CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease (this "Contract") is made and executive this 9th day of
October 2018 at Cebu City, by and between:

JEAN L. SALCEDO Filipino, of legal age, single, with residential address

at 48-B Sambag-1 J Urgello St., Cebu City Philippines, hereinafter referred to as the
‘LESSOR’

-And-

4J’s TELECOMMUNICATION PHILIPPINES, INC., a domestic

corporation duly organized and existing under and by virtue of the laws of the
Republic of the Philippines, with office address at the General Maxilom Ave Ext,
Cebu City, with authorized representative Keno Renz P. Bacunawa, Filipino, of legal
age, single, with residence at J. Llorente St, Cebu City, hereinafter referred as the
“LESSEE’.
WITNESSETH:
WHEREAS, the LESSOR is the registered owner of a parcel of land, with
an approximate area of Six Thousand Five Hundred (6,500) sq.m. More or less with
a 2-storey commercial building situated at M. J. Cuenco Avenue, Mabolo, Cebu
City, Cebu, Philippines

WHEREAS, the Lessor desires to lease out a portion of the afore-described

property in favor of the LESSEE and the LESSEE accepts the lease subject to the
terms and conditions herein set forth.

NOW, THEREFORE, for and in consideration of the foregoing premises and the
covenants hereinafter stipulated, the parties hereby agree as follows:

1. USE OF THE PREMISES- The Lease is for the purpose of operating a

commercial or retail business which the corporation is engaged in. The LESSEE, at
his own expense may put up improvements upon prior consultation and written
approval of the LESSOR within the premises hereby leased for the purpose of
storage, retail, wholesale and commercial in nature and not for any purpose
whatsoever. It is being expressly agreed that if, at any time during the existence of
this lease and without the previous written consent of the LESSOR, the said
premises are used for the purposes other than what is stated, the LESSOR has the
option of either terminating the lease or collecting increased rental as deemed
appropriate from the date of diversion of use of the premises or to compel the
LESSEE to stop the unapproved activity.

2. TERM OF THE LEASE- The term of this Lease Contract is for a period of
TWENTY (20) years, renewable for an unspecified duration at terms mutually
agreeable to both parties, commencing on 9 October 2018 and ending at midnight
of 31 May 2038, In case of pre-termination by the lessee, for any reason whatsoever,
the LESSOR has the right to collect any remaining rentals corresponding to the
unexpired portion of the LEASE period, or until such time a new LESSEE comes.

This LEASE shall not be deemed extended or renewed beyond the period
time above-mentioned for any cause or reason whatsoever and unless the parties
agree in writing to extend or renew or enter into a new Contract to Lease upon such
terms and conditions acceptable to them, the possession of the Premises by
the LESSEE or any persons claiming rights through the LESSEE, after the
expiration of the term thereof, shall be illegal.
Any renewal or extension of this Contract must be expressly agreed upon by
the LESSOR and LESSEE in writing and under no circumstances can such renewal
or extension be considered as having made impliedly.
For this purpose, the LESSEE shall notify the LESSOR to the latter’s office
in writing, of this intent to renew or extend the Contract at least sixty (60) calendar
days prior to the expiration of the Leased period, or any extension or renewal thereof,
provided, however, that the notice as aforesaid does not in any way vest unto
the LESSEE the right to demand for such extension or renewal of the Lease Period
or any renewal or extension thereof.

3. RENT- the LESSOR shall pay annual rentals in the amount of Five Million One
Hundred Fifty Thousand Pesos (P 5, 150, 000.00) payable in advanced within five
(5) days from the start of the year, exclusive of VAT. The annual rentals shall be
subject to escalation equivalent to one percent (1%) at the end of every live (5) years.

4. SECURITY DEPOSIT- Upon signing of this Contract and upon delivery of the
LESSOR of the Leased Premises to the LESSEE, the LESSEE shall remit the sum
of Four Hundred Twenty-Five Thousand Four Hundred Twenty-Five Pesos
(P425,425.00) (the "Security Deposit"). The Security Deposit shall remain intact
during the entire term of this lease and shall not be applied by the LESSOR as
payment for rentals, but shall serve as security to answer for any unpaid utility bills,
charges and other obligations due to the LESSOR under this Contract, and real
property taxes due on the improvements introduced by the LESSEE, which are
payable by the LESSEE at the termination or expiration of this Contract. The
Security Deposit shall be refunded by the LESSOR and returned to the LESSEE,
within thirty (30) days after the expiration or termination of this Contract and
after presentation by the LESSEE to the LESSOR of proof that the former has paid
all of its utility bills and real property taxes, if any, and provided that the
LESSEE has vacated the Leased Premises.

