CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease is made and executed this 14th day of February 2019 at Marikina
City, by and between:

CARA YSABEL C HUFANO , single and TANIA AILIE C

HUFANO, single; both of legal age, Filipinos and residents of No 6
Arzadon Subd., Mayombo Dist., Dagupan City , hereinafter referred to as
the “LESSOR”

• and -

JOHN HENRY SIBUG , of legal age, Filipino and with a residential address
at 72 Magat Salamat St., Concepcion 2, Marikina City, hereinafter referred to as
the “LESSEE’’

WITNESSETH; That

WHEREAS, the LESSOR is the registered owner of a commercial condominium unit

located at Unit 10 Commercial Alicante Tower, Marquinton Residences, Sumulong Hi-way,
Sto Nino, Marikina City; unfurnished. Approximate floor area is 22 square meters.

WHEREAS, the LESSEE desires to lease from the LESSOR and the LESSOR is
willing to lease unto the LESSEE the above-mentioned premises subject to the terms and
conditions hereinafter specified.

NOW, THEREFORE, for and in consideration of the foregoing and mutual covenants
herein contained, the LESSOR has let by these presents, does hereby let and lease unto the
LESSEE the subject property and the LESSEE hereby accepts the same subject to the following
terms and conditions:

1. TERM OF LEASE

The term of the Contract of Lease will be for a period of One year ( 1 ) year commencing
on January 15, 2016 and ending on December 15, 2017. The LESSEE will have the
option to renew this Contract of Lease upon its termination subject to such terms and
conditions that maybe agreed upon by both parties, provided a written notice of intent to
renew is given by the LESSEE to the LESSOR at least (60) calendar days before
termination date.

2. LEASE RENTAL, DEPOSIT AND ASSOCIATION DUES

 The monthly rental of the leased premises will be Sixteen Thousand Pesos only
(P16,000.00)

The LESSEE shall be responsible for the payment of the association dues which shall
be settled directly by the LESSEE with the Alicante Tower-Marquinton Residences
Building Administrator upon receipt of the statement of account. Any increase in the
association dues during the course of this contract as well as any VAT that may be
imposed on the association dues shall be borne by the LESSEE.

A 2-month security deposit in the amount of Thirty-Two Thousand Pesos (P32,000.00)

will be collected by the LESSOR. This will answer for any unpaid association dues,
electric, cable, water and telephone bills, garbage fees and damages to the leased
premises resulting from violation by the LESSEE of any of the terms and conditions of
this Contract of Lease, ordinary wear and tear excepted. The balance of the deposit will
be returned to the LESSEE within sixty (60) calendar days after the termination of this
Contract of Lease or within ten (10) calendar days after presentation to the LESSOR of
the proof of settlement of the LESSEE’s liabilities mentioned in this Clause, whichever
is earlier. SECURITY DEPOSIT CANNOT BE APPLIED AS RENTAL PAYMENT.

Upon the signing of this Contract of Lease, the LESSEE agrees to give the LESSOR
post-dated checks for

• A 2-month security deposit in the amount of Thirty-Two Thousand Pesos

(P32,000.00).
• Twelve checks for Twelve (12) months of rent with the total amount of One
Hundred Ninety-Two Thousand Pesos (P192,000.00) corresponding to the lease
for one year.

3. WATER, ELECTRICITY, TELEPHONE, TAXES, INSURANCE

All periodic expenses for water, cable TV, electricity and telephone accruing up to the
date of termination of this Contract of Lease will be for the account of the LESSEE.

All taxes, fire insurance premiums, government assessments and other charges of public
nature, which are or may be assessed, on the leased premises, will be for the account of
the LESSOR.

4. COMMERCIAL PURPOSE

The leased premises will be used for commercial purposes only and for no other purpose.

5. IMPROVEMENTS, FURNITURE AND FIXTURES

 The LESSEE will not make any permanent major structural changes, alterations or
improvements in the leased premises without the written approval of the LESSOR. Any
major alterations or improvements made to and/or introduced by the LESSEE in the
leased premises with the written approval of the LESSOR will, upon termination of this
Contract of Lease, automatically inure to the benefit of said premises and become the
property of the LESSOR, without any obligation on the part of the LESSOR to pay or
refund the cost thereof. However, the LESSEE will have the right to remove the
equipment, furniture and fixtures put in at its expense which are by nature movable or
which can be removed without defacing or damaging the leased premises.

