CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This contract entered into this _____ day of ________________ 2015 in the Municipality
of Legazpi City, Albay, by and between:

SEVENSTARS PHILS., INC., a corporation duly organized and existing under Philippine
laws with office address at Unit 1 Camelo Bldg., Imelda Roces Avenue, Legazpi City,
represented in this act by its Corporate Treasurer, ANNA CARLYN TENG-ROJAS, and
hereinafter referred to as the LESSOR;

-and-

________________________________, a corporation duly organized and existing by

virtue of and under the laws of the Republic of the Philippines, with business address at
______________________________________, herein represented by duly its authorized
representative, _______________________ as evidenced by the Secretary’s Certificate, and
hereinafter referred to as the “LESSEE”;

WITNESSETH:

WHEREAS the LESSEE is in need of a commercial space for business use;

WHEREAS the LESSEE has offered to lease one (1) unit of commercial space, door no.
3 at Camelo Bldg., located at Imelda Roces Avenue, Legazpi City and the LESSOR has agreed
to let the premises;

NOW THEREFORE, for and in consideration of the premises and the stipulations
hereinafter set forth, the LESSOR hereby leases unto the LESSEE the UNIT, under the
following terms and conditions:

1. TERM – The term of the lease shall be for a period of one (1) year from
__________________ to _________________. The failure of the LESSEE to sign a
new agreement for a new lease sixty (60) days before the expiration of the lease
shall entitle the LESSOR to immediately repossess the property at the end of the
lease period. The failure of the LESSOR to send a notice to vacate shall not be
construed as the continuation of occupancy under an implied lease within the
meaning of the New Civil Code, and such continued occupancy shall be deemed
unlawful detainer.

2. RENTAL – LESSEE shall pay the LESSOR a monthly rental of FIFTEEN

THOUSAND PESOS (Php 15,000.00), to be paid every 5th day of the applicable
month, at the office of the LESSOR or it’s duly authorized representative, without
need of prior demand. Said amount of rent is net of 5% Withholding Tax and
presently Non-VAT. If ever VAT is implemented/applied during the lease period, the
Rent will be net of 5% Withholding Tax and plus VAT rate. There shall be NO
escalation on the monthly rental all throughout the leased period. However, upon
renewal of this lease contract 10% escalation rate will be imposed. All business and
government fees shall be paid by the LESSEE.

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3. DEPOSIT AND ADVANCE – Upon execution of this CONTRACT OF LEASE, the
LESSEE shall initially pay the LESSOR the following amounts;

a.) THIRTY THOUSAND PESOS (Php 30,000.00) representing two (2) months
advance rental to be applied in the first two months of this lease;

b.) THIRTY THOUSAND PESOS (Php 30,000.00) representing two (2) months
security deposit. This deposit shall be refunded without interest to the
LESSEE after it has vacated the leased unit and after deducting any amounts
due or payable by the LESSEE for damages but unpaid charges. In the event
the security deposit is depleted or decreased by reason of deduction and or
damages during the leased period, then, the LESSOR shall require the
LESSEE to increase the security deposit to the amount of thirty thousand
pesos (Php 30,000.00) as originally agreed. In no case shall the deposit be
applied to the last two (2) months of the lease without the consent of the
LESSOR.

c.) In payment of all rentals, the LESSEE shall issue ten (10) post-dated checks
(PDCs) dated every 5th day of the month of the agreed leased period.
Provided, that should any checks be dishonored for any reason, the stoppage
of check payments shall constitute an offense allowing the LESSOR to file an
appropriate case. The PDCs shall be given by the LESSEE to the LESSOR
upon signing of contract.

4. RENOVATION PERIOD. The LESSOR agrees to grant the LESSEE one (1) month,
free of rental charge, within which to renovate or introduce improvements in the
leased premises. Provided, such renovation and or improvements should be
reviewed and agreed to by the LESSOR. Such renovation period shall commence on
_____________________ and shall end on _______________________.

5. PURPOSE AND USE OF THE LEASED UNIT – The LESSEE is strictly prohibited
from using the leased unit for any purpose other than that which is agreed to by the
LESSOR, which is for business office purposes and/or for the purpose of
establishing and maintaining the LESSEE’s branch thereat.

