,
of an official receipt. Neither shall payment of rentals made by the LESSEE to unauthorized
persons be recognized.

Without prejudice to the exercise by the LESSOR of its right under paragraphs 33, 34, 35, and
37 herein the LESSEE shall pay to the LESSOR interest at the rate of One (1%) per cent a month
on any unpaid monthly rental and/or in any amount due by virtue of this contract not paid on
time, to be computed from the date of delinquency.

4. That the LESSEE shall deposit in cash to the LESSOR upon signing of this contract and prior
to move-in an amount equivalent to the rent for two (2) months or the sum of Eighteen Thousand
(P 18,000.00), Philippine Currency, per month which deposit shall answer for and be forfeited as
liquidated damages for any violation by the LESSEE of any of the terms and conditions of this
contract apart from and in addition to other damages that may be sustained by the LESSOR.
The LESSEE shall issue twelve (12) months postdated cheques equivalent for one (1) year rental.
The deposit made the LESSEE shall also answer for damages and any other obligations for
utilities such as water, electricity, telephone, association dues or anything which results from
violation(s) of any of the provision of this contract. Moreover, once made, a deposit cannot be
withdrawn or recovered until the expiration or termination of the lease.

Deleted (“where, however, the LESSOR, in its discretion, accept a deposit made by the way of
check, bill of exchange, or any other negotiable instruments, said LESSOR reserves the right
to bar LESSE’s entry into the leased premises in the event that said LESSEE’s check, bill of
exchange, or any other negotiable instrument should bounce, be dishonored or in any way be
refused acceptance.”)

Deleted (“a party who having made a deposit, fails to use or occupy the premises leased to or
reserved or “held” for him for any cause whatsoever not attributed to the LESSOR, cannot recover
or withdraw his/her/deposit; in such event, the deposit may be kept and retained and/or
forfeited in favor of the said LESSOR.”)

5. 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 in
accordance with the law.

6. 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. In
case the occupants of the leased premises exceed five (5), the LESSEE shall inform the LESSOR
of the same.

7. 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. If the LESSOR opts to lease the premises after the expiration of the contract, the LESSEE
shall have a Right of First Offer to lease the said premises before any other parties provided the
LESSEE did not commit any violations of any of the other terms and conditions of this contract.
9. This lease does not extend to the outside portion of the building corresponding to or opposite
the leased premises, and the LESSEE is expressly prohibited from painting, putting up or affixing
business notices, banners, signs and/or other advertising media except as herein provided, and
in such case, only to the extent of the prior written consent of the LESSOR.

10. The LESSEE shall, at his own expense, maintain the leased premises in clean and sanitary
condition, free from noxious odors, disturbing noises, or other nuisance and, upon expiration of
the lease shall surrender and return the leased premises and fixtures in good condition as they
were actually found at the beginning of the lease, ordinary wear and tear expected. All minor
repairs that need to be done on the leased premises not exceeding the amount of Php 50,000.00
will be for the sole account of the LESSEE. The LESSEE will also be liable for the repair of all
damages that are due to its fault or negligence or the fault or negligence of its employee or guests.
If the LESSEE fails to comply with the forgoing provision, the LESSOR is hereby authorized to
take the following remedies:
For the first offense-to give due notice to the LESSEE of such non-compliance
For the second offense- to issue a warning to the LESSEE of such non-compliance
For the third offense-LESSOR reserves the right to eject the LESSEE with damages, in
accordance with the law.

11. The LESSEE shall not affix, attach, inscribe or paint any notice, sign or other advertising
medium on the outside part of the Building (i.e. outside walls or roof), except with prior written
consent of the LESSOR and only such sign or advertising of such size and style as would fit the
outer beam directly in front of the premises.

