CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:SAMPLE DRAFT

This CONTRACT OF LEASE, executed and entered into in the City of Davao, Philippines,
by and between:

______________________, a corporation existing and duly registered under the laws of

the Republic of the Philippines, with address at R.Castillo St., Agdao, Davao City, represented
herein by its representative ____________- of legal age, married with residential address at Davao
City, Philippines, hereinafter referred to as the LESSOR;

-- and –

_______________________ a corporation existing and duly registered under the laws of

the Republic of the Philippines with address at ___________________________ represented
herein by _______________________ hereinafter referred to as the LESSEE;

W I T N E S S E T H:

That the LESSOR hereby lets and leases unto the LESSEE and the latter accepts in lease
from the former, Unit #______________, 2 ND floor of the LESSOR’S _______________ building
located Sasa, Davao City, Philippines with an approximate area of Sixty (60) Square Meters floor
space.

NOW THEREFORE for and in consideration of the above premises, the parties have
hereunto agreed and entered into a lease under the following terms and conditions, to wit:

1. PERIODS AND RENTALS: The term of this lease is for a period of One (1) year commencing
from __________________ and expiring ___________________ during such period the LESSEE
shall be bound to pay to the LESSOR at her above address, a monthly rental of Sixteen Thousand
Fifty (PhP ________) Pesos, less of withholding taxes. Inclusive of 12% Expanded-Value Added
Tax.

If and when the LESSEE decides to vacate the premises before the expiration of the contract, it is
understood that the LESSEE shall still pay the rent equivalent to the number of months still
remaining as stipulated above

2. DEPOSIT / ADVANCE RENTALS / PDC CHECKS: Upon execution of this Contract, the
LESSEE shall tender the following payments:

Four (4) months Security Deposit PhP 60,000.00

. Monthly rental
Basic Rent PhP 15,000.00
12% VAT 1,800.00
5% WHT (750.00)
PHP 16,050.00

The 4 months security deposit shall remain in LESSOR’S possession at the duration of the lease
and shall be returned to the LESSEE upon expiration of the lease contract without interest. The
security deposit shall be applied as payment to any damage made to the unit; or any unpaid
expenses and charges billed or yet to be billed to the lessee for water, electricity, telephone and
other utility services at the time of the termination of this contract of lease.

At the time of the execution of this contract, the LESSEE shall also issue twelve (12) POST-DATED
checks to the LESSOR as payment for rentals covering one (1) year, payable every 15 th day of the
month.

3. DOCUMENTARY STAMP TAXES – The payment of documentary stamp taxes which arise out
and attach to the execution of this Contract shall exclusively be for the LESSEE’s account.

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4. RENEWAL AND ADDITIONAL DEPOSITS: It is hereby mutually agreed that the LESSOR shall
have the exclusive right to renew this lease after the expiration of its term. Any renewal or extension
of this contract shall be subject to negotiation of the parties herein. Written notice to renew or
extend this lease shall be given to the LESSOR at least thirty (30) days before termination date.

In an event of rental increases as provided herein, the LESSEE shall make additional security
deposits corresponding to the increase as well as maintaining the total amount equivalent to FOUR
(4) months of rent, within thirty (30) days from the notice rental rate adjustment.

5. DEFAULT, PENALTY AND LIQUIDATED DAMAGES: In case of delay of payments such as,
but not limited to, late payments and returned checks, and serious breach of any provision of this
contract, the LESSOR has the rights to terminate the contract, eject the LESSEE and recover all
amounts due without need of court proceeding and with penalty imposed at the rate of ten (10%)
percent per month from the date of delay.

In case of liquidated damages, the LESSOR may also claim the rent for the unexpired portion of
the lease for the year or the amount equivalent to the rent for FOUR (4) months whichever is lower.
LESSOR may also claim attorney's fees equivalent to twenty-five (25%) percent of such amount
not less than One hundred Thousand (PhP 100,000.00) pesos whichever is higher, should counsel
be retained to enforce any conditions of this contract. The cost of suit shall also be for the account
of the LESSEE.

