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CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This AGREEMENT OF LEASE made and entered into in the City of

Catbalogan, Samar, Philippines, by and between ---

The LESSOR: LILIA BABAEL SABERON, of legal age, Filipino, widowed,

and with residence and postal address at Brgy. 9, Boao, Catbalogan City,
Samar, Philippines;

-and-

The LESSEE: JEFFREY TAN GABON, of legal age, Filipino and with
residence and postal address at San Bartolome Street, Ubanon,
Catbalogan City, Philippines.

WITNESSETH:

That the LESSOR is the absolute and registered owner of the

property located at San Bartolome Street, Ubanon, Catbalogan City,
Samar, Philippines.

That the LESSOR hereby leases unto the LESSEE the ground floor
area of said property, and the latter accepts in lease the aforesaid
property under the following terms and conditions, to wit:

1. Lease Term: The lease shall be for a period of ten (10) years
commencing from October 1, 2017, and expiring on September
30, 2027;

2. Rental Amount: The monthly rental shall be THIRTY THOUSAND

PESOS (Php 30,000) subject to 5% increase annually, Philippine
Currency;

3. Advance Rental: The LESSEE, upon signing of this contract, shall

pay the LESSOR in advance the rental equivalent to one (1)
month and five (5) months deposit, which shall be applied on
the first month of occupancy. Such amount shall be consumed
and applied to the rental fees of the last six months of
occupation;

4. Tenantable Condition: The LESSEE hereby expressly

acknowledges that the leased premises are in good and
tenantable condition;

5. Use of Premises: The LESSEE expressly agrees and warrants that

the leased premises shall be used exclusively for commercial
purposes only;

6. Non-transferability of Rights: The LESSEE is prohibited to sublease,

assign, or transfer his rights over the leased premises or any
portion thereof under any circumstances whatsoever;
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7. Utility Charges and Maintenance: The charges for water,

electricity and telephone consumptions and other utility services
in the premises, as well as the repairs and maintenance of the
same, shall be to the exclusive account of the LESSEE.

8. Compliance of Sanitation: The LESSEE shall maintain the leased

premises in clean and sanitary condition and shall comply with
the sanitary rules and safety regulations which may be
promulgated by the LESSOR;

9. Noise and Disturbance: The LESSEE shall not make or permit any
disturbing noise within the leased premises nor permit anything to
be done which will interfere with the rights, comfort or
convenience of the neighbors;

10. Alterations and Improvements: The LESSEE shall not make any
alterations, additions or improvements on the leased premises
without the prior written approval of the LESSOR. However, if
allowed by the LESSOR, the alterations, additions or
improvements made shall become the property of the latter at
the expiration or termination of the lease without compensation
to the LESSEE;

11. Inspection of Premises: The LESSOR or its duly authorized

representative shall have the right to enter and inspect the
leased premises upon reasonable notice to the LESSEE;

12. Gambling, Drinking, Etc.: Any form of gambling whatsoever,

excessive drinking, or any illegal, disorderly or immoral conduct
or activity are strictly prohibited within the premises and shall
constitute a valid ground for termination of this contract;

13. Fire Hazard and Obnoxious Substances: Except as maybe

normally needed, the LESSEE shall not keep, deposit or store in
the premises any obnoxious substance or any inflammable
materials as to constitute a fire hazard. The LESSOR reserves the
right to demand that any fire hazards or obnoxious substance
found in the leased premises be removed and taken out
immediately and failure to comply the same shall constitute a
valid ground for the termination of this contract;

14. Compliance with Laws and Regulation: The LESSEE shall comply
with any and all laws, ordinances, regulations or orders of the
National or City Government authorities arising from or regarding
the use, occupation, sanitation and safety of the leased
premises and non-compliance therewith shall be at the exclusive
risk and expense of the LESSEE;