Any change in the use shall be subject to prior written consent of the LESSOR and if
without the said express confirmation by the LESSOR and LESSEE shall use the
unit for other purposes, the contract shall be rescinded automatically by the LESSOR
without the necessity of court action and forfeit money and all amounts paid inclusive
of advance rental payments and security deposit.

a.) LESSEE shall not use the leased unit for dwelling, laundry or sleeping purposes,
gambling, taking/selling of prohibited drugs, bold and indecent exposure or
immoral objectives nor for activities prohibited by the national laws or local
government ordinances or by the rules and regulation that may be promulgated
from time to time by the LESSOR and which are made essential part of this
Contract. Violation of which shall be considered material breach of this Contract
and shall result in automatic cancellation of this Contract without judicial recourse
being necessary.

b.) LESSEE shall not cook in or around the leased premises at any one time during
the leased period agreed to in this Contract.

6. PAYMENT OF UTILITIES – The LESSEE shall apply in its own name for utilities
services in the unit, such as water, tv cables and telephone lines. As for electricity,
the LESSOR has already applied it in its own name in order to ensure the accurate
reading of each LESSEE’s monthly consumption.

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 Monthly dues for water, telephone and electricity shall be paid by the LESSEE on the
basis of the electric/water meter reading.

7. MAINTENANCE & USE OF THE LEASED PREMISES – The LESSEE shall

maintain the unit in the same habitable, sanitary and environmental condition
presently found, existing ordinary wear and tear having been taken into account.
Ordinary repair expenses in the amount of Php 30,000.00 shall be for LESSEE’S
account. The LESSOR shall not be responsible for any damage or injury caused by
circumstances beyond its control nor shall it be liable for any repairs necessitated by
the act or omission of the LESSEE. Major repairs in the amount of Php 50,000.00 not
caused by the fault or negligence of the LESSEE shall be for the account of the
LESSOR. Major repairs shall not be a caused for the LESSEE to default in the
payment of monthly rentals.

8. ALTERATIONS AND IMPROVEMENTS – The LESSEE must not make any

improvements on the unit without previous consultation with and written approval of
the LESSOR. Provided, all approved renovations or improvements introduced by the
LESSEE during the leased period shall become the property of the LESSOR after
the termination of the Contract, without right of reimbursement to the LESSEE for the
cost or value thereof. All apparatus, fixtures and equipment, and the like, not
permanently attached to the building shall remain the property of the LESSEE and
may be removed/taken away therefrom at the LESSEE’S expense, provided no
damage, harm nor injury is caused to the leased premises or property of the
LESSOR upon expiration or termination of the contract.

9. INTEREST & PENALTY CHARGES – Any arrears in the payment of rental

exceeding seven (7) days, by reason of the dishonor of the checks, shall
automatically incur a penalty charge of five percent (5%) per month without need of
written demand.

10. ASSIGNMENT OR SUB-LEASE – The LESSEE is prohibited to sub-lease the

leased premises at any one time during the leased period contracted to in this
agreement. Any violation of the provisions shall constitute automatic
cancellation/termination of this contract plus forfeiture of any and all monetary paid in
advance by virtue thereof.

11. PRETERMINATION – It is a condition of this Contract that when the LESSOR

entered into this agreement with the LESSEE, the former is prevented from entering
into a leased agreement with probable lessees which may be favorable to the
LESSOR. Thus, it is but reasonable, should there be a pre-termination for any cause
by the LESSEE, security deposit and all unused PDCs representing unexpired
portion of the leased period shall be considered forfeited in favor of the LESSOR.

12. LESSOR’S EXEMPTION FROM LIABILITY – The LESSEE shall hold the LESSOR
free and harmless of and from any claim, demand, suit or case, whether civil,
criminal or administrative, that may be filed by its employees, clients, customers,
guests and other third parties for loss and damage such as claims for damage to
property and/or injury to persons, wrongful death arising out of any accidents within
the leased premises or occasioned by any nuisance made or suffered in the
premises, or by any fire thereon growing out of or caused by any failure on the part
of the LESSEE, or by reason of LESSEE’S violation, non-observance or non-
performance of rules and regulations, ordinances laws and the conditions of this
agreement concerning or affecting the leased unit or the improvements thereon.

13. SECURITY & LOSSES – LESSEE shall be solely responsible in securing subject
leased unit from losses due to theft, robbery, shoplifting, vandalism or any such other
similar acts.