6. COMMON USAGE OF SERVICE AREA (CUSA): The LESSEE shall pay the LESSOR monthly
CUSA charges equivalent to PhP 00.00. Such monthly charge will be billed and issued a receipt
separately each month and shall be payable in advance within the first five (5) days of the month
prior to the month to which said CUSA dues correspond and / or are to be incurred.

CUSA dues shall take effect on the turnover date of the premises with due notice from the LESSOR
regardless of the LESSEE'S actual physical possession of the premises.

The LESSOR grants to the LESSEE, for the benefit of the LESSEE and its employees, suppliers,
customers and invitees, during the term of this lease, the non-exclusive right to use, in common
with others entitled to such use, the
Common Areas as they exist from time to time, subject to any rights, powers and privileges
reserved by LESSOR under the terms hereof or under the terms of any rules and regulations or
restrictions governing the use of the Building as maybe provided by the LESSOR. Under no
circumstances shall the right herein granted to use the Common areas be deemed to include the
right to store any property, temporary or permanently, in the Common Areas. Any such storage
shall be permitted only by the prior written consent of the LESSOR, which consent may be revoked
at any time.

CUSA charges shall cover general day to day operation and administration of the leased premises
plus reasonable administrative service fees including but not limited to the following:

a) Electricity utilized;
b) Cost of directly employing or contracting personnel for services such as engineering,
janitorial, sanitary, pest control, garbage collection;
c) Capital expenditures such as for major repairs of equipment and facilities, repainting of the
building and other similar major items of expense.

Areas covered shall include, but not limited to:

a) Lobbies, hallways, stairways;

b) Parking areas, sidewalks;
c) Interior and exterior lightings;
d) Service and delivery areas;
e) Equipment and facilities in the building;
f) Areas situated outside which are used to service/benefit the building, directly or indirectly;
g) All other areas that have been provided and designated by the LESSOR for general use
and convenience of the LESSEE, their respective employees, customers and guests.

It is understood that the LESSEE'S privilege to use those areas and facilities dedicated to common
use is not exclusive and said privilege is not an integral part of this contract. The LESSOR shall
exclusively operate, manage and control the CUSA as it may, in its sole discretion, deem
appropriate and equitable taking into consideration the extended operating hours of the LESSEE,
the size of area served, exclusive advantage thereof and other like factors.

The LESSOR may make changes at any time, and from time to time, in the size, shape, location,
number of use and extent of the CUSA and no such change shall entitle the LESSEE to any
abatement or adjustment of the fees and other monetary obligations stipulated under this contract.
The monthly CUSA dues shall be subject to an automatic annual increase of ten (10%) percent
and the increased monthly CUSA dues shall become effective January 1st of each succeeding year

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provided that the LESSOR reserves the right to increase the same at any time during the life of this
contract as the electric and water utility rates and / or constituting monthly CUSA dues would
increase; provided however, that such increase for any given month may initially be billed
separately and shall be payable to the LESSOR by the LESSEE within Ten (10) days from receipt
of the statement.

7. UTILITIES: The LESSEE shall apply for individual electric and water meters at its own expense
under its own name from the utility company. Charges for water consumption, electricity, telephone
and other utility services in the premises, as well as for the repairs in the utility system shall be for
the exclusive account of the LESSEE and shall be paid directly by the LESSEE to the utility
company.

Without any fault or negligence, the LESSOR shall not be liable for any disruption caused by failure
of water supply and/or electric current.

8. RIGHTS OF LESSEE NON-TRANSFERABLE, USE AND PURPOSE: The LESSEE expressly

warrants that the leased premises shall be strictly and exclusively used for its business
CONSTRUCTION under the name of MOVIOUS CONST. AND DEV’T. INC. This stipulated
purpose is of the essence of this contract without which the LESSOR would not have granted the
lease. The use of the leased premises for other purposes, including subletting, assignment or any
form of transfer of use, without prior written notice to and consent by the LESSOR the right to
terminate this contract and claim damages from the LESSEE in accordance with this contract and
applicable laws and regulations.

