Contract of Lease of Commercial Building

Know All Men By These Presents: This Agreement, made and executed by and between: LOVELYN I. ORIT, of legal age, married and with postal address at Happy Homes, Centro Lag-on, Daet, Camarines Norte, hereinafter referred to as the LESSOR; and MARILOU R. MADAYAG, of legal age, married and with postal address at 16 San Vicente Road, Lag-on, Daet, Camarines Norte, hereinafter referred to as the LESSEE; Witnesseth: That the lessor is the owner of a certain commercial building located at Central Plaza Complex, Lag-on, Daet, Camarines Norte who agrees to lease the same to the herein lessee, except the premises presently occupied by the pawnshop and a portion of the 3 rd floor which are for the exclusive use of the lessor; That included in the consideration for the lease are personal properties such as chairs, tables and utensils as listed in the attached inventory which shall form part of this contract wherein the lessee shall be responsible for the same; That the period of the lease is for two (2) years to commence on ________________ and until ________________, the rentals being payable monthly with two (2) months advance and one (1) deposit for the total of Php105,000.00; That the monthly rental is Php35,000.00 for the first year and Php40,000.00 for the second year; That the monthly rental shall be payable on or before the fifth day of the month to the lessor or her duly authorized representative; That the lessee shall use the leased premises only for any lawful business activity and any improvements to be undertaken shall be at the expense of the lessee and not subject to reimbursement by the lessor; That the lessee shall defray all expenses for utilities such as water, light, telephone during the period of the lease; That before the introduction of any improvement, the lessee shall give at least fifteen (15) day written notice to the lessors postal address of the details of the improvement/s and in the absence of any written refusal on the part of lessor to such intended improvement, it shall be construed to mean consent to the same. That the lessee shall maintain the leased premises in good and tenantable conditions as well as comply with all the provisions of the laws, particularly on sanitation and safety, among others;

That in case of pre-termination of the lease contract on the part of the lessee, the deposit and advance mentioned herein shall be considered forfeited; That in case of non-payment of rentals herein stipulated or any conditions herein shall be a cause for termination of the contract and the lessee shall vacate the same upon demand from the lessor; and That any violation of the conditions of the contract shall subject the guilty party to payment of damages, cost of suit and attorneys fee. In witness whereof, we have hereunto set our hands this ____th day of ___________2005 at Daet, Camarines Norte. LOVELYN I. ORIT Lessor CTC# ___________ Issued at _________ Issued on _________ MARILOU R. MADAYAG Lessee CTC# ________ Issued at _____ Issued on _____ In the presence of: ______________ Republic of the Philippines Province of Camarines Norte Municipality of DAET

______________ ) ) ) S.S.

BEFORE ME, personally appeared this ____th day of _______2005 at Daet, Camarines Norte, the parties with their community tax certificates known to be to be the same persons who executed the foregoing instrument and acknowledged that the same is their free and voluntary act and deed and understood the contents thereof. Witness my hand and seal, the day, year and place abovewritten. Doc. No.____ Page No.____ Book No.____ Series of 2005.