CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease entered into this ____ day of _________ 20____ at _____ City, by and
between:

hereinafter referred to as the LESSOR:

AND

hereinafter referred to as the LESSEE:

WITNESSETH:
That for in consideration of the payment of the rent and compliance with all the conditions
and covenants hereinafter contained, the LESSOR has agreed to lease unto the LESSEE the premises
of _______________________________________________________________________under the following terms
and conditions:
TERMS AND CONDITIONS
1.

AMOUNT OF RENT. The LESSEE shall pay every 15 th day of every month, at the office
of the LESSOR, a monthly rental of THIRTEEN THOUSAND TWO HUNDRED PESOS
(P13,200.00) during the entire term of this lease without necessity of demand. The
above basic rate is subject to an annual escalation rate of ten (10%), deduction of five
(5%) percent withholding tax and addition of twelve (12%) percent expanded value added
tax. No payment shall be recognized as such unless made to a duly authorized
representative of the LESSOR and evidenced by an official receipt duly issued for the
purpose.
In case of default or non-payment from due date, it shall be charged a penalty surcharge
of five (5%) Per Cent and if after thirty (30) days the same is still not paid the rent
subject to the penalty surcharge shall bear interest at the rate of twelve (12) Per Cent
per annum to be compounded monthly from the date of expiration of the aforesaid thirty
(30) days period until fully paid without prejudice to paragraphs 22 to 31 herein.

2.

DEPOSIT. Upon execution of this contract, the LESSEE shall deposit in cash with the
LESSOR an amount equivalent to Three (3) months rental plus P6000.00 as Utility
deposit, to guarantee its faithful compliance and performance of all obligations,
warranties and representations under this Contract and to cover damages caused to the
leased premises as well as any unpaid obligations or liabilities if any at the expiration of
this lease. The said deposit shall not be applied as rental, and shall be retained by the
LESSOR for the above purposes and shall be refunded to LESSEE Sixty (60) days after it
has vacated the premises, less the deductions above mentioned if any. However, should
the lessee pre-terminates this agreement for whatever reason not attributable to the
Lessor, said deposits will be forfeited as liquidated damages. This provision shall not be
construed as limitation or a waiver of any of the LESSORS rights and remedies in law
and under this contract.

3.

TERM OF LEASE. This CONTRACT OF LEASE shall be for a period of ONE (1) year
commencing from SEPTEMBER 15, 2014 and expiring on SEPTEMBER 14, 2015,
renewable at the option of the Lessee subject to a rental escalation rate of ten (10%).
The Lessee must formally inform the Lessor of its intention to renew contract two (2)

months before the expiration of this agreement failing which the LESSOR shall be free to
enter into any agreement with third parties for the use and possession of the leased
premises.
4.

USE OF PREMISES. The premises hereby leased shall be used exclusively by the
LESSEE for BUSINESS OFFICE and for no other purpose. Use thereof shall not be
diverted to other uses without the prior written consent of the LESSOR. It being
expressly agreed that if, at any time during the existence of this lease, without the
previous written consent of the LESSOR, the said premises are used for other purposes,
the LESSOR has the choice to terminate, cancel or rescind this contract pursuant to
such conditions and manners stipulated hereinbelow.

5.

SIGN, ADVERTISEMENT, ETC. To ensure uniformity of design, the LESSEE shall not
cause to be affixed, inscribed or painted any notice, sign or advertising medium on any
part of the building except those which the LESSOR approves itself or its agents prepare
and affix for the account and at the expense of the LESSEE.
The LESSEE shall not permit or give consent to any other person or entity to advertise
as if said person or entity uses, hold office or its otherwise established at the premises
leased or any part thereof; and, unless the LESSOR agreed to the contrary, only the
name nomenclature as written in this CONTRACT OF LEASE shall be placed in the
Building Directory and advertised at or near the main door of the premises leased. No
other sign or advertisement may be placed in the leased premises other than at the
place therein above indicated.

6.

ALTERATIONS, INSTALLATION, ADDITIONS, IMPROVEMENTS. The LESSEE shall

not make any alterations, installation, addition or improvement on the leased premises,
such as partition, shades, awning, window guard, etc. without the written consent of
the LESSOR.
It is hereby expressly agreed that if the LESSEE should desire to have any alterations,
installations, additions or improvements made on the premises, the same shall be done
by the LESSEE under the supervision and approval of the LESSOR. It is further agreed
that such alterations, installation, additions or improvements, except the movable
furniture put in the expense of the LESSEE shall remain upon and be surrendered with
the premises as part thereof at the termination of the lease, without compensation to
the LESSEE.
The LESSOR reserves the right to refuse to approve any alteration, installation, addition
or improvement requested by the LESSEE, if in the LESSORS opinion there is just
cause to warrant such refusal.

7.