9. LOCKOUT: For serious breach of this contract or damages to property or if LESSEE fails to pay
rent for one (1) month, the LESSOR shall have the right to lock up the leased premises and prevent
LESSEE or any person or party connected with or related to said LESSEE from entering the
building premises, except to settle all accounts or obligations of the LESSEE. The LESSEE shall
not remove any furniture, fixture, equipment or materials from the premises until full settlement of
such obligations and such effects shall be disposed of in the same manner provided in the next
succeeding provisions and paragraph 15 of this contract.

If the rentals herein stipulated shall be in arrears or unpaid for at least one (1) consecutive months
or if the LESSEE shall at anytime fail or neglect to perform or comply with any of the covenants,
conditions, agreements or restrictions stipulated or if the leased premises is closed, deserted or
vacated for a continuous period of five (5) days during the period of the lease, this lease contract
shall become automatically terminated and canceled, the LESSOR shall, at its option, exercise its
right to forfeiture of the security deposit, and the said premises shall be vacated peacefully by the
LESSEE. In such case, the LESSOR or any of its representatives shall take over the possession
thereof and enter into the leased premises as though the term of the lease contract has expired,
without prejudice on the part of the said LESSOR to exercise any or all the rights arising from this
contract of lease and those granted by law;

10. REPAIRS, IMPROVEMENTS AND ALTERATIONS: The LESSEE undertakes at his / her
exclusive expenses, all repairs necessary or otherwise, to maintain the leased premises in good
and tenantable condition.

Existing structural, electrical, plumbing, or other installation in and within the leased premises shall
not be tampered with, changed, altered or new installations be made unless previous written notice
to and approval by the LESSOR is first obtained. The LESSEE shall undertake the repair or
alteration of these installations through qualified workmen or contractors only.

Damages on any part of any common areas which may be caused by the malicious or careless act
of the LESSEE, or its employees, or by persons over whom the LESSEE is responsible, shall be
the liability of and should be paid for by the LESSEE. Breakage of glass materials and other
breakable parts within the leased premises caused by the fault or negligence of the LESSEE, its
employee or visitors shall be for the account of and paid by the LESSEE.

It is expressly agreed and understood that the LESSEE shall not commence or proceed with such
repair or work nor in any case introduce improvements or alterations in the leased premises without
the prior written consent of the LESSOR; In any case, the LESSOR or its duly authorized
representative shall have the right to inspect the leased premises at any reasonable hour of the
day.

All repairs, improvements or alterations of whatever nature shall not be removed and shall be made
an integral part of the leased premises which shall belong to and become exclusive property of the
LESSOR, without need for reimbursement for the cost thereof.

The LESSOR shall not be liable for any damage in case of presence of bugs, termites, ants, or
insects, if any, in the leased premises, interruption of the business activities of the LESSEE, by the
reason of any failure of water supply, electric current, or any other service or utility, or by reason of
loss or interruption of the business of the LESSEE because of repair work on the premises.

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11. SIGNS & ADVERTISEMENTS - The LESSEE shall not install plastic/neon lights, signboard,
billboards or other ad signs of similar nature at any place of the building that may obstruct the
aesthetic/vantage view of the building except at the place specified by the LESSOR. Likewise, the
size, dimension and materials to be used shall be subject to prior written approval of the LESSOR.

12. PLUMBING / SEWAGE / DRAINAGE SERVICE: The LESSEE shall have the sole
responsibility to maintain, clean, and/or de-clog, the plumbing/sewage/drainage system/s within the
leased premises, including but not limited to kitchen sinks, water faucets, toilet bowls, or any
bathroom receptacle or similar forms of implements.

In case the LESSEE fails to maintain such system and after due notice served, the LESSOR may
conduct repair of the system at the expense of and/or with reimbursement from the LESSEE. Major
repairs of the system, one which will benefit the whole or a significant portion of the building, shall
be the LESSOR'S responsibility and account.