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 Any arrangement to provide security of the leased unit shall be for the sole account
of LESSEE, provided however, the LESSEE hereby releases and discharges
LESSOR of and from any liability in respect of any loss and/or damage that may be
sustained within the leased unit due to pilferage, theft, robbery, malicious mischief or
other crimes, fire, earthquake, flood and other acts of God or fortuitous events. The
LESSOR will not be liable for loss or damage due to:

a.) Leakage of gas, plumbing pipes and the like;

b.) Presence of ants, vermin, cockroaches, rats, termites and other pests;
c.) Failure of water supply, electric current and other utilities;

Unless, the foregoing circumstances, are attributable due to the gross fault and/or
negligence of LESSOR.

14. PRIVACY. The LESSOR shall respect the privacy of the occupants/ employees of
the LESSEE in order to maintain the smooth flow of the LESSEE’s operations.

15. ACCESS TO LEASED UNIT – LESSOR, through its duly authorized agents shall
have an absolute right to enter the leased unit during business hours at any time in
case of emergencies for any purpose which LESSOR may deem necessary in
connection with the operation, maintenance and protection of the building. Likewise,
LESSOR shall be allowed entry within the leased unit during the last three (3)
months of the term of the lease for the purpose of exhibiting the leased unit to
prospective tenants. LESSEE shall also at all times allow LESSOR access to the
leased unit for purposes of making repairs, remodeling, renovation, of the entire
building or any part thereof. LESSOR shall not be liable for the loss of business or
inconvenience, annoyance and damage to LESSEE’s business that may arise on
accounts of any works undertaken under this provision.

16. WARRANTY. The LESSOR hereby warrants that the Leased Premises is in good
tenantable condition and suitable for the use for which it is intended by the LESSEE.

17. RULES AND REGULATIONS – LESSOR reserves the right to promulgate and
enforce such further rules and regulations as in its judgment may from time to time
be necessary to safeguard the safety and protection of the leased unit and for its
orderly use, care, housekeeping and sanitation, provided further, that may such rules
and regulations as when so issued and promulgated shall have the force and effect
as if originally made a part of this agreement. Such rules and regulations shall be
part hereof.

18. RIGHT OF FIRST REFUSAL – The LESSEE is hereby granted the right of refusal to
lease the property for the terms and conditions as the LESSOR is prepared to accept
from a person/entity interested to lease the rented premises upon the expiration of
this Contract. The LESSOR shall notify the LESSEE of the receipt of any offer to
lease the property from such interested person/entity. Thereafter, The LESSEE shall,
within THIRTY (30) days after receipt of such notice, notify the LESSOR of his
election to exercise the right of first refusal.

19. RIGHT OF FIRST OFFER – The LESSEE is hereby granted the right to make the
first offer acceptable to the LESSOR for the purchase of the leased property if the
LESSOR elects to sell the leased property. The LESSOR shall notify the LESSEE of
its intent to sell at least FORTY-FIVE (45) days prior to entering into any binding
agreement to sell the leased property to a third party, and LESSEE shall have the
right, within FORTY-FIVE (45) days thereafter to submit its offer, for the purchase of
the said property, including the price and other terms and conditions of such
purchase.

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20. SIGNAGES AND NOTICES – Signage, pylon post, name, mark, logo and other
image identification to be displayed or installed by LESSEE on or within the vicinity of
the LESSOR’s land, building or the walls thereof shall be for the account of the
LESSEE, subject to the written consent of the LESSOR. Subject to the LESSOR’s
written consent and approval, the LESSEE shall have the right, without obligation to
pay the LESSOR additional rent or charges, to install and display on any part of the
Leased Premises or on or within vicinity of the land, building or the walls thereof such
signage, name, mark, logo, image identifications, road/pole signs, pylon signs,
including floodlights to highlight or illuminate the foregoing, in accordance with the
designs or plans as the LESSEE may deem necessary in the conduct of its business.
The said signage, name, mark, logo, image identifications, road/pole signs, pylon
signs and floodlights shall be removed by the LESSEE at the end of the term or
termination of this Contract.