CARE OF LEASED PREMISES. The LESSEE shall at its expense, maintain the leased
premises in a clean sanitary condition, free from noxious odors, disturbing noises or
other nuisances, and upon expiration of the lease shall surrender and return the
premises fixtures in as good condition as they were actually found at the beginning of
the lease, ordinary wear and tear excepted. The LESSEE shall not drive nails, screws,
hooks, or other abutments on the walls, frames or other portions of the premises of the
building. Neither shall the LESSEE caused to be placed on the premises any furniture,
equipment or materials that would exceed the structural weight capacity of the leased
premises. Any damage caused or done by the LESSEE shall be repaired by the LESSOR
for the account of the LESSEE.

8.

GARBAGE RECEPTACLE. The LESSEE shall provide itself, at its own expense, with
receptacles which the national and local ordinances require, to hold and contain waste
matter or garbage, and shall deposit them within its own premises or such places as
may be designated by the LESSOR.

9.

OBSTRUCTION. The sidewalk, lobbies passages, corridors and stairways of the building
shall not be obstructed or used by the LESSEE for any purpose other than for ingress to
or egress from the office or the building.

10. PROHIBITIONS. The LESSEE shall not bring into or store in the leased premises
anything of a highly inflammable or explosive nature, nor install therein any apparatus,
machinery or equipment which may cause obnoxious tremors which may expose the
leased premises to fire or increase the fire hazard of the building. It being understood
that should the LESSEE do so, it shall be responsible for all damages which such
violation may cause the LESSOR and/or its other tenants. In addition thereto, the
LESSOR shall have the right to cancel the Contract.
11. TRANSPORT OF FURNITURE. For the convenience and protection of all tenants, the
LESSOR reserves the right to fix the hours and prescribe the manner by which

furniture, equipment, and/or bulk supplies may be brought in or out of the building. In
case the LESSEE has an outstanding obligation under this Contract, the LESSOR, as
well as its employees, agents and representatives are hereby granted the right/authority
without incurring civil or criminal liability of any kind, to prevent the LESSEE, his/its
employees, agents, or representatives, whether by force or otherwise, from taking out
furniture, fixture or equipment from the leased premises.
12. RULES AND REGULATIONS. The LESSEE shall comply with any and all reasonable
rules and safety regulations which may be promulgated, from time to time by the
LESSOR or the Administration of the Building and with all the rules, regulations,
ordinances and laws made by the health and other duly constituted authorities of the
Local and National Government arising from or regarding the use, occupancy and
sanitation of the leased premises.
13. LIABILITY FOR SUITS, ETC. The LESSEE shall indemnify and hold harmless the said
LESSOR against all actions, suits, damages and claims by whomsoever they may be
brought or made by reasons of the non-observance or non-performance of the said
rules, regulations, ordinances or laws or any of the covenants of this section without
prejudice to the right of the LESSOR to cancel this lease in accordance with the penal
provisions hereinafter contained.
14. PUBLIC UTILITIES. All public utilities such as electricity, water, telephone and other
consumptions caused to be installed at the leased premises shall be for the account of
the LESSEE, including the repair and replacement of defective and unserviceable
starters, bulbs, ballast, electrical tubes, fixtures and the like. It is further agreed that
in case of rental arrears or non-payment of public utility bills despite due notice, the
LESSOR may cause the discontinuance of such public utilities without further advice.
15. EXTRA FIXTURES. The LESSEE, if it so desires, may request the LESSOR for the
installation, at the LESSEES expense, of extra fixtures and additional electric, water,
telephone connections. Nothing herein contained shall, however, be construed as
limiting the right of the LESSOR to refuse any such request, pursuant to paragraph 6 of
this Contract.
Should the LESSEE desire to avail of extra services such as security guards, telephone
exchange, etc. the LESSEE shall pay to the LESSOR a fixed monthly rate for the
following utility and other services furnished by the LESSOR.
16. INJURY OR DAMAGE TO THIRD PERSON OR LESSEE. The LESSEE hereby assume
full responsibility for any damage which may be caused to the person or property of
third persons while remaining either casually or on business in any part of the premises
leased to the LESSEE and further binds itself to hold the LESSOR free and harmless
from any such claim for any injury or damage unless the same is due to the gross
negligence of the LESSOR.
17. DAMAGED TO LEASED PREMISES. In case of damaged to the leased premises or its
appurtenances by fire, earthquake, war, or any other unforeseen cause, without the
fault or negligence of the LESSEE, or his/its agents, employees, servants, or visitors, the
damage shall be repaired at the expense of the LESSOR within a reasonable time after
such notice; but if the building or the leased premises be destroyed to such an extent as
to make it untenantable, without the fault or neglect of the LESSEE, either party may
demand the rescission of this Contract.
The LESSEE shall be fully liable to the LESSOR in all cases where damage of any nature
or kind is caused by the fault or negligence of the said LESSEE his/its employees,
agents, servants or visitors.
No compensation or claim shall be allowed against the LESSOR by reason of any
inconvenience, annoyance or injury to the LESSEES business caused by or arising out
of repair work done on any portion of the building.
18. INSPECTION OF PREMISES. The LESSOR or its authorized agent shall, after prior
notice to the LESSEE have the right to enter the leased premises at any time to examine
the same or for any purpose which may deem necessary for the preservation, operation
or maintenance of the building or its installation, and, during the last two (2) months of
the term of the lease, to exhibit the leased premises to prospective tenants.
19. ACCESS FOR REPAIRS, ETC. After due notice, the LESSEE shall allow and give access
to the LESSOR the leased premises for the purpose of making repairs, remodeling or
repainting, or to undertake all works necessary for the preservation, conservation,
improvement or decoration of the building or any part thereof. No compensation or claim
shall be allowed against the LESSOR by reason of any inconvenience, annoyance or