12. The LESSOR may at his expense and discretion, but is not obliged to, maintain a tenant’s
directory in the building. In such eventuality, the LESSEE shall not allow or permit to give
his/her/its consent to any other person or entity to advertise and represent that such person or
entity uses holds office or its otherwise established in the premises leased or any part hereof;
only the name and nomenclature or business style as written in this contract of the lease shall
be placed in the Building Directory. No other sign or advertisement may be placed in the leased
premises other than the places particularly indicated by the LESSOR.

13. The sidewalks, entries, passages and corridors of the Building shall not be obstructed or
used by the LESSEE for any purpose other than for egress from the premises or Building.

14. The LESSEE shall comply with any and all rules and regulations which may be promulgated
from time to time by the LESSOR or the Administration of the building as well as with all the
rules, regulations, ordinances and laws made by the health, or fire department or other duly
constituted authorities of the City or national Government with respect to the use, occupancy,
safety and sanitation of the leased premises and such rules and regulations, laws and ordinances
shall form part of the contract.

15. The LESSEE shall provide himself/herself/itself, at his/her/its own cost and expense, with
receptacles which the city ordinances require or may hereafter require, in order to hold and
contain waste matter, garbage and refuse, and shall deposit them within his/her/its own
premises or at such places as may be designated by the LESSOR.

16. The LESSEE expressly agrees, warrants and undertakes not to alter, detach or otherwise
tamper with the electrical wires, outlets and/or fixtures in the leased premises without the prior
written consent of the LESSOR.

17. In case of damage to the leased premises or its appurtenances by fire, earthquake, war or
any other unforeseen cause, the LESSEE shall give immediate notice thereof to the LESSOR. If
the leased premises shall be damaged by fire or other causes without fault or negligence of the
LESSEE, or his/her/its agents, clerks, servants, or visitors, the injury shall be repaired at the
expense or the LESSOR after such notice; the LESSEE shall be liable unto the LESSOR for
damages to the leased premises caused by the willful or negligent acts of the LESSEE, his/her/its
agents, employees and/or visitors.

18. The LESSEE shall at all times allow the LESSOR to make repairs and/or to undertake such
works as may be necessary for the preservation or conservation of the building or the leased
premises.

19. Any and all alterations, additions and/or improvements desired by the LESSEE on the
premises herein leased shall be made by and at the expense of the LESSEE only after the prior
written consent of the LESSOR has been given and according to the specifications,
measurements and standards specifically approved in writing by the LESSOR. The additions
and/or improvements introduced during the term of this lease shall upon completion or
installation, become the property of the LESSOR without any need to reimburse the LESSEE for
any amount. No awnings or window guards shall be installed or used in the premises without
the prior written consent of the LESSOR.

20. The LESSEE may, upon the prior written approval of the LESSOR, install additional electric,
water, telephone, teletype and/or gas connections in the leased premises, the expenses of
installation and/or removal thereof, however shall be borne exclusively by the LESSEE. His
installation should be made in such a way as to cause no injury or damage to the premises;
provided, however, that by the installation of additional electrical appliances, such as water
coolers, office refrigerators, fans, air –conditioners, etc., wherein extra electrical outlets will be
needed, the LESSEE shall first furnish the LESSOR with a plan of such additional outlets for its
approval and the LESSEE shall employ only the services of a qualified electrician so that the
additional load of current shall be within the capacity of the main switch of the electrical panel,
thereby minimizing fire hazards. The LESSEE shall ask for approval of the LESSOR for any other
installation or construction that will be made inside or outside of the leased premises.

21. The LESSEE shall indemnify and hold harmless the said LESSOR against all actions, suits,
damages, and claims by whomsoever that may be brought or made by reasons of the non-
observance or non-performance of said rules, regulations, ordinances or laws or any covenant of
this contract, without prejudice to the right of the LESSOR to cancel this lease in accordance
with the penal provisions hereinafter contained.

22. The LESSEE hereby assumes full responsibility for any damage which may be caused by
him/he/its or his/her/its agents, employees, and guests to the person or property or third
persons while remaining either casually or on business in any part of the premises leased to the
LESSEE and further binds himself/herself/itself to hold the LESSOR free and harmless from
any such claim for injury or damage.

