CONTRACT OF LEASE FORM

KNOWN ALL MEN BY THESE PRESENTS: This Contract of Lease, made and entered into this ___ day of __________ 20xx at Baguio City, Philippines, by and between: UNIVERSITY OF THE PHILIPPINES BAGUIO, a State institution of higher learning, established and operating pursuant to R.A. 9500, as amended, with principal office at Governor Pack Road, Baguio City, Philippines, represented herein by its Chancellor, RAYMUNDO D. ROVILLOS, hereinafter referred to as the LESSOR; and < WINNING BIDDER >, represented herein by < proprietor/authorized representative >, with residence address < company/residential address >, hereinafter referred to as the LESSEE; WITNESSETH THAT WHEREAS, the LESSOR is the owner, of the premises known as the UP Baguio Canteen Building located at U.P. Baguio, Gov. Pack Road, Baguio City which is available for lease; WHEREAS, the LESSEE presently renders valuable food services to the LESSOR's constituency; WHEREAS, the LESSEE desires to lease a space in the UP Baguio Canteen Building under set terms and conditions; NOW, THEREFORE, for and in consideration of the foregoing premises, the LESSOR hereby lets and leases unto the LESSEE, and the LESSEE hereby accepts in lease, the above-described Canteen, under the following terms and conditions: ARTICLE I SUBJECT AND DURATION OF LEASE Section 1. This contract of lease pertains to the UPB Lower Canteen which lease shall be in force and will take effect from < date of duration of contract >, unless sooner terminated pursuant to Article XIV hereof, subject to prior recommendation of the Office of Auxiliary Services or its equivalent authorized body. Section 2. This contract may be renewed upon satisfactory evaluation and recommendation of the Office of Auxiliary Services or its equivalent authorized body. However, bidding is mandated upon termination of this contract. ARTICLE II RENTAL Section 3. In consideration of the lease of the premises, the LESSEE hereby agrees to pay the LESSOR, without need of demand, a monthly rental of < amount in words > only ( <amount in figures> ), Philippine currency representing monthly rental and 12% VAT payable on or before the 15th day of every month covered by the period of the lease to the UPB Cashier's Office. Upon execution hereof, the LESSEE shall pay in cash such amounts equivalent to two (2) months rental as Security Deposit and one (1) month rental in advance; and in addition, the LESSEE shall issue eleven (11) postdated checks in favor of the LESSOR representing the remaining monthly rentals for the remaining eleven (11) months of the year. In case of delay in payment, the LESSEE shall pay the LESSOR a penalty or surcharge on all amounts unpaid on due dates, at the rate of ten percent (10%) per

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month, to be computed from the date of delinquency until fully paid. ARTICLE III SECURITY DEPOSIT Section 4. To insure the faithful compliance of the LESSEE of all terms and conditions of this contract, the LESSEE shall, upon execution hereof, deposit in cash with the LESSOR an amount equivalent to two (2) months rental, which shall constitute the Security Deposit. The Security Deposit shall answer for any damages and/or monetary liabilities or obligations left by the LESSEE at the expiration of this contract. Section 5. The Security Deposit cannot be applied by the LESSEE to any unpaid rental. It shall be kept intact and returned to the LESSEE, without interest, upon the expiration of this contract, after the LESSEE shall have completely and satisfactorily vacated and delivered possession of the premises, less whatever amount or amounts LESSEE may owe the LESSOR. Should the LESSEE pre-terminate this contract for whatever cause or reason, the Security Deposit shall be automatically forfeited in favor of the LESSOR since the parties herein agree that time is of the essence of this contract and the period has been fixed for the benefit of the LESSOR. The LESSEE shall automatically forfeit the Security Deposit if he fails to vacate the premises upon expiration of this contract. The LESSEE's liability for any breach of this contract or for any obligation for the operation of the UPB Lower Canteen shall in no manner be limited to the amount of Security Deposit. For this reason, any debt or obligation owed by the LESSEE to the LESSOR in excess of the Security Deposit at the time of termination or pre-termination of the contract shall constitute a lien on the personal property of the LESSEE located at the leased premises. ARTICLE IV ADMINISTRATION AND USE OF PREMISES Section 6. The LESSEE shall abide by the rules and regulations promulgated by the LESSOR, through the Office of Auxiliary Services or its equivalent authorized body, governing concessions, health and sanitation, student organization, security, safety, and other existing rules and regulations of the latter, including those that may, from time to time, be promulgated by the latter. Section 7. The LESSEE shall be responsible for the proper maintenance and repair of equipment and facilities already existing and or subsequently installed by the LESSOR at the leased premises at the time of the signing of this contract. Section 8. The LESSEE shall engage solely in the sale and service of food, refreshment, bread and pastries, confectionery and allied products. The LESSEE shall serve meals in any manner convenient to its customers, except when requested otherwise, or when the occasion requires some other mode of service; and, for the purpose, the LESSEE shall acquire, for its account, the necessary equipment and facilities. Section 9. The LESSEE shall charge customers reasonable prices for regular meals made available at adequate quantities. The LESSEE shall post on a blackboard the following information visibly written a) the menu for the day for regular and catered meals and equivalent prices; b) a la carte dishes sold during the day together with the corresponding prices; c) special menu and price. The LESSEE shall likewise place a price tag on all other items it is authorized to sell and serve. Price adjustments due only to inflation or deflation shall be subject to prior written approval by the LESSOR. Section 10. customers. The LESSEE shall provide sufficient boiled and cold drinking water to