6. SANITATION, REPAIRS AND MAINTENANCE

The LESSEE will keep the leased premises in clean and sanitary condition at all times.

The LESSEE has inspected the leased premises and found the same to be in good and
tenantable condition.

The LESSOR will be responsible for the carpentry, all repairs and maintenance on the
leased premises, and on the water, electrical and sewerage installation, electric plumbing,
roofing, and all structural defects on the leased premises costing more than FIVE
THOUSAND PESOS (P5,000) per incident, except those due to the fault or negligence
of the LESSEE, its agents, representatives, visitors or household help. In the event the
LESSOR does not undertake to do such repairs within three (3) calendar days from
receipt of notice, the LESSEE will have the right to terminate this Contract of Lease
subject to the applicable provisions of Clause 15 on the LESSOR’s obligation to return
the advance rentals and/or post-dated checks within the period prescribed therein.
Moreover, the LESSOR will also have the leased premises inspected by a reputable firm
for termite control.

On the other hand, all minor repairs due to normal wear and tear costing P5,000 and
below per incident will be borne by the LESSEE. The LESSEE will also be
responsible for pest control.

7. FIRE HAZARD AND NOXIOUS SUBSTANCES

The LESSEE will not bring into, keep, deposit or store in the leased premises any
noxious substance nor anything of a highly inflammable nature which may expose the
leased premises to fire or increase its fire hazard, or change its insurance rate. However,
cooking gas is acceptable.

8. THIRD PARTY LIABILITY

 The LESSEE during the occupancy of the premises, will hold the LESSOR free and
harmless from any damage, liability or responsibility to any person or property of the
LESSEE, its designated occupants, agents, employees, domestic help and guests, except
when said damage, liability or responsibility is due to the fault or negligence of the
LESSOR or its agents. The LESSOR will be not responsible to the LESSEE, its
designated occupants, agents, employees, guests and domestic help for damages suffered
damages due Acts of God, such as typhoon, earthquake, flood, etc.to structural defects of
the leased premises that are beyond the control of the LESSEE, the latter shall not be
liable to the LESSOR. The provisions of this Clause will likewise be subject to Clause
13.

9. INSPECTION OF PREMISES

The LESSOR or its authorized agents reserves the right to enter the leased premises
between 10 am – 5 pm, Mondays to Fridays only, to make the necessary repairs, subject
to an advance 24-hour notice. Moreover, the LESSOR or its authorized agents will also
be given access to the leased premises to exhibit the same to prospective tenants should
no notice to renew the Contract of Lease be given by the LESSEE within the 60-day
period mentioned in Clause 1 hereof. In any instance, due care will be exercised so as not
to unduly inconvenience the LESSEE.

10. RULES AND REGULATIONS

The LESSEE agrees to abide by the existing rules and regulations, including any
amendments thereto, promulgated by the condominium association, provided an updated
copy of such rules and regulations will be given by the LESSOR to the LESSEE before
signing this Contract of Lease and as often as the need arises.

11. WARRANTIES OF THE LESSOR

The LESSOR represents and warrants that he/she has valid, lawful and absolute title over
the leased premises including the improvements therein; that he/she undertakes to defend
and maintain LESSEE’s peaceful and comfortable possession and enjoyment of the
leased premises including the term of the lease or extensions thereof; that the leased
premises including the improvements therein is in a clean, sanitary and habitable
condition; that there are no unpaid or outstanding association dues or assessments,
electricity, water or telephone bills; that the premises have adequate water supply.

12. SALE, MORTGAGE OR TRANSFER OF LEASED PREMISES

 In the event of sale, transfer, mortgage or any other encumbrance of the leased premises,
LESSOR guarantees that the purchaser, transferee or mortgagee will be bound by all the
terms and conditions of this Contract of Lease including the provisions for renewal
thereof.