injury to the LESSEES business that may arise by virtue of undertaking any work
under this agreement or provisions.
20. SUBLEASE, TRANSFER OF RIGHTS. The LESSEE shall not assign or transfer its
rights in this Contract nor sublease or sublet all or any part of the leased premises
without written consent of the LESSOR, and no right, title or interest thereto or therein
shall be conferred on or vested in anyone other than the LESSEE without such written
consent.
21. EXPROPRIATION. In the event that the expropriation proceeding are instituted during
the period of this lease by any instrumentality of the Government or by any other entity
with authority to exercise such power, either party may rescind this contract should the
leased premises become no longer useful for the purpose of this lease, upon giving the
other party THIRTY (30) days prior written notice thereof.
In case of such
expropriations, the LESSEE hereby unconditionally relieves and releases the LESSOR
from any and all obligations under this Contract in connection with or arising out of
such expropriation proceeding without prejudice to whatever recourse the LESSEE may
have against the expropriating entity on account of damage done or caused to it or its
properties.
22. TERMINATION OF LEASE. The LESSEE agrees to return and surrender the leased
premises at the expiration of the term or cancellation of this lease in as good condition
as it was found in the beginning of this lease, reasonable wear and tear excepted,
without delay whatsoever; devoid of all occupants, furnitures, articles and effects of any
kind other than alterations, installations, additions, or improvements which has become
part of the leased premises pursuant to paragraph 6 hereof.
23. FAILURE TO SURRENDER. If said premises be not surrendered at the cancellation
hereof, the LESSEE shall pay, by way of penalty, a sum equivalent to the amount of
rentals for the leased premises for the whole period of delay. It is hereby agreed that
such penalty shall be in addition to the rentals corresponding to the period of delay.
Payment of said penalty shall likewise be without prejudice to the attorneys fees and
other liabilities provided in this contract. The LESSEE shall furthermore hold the
LESSOR harmless from any liability in respect of any and all claims made by any
succeeding tenant against the LESSOR, resulting from the delay by the LESSOR in
delivering possession of the premises to such succeeding tenant, insofar as such delay
is occasioned by the failure of the LESSEE to surrender the premises on time.
24. DISTURBANCE. Disturbance or discontinuance of the possession of the leased
premises by the LESSEE by causes beyond the control of the LESSOR shall confer no
right of any kind to the LESSEE against the LESSOR.
25. LEASE EXCLUDE OUTSIDE PORTION OF BUILDING. This lease does not extend to
the outside portion of the building corresponding to or opposite the leased premises and
the painting, putting or affixing of business notices, signs, or other advertising medium
in accordance with paragraph 5 of the Contract shall not be construed as an extension
of this lease to the outside of the building.
26. ABANDONMENT OF LEASED PREMISES. In case, the Leased premises without due
notice kept locked and remains to be so for a period of not less than Fifteen (15) days if
with rental arrears and Thirty (30) days if without arrears both with unexpired lease
then it shall be considered deserted or vacated. In such case the LESSOR shall have
the right to enter and take possession of the same either by force or otherwise, without
incurring criminal or civil liability therefore, and to re-let the same to new LESSEES,
without prejudice to LESSORS right under paragraph 28 to 31 of this Contract.
27. NON-WAIVER. All rights given to the LESSOR under this agreement shall be cumulative
and in addition to any other rights given by law, and the exercise by the LESSOR of any
rights herein shall not operate as waiver of any other. No statement or promise of the
LESSOR or its agents altering, modifying or revoking the terms and conditions of this
lease shall be binding unless specifically endorsed hereon in writing and signed by the
LESSOR.
28. SPECIAL PROVISIONS. This Contract is subject to following special provisions:
(a) ESSENTIAL CONSIDERATIONS. It is hereby expressly agreed and understood by
both parties that the personal character of the LESSEE as herein represented and
the nature of the occupancy of the leased premises as herein restricted are special
considerations and the essential inducement for the grant of this leased by the
LESSOR. Consequently, any violations herein setforth shall automatically and
unequivocably terminate this contract from the time such violations occurs.

