CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE, entered into by and between:
ROMEO S. VILLANUEVA, of legal age, Filipino, married to Sherley D. Villanueva and a
resident of Municipality of Toboso Negros Occidental; hereinafter referred to as the
LESSOR
and
TESSIE SINGBENCO, of legal age, Filipino, widow and resident of Brgy. Poblacion I,
Sagay City, Negros Occidental hereinafter referred to as the LESSEE.
Both parties hereinafter referred to as the PARTIES.
WITNESSETH :
Article I
COVERAGE
This Contract of Lease covers a portion of a parcel of land consisting of ten (10)
hectares identified as Lot No. 339, Sagay Cadastre covered by Transfer Certificate of
Title Nos. T-181493 with a total area of NINETY EIGHT THOUSAND FOUR HUNDRED
SIXTY FIVE (98,465) Square Meters more less.
ARTICLE II
PERIOD OF LEASE
This Contract of Lease shall be for a period of three (3) Crop Years beginning
crop year Sept. 1, 2007- August 31, 2008 up to crop year Sept. 1, 2009- August 31,
2010. A crop year is understood as one (1) year period from September 1 st to August
31st.
ARTICLE IV
LEASE RENTAL
1. The LESSEE shall pay to the LESSOR an advance rental payment in the
amount of TWO HUNDRED EIGHTY THOUSAND PESOS (P280,000.00) upon
the execution and signing of this Lease Contract; It is understood that the amount
advanced shall be chargeable to the FIRST TWO (2) Crop Years of lease (Crop
Year 2007-2008 and Crop Year 2008-2009), hence, no more lease rental shall be
paid by the LESSEE to the LESSOR for said crop years 2007-2008 and 20082009;
2. For the third crop year, the lease rental shall be based on the LESSEEs
plantable cane area of at least ten (10) hectares at ONE HUNDRED FORTY
THOUSAND PESOS ONLY (Php 140,000.00) payable on or before Sept. 1,
2009;
3. In the event that an Agrarian Reform Program be enacted and passed as a law
whereby limiting or affecting the area or land size covered under this leasehold
agreement, then the annual lease rental provided in this Article and the area
covered in Article 1 of this Contract are deemed automatically amended and
modified such that upon the effectivity of such law, the amount of the annual

lease rental shall only correspond to the extent of the area or land size which by
law, the LESSOR has a right to own and dispose as in the case of lease.
ARTICLE IV
OTHER TERMS AND CONDITIONS
1. Any pending case affecting the areas covered by this lease contract or its
laborers shall remain the sole responsibility, expense and liability, if any, of the
LESSOR ;
2. Aright of way granted free of charge by the LESSOR in favor of the LESSEE for
the continued and unhampered use of the existing roads, canal, water or for the
construction of similar facilities and improvements as may be deemed necessary
by the LESSEE for the duration of this Contract;
3. After the expiration of the term of this Contract, all improvements introduced or
existing in the properties shall accrue to the benefit of the LESSOR except those
which can be removed by the LESSEE without causing substantial damage to
the leased premises;
4. This Contract is entered into in good faith and in the belief that there are and
there will be no legal or governmental obstacles in the performance of the terms
hereof, and no force majeure or acts of God which might affect its fulfillment by
either party and the occurrence or existence of any of the foregoing
circumstances shall excuse either for non-performance of the terms and
conditions under this Contract;
5. This Contract is effective and binding upon the parties, their heirs, successors-ininterests;
6. Violation of a term is a valid ground for the rescission or annulment of this
Contract.
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this ____
day of _______________, 2007 ___ at Sagay City, Negros Occidental, Philippines.

ROMEO S. VILLANUEVA
LESSOR

TESSIE S. SINGBENCO
LESSEE

With my Marital Conformity:

SHERLEY D. VILLANUEVA

Signed in the presence of:

1.__________________________

2.____________________________

Republic of the Philippines

)
Province of Negros Occidental
) S.S.
City of Sagay
)
X - - - - - - - - - - - - - - - - - - - - - - - - - -X

ACKNOWLEDGMENT
PERSONALLY APPEARED before me this _______________________ at
Sagay City, Philippines, ROMEO S. VILLANUEVA with CTC No. ____________ issued
at Sagay City
on __________________ and TESSIE S. SINGBENCO with CTC
No. ___________ issued at_________, both known to me to be the same person who
executed the foregoing instrument and they acknowledged to me that the same is their
own free act and deed.
I FURTHER CERTIFY that the foregoing instrument consisting of three (3) pages
including this page duly signed by the parties and their instrumental witnesses refers to a
Contract of Lease.
WITNESS my hand and notarial seal on the date and place first above-written.

Doc. No. ________

Page No. ________
Book No. ________
Series of 2007.