CONTRACT OF LEASE KNOW ALL MEN BY THESE PRESENTS: This CONTRACT OF LEASE made and entered into at Davao

City, Philippines, by and between: ______________, of legal age, Filipino, married, a resident of Davao City, is the registered owner of a house and lot located at ______________, hereinafter called the LESSOR; -and_________________, of legal age, Filipino, and a resident of Davao City, hereinafter called the LESSEE; W I T N E S S E T H : That WHEREAS, the LESSOR is the owner in fee simple of a parcel of land together with a house existing thereon, located at Juna ________________, covered under TCT No. _________________ of the Registry of Deeds for Davao City. WHEREAS, the LESSEE has offered to lease the above-mentioned premises and the LESSOR has accepted under the terms and conditions hereinafter set forth. NOW, THEREFORE, for and in consideration of the foregoing premises, the parties hereto agree and covenant as follows: 1. PROPERTY LEASED This Contract of Lease shall cover the lot containing the main house, _____________________with a total lot area of ___________ sq. m., and a floor area of _____________ sq. m. ., more or less. 2. RENTAL OF THE LEASED PREMISES - The monthly rental of the leased premises subject matter of this contract shall be pegged at ________________. Payment of the rental shall be made in the following manner: a. Upon signing of this agreement, ___________ deposit shall be paid or ____________________. b. Also, a ONE (1) month ___________________ advance shall be paid or

c. Rentals not paid on time shall earn interest of 2% per month. If the rental stipulated herein or any party thereof, at anytime, shall arrears or unpaid, or if the LESSEE shall anytime fail or neglect to perform or comply with any of the covenants, conditions, agreements or restrictions stipulated, or if the LESSEE shall become bankrupt or

insolvent or shall compound with its creditors, the LESSOR shall have the option of terminating this lease contract and the LESSEE shall vacate the leased premises for the LESSOR to hold and enjoy thenceforth as if these presents have not been made; 2. PERIOD OF LEASE. The term of the lease shall be 10 months commencing from _________________. Further, the LESSOR allows the LESSEE to occupy the leased premises as early as April 25, 2012, free of charge. The rental shall commence on the actual term of the lease. Should the LESSEE not finish the term, it shall be liable to pay the rental of the unfinished term. This contract may be renewed again after the expiration thereof under such terms and conditions as may be mutually agreed upon by the parties which shall be communicated by the interested party by giving notice of at least sixty (60) days before the expiration of the term. Otherwise, this lease contract is deemed not renewed. The LESSEE shall then immediately vacate and surrender to the LESSOR the leased premises without further demand and/or proceedings. In the event, however, that the LESSEE will be allowed by the LESSOR to remain in the possession of the leased premises, it is expressly understood and agreed that the lease shall only on a month-tomonth basis in the absence of any written agreement to the contrary and the relation of the parties hereto shall be governed by the rest of the terms of this contract, insofar as they are applicable. 3. USE OF THE LEASED PREMISES. The leased premises shall be used by the LESSEE as family dwelling, and shall not be diverted to any other purpose without prior consent from the LESSOR. If at anytime during the period of the lease and without the consent of the LESSOR the leased premises are used for another purpose, the LESSOR shall have the choice to: a.)Cancel and terminate this contract, b.)Compel the LESSEE to stop the new activity, or c.)Increase the rent. The LESSEE shall not permit or give consent to any other person or entity to advertise as if said person or entity uses, holds office or is otherwise established at the premises leased or any parts thereof, and only the name and nomenclature as written in this contract shall be placed in the building directory and advertised at the main door of the leased premises after a previous written approval of the LESSOR. No other sign or advertisement may be placed in the leased premises other than those items or products from the suppliers at the place herein above indicated. The LESSEE shall see to it that no vendors are allowed to conduct business in front of the rented premises. 4. RENOVATIONS, PERMANENT IMPROVEMENTS, ORDINARY AND

MAJOR REPAIRS.

a. In the course of the renovation, materials to be removed from the existing building unusable to LESSEE shall be turned over to the authorized representative of the LESSOR. b. The parties agree that all permanent, immovable improvements or alterations of whatever nature as may be made thereon shall form an integral part of the leased premises and shall not be removed therefrom but shall belong to and become the exclusive property of