13. DESTRUCTION OF PROPERTY

In case the leased premises or any part thereof be destroyed by fire, typhoon, earthquake
or any other cause which has rendered the leased premises or any part thereof unsuitable
for the purpose intended by the LESSEE, the LESSEE will give immediate notice
thereof to the LESSOR. In such case, the LESSEE will have the absolute right to
terminate the Contract of Lease, and the advance rentals and/or post-dated checks issued
by the LESSEE to the LESSOR corresponding to the unexpired portion of the lease will
be returned to the LESSEEE within a period of five (5) days from the date notice of said
damage was given to the LESSOR. If the advance rentals and/or post-dated checks are
not returned by the LESSOR to the LESSEE within the said 5-day period, the LESSEE
will have the right to ask its drawee-bank to immediately stop the payment thereof where
applicable. Moreover, the LESSEE will not be liable to the LESSOR when the damage
to the property or furnishings under Annex A was due to fortuitous events beyond the
control of the LESSEE.

14. PRE-TERMINATION CLAUSE

This contract is guaranteed for the one year (1) duration of the lease. However, the contract
may be pre-terminated under the following conditions:
• When the LESSEE is required to depart from the Philippines by reason of transfer to
another location, illness, or for other reasons beyond his control, and such departure is
either permanent or for an indefinite period. The LESSEE shall have the option to pre-
terminate the contract of lease by giving the LESSOR a 60-day written notice thereof in
advance of the date the termination takes effect.
• The LESSEE shall forfeit the 2-month security deposit as penalty for liquidated
damages.
• The LESSOR shall return to the LESSEE the unused checks of the latter upon
submission of a written clearance from the Alicante Tower-Marquinton Residences
Building Administration that all unpaid bills: association dues, electric, cable,
telephone, and water bills have been settled.
.

15. RETURN OF PREMISES

Upon the termination of this Contract of Lease, the LESSEE will immediately vacate the
leased premises and peacefully return possession thereof to the LESSOR including all
the equipment, furniture and fixtures mentioned in Annex A hereof, in the same condition
in which they have been found, ordinary wear and tear excepted, unless the property
 and/or furnishings under Annex A suffered damages due to the fault or negligence of the
LESSOR or its agents or when said damages were due to fortuitous events beyond the
control of the LESSEE. The provisions herein will likewise be subject to Clause 5.

16. VIOLATION OF THIS AGREEMENT

Any violation of the terms provided for in this Contract of Lease on the part of the
LESSOR or LESSEE will be sufficient ground for termination thereof. Provided,
however, that the violating party will have fifteen (15) days within which to rectify the
said breach upon receipt of the written notice of the breach from the other party. The
acceptance or rejection by the aggrieved party of such rectification made by the violating
party will depend solely on such aggrieved party whose option to terminate and cancel
this Contract of Lease remains.

Should the LESSEE be the violating party and the breach is not rectified within the 15-
day period or even if rectified by the LESSEE within such period but the rectification is
not acceptable to the LESSOR, and the Contract of Lease is terminated by the LESSOR
under this Clause, the equivalent of two (2) months’ gross rentals will constitute
liquidated damages in favor of the LESSOR.

In the event that it is the LESSOR who commits a breach of this Contract of Lease, and
such breach is not rectified within the 15-day period or even if rectified by the LESSOR
within such period but the rectification is not acceptable to the LESSEE, the LESSEE
will have the option to terminate the Contract of Lease and the LESSOR is obligated to
return to the LESSEE within five (5) days, counted from the time the LESSEE actually
vacates the leased premises, any advance rentals and/or post-dated checks corresponding
to the unexpired portion of the lease. If the advance rentals and/or post-dated checks are
not returned by the LESSOR to the LESEE within the said 5-day period, the LESSEE
will have the right to ask its drawee-bank to immediately stop the payment thereof where
applicable. The LESSOR’s return to the LESSEE of the unused rent will not prejudice
the LESSEE’s right to claim and seek damages in the courts of the competent
jurisdiction.

17. AMENDMENT

This Contract of Lease or any term hereof will not be amended, modified, waived,
discharged or terminated orally except by an instrument in writing signed by the parties
hereto.

18. VENUE

Any legal action or proceeding arising out of or connected within this Contract of Lease
and any and all relative documents will be brought in the proper courts of the City of
 Marikina. By execution and delivery of this Contract of Lease, the parties hereby
irrevocably submit to such venue, all other venues being abandoned or waived.

IN WITNESS WHEREOF, the parties hereto have signed these presents on the date and at the
place first above mentioned or written.

CARA YSABEL C. HUFFANO JOHN HENRY SIBUG

LESSOR LESSEE

TANIA AILIE C. HUFFANO

LESSOR

SIGNED IN THE PRESENCE OF:

___________________________ _____________________________