5. SUBLEASE AND OR TRANSFER OF RIGHTS- The LESSEE shall not

directly or indirectly assign, sublease, sell, transfer, convey, mortgage, demolish or
in any manner dispose of or encumber its right under the contract in whole or in part
or any interest thereto be conferred on anyone.
6. RIGHT TO INSPECT LEASED PREMISES- The LESSOR or its authorized
agent shall, by previous notice to the LESSEE, have the right to enter the leased
premises at any reasonable hour of the day to examine the leased premises.

7. CARE OF THE LEASED PREMISES- The LESSEE shall examine the Leased
Premises before taking possession thereof, and LESSEE’s entry into possession
shall constitute conclusive evidence or admission by the LESSEE that as of the date
thereof, the said Premises were in good order and satisfactory tenantable condition.
The LESSEE hereby binds itself to keep and maintain the same in such condition as
a prudent person shall do under the circumstances, ordinary wear and tear expected.
The LESSEE shall at its own expense, improve and maintain the Leased Premises
clean and free from rubbish and dirt at all times, store all trash and garbage in proper
containers and not burn any trash and garbage in or about the Leased Premises or
anywhere within the Premises.

8. SECURITY & SANITATION- The LESSOR shall ensure the security of the
premises and provide a security guard for the whole commercial establishment
where the leased premises are located. The LESSOR must also ensure regular
collection of garbage through the barangay garbage collector or any private entity
which shall be to the account of LESSOR. The LESSOR also agrees to make the
septic tank of the leased premises bigger in order to accommodate more waste
volume in anticipation of more customers using the toilet.

9. INSURANCE TAKEN BY THE LESSEE- The LESSEE shall be required to

insure at his own account any LESSOR approved permanent structure or structures
constructed within the premises with the LESSOR as co-benefactor against fire or
total loss of property. The LESSEE although not required, is also allowed and
authorized to insure its own property taken inside the leased premises, provided that
the LESSOR shall be notified in advance of any and all kinds of insurance over the
property therein.

10. BUSINESS PERMITS, TAXES, AND COMPLIANCE

AND GOVERNMENT REGULATIONS- The LESSEE shall be responsible for
securing all the necessary governments permits and licenses for the operation of its
business and all costs thereof shall be its sole account. Copies of the said permits
and licenses or any renewal date thereof shall be furnished to the LESSOR not later
than fifteen (15) days from the start of the LESSEE’s business and every renewal
date thereof as required by law.

11. INTRODUCTION OF PERMANENT IMPROVEMENTS- No permanent

or fixed improvements shall be introduced by the LESSEE on the leased premises
unless with prior written consent and approval of the LESSOR. Any such permanent
structures, if approved and allowed, shall be upon the option of
the LESSOR registered under the co-ownership of both LESSEE and LESSOR.
Furthermore, the LESSEE shall bear the full cost of the annual real estate taxes of
such structures until expiry of lease contract and full cost of transfer of ownership
to LESSOR upon termination of contract.
12. UTILITIES AND SERVICES- The LESSEE shall be responsible for the
installation and maintenance costs of its own electric current, telephone, water,
security and other utility services in the Leased Premises for the duration of the lease.
The LESSEE shall also clear all accounts with all concerned utility companies upon
pre-termination or expiration of contract.

13. REVISION OF LEASE CONTRACT- Both parties may revise this lease
contract after six (6) months to one (1) year in the event that LESSEE assigns the
business with a newly-registered business name.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this
October 09, 2018 at M. J. Cuenco Avenue, Mabolo, Cebu City, Cebu, Philippines.

JEAN L. SALCEDO 4J’s TELECOMMUNICATION PHILIPPINES, INC.

LESSOR LESSEE

By: /s/ Keno Renz P. Bacunawa

SIGNED IN THE PRESENCE OF:

JONAH S. ORTIZ JOAN G. MACALALAD

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU )S.S.

BEFORE ME, a Notary Public for and in the CITY of CEBU, this OCT. 09,
2018, personally appeared:

Name CTC Number Date/Place Issued

Jean L. Salcedo 22655674 January 16, 2018 Cebu

Keno Renz P. Bacunawa 22683025 February 07, 2018 Cebu

Known to me and to me known to be the same persons who executed the

foregoing Contract of Lease and who acknowledged to me that the same is their
free and voluntary act and deed as well as that of the corporation they represent.
 WITNESS MY HAND AND SEAL on the date and place first above written.

Notary Public

Doc. No. 143;

Page No. 5;

Book No. I;

Series of 2018.
 Contract of
Lease
(LAND AND BUILDING)

Submitted to: Atty. Ranier Arriesgado

Submitted by: JEAN L. SALCEDO

BSA- 1 Blk 2

TTH 5:30 – 7:00 PM