the LESSOR without any right on the part of the LESSEE to the reimbursement of the cost or value thereof. c. The LESSEE agrees to make at its expense the repairs and adjustments necessary to keep the premises herein leased in proper condition, to make the premises suitable to their needs and purposes, to keep the same in good and sanitary condition and accordance with law, ordinances, rules, and regulations of the government and its dependencies. It further agrees to make the necessary repairs for any damage due to wear and tear and lear on the roof, gutter, and plumbing fixtures found outside the building without any right to be reimbursed by the LESSOR. d. The LESSOR shall be responsible for all major repairs to be made on the premises provided that the LESSEE shall notify the LESSOR in advance within a reasonable time, specifying and describing such major repairs to be made on the water, electrical, and sewage installations caused by ordinary wear and tear, except those that are due to the fault or negligence of the LESSEE or his employees or third persons or for whatever cause. Minor repairs are for the account of the LESSEE. For purposes of clarifying this provision, major repairs are those repairs costing more than P500,000.00 while minor repairs are those repairs costing P500,000.00 or less. 5. PROHIBITION AGAINST SUB-LEASE. The LESSEE shall not assign this lease agreement or sub-let the whole or part of the leased premises without the written consent of the LESSOR first being obtained. 6. FAILURE TO PAY RENTAL/ABANDONMENT. If the leased premises is deserted and/or abandoned by the LESSEE or the latter fails to pay the rental for two (2) consecutive months prior to the expiration of this contract, the LESSOR shall have to prosecute and at the LESSORS discretion, the premises may be leased at any other person without prejudice to the right of the LESSOR to collect from the LESSEE the payment of the accrued unpaid rental and the full amount of the rental covering the entire expired portion of the lease as liquidated damages. 7. INSPECTION BY THE LESSOR OF THE LEASED PREMISES. The LESSOR and/or its authorized representative shall have the right to enter the leased premises during office hours to inspect the same. Furthermore, the LESSOR must also give advance notice to the LESSEE through the telephone or written one before he could enter and inspect the premises leased. 8. UTILITIES AND OPERATIONAL EXPENSES. Payment of all utility bills including electrical bills, water bills, and telephone bills shall be for the account of the LESSEE. All replacements such as lighting fixtures and the like shall be for the account of the LESSEE. All repairs in the utility system of the leased premises shall be paid by the LESSEE, these includes the normal cost of maintenance. 9. FORCE MAJEURE. The LESSEE, during its occupancy of the leased premises shall hold the LESSOR free and harmless from any damage or responsibility to any person or property arising out of or as consequence of the use of the premises by the LESSEE, his agents and employees when such

damage or acts of GOD, such as typhoon, earthquake, flood, etc. are beyond the control of the LESSEE, the latter shall not be liable to the LESSOR. 10. INDEMNIFICATION BY THE LESSEE TO THE LESSOR. The LESSEE shall indemnify and hold harmless the LESSOR against any and all actions, suits, damages and claims that may be brought or maintained against the LESSOR by reason of the renovation made or violation committed by the LESSEE of the applicable laws, ordinances, rules and regulations of the government and/or breach of contract or agreement which the LESSEE may have with third parties in relation to the operation of his business, use, care and maintenance of the premises under lease. 11. LESSORS LIEN. The LESSOR is hereby expressly authorized by the LESSEE to retain and hold office furniture, equipment, machinery, and stocks in trade owned by the said LESSEE situated in the leased premises, or so much thereof as may be sufficient to cover the unpaid account of the LESSEE to the LESSOR, and the said right of retention shall continue until the full settlement of the LESSEES unpaid accounts. Provided, that these accounts should not be contested by the LESSEE for the same reason. 12. EXCLUSIVENESS OF THE AGREEMENT. The LESSEE hereby expressly recognizes the absolute right of the LESSOR to sell the leased premises. In the event of sale, transfer, or mortgage, or any encumbrances of the same, the LESSOR shall advise the purchaser or mortgagor that all terms and conditions of the lease agreement shall be respected. 13. EXPIRATION OF THE LEASE. Upon the expiration of this contract or violation by the LESSEE of the terms and conditions hereof, the LESSEE agrees, without prejudice to each others obligation, to surrender or yield quietly and peaceably the premises to the LESSOR and deliver the same in good order and condition, obsolescence excepted with all the improvements existing thereon and those which may have been made therein including plumbing, electrical fixtures (i.e. bulbs and ceiling electrical fans attached to the building which could be removed without damaging the original condition of the building) for the benefit of the LESSOR without any need to reimburse or compensate the LESSEE for the value thereof. 14. VIOLATION OF THE CONTRACT. The failure of the LESSEE to strictly comply with the terms and conditions of this lease shall give the LESSOR the right to terminate and/or rescind this contract within thirty (30) days from notice. In which case, the deposits made herein shall be forfeited in favor of the LESSOR and the LESSEE shall surrender the lease premises in accordance with paragraph 13 hereof. Failure of the LESSOR to insist in one or more instances upon strict compliance with any of the covenants of this lease or to exercise any option herein contained shall not be construed as abandonment or cancellation of such covenant or option but the same shall deemed to have been made unless expressed in writing and signed by the LESSOR. 15. LIQUIDATED DAMAGES. The LESSEE agrees that all covenants and agreements herein contained shall be deemed conditions as well as

covenants. Should the LESSEE violate or fail to comply with any of its obligation herein stipulated, the LESSEE shall pay to the LESSOR liquidated damages in the amount equivalent to three monthly rentals in addition to no less than TEN THOUSAND PESOS (P10,000.00) as attorneys fees. 16. OTHER CONDITIONS. Realty taxes shall be for the account of the LESSOR. However, should there be any increase on the realty tax on the building leased brought about by an improvement introduced by the LESSEE, it shall be paid by the parties on a 50-50 sharing basis during the period of the lease. Value Added Tax on rental shall also be shared on a 50-50 sharing basis during the period of the lease. IN WITNESS WHEREOF, the parties hereto have hereunto affixed their hands in signature together with their instrumental witness on the date and place first-above written.

____________________ Lessor

With my Marital Consent :

______________________ Wife of the Lessor

________________________ Lessee

SIGNED IN THE PRESENCE OF: ______________________________ ____________________________

NOTARIAL ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES ) CITY O F D A V A O - - - - - ) SS.

BEFORE ME, a Notary Public in the City of Davao, Philippines, this ____ day of _________, 2012 personally appeared:

Name _______________________ _______________________

Identification details ______________________ ______________________

known to me and to me known to be the same persons who executed the foregoing instrument and they acknowledged to me that they signed the same as their free and voluntary act and deed as well as the free act and deed of the corporations herein represented.

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

Doc. No. _____; Page No. _____; Book No. _____; Series of 2012.