(b) MISCELLANEOUS. This lease is subject and subordinate to any mortgaged, deed of
trust, lien or encumbrances which may now or hereafter affect the real property of
which the leased premises form part, and to renewals, modification, replacements
and extension thereto.
(c) CONSTRUCTION OF LIEN. The LESSEE hereby warrants to the LESSOR an
absolute superior lien on all personal property brought by the LESSEE into the
leased premises, any provision of law not withstanding, and the LESSOR may
enforce said senior lien as provided by law or by entering said premises either taking
possessions thereof and the belonging contained therein for safekeeping or by
removing said property therefrom storing the same at the expense of the LESSEE.
Said lien may be enforced whenever rent is due and unpaid regardless of whether
the notice to pay rent and or vacate shall have been served and enforcement of this
lien shall not operate to waive any other rights of the LESSOR in an unlawful
detainer or otherwise. If the rental remains due and unpaid Fourteen (14) days after
enforcement of said lien, then the LESSOR may sell, as LESSEE hereby authorizes
the former, any and all personal property taken possession as herein provided in
public or private auction and may apply any amount received against any storage
charges, expenses of safe, legal fees, and the unpaid rent, provided that any amount
received in excess of the total amount due shall be for the benefit of the LESSEE
and deficiency amounts shall remain the continuing liability of the LESSEE.

(d) PENALTY. If the rentals stipulated herein or any part thereof, at any time, shall be
in arrears or unpaid, or if LESSEE shall at any time fail or neglect to comply with or
perform any warranties, covenants, agreements or restrictions stipulated, of if the
LESSEE becomes bankrupt or insolvent or shall compound with his creditor or shall
issue rubber check payment, then in any such above cases, this Contract of Lease
may be unilaterally terminated and cancelled by the LESSOR and thenceforth said
premises shall be vacated peaceably by the LESSEE for the LESSOR to hold and
enjoy as if there presents have not been made, without prejudice to the exercise of
any right granted herein or by law; provided that non-payment of rentals may be a
ground for unilateral termination of the contract only after a notice to pay rent and a
notice of intention to eject has been served by the LESSOR to the LESSEE.
(e) COMMUNICATIONS. Any notice, statement, bill or communication as may be
required under this Agreement or by law shall be sent by either party unto the other
at the address hereinabove stated and such communication shall be deemed as
sufficient compliance for legal purposes as to date of delivery.
29. BREACH OR DEFAULT. The LESSEE agrees that all the covenants and agreements
herein contained shall be deemed essential condition hereof and that if default or
breach be made of any such conditions, then the LESSOR shall have the right to
terminate and cancel this Contract, whether judicially or extrajudicially, upon FIVE (5)
days notice delivered at the leased premises or posted on the main door thereof. Upon
such termination or cancellation, the LESSOR may take possession therefrom whether
forcefully or otherwise, without incurring any civil or criminal liability.
30. JUDICIAL RELIEF, PENALTY AND VENUE. Should LESSOR be compelled to seek
judicial relief against LESSEE, the latter shall, in addition to other damages that may be
awarded to the LESSOR, pay an amount equivalent to 25% of the amount claimed in the
complaint as and by way of attorneys fees (with minimum of P5,000.00) aside from the
costs of the litigation and other expenses which the law may entitles the LESSOR to
recover from the LESSEE. The parties hereby agree that any suit arising from this
agreement shall be filed only in the courts sitting in ________ City.
31. RENTALS FOR REMAINING TERM; SATISFACTION OF DAMAGES AND
OBLIGATIONS. In all cases where this Contract is terminated or cancelled whether
judicially or extrajudicially by reason of any default or breach committed by the
LESSEE, the said LESSEE shall be fully liable to the LESSOR for the rentals
corresponding to the remaining term of this lease, as well as for any and all damages,
actual or consequential, resulting from such default and termination. In the event of
cancellation or termination of this Contract, the LESSOR is hereby authorized, as the
attorney-in-fact of the LESSEE, to sell at public or private sale, without notice to the
LESSEE, any and all goods, merchandise, furniture, fixtures and equipment located at
the leased premises and to apply the proceeds of such sale to any damages and
outstanding obligation of the LESSEE under this Contract.

32. CONFIRMATION.
The signatories hereto hereby warrant that they possess the
authority to enter into this Contract of Lease in their behalf or of the entity they
represent. Should such authority be lacking, they shall personally answer for any
damages arising therefrom.
IN WITNESS WHEREOF, the parties hereunto enter into this contract of lease this ______ day
of _____________ 20___ at ___________ City.