15. Pre-termination of Contract: In the event the LESSEE vacates the

property for whatsoever reason prior to expiration of the
contract, the rental advance and deposits made shall be
forfeited in favor of the LESSOR;
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16. Arrears or Unpaid Rentals: If the rentals therein stipulated, or any

part thereof, for at least one month, shall be in arrears or unpaid,
or if the tenants shall at any time fail or neglect to perform or
comply with any of the covenants, conditions, agreements or
restrictions stipulated, or if the tenant shall become bankrupt or
insolvent or shall compound with his creditors, then and in any of
such above cases, this Lease Contract shall become
automatically terminated and cancelled and the said premises
shall be vacated peacefully by the LESSEE for the LESSOR to hold
and enjoy, henceforth, as if these presents have not been made,
and it shall be lawful for the LESSOR or any person or persons duly
authorized in his behalf, without any formal notice or demand, to
enter into and upon said leased premises, or any part thereof
without prejudice on the part of the LESSOR to exercise any or all
rights from the contract of lease and those given my law. And
upon such cancellation of the contract, the LESSEE hereby
grants to the LESSOR the legal rights to enter, and take
possession of the leased premises as though the term of the
Lease Contract has expired;

17. Expiration of Term: The LESSEE at the expiration of the term of the
lease or cancellation of this lease as herein provided, will
promptly deliver the said premises to the LESSOR in as good and
tenantable condition, in all respects, as the same now are,
reasonable wear and tear excepted, devoid of all occupants,
provided, however, that the non-compliance on the part of the
LESSEE with the terms of this herein provided, shall be liable to
pay prevailing rental plus fifty percent (50%) additional sum as
penalty, until the LESSEE shall have complied with the terms
hereof. This same penalty shall likewise be imposed in case the
LESSEE shall refuse to leave the leased premises after his right of
lease has expired or terminated for any reasons whatsoever;

18. Continued Occupation: After this lease has terminated for any
reason whatsoever, if the LESSEE continues the occupation of the
premises with the consent of the LESSOR, said extension of lease
shall be understood as running from month-to-month only, under
the same terms and conditions herein stipulated, and may be
terminated by either party by means of a written notice and
serve upon the other party at least thirty (30) days in advance
prior to the date of such termination;

19. Failure to Surrender: If said premises be not surrendered at the

end of the term, the LESSEE shall be responsible to the LESSOR for
all damages which the latter shall suffer by reason thereof and
will indemnify the LESSOR against all claims made by any
succeeding tenant against the LESSOR resulting from delay by
the LESSOR in delivering possession of the premises to such
succeeding tenant, insofar as such delay is occasioned by
failure of the LESSEE to surrender the premises;

20. Non-Waiver of Rights: The failure of the LESSOR to insist upon a

strict performance of any of the terms, conditions and covenants
hereof shall not be deemed a relinquishment or waiver of any
right or remedy that said LESSOR may have, nor shall it be
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construed as a waiver of any subsequent breach or, default of

the terms, conditions and covenants herein contained, which
shall be deemed in full force and effect. No waiver by the
LESSOR shall be deemed to have been made unless expressed in
writing and signed by the LESSOR;

21. Venue of Action: In case court litigation the venue is hereby fixed
in the Courts of Catbalogan City for non-payment of agreed
rent, or any breach of this contract by the LESSEE, the LESSOR
shall have the right to collect the attorneys fees, aside from the
cost of the suit and other damages which the law may entitle
the LESSOR to recover from the LESSEE;

22. Signatory of Contract: The LESSEE, whether or not in actual

possession of the premises, are jointly and severally liable for all
rents during the term of this contract, and for all damages to the
premises caused or permitted by the LESSEE, his guest and
invitees.

Each and all provisions hereof shall be binding upon and inure to
the benefit of the heirs, executors, administrators, successors or
assignees of LESSOR, and the heirs, executors and administrators of
the LESSEE.

IN WITNESS WHEREOF, the parties have hereunto set their hands at

the place first above written, on this _______ day of September,
2017.

LILIA BABAEL SABERON JEFFREY TAN GABON

Lessor Lessee

SIGNED IN THE RPESENCE OF:

______________________________ _____________________________
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ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
CATBALOGAN CITY )S.S.

Personally came and appeared before me this

______________________________ at Catbalogan City, Philippines, the
above-mentioned parties exhibiting their individual proof of
identities, which information are stated below their respective
names known to me and to me known to be the same persons who
executed the foregoing instrument and acknowledged that the
same are their free acts and voluntary deeds.

This instrument consisting of five (5) pages, including this

whereon the acknowledgment is written, has been signed by the
parties and witnesses on each and every page thereof.

WITNESS MY HAND AND SEAL, at the place and on the date

first above written.

Doc. No. __________

Page No. __________
Book No. __________
Series of 2017