CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed in Poblacion 1,

Municipality of Burgos, Surigao Del Norte this ___ day of ___________, 2019, by
and between:

The Municipality of Burgos, a municipal corporation in the province

of Surigao Del Norte, Philippines, as represented by Benjamin C.
Virtudazo, the property administrator, hereinafter referred to as the
LESSOR;

-AND

Mark-David Pintucan, a Filipino citizen, of legal age, and a resident

of Brgy. Poblacion 1 8424 Burgos, Surigao Del Norte, hereinafter
referred to as the LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the owner of a two (2) storey building located at
Poblacion 1 Burgos, Surigao Del Norte with Tax Declaration Property No: 048-03-
0001-001-(20)-1001;

WHEREAS, the LESSOR desires to lease the First (1st) and Second (2nd) Floors
of the building, with the First Floor to be renovated by the LESSEE in
consideration of free rent in the First Floor;

WHEREAS, the LESSOR agrees to lease-out the Leased Premises to the LESSEE
and the LESSEE is willing to lease the same;

NOW THEREFORE, for and in consideration of the foregoing premises, the

LESSOR leases unto the LESSEE and the LESSEE hereby accepts from the
LESSOR the Leased Premises, subject to the following:

TERMS AND CONDITIONS

1. PURPOSES:

The First Floor hereby leased shall be used exclusively by the LESSEE as
fish market purpose only and shall not be diverted to other uses.

The Second Floor hereby leased shall be used exclusively by the LESSEE
for hostel purpose only and shall not be subleased or diverted to other uses.
 It is hereby expressly agreed that if at any time the Leased Premises is used
for other purposes, the LESSOR shall have the right to rescind this contract
without prejudice to its other rights under the law.

2. TERM: The term of lease for the First Floor is for TEN (10) years starting
from the signing of this Contract. The first floor shall be renovated at the
expense of the LESSEE amounting to ONE MILLION AND FIVE
HUNDRED PESOS (P 1,500,000.00), more or less. In exchange for the
renovation expenses, there shall be no payment of rent in the First Floor.
Upon its expiration, the lease may be renewed under the same terms and
condition for another TEN (10) years with a 20% equity share in favour to
the Municipality from the fish market venture.

The term of lease for the Second Floor is for TEN (10) years beginning from
the date this Contract is signed by the parties. The same is subject to payment
of rent. Upon expiration, the lease may be renewed under the same terms and
condition for another FIVE (5) years with a 10% equity share in favor of the
Municipality from the hostel venture.

3. RENTAL RATE: The monthly rate for the lease of the Second Floor shall
be in PESOS: SEVEN THOUSAND PESOS (P7,000.00), Philippine
Currency for the first TWO (2) years. The rent shall then increase to TEN
THOUSAND PESOS (P10,000.00) per month after the two-year period for
the next EIGHT (8) years.

4. DEFAULT IN PAYMENT: In case of default by the LESSEE in the

payment of the rent, such as when the checks are dishonored, the LESSOR at
its option may terminate this contract and eject the LESSEE. The LESSOR
has the right to padlock the Leased Premises when the LESSEE is in default
of payment for more than two (2) months and may forfeit whatever rental
deposit or advances have been given by the LESSEE.

5. SUB-LEASE: The LESSEE shall not directly or indirectly sublet, allow or

permit the Leased Premises to be occupied in whole or in part by any person,
firm or corporation, neither shall the LESSEE assign their rights hereunder to
any other person or entity and no right of interest thereto or therein shall be
conferred on or vested in anyone by the LESSEE without the LESSOR'S
written approval.

6. PUBLIC UTILITIES: The LESSEE shall pay for their telephone, electric,
cable TV, water, Internet, association dues and other public services and
utilities during the duration of the lease.

7. REPAIR AND MAINTENANCE: The LESSEE shall, at their own expense,

maintain the Leased Premises in good order and condition. All expenses for
maintenance, shall be for the account of the LESSEE. When
the Leased Premises are returned, the premises must be intact and in good
working condition.
8. BUILDING INSURANCE: The LESSOR shall take care of annual premium
payment/renewal of the building insurance including FORCE MAJEURE
and the beneficiary of this insurance shall be the LESSOR. Notwithstanding
 the foregoing, the LESSEE at their own expense may procure an insurance
policy to protect their interest on the building and declare themselves as
beneficiary of the policy.

9. FORCE MAJEURE: If whole or any part of the Leased Premises shall be

destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm,
riot or any other unforeseen disabling cause of acts of God, including
government shutdown as to render the Leased Premises during the term
substantially unfit for use and occupation of the LESSEE, then this lease
contract may be terminated without compensation by the LESSOR or by the
LESSEE by notice in writing to the other. In addition to the foregoing, the
LESSEE may opt to continue the lease during the existence of the Force
Majeure and the lease rentals accruing during the existence of the Force
Majeure may be adjusted accordingly upon agreement of the parties.