23. No compensation or claim shall be allowed against the LESSOR by the reason of
inconvenience, annoyance or injury to business arising out of the necessity of repairing any
portion of the building.

24. Disturbance in or discontinuance of the possession of the leased premises by the LESSEE
for causes beyond the control of the LESSOR shall confer no right of any kind to the LESSEE as
against the LESSOR.

25. The LESSOR, furthermore, shall not be liable nor responsible;

(a) For the presence of bugs, vermin, ants, termites, insects, if any, in the leased premises;
or
(b) For the failure of water supply and/or electric current; or
 (c) For any injury, loss or damage which the LESSEE or its agents or employees might
sustain in the premises due to any cause whatsoever; or
(d) For any damage done or occasioned by, or arising from plumbing gas, water and/or
other pipes, or the bursting, leaking or destruction of any cistern, tank, washstand,
water closet, or waste pipe, in, above, upon or about said premises, nor for any damage
arising from acts of negligence of LESSEE or its agents, employees, representatives or
any all other persons.

26. Any fees to be charged by the City Electrician in accordance with the applicable ordinance
for the connection, disconnection, installation and/or inspection of electrical appliances installed
within the leased premises shall be for said LESSEE’s account.

27. The LESSEE especially warrants that he is the sole and absolute owner of all property,
furniture, fixtures, machines, appurtenances, etc., brought by him unto the above-mentioned
leased premises; and hereby solemnly binds himself not to allow the property of any third party
to remain or be left therein without previously notifying the LESSOR in writing to that effect;
consequently, unless the LESSOR is so previously notified by the LESSEE, all properties found
in the leased premises shall be conclusively presumed to belong to the LESSEE, and shall be
subject to the LESSOR’S lien thereon which is hereby created/agreed to. The following furnitures,
fixtures, and equipment belong to the LESSOR and can be used by the LESSEE, provided that
in case such furnitures, fixtures, and equipment are damaged, the same shall be fixed at the
expense of the LESSEE:

 1-unit refrigerator  Vanity drawer

 2-units split type  Chandelier (sala area)
airconditioner  Chandelier (dining area)
 2-units window type  1-unit single bed with frame
airconditioner  Double burner stove with
 1-unit wall fan LPG tank
 2 sets of dining table with 6  Stove with range hood small
chairs each  Old washing machine
 2 sets of sala set

28. The LESSOR or its representative or agent shall have the right to enter and inspect the leased
premises by schedule or every six (6) months. The LESSOR or its authorized agent shall also,
after giving due notice to the LESSEE, 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.

29. The LESSOR reserves the right to increase the rent agreed upon in case of any change in the
present assessment of the building or the land on which it is erected or in the event of the levy
of special assessments on the property, and to apportion such assessment among all the tenants
of the building by the way of a corresponding increase in the rentals.

30. In case of (i) the devaluation or depreciation of the Philippine Pesos vis-à-vis the US dollars
and/or (ii) the extraordinary inflation or deflation, supervening during the effectivity of the
contract, the value of the currency at the time of the execution of this contract shall be the basis
of payment.

31. In the event that expropriation proceedings are instituted during the period of this lease by
any instrumentality of the government or by any other entity with authority to exercise such
power, either party may rescind this contract should the leased premises become no longer useful
for the purpose of this lease, upon giving the other party thirty (30) days previous written notice
thereof. In case of such expropriation, the LESSEE hereby unconditionally relieves and releases
the LESSOR from any all liability under this contract in connection with or arising out of such
expropriation proceedings.

32. The LESSEE agrees to return and surrender the leased premises at the expiration of the
term of this lease in as good condition reasonable wear and tear will permit as set forth in
paragraph 7 hereof and without any delay whatsoever, devoid of all occupants, furnitures,
articles and effects of any kind other than furniture , articles, effects which may have been
furnished to him by the LESSOR and provided further that such alterations, additions, or
improvements which belongs to the LESSOR in accordance with provisions of paragraph 24
hereof shall not be removed.

