CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE made and executed on the date and

place hereinafter written by and between:

SPOUSES PATRICK and SANDY BAB, both of legal ages,

Filipinos, and residents of Block 32, Lot 31, Clarity St., Pag- ibig
Homes, Buhangin, Davao City, Philippines, hereinafter referred to as
the LESSOR;

- and -

SQUID WARD, of legal age, single, Filipino, with residence at

Block 23, Lot 13, Malabo St., Boulevard, Davao City, Philippines,
herein referred to as the LESSEE;

WITNESSETH THAT:

The LESSOR is the registered owner of a parcel of land under

Transfer Certificate of Title No. PT 98765 situated at Block 23, Lot 13
Malabo St., Boulevard, Davao City;

The LESSOR hereby leases to the LESSEE a certain 2-storey

building located therewith;

The term of this lease shall be for TEN YEARS, commencing on

January 25, 2000 and expiring on January 25, 2010;

It is hereby agreed and stipulated that the rent for the term of the lease
shall be ONE HUNDRED THOUSAND PESOS (P100,000.00) per month
within the first (5) days of each month to be paid through the Joint Bank
Account of the LESSOR with East West Bank with Joint Savings Account
No. 1234-0000-000;

It is further agreed that at the signing of this contract of lease, the

LESSEE shall pay one (1) month advance rental of SIX THOUSAND
PESOS (P6,000.00) and two (2) months deposit of TWELVE THOUSAND
PESOS (P12,000.00) or a total of EIGHTEEN THOUSAND PESOS
(P18,000.00). Said deposit shall not be utilized for payment of whatever
monthly rental/s that may be due and demandable, but shall be returned to
the LESSEE upon the termination of this Contract only if the LESSEE has
no obligation to the LESSOR. That, in case the LESSEE should terminate
this lease before the expiration of the stipulated term, said deposit shall not
be returned to the LESSEE.

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 The LESSEE hereby covenants with the LESSOR as follows:

(a) To pay the rent as aforesaid without the necessity of express

demand on or before the 1st day of each month during the term of
the lease subject to 10% penalty charge per month or any fraction
thereof in the event the monthly rent is not paid on the due date;

(b) To pay all electrical and telephone bills payable during said term;

(c) To keep the leased premises in such condition as they are

at the commencement of the term with the exception of those
damaged by reasonable use and wear and tear, and due to fire or
other unavoidable casualties;

(d) In the event the LESSEE decides to pre-terminate this Lease

Contract, the LESSOR shall be given notice at least sixty (60)
days prior to the date of pre-termination by the LESSEE;

(e) Not to make or suffer neither any unlawful, improper, or offensive

use of the premises, nor any use thereof other than for office
purposes;

The LESSOR hereby covenants with the LESSEE as follows:

(a) That the LESSEE shall peaceably hold and enjoy the leased
premises during the period of this contract;

(b) To make thereon, during the lease period, all the necessary
repairs of the premises to maintain its serviceable condition for
the purpose which they are leased.

In case the premises or any part thereof be destroyed or damaged by

fire or any unavoidable casualty so as to be unfit for use and occupation, the
rent shall be proportionately reduced or adjusted, or the lease contract
terminated, at the option of the LESSOR;

At the termination of this contract, the LESSOR shall have the

privilege of extending the term thereof for another ten years under the same
terms and conditions of this lease, except the amount of rent, which shall be
agreed upon by the parties;

The LESSEE shall automatically be considered to have abandoned

the leased premises in case he shall fail to pay, without the need of any
demand, the rent for two successive months; thereafter, the LESSOR ,

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without any further notice, can immediately take possession of the leased
premises. Any properties found within the leased premises shall be kept by
the LESSOR within a period of only one (1) month; thereafter, without
notice to the LESSEE, said properties shall be sold and the proceeds shall
answer for whatever obligations the LESSEE may have in favor of the
LESSOR.

During the term of the Agreement, before LESSOR may sell the
premises to a Third Party, LESSOR shall first offer the premises to
LESSEE following the procedures set forth in this paragraph. LESSEE
shall have fifteen (15) days following the date LESSOR first presents
LESSEE such offer to decide whether to try to negotiate an agreement for
the purchase of the premises from LESSOR. If LESSEE desires to try to
negotiate such an agreement, LESSEE shall, within said fifteen-day period,
deliver to LESSOR written notice thereof. Promptly after receipt of such
notice, the parties shall commence good faith negotiations exclusively with
each other for a period not to exceed ninety (90) days after the date the
LESSEE gives the requisite notice to LESSOR.

If LESSOR does not receive said notice within said 15-day period, or
if LESSOR receives said notice within said period but LESSOR and
LESSEE do not enter into a legally binding, written agreement for the
purchase and sale of the premises within said 90-day period, LESSOR shall
be free to enter into an agreement with a third party on terms no more
favorable to the third party then LESSOR offered to LESSEE.

If LESSOR does not enter into a legally binding, written agreement

with a third party within the 90-day period, LESSOR’s right to sell the
premises to a third party shall expire and the procedures described in this
paragraph shall be applicable again, and LESSOR, prior to selling the
premises to a third party, shall first offer to try to negotiate the sale of the
premises to LESSEE. Upon each reception of this procedure, notice shall
once again be due.

Breach of any terms and conditions of this lease agreement will entitle
the Aggrieved Party damages as a form of penalty amounting to Fifty
Thousand (50,000.00) Pesos.

IN WITNESS WHEREOF, the parties have hereunto set their hands

this 20th day of January 2000 at Davao City, Philippines.

PATRICK BAB SQUID WARD

Lessor Lessee

SANDY BAB
Lessor

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 Signed in the presence of:

GARY SNAIL TON PLANK

Republic of the Philippines}

City of Davao } s.s.
x----------------x

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in the City of Davao,

Philippines, personally appeared, the following persons together with their
respective Tax Identification No’s. 555-444-33, to wit:

Name ID No. Valid until

Patrick Bab TIN 542-897-111
Sandy Bab TIN 907-345-111
Squid Ward TIN 103-095-872

known to me to be the same persons who executed the foregoing instruments

and acknowledged to me that the same is their free act and voluntary deed.

This instrument, consisting of four (5) pages, including this page on

which the acknowledgment is written, has been signed on each and every
page and on the left hand margin by the parties and their instrumental
witnesses.

WITNESS MY HAND AND SEAL on the 3rd day of February, 2015

at Davao City, Philippines.

Doc No. ____

Page No. ____
Book No. ____
Series of 2000.

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