10.LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent shall

have the right to enter the Leased Premises in the presence of the LESSEE or
their representative at any reasonable hour to examine the same or make
repairs therein or for the operation and maintenance of the building or for any
other lawful purposes which it may deem necessary.

11.EXPIRATION OF LEASE: At the expiration of the term of this lease or

cancellation thereof, as herein provided, the LESSEE will promptly deliver
to the LESSOR the Leased Premises without delay with all corresponding
keys and in as good and tenable condition as the same is now, ordinary wear
and tear expected devoid of all occupants, movable furniture, articles and
effects of any kind. Non-compliance with the terms of this clause by the
LESSEE will give the LESSOR the right, at the latter's option, to refuse to
accept the delivery of the premises and compel the LESSEE to pay rent there
from at the same rate plus Twenty Five percent (25%) thereof as penalty until
the LESSEE shall have complied with the terms hereof. The same penalty
shall be imposed in case the LESSEE fails to leave the premises after the
expiration of this Contract of Lease or termination without justifiable reason.

12.BUILDING TAXES: All business taxes, permits, and licenses related to the
operation of the Leased Premises shall be the sole responsibility of the
LESSEE.

13.WITHHOLDING TAX: A 5% Withholding Tax on Rental will be withheld

by the LESSEE from the rental payment which will be remitted to the Bureau
of Internal Revenue.

14.PEACEFUL POSSESSION: The Tenant/Lessee, as long as he pays the

rents and performs the covenants herein contained on their part to be paid and
performed, may lawfully, quietly and peaceably occupy and enjoy the Leased
Premises during the term herein and hereby specified, without any let,
hindrance, or molestation by or on the part of Landlord/Lessor or anyone
claiming through Landlord/Lessor.

15.SERVICE AND UTILITIES. The LESSOR shall extend all assistance to

the LESSEE in securing separate water and electric connections to the leased
 space, including execution, signing, and submission of requirements imposed
by the utility companies. The costs of such installations shall however be for
the account of the LESSEE, but any deposit or investment required thereon
shall be endorsed or assigned by the LESSOR in favor of the LESSEE.

16. REGULTORY COMPLIANCE: The LESSOR shall guarantee the

Building's compliance to local and national regulations, including Building
Permit, DENR-EMB issued Certificate of Compliance and other Permits
required by local and National Agencies.

17.WAIVER OF BREACH: The waiving of any of the provisions of this lease

by any party shall be limited to the particular instance involved and shall not
be deemed as waiver of any other rights or any other term of this lease

18.REMOVAL OF PERSONAL PROPERTY: The LESSEE shall have the

right to remove after the termination of the lease all personal property, trade
fixture and equipment, whether attached to the premises or not, provided that
these items can be removed without damage to the premises.

19.The LESSOR warrants that there are no adverse claims, encumbrances,

unpaid taxes or liabilities from the previous lessee or third person.

20.JUDICIAL RELIEF: Should any one of the parties herein be compelled to

seek judicial relief against the other, the losing party shall pay an amount of
One Hundred Percent (100%) of the amount claimed in the complaint as
attorney's fees which shall in no case be less than P50, 000.00 Pesos in
addition to other cost and damages which the said party may be entitled to
under the law.

21.EXECUTION OF ADDITIONAL DOCUMENTS. The Parties agree to

execute such additional documents, agreements, contracts, commitments and
undertakings in order to faithfully and guarantee the true intentions of the
parties.

22.This CONTRACT OF LEASE shall be valid and binding between the

parties, their successors-in-interest and assigns and may be registered with the
Register of Deeds of Surigao and Assessor’s Office.

IN WITNESS WHEREOF, parties herein affixed their signatures on the date and
place above written.

Municipality of Burgos Mark-David Pintucan

(LESSOR) (LESSEE)

Represented by:

Benjamin C. Virtudazo
 ______________________ _____________________

Signed in the presence of:

_____________________________ ________________________

Republic of the Philippines}

______________________}SS
X--------------------------------------------X

ACKNOWLEDGMENT

Before me a Notary Public of ________________, on

____________________________, personally appeared the following persons with
their respective government and valid IDs, known to me and to me known to be the
same persons who executed the above instrument, and acknowledged that the same
is their free act and deed.

Name I.D. No. Date Place

Benjamin C. Virtudazo

Mark-David Pintucan

This instrument, consisting of ___ pages, including the page on which this
acknowledgment is written, has been signed on the left margin of each and every
page thereof by the concerned parties and their witnesses, and sealed with my
notarial seal.

WITNESS MY HAND AND SEAL on this ____day of _______ 2019 in

_________________________.

NOTARY PUBLIC
Doc. No. ___;
Page No. ___;
Book No. ___;
Series of 2019