21. CLOSURE, ABANDONEMENT OF LEASED UNIT – In case the leased unit shall be
closed or abandoned or vacated for fifteen (15) days without written notice to
LESSOR, latter shall have the right to enter premises as agents of LESSEE, either
by force or otherwise and to break open any padlock, without being liable for
prosecution therefore, for the purpose of making an inventory of the contents thereof,
and at its option, to lease out the premises to other parties and receive the rent
therefrom and apply the same to the payment of rent due thereunder, holding
LESSEE liable for any deficiency, without prejudice to any other rights of action
against LESSEE. Any and all personal property or chattels found in the premises
shall be deposited in the storeroom of the LESSOR and LESSEE shall pay all cost of
transfer and storage. And, after sixty (60) days from notice, any and all personal
property shall be disposed of by the LESSOR through auction. And whatever amount
is realized, the same shall be applied to all charges of whatever kind and nature. And
the excess shall be returned to the LESSEE. But after thirty (30) days from notice of
such fact to the LESSEE, the excess price shall be forfeited.

22. CANCELLATION CLAUSE – The LESSOR may cancel this CONTRACT by sending
notice thereof, and forfeit any improvement, deposit and the rental paid for the
unexpired period for violation by the LESSEE of any stipulations in this CONTRACT.

23. TERMINATION OF LEASE – Upon cancellation of this lease or the expiration of the
lease period, the LESSEE hereby agrees to voluntarily vacate the unit without need
of prior written demand. In case of failure or refusal to vacate, or if the parties fail to
sign a new lease contract as provided herein, the LESSOR is hereby constituted as
the irrevocably attorney-in-fact of the LESSEE, with full power to enter the premises,
conduct an inventory of the LESSEE’s properties, pack and store the same and
thereafter to (when applicable) padlock the premises, all without need of judicial
intervention. The charges for removal of the LESSEE’s properties from the unit and
storage thereof shall be deductible from the rental deposit. In the event that the
charges should accumulate without satisfaction from the LESSEE, the LESSOR is
authorized to sell the properties of the LESSEE found in the leased unit for the
reasonable value thereof, settle the charges and hold the residue for refund to the
LESSEE without interest. The LESSOR shall not be liable (civilly, criminally or
otherwise) for any damage or loss to the LESSEE for due enforcement of this
contractual provision, or for LESSEE’s failure to collect its belongings after due
service of notice of cancellation or notice to vacate. The LESSEE shall, in case of
non-renewal of the Lease Contract, give three (3) months written advance notice of
his intention to vacate the premises. This is without prejudice to the effects of pre-
termination where the deposit and advance rental payments inclusive of unused
PDCs shall be considered forfeited without right to refund. Provided, should the
unused PDCs are dishonored, the LESSOR shall have the right to file appropriate
cases with the appropriate courts.

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 24. VENUE OF ACTION, NOTICES & CORRESPONDENCE – In case suit is brought
on any matter relating to this contract, the same shall be exclusively brought in the
competent courts of Legazpi City, Albay. If the LESSOR brings suit for ejectment,
enforcement of a right or redress of a wrong, the LESSEE shall pay the LESSOR the
cost and expenses of litigation, as well as the attorney’s fees, which shall in no case
be less than thirty thousand (P30,000.00) pesos, plus the damages and cost that
may be proven.

IN WITNESS WHEREOF, the Parties have hereunto signed and executed this Contract
of Lease this ____ day of__________ in ________________, Philippines.

SEVENSTARS PHILS., INC.

(LESSOR) (LESSEE)

By: By:

ANNA CARLYN T. ROJAS

WITNESSES:

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 ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in the City of ___________, this _____ day of
_______________, personally appeared the following with their competent evidence of identity,
as follows:

COMPETENT PROOF OF
NAME DATE/PLACE ISSUED
IDENTITY

and presented to me the foregoing integrally complete instrument which is the Contract of Lease
and represented to me that the signatures thereon were voluntarily affixed by them for the
purposes stated therein, and acknowledged that they executed the same as their free and
voluntary act and deed and of the corporations herein represented and that they have the
authority to sign the same in behalf of the corporations-parties to this Contract.

This Contract of Lease consists of SEVEN (7) pages, including this page wherein this
acknowledgment is written and duly signed on each and every page by the herein parties and
their instrumental witnesses.

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

Doc. No. _____ ;

Page No. _____ ;
Book No. _____ ;
Series of 2015