LESSOR shall not be liable for any damage, loss or injury, to any property or personnel of the
LESSEE, caused by seepage/entry of water in the leased premises.

13. DAMAGE TO LEASED PREMISES - That in case of damage to the Leased Premises or its
appurtenances by fire, earthquake, war or any other unforeseen cause not due to the fault of the
LESSEE, the LESSEE shall give immediate notice to the LESSOR. But if the Leased Premises
shall be damaged by fire and other causes due to the fault of the LESSEE, the injury shall be
repaired at the expense of the LESSEE as speedily as possible after such notice. And if the building
or the Leased Premises be so nearly destroyed as to make it untenable without the fault or
negligence of the LESSEE, either party may demand the rescission of this contract to the extent of
its unexpired portion of the term. Further, no repair compensation or claim shall be allowed against
the LESSOR by reason of inconvenience, annoyance or injury to business arising out of necessity
of repairing any portion of the building, however, the necessity may arise.

In case of the occurrence of any calamity mentioned above and in the absence of the LESSEE or
his/her representative in the Leased Premises and in order to effect salvage and/or to avoid and/or
minimize further damage and destruction, according to LESSOR'S best effort and judgment, to the
Leased Premises and/or anything of value found therein as well as the whole commercial center,
the LESSOR and/or its representative is hereby authorized as the LESSEE'S Attorney-in-Fact to
break-in, force open, enter and retrieve and bring out whatever thing of value, whether belonging
to or owned by the LESSOR or not, to safer places, the LESSEE hereby relieves the LESSOR of
any liability whatsoever, civil or criminal, in furtherance of the LESSOR'S exercise of this right.
However, failure of the LESSOR by any reason whatsoever to exercise this right shall not create
any cause of action against the LESSOR, in favor of the LESSEE, as parties agree that the right
herein granted does not impose any obligation on the part of the LESSOR.

14. DISEMBARK: At the expiration of the term of this lease or upon cancellation thereof as
hereunder provided and prior to disembarking or leaving/vacating the leased premises, the
LESSEE shall promptly surrender the premises to the LESSOR in as good and tenable condition
as possible and devoid of all occupants.

The leased premises must be restored to its original form as when taken, ordinary wear and tear
excepted, including but not limited to restoration of all divisions and repaint the leased premises,
otherwise the security deposit mentioned in this contract shall not be returned

Non-compliance on the part of the LESSEE will give the LESSOR the option to refuse to accept
the delivery of the premises and to compel the LESSEE to continue with its rent at the same rate
as herein provided, plus 50% additional rent in the form of penalty, until the LESSEE shall have
complied with the terms hereof, this same penalty being likewise to be imposed in case the LESSEE
shall refuse to leave the leased premises after its right has expired

When the premises are returned, all items such as locks, electrical switches, light bulb/ballasts,
and other fixtures must be intact and working. Alterations such as wall partitions or divisions, room
air-con holes or provisions or any other alterations of the same nature should be returned to its
respective original condition.

15. ARREARS/ABANDONMENT: Should the LESSEE be in arrears in the payment of rental

and/or premises be closed or unused for more than fifteen (15) days, without notice given to
LESSOR, the latter may, at its options and sole decision, consider the premises abandoned and
the lease agreement terminated without notice.
In such case, the LESSOR shall have the absolute right to break open the premises in the presence
of police authorities, take inventory of any effect found therein, remove the same and place them
in storage. The LESSEE shall pay for storage charges for a sum of not less than PhP 200.00 per
day.

Should the security deposit be insufficient to answer for such obligation, the effects shall be

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considered as taken under constructive pledge and may be disposed of by the LESSOR under
applicable provisions of the civil code and the proceeds applied to the LESSEE'S unsettled
obligation. Proceeds thereof shall not be restrictive in that should the amount realized from such
sale be insufficient, the LESSEE shall continue to be liable for the unpaid balance for the remaining
period.

The LESSEE expressly agrees to strictly abide by all the regulations which may be given by the
LESSOR from time to time for the tenants of the building in general.