33. If said premises be not surrendered at the expiration or termination of the lease for whatever
reason, the LESSEE shall be responsible to the LESSOR for all damages which the LESSOR may
suffer by reason thereof and shall indemnify the LESSOR against any claims made by the
succeeding tenant or buyer against the LESSOR, resulting from delay by the failure of the
LESSEE to so surrender the premises on time. For every month of delay, the LESSEE shall pay
unto the LESSOR an amount equivalent to the monthly rental agreed herein without any early
payment discount by way of liquidated damages

34. In case the leased premises shall be deserted, vacated and/or abandoned for period of two
(2) weeks without any previous written notification to the LESSOR and during the time the
LESSEE is in default in the payment of this monthly rental obligation or any other obligation
due under and by virtue of this contract, the said LESSOR is hereby authorized to consider the
leased premises legally abandoned and may enter the premises and possession thereof without
need of judicial interventions. Furthermore, the LESSOR is hereby authorized to re-let or re-lease
the said premises to the public at large without prejudice to its right of action against the
LESSEE.

35. The failure of the LESSOR to insist upon a strict performance of any of the terms, conditions
and covenants hereof shall not be deemed a relinquishment or waiver of any right or remedy that
said LESSOR may have nor shall it be construed as a waiver of any subsequent breach or default
of the terms, conditions and covenants hereof which terms, conditions and covenants shall
continue to be in full force and effect. No waiver by the LESSOR of any of its rights under this
contract shall be deemed to have been made unless expressed in writing and signed by the
LESSOR.

36. The LESSEE agrees that all the covenants and agreements herein contained shall be deemed
conditions as well as covenants and that if default or breach be made of any such covenants and
conditions then this lease contract, at the discretion of the LESSOR may be terminated and
cancelled forthwith and the LESSEE shall be liable for any and all damages, actual or
consequential resulting from such default and termination.

37. Should the LESSOR be compelled to seek judicial relief against the LESSEE, the latter shall,
in addition to the damages mentioned in the preceding paragraph, pay an amount equivalent to
25% of the amount and claimed in the complaint as attorney’s fees with a minimum of
P100,000.00 aside from the costs of the litigation and other expenses which the law entitles the
LESSOR to recover from the LESSEE.

38. Should the LESSOR be compelled to seek judicial relief against the LESSEE for the non-
payment of any monthly rental or for non-performance or breach of any and/or all of the terms,
conditions and covenants sustained herein the parties agree that the corresponding suit shall
be brought before the proper court in the City of __________.
39. The penal provisions of this contract shall be considered as cumulative and resort to one
shall not bar resort to others. Further, the provisions of this contract are severable and, if for
any reason any provision of this contract is or becomes unenforceable, such provision/provisions
shall not affect the others.

40. In case the LESSEE is a corporation, partnership, association or other entity the person
signing for and in behalf of such corporation, partnership, association or other legal entity shall
be jointly and severally liable with the firm under this contract; the joint and several liability of
the persons signing for and in behalf of the corporation, partnership, association or other entity
shall continue and subsist notwithstanding said persons removal resignation, or separation
from the firm, unless and until he/she shall have been duly and properly replaced and
substituted by another officer of the firm who agrees and signs as a joint and several oblige for
all rental and other obligations, past, present, and future, due to the LESSOR by virtue of this
lease contract.

41. 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 there from 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. In case
the LESSOR wants to terminate the contract, the LESSEE shall be given 1 to 2 months prior
notice of the same.

42. The LESSEE hereby warrants that he/she has read and understood all the foregoing
provisions of this contract of lease and shall faithfully abide by the same.

43. 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.

_____________________________________ _____________________________________
LESSOR LESSEE

Signed in the presence of:

_____________________________ ______________________________
ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S
BEFORE ME, personally appeared:

______________________________________________________
(Name of Lessor)

______________________________________________________
(Name of Lessee)
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___.