Section 11. The LESSEE shall repair and/or change broken chairs and tables and

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provide for trashcans, and other waste receptacles. Section 12. The LESSEE shall require its employees to wear appropriate uniforms while on duty on school days. The LESSEE's employees shall present to the LESSOR certification of medical and physical examinations, and every six (6) months thereafter, for the duration of the lease. Section 13. The LESSEE may, in a limited manner, engage in catering business outside UPB campus, provided that, the interest of the UPB shall not be prejudiced. In the pursuit of this activity, the LESSEE shall not use the leased premises and/or the equipment or facilities therein. Section 14. The LESSEE shall, at all times, keep the premises clean and free from all forms of fire hazards and nuisances. Otherwise, the LESSEE shall be responsible for all damages which such violation may cause to the LESSOR and/or third persons, aside from the LESSEE's other liabilities under this contract. The LESSEE shall not cause, allow or permit any obnoxious, disturbing or offensive odors, fumes, gases, or any smoke, dust, steam or vapors or any loud disturbing noise, sound or vibration to emit or originate from the leased premises. Section 15. Gambling of whatever nature shall not be allowed inside the leased premises, nor shall dart boards, jukeboxes, slot, pinball and similar machines be installed or operated therein. The sale of liquor, beer, pornographic or indecent materials and the sale, distribution or use of prohibited drugs, contraband articles and the like within the leased premises shall be prohibited. The LESSEE shall, at all times, enforce the NO SMOKING policy of the University and the CHED, by posting NO SMOKING signs on walls of the leased premises. Section 16. The LESSEE shall not use/convert the leased premises into sleeping or living quarters or as lodging rooms. Should its employees be required to sleep within the leased premises for security purposes, prior written permission from the LESSOR must be secured. Neither shall the LESSEE keep or harbor therein live animals, fish or bird, or use the same for illegal purposes. Section 17. The LESSEE shall observe proper solid waste disposal in accordance with the plan it submitted during the bidding process. ARTICLE V UTILITIES Section 18. Utilities and services used and consumed at the leased premises such as, but not limited to, electricity, water, telephone, gas, janitorial as well as garbage disposal services, shall be at the sole expense of the LESSEE and paid for by the LESSEE directly to the supplier of said services, or to the LESSOR in case the latter shall have advanced the payment thereof, for which the LESSEE obligates itself to pay the LESSOR an additional ten percent (10%) of the total cost of utilities advanced, as and by way of administrative cost. Section 19. Water and electrical consumption shall be for the LESSEE's account and determined by separate meters and sub-meters. In the absence of these separate measuring devices, water and electricity consumed in the leased premises shall be reasonably computed and billed by the LESSOR and paid by the LESSEE within three (3) days from written notice, plus ten percent (10%) administrative costs provided for in Section 18 of this contract.