16. OCCUPATION AFTER TERMINATION OF LEASE: After this lease shall have terminated for
any reason whatsoever, if the LESSEE continues to occupy the premises without the consent of
the LESSOR, such extension of lease shall be deemed only tolerated as running from month-to-
month, under the same terms and conditions herein stipulated, and may be terminated by either
party by means of a written notice served upon the other party at least thirty (30) days in advance.

17. COMPLIANCE WITH LAWS and REGULATIONS: The LESSEE shall comply with any and
all laws, ordinances, regulations or orders promulgated by the proper government authorities
arising from or regarding the use, occupation and sanitation of the leased premises. Non-
compliance therewith shall be at the exclusive risk and expense of the LESSEE. In such case and
in case of breach of this contract, the LESSEE hereby expressly authorizes in advance the
LESSOR to enter upon the leased premises, remove all personal property that may be found
therein, and deposit the same in a bodega, and the LESSEE further agrees to pay all cost for the
transit and storage thereof for a sum of not less than Ph P 200.00 per day.

The LESSEE shall not bring into or store in the leased premises or anywhere adjacent or
surrounding the premises, any of the following:

 Explosive, highly flammable, corrosive and obnoxious materials/supplies;

 Apparatus, machinery or equipment which may cause obnoxious tremor noise or expose
the leased premises to fire hazard of the building or change the insurance rate of the
building;
 Immoral or patently offensive materials; and,
 Prohibited, illicit or illegal drugs, contraband and similar prohibited items.

The LESSEE further warrants that it shall not in any way engage in the possession, sale, transfer,
or disposition of the above items and shall be responsible for all the damages that may cause to
the LESSOR and to the other tenants by reason thereof. Violation of this provision shall cause the
removal of items, cancellation of this contract and imposition of applicable penalties including the
filing of criminal suits against all persons responsible.

18. SECURITY AND INSURANCE ON THE LEASED PREMISES: The LESSEE shall be
responsible in providing the necessary security and insurance on all properties, movable or
immovable, located within the leased premises.

However, the LESSEE shall not, without the prior written consent and approval of the LESSOR,
insure the chattels, goods, furniture, appliance and effects placed and stored in the leased
premises; and if consent and approval is granted by the LESSOR, the LESSEE shall show and
give the LESSOR a copy of the policy, renewals, increases and other charges in said policy;

19. INSPECTION OF THE PREMISES: The LESSOR or its duly authorized representatives shall
have the right to inspect the leased premises at any reasonable hour of the day.

20. WAIVERS: The failure of the LESSOR to insist, in anyone or more instances, the strict
performance of any of the provisions of this lease shall not be construed as a relinquishment or
waiver of such provisions nor shall it be 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. In case of breach, the receipt by the LESSOR of the rental payments, with knowledge of
such breach, shall in no way be construed as waiver by LESSOR of any provisions hereof unless
expressed in writing and signed by the LESSOR;

21. SUFFICIENCY OF NOTICE TO VACATE: Deposit in the leased premises of a notice to vacate
shall constitute due and sufficient notice to the LESSEE. Notices, correspondences or processes
shall be directed to the LESSEE at its above given address by registered mail or by deposit in the
leased premises. The deposit of a notice to vacate in the leased premises shall be deemed
complete service and notice to the LESSEE regardless of whether such notice or process is refused
acceptance or that there is no person found in the premises.

22. TERMINATION OR CANCELLATION OF LEASE: This contract will be automatically

terminated if any of the following causes supervene during the lease period.

a) The failure to comply with any of the conditions of this contract;

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 b) Abandonment of the leased premises as defined in this contract; and
c) Use of the leased premises other than that for which it was agreed upon.

In this case, the LESSEE shall pay the LESSOR, by way of damages, the full amount of rentals
due for the entire year of the lease. The security deposit shall be FORFEITED in favor of the
LESSOR.

Should LESSEE for any reason, without fault, negligence or breach on the part of the LESSOR,
decide to terminate this lease before its expiry date, notice thereof in writing shall be furnished to
the LESSOR thirty (30) days before the intended date of termination.

On the other hand, should the cause of termination is due to the fault, negligence or breach
committed by the LESSOR, the LESSEE shall be entitled to the refund of the security deposit made
plus cancellation of the advance payments on the remaining months succeeding the month when
fault, negligence or breach was committed.

In case of violation of any of the foregoing terms and conditions, if LESSEE agrees to vacate
forthwith the premises without need of court proceeding. However, for any valid reason, it shall
become necessary for the LESSOR to institute appropriate court action for the enforcement of its
rights under this contract, the LESSEE shall be liable in liquidated damages and for Attorney’s fees
equivalent to 25% of the claim or for an amount not less than ONE HUNDRED THOUSAND (Ph P
100,000.00) PESOS whichever is higher, plus other legal costs and charges allowed by court.

23. HOLD HARMLESS: The LESSEE will hold LESSOR harmless of any claims and actions of
any kind to anyone arising out of or in any way connected with the occupation or use of said
premises or any part thereof. The LESSEE will indemnify LESSOR for any breach or non-
performance of any conditions hereof on the part of LESSEE.

The LESSOR shall not be obliged to perform in any way, manner or form under this lease or by
virtue hereof, other than what is specifically set forth in this contract.

The LESSOR shall not in any way be liable in case of accident or injury to the LESSEE or to any
of the LESSEE'S officers, employees, agents, visitors, goods, or to any person(s) in or about the
premises. The LESSEE holds LESSOR harmless from any claims and actions of any kind to
anyone arising out of or in any way connected with the occupation or use of said premises or any
part thereof.

In case the LESSOR is held liable to any person or entity arising from LESSEE'S use of the
premises, the LESSEE shall indemnify the LESSOR of all damages by which it is held liable to
such person or entity, including any liability or expense arising from all claims, losses, damages,
suits, judgments, litigation costs and attorneys' fees, of every kind and nature.

LESSOR'S liability under this contract if any shall be limited to the rental payments paid to the
LESSOR, except in cases of injuries or damages arising from accidents attributable directly to its
fault or negligence where the liability is equal to actual damages.

In no event shall the LESSOR be liable for consequential, special, incidental or punitive loss,
damage or expense (including without limitation, lost profits, opportunity cost, etc.) even if it has
been advised of their possible existence. This provision shall survive the termination of this
agreement for any reason whatsoever.

24. VENUE: All action shall be instituted solely and exclusively at the proper court in Davao City.

25. PERMANENCY: This contract of lease supersedes and renders void any and all agreements
and understanding, oral or in writing, previously entered into by the parties concerning the leased
premises. This contract may not hereafter be modified or altered except by another instrument in
writing duly signed by the parties thereto;

It is hereby agreed that in the interpretation and construction of this contract of lease, whenever
the context so permits, the expression “LESSOR” shall include and embrace its executors,
administrators, and assigns, and that the benefit of the person included and embraced under said
expression respectively as aforesaid

IN WITNESS WHEREOF, the parties have hereunto set their hands this ______________
day of ______________, 2018 in the City of Davao, Philippines.

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 ______________________ ______________________________
TIN: __________________ TIN: ____________________

BY: _____________________ BY______________________

TIN NO. _______________________
LESSOR LESSEE

WITNESSES

_____________________ ________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

IN THE CITY OF DAVAO………..) SS.
X------------------------------------------)

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

Name Competent Evidence of Identity Date/Place Issued

___________________________________________________

Instrument (Contract of Lease) and acknowledged to me as their voluntary act and deed
as well the free act and deed of the entity being represented.

This instrument consist of Eight (8) pages including this page whereon the
acknowledgment is written and is signed by the parties and their instrumental witnesses on each
and every page thereof.

WITNESS my hand and Notarial Seal this _____________ day of ____________,

__________ at Davao City, Philippines.

Doc. No. _______

Page No. _______
Book No. ______
Series of 2018.

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