Section 20. In case of lack of, or deficient water supply, it shall be the LESSEE's responsibility to provide the same without resort to the LESSOR's emergency water

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supply system. Section 21. In case of power failure, the LESSEE may install and operate the appropriate generator, the costs thereof for its account, subject to the LESSOR's prior approval. Section 22. Extra electrical fixture such as bulbs, starters, outlets, and switches, extra plumbing, toilet and kitchen facilities, including replacements, shall be for the account of the LESSEE and installed only upon prior written approval of the LESSOR. Section 23. All furnishings, fixtures and equipment used in the leased premises, except those which are permanent in nature, supplied and installed at the sole cost and expense of the LESSEE, shall remain the property of the LESSEE. ARTICLE VI SIGNS, ADVERTISEMENTS Section 24. The LESSEE shall not affix, inscribe or paint any notice, sign or other advertising medium outside the leased premises or any part thereof, except upon prior written permission from the LESSOR, and subject to the rules and regulations issued by the latter hereafter. ARTICLE VII SUB-LEASE, TRANSFER, ASSIGNMENT Section 25. The LESSEE shall not, directly or indirectly, sell, sub-lease, assign, transfer, convey, mortgage, or in any other manner alienate or dispose or encumber its lease rights over the premises or any portion thereof under any circumstances whatsoever. Any contract made in violation of this provision shall be null and void. ARTICLE VIII ALTERATIONS/ ADDITIONS/ IMPROVEMENTS Section 26. The LESSEE shall not make alterations, additions, or improvements in or upon the leased premises, except furniture and fixtures put in at the expense of the LESSEE and removable without defacing or injury to the leased premises. Any such alterations, additions or improvements in or upon the leased premises shall become the property of the LESSOR and surrendered with the leased premises as part thereof at the termination of the lease, without compensation to the LESSEE. Repairs, alterations, or improvements shall be subject to prior submission of plans and specifications and the estimate cost of materials and labor and approved by the LESSOR. ARTICLE IX TRANSPORTATION AND CARRYING OUT OF FURNITURE, ETC. Section 27. In case the LESSEE has an outstanding obligation under this contract, the LESSOR or its employees, agents and representatives are hereby granted the rights and authority without civil and/or criminal liability of any kind, to prevent the LESSEE, its employees, agents or representatives, in any manner dictated by circumstances, from taking out goods, fixtures, furniture, or equipment for office use, from the leased premises. ARTICLE X INJURY OR DAMAGE Section 28. The LESSEE hereby assumes full responsibility for any or all damages and/or injuries which may be caused to the person and/or property of third persons while remaining, either casually or in business, in any part of the leased premises, if the damage or injury be caused wholly or partly through the fault of negligence of the LESSEE or that of its employees, agents or representatives. LESSEE further binds itself to hold the LESSOR and its employees and representatives free and blameless from any such claim for injury and/or damage. Section 29. In case of damage to the leased premises or its appurtenances by

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reason of fire, earthquake, riots, or any other fortuitous events, the LESSEE shall give immediate notice thereof to the LESSOR; provided however, that there will be no interruption or extension of the period of lease or abatement/ reduction in the payment of the monthly rental. Damage caused by the fault of the LESSEE or its agents to prevent greater injury or damage including losses on account of theft or similar acts shall be assumed by the LESSEE. Section 30. If the entire complex occupied by the LESSEE is destroyed by fire, earthquake, or other fortuitous events, then this Agreement shall automatically terminate pursuant to Article No. 1655 of the New Civil Code. ARTICLE XI FOOD POISONING Section 31. In case of food poisoning or sickness or injuries caused by or arising from food intake at the leased premises, the findings of the LESSOR or any other appropriate agency, shall be binding to the LESSEE and, on which basis, the LESSOR shall hold the LESSEE liable thereof. The LESSEE shall be solely responsible for, and hold the LESSOR free and blameless from any and all administrative, civil and/or criminal liability that may arise therefrom or any other damage in connection with the operation and maintenance of the leased premises. Section 32. The LESSEE shall be solely responsible for the acts of its employees or persons it shall allow to enter the off-limit areas of the canteen. ARTICLE XII INSPECTION AND REPAIR OF PREMISES Section 33. The LESSOR or its authorized agents (Office of Auxiliary Services or its equivalent authorized body) shall have the right to enter the leased premises at reasonable hours to examine the same or make alterations or repairs therein of for any purpose deemed necessary, for the security operations or maintenance of the leased premises, and during the last three (3) months of the lease, to exhibit/ show the leased premises to prospective tenants. ARTICLE XIII INVENTORY Section 34. Immediately before the beginning of the operations, the LESSEE shall conduct an inventory of the LESSOR's property found within the leased premises, in the presence of two representatives of the LESSOR, one from the Supply and Property Management and Accounting Office and a representative from the Auditor's Office. The inventory shall be in writing duly signed by the representatives of the parties and attached to this contract as a supplement and to form an integral part thereof. Section 35. Upon termination or pre-termination of the lease and during the actual turnover of the leased premises, the LESSEE shall likewise conduct a similar inventory. Section 36. The value of the missing property of the LESSOR shall be deducted from the Security Deposit and the remainder shall be paid by the LESSEE, under existing accounting and auditing rules. ARTICE XIV TERMINATION OF CONTRACT Section 37. Either party may terminate this contract by a prior thirty (30) days written notice and without necessity of judicial action on the following grounds: (1) violation of the terms and conditions herein stipulated; (2) non-payment of monthly rental for two (2) consecutive months; or (3) failure by the LESSEE to conduct business, without good cause shown, for a period longer than fifteen (15) days during the term of the lease; or (4) unsatisfactory performance as determined by the LESSOR, through the Office of Auxiliary Services (OAS) or its authorized equivalent body, which may include: a) unreasonable high prices, b) valid complaints;

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c) other reasonable causes; d) and/or as stated in the attached Memorandum of Agreement with the Director of Students Affairs, who heads the OAS. In this regard, the LESSEE hereby constitutes the LESSOR as Attorney-in-Fact for the purpose of taking possession, and management of the premises. Section 38. In case of pre-termination by the LESSEE for reasons other than stated in Section 37 of this contract, the LESSEE shall be imposed a penalty charge equivalent to one (1) month rent, exclusive and separate from the Security Deposit, which sum shall be paid prior to the approval thereto by the LESSOR. Should the request be disapproved, the amount shall be retained and the contract shall subsist and the LESSEE shall be liable for all sums due and outstanding on account of said lease, until the expiration of the period stated herein. Section 39. In case of judicial action arising from this contract, the LESSOR, in addition to the damages mentioned herein, shall be entitled to liquidated damages in the amount of Twenty Thousand Pesos (P20, 000.00) and Ten Thousand Pesos (P10, 000.00) as, and by way, of attorney's fee. The parties hereby agree that the venue for judicial action shall be the proper courts of law in Baguio City. ARTICLE XV WAIVER Section 40. No provision of this contract shall be deemed waived by any of the parties hereto unless such waiver is in writing and signed by the party making the waiver. No such waiver shall be constructed as a modification or amendment of any of the provisions of this Contract, or as a waiver of any past or future default, breach or violation thereof, unless expressly stated or provided for such in waiver. ARTICLE XVI ENTIRE AGREEMENT Section 41. This contract embodies the entire agreement of the parties hereto with respect to the transactions contemplated herein and the subject matter hereof, and the parties shall not be bound by, or be liable for any statement, representation, promise, inducement or understanding of any kind or nature relating to the said transactions and subject matter which is not set forth or provided for in this contract. Except as otherwise expressly provided for in this contract, no changes, amendments, or modifications of any of the terms or conditions set forth herein shall be valid and binding unless reduced into writing and signed by both parties. IN WITNESS WHEREOF, the parties have hereto affixed their signatures on the date and at the place first above written. UNIVERSITY OF THE PHILIPPINES BAGUIO By: RAYMUNDO D. ROVILLOS Chancellor < Name of authorized signatory > < Position > Signed in the presence of: JESSICA K. CARIO Vice Chancellor for Administration _________________________ < Company Name >

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ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES) BAGUIO CITY ) s.s.

BEFORE ME, a Notary Public for and in Baguio City, Philippines personally appeared:
NAME CTC NO. DATE/PLACE ISSUED

RAYMUNDO D. ROVILLOS < name of authorized representative > Known to me and to me known to be the same persons who executed the forgoing instrument and acknowledged to me that the same is their free and voluntary act and deed and that of the institution or entity, which they represent. This instrument consisting of seven (7) pages including this page whereon this acknowledgment is written refers to the Contract of Lease signed by the parties together with their instrumental; witnesses on each and every page thereof. WITNESS MY HAND AND SEAL on this ____ day of __________________ at Baguio City, Philippines.

Doc. No. _________ Page No. _________ Book No. _________ Series of 20xx

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