CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This contract made and entered into this ________ day of ____________ at Yati, Liloan, Cebu,
Philippines by and between:
Paulino T. Marikit , Filipino, of legal age, married to Jacqueline Ann G. Marikit and a resident of
Yati, Liloan, Cebu, hereinafter referred to as the “LESSOR”
-and-
YOUNGCATZ REFRESHMENTS, represented by Celia U. Catalan and Dandy L. Catalan,
hereinafter referred to as the “LESSEE”
WITNESSETH:
WHEREAS, the LESSOR are the owners of a commercial building with an area of 21 square
meters more or less located at Yati, Liloan, Cebu.
WHEREAS, the LESSEE is interested in leasing the above-described properties from the
LESSOR;
WHEREAS, the LESSOR is amenable to enter into a contract of lease with the LESSEE
respecting the said properties under such terms and conditions set forth herein;
NOW THEREFORE, for and in consideration of the foregoing and of the mutually acceptable
terms hereof, the LESSOR and LESSEE hereby agree:
1. TERM. The term of the lease shall be FIVE (5) years which shall start on ___June 2018 and to
end on __________. The term may be renewed for such period and such terms and conditions
that the LESSOR and LESSEE may agree; provided that if the LESSEE continues to enjoy the
subject properties after the lapse of the period of five (5) years agreed upon, said extension shall
be understood from month to month only 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 at least
(90) days in advance prior to the date of such termination.
2. RENTAL. The monthly rental, payable by the LESSEE to the LESSOR on or before the 1st day
of every month at LESSOR’s residence at Yati, Liloan, Cebu, shall be the total of TWELVE
THOUSAND (12,000), Philippine Currency and a corresponding increase of 1,000 pesos per
month, starting on the third year of this contract.
Provided, that in case of delay or default in the payment of monthly rental when due, a
penalty at the rate of 24% per annum shall be imposed.
That it is expressly agreed and understood that the payment of the rental herein stipulated
shall be made without the necessity of any demand and without delay on any ground.
3. DEPOSIT. Upon signing of this agreement, the LESSEE shall deposit with LESSOR the sum of
THIRTY-SIX THOUSAND (36,000), Philippine Currency, representing one (1) month advance
of rental to cover for the month of June 2018 and two (2) months refundable security deposit less
 unpaid bills for utility services, other bills which are for the sole account of the LESSEE, rentals
in arrears and charges which the LESSEE may owe in favor of the LESSOR.
4. FAILURE TO PAY RENTAL AND OTHER OBLIGATIONS. In the event that the LESSEE
fails to pay the rent for successive two (2) months and fulfill other obligations of the contract, the
contract is deemed terminated and the LESSOR has the authority to take possession of the
LESSEE’S equipments, machineries, furniture and other fixtures and is hereby given the right to
dispose of the above-mentioned items in order to apply the proceeds to whatever indebtedness the
LESSEE may incur to the LESSOR in connection with this contract of lease.
5. SUBLEASE. The LESSEE is prohibited to sublease the leased premises to anyone, to assign,
transfer, convey or in any manner encumber its right of lease and to use them not for the purpose
of its business, without the express written consent of the LESSOR.
6. REPAIRS AND CHARGES. Ordinary repairs on the leased premises shall be for the sole
account of the LESSEE, without right of reimbursement. All charges for water, light, telephone
and other utility services shall also be for the sole account of the LESSEE.
7. IMPROVEMENTS AND ALTERATIONS. All improvements or alterations made by the
LESSEE on the leased premises which are fixed hereto shall belong to and become the exclusive
properties of the LESSOR, without right or reimbursement, and shall not be removed from the
leased premises even until the expiration hereof.
8. OBSERVANCE OF REGULATIONS. The LESSEE shall be responsible for the observance of
sanitary, safety and electrical regulations required or imposed by the government.
9. TAXES, ETC. During the term hereof, the LESSOR shall be responsible for the payment of all
realty taxes and other assessment which may be levied on the lot and building leased by the
LESSEE. However, all realty taxes and other assessments on all improvements introduced by the
LESSEE on the leased premises shall be the sole account and responsibility of and shall therefore
be paid by the LESSEE during the term hereof.
10. REHABILITATION OF LEASED PREMISES. Should the leased premises be rehabilitated or
reconstructed as a result of any fortuitous event such as conflagration, fire, flood, expropriation or
earthquake, the LESSEE is given the option to lease again the said premises for the unexpired
period of this contract to be reckoned from the first date of rehabilitation under the same terms
and conditions hereof.
11. RETURN OF LEASED PREMISES. The LESSEE, without any and all kind of delay, is
obliged to return and/or surrender possession of the leased premises to the LESSOR at the
expiration of the term hereof in good and habitable condition as reasonable wear and tear will
permit, devoid of occupants, furniture, machinery, equipment and signage, articles and effects of
any kind unless such alterations, additions or improvements cannot be removed without causing
damage to the leased premise.
12. OPTION TO PRE-TERMINATE. The LESSEE may terminate this agreement before the
expiration of the term hereof; provided that a written notice be sent to the LESSORS at least two
(2) months prior to the date of such termination.
13. RIGHT TO ENTER AND/OR INSPECT LEASED PREMISES. Should the LESSEE fail to
perform any of the covenants hereof, the LESSOR may enter into the said leased premises and/or
inspect the same, without need of formal request, all without prejudice on the part of the
LESSOR to exercise any and all rights from this contract and those from the law.
14. IMPEDIMENT OR OBSTACLE TO RIGHTS OF WAY, ETC. During the term of this lease
or their renewed term applicable, the LESSOR SHALL NOT MAKE, BRING, CREATE,
CONSENT TO ANY AND ALL KINDS OF IMPEDIMENT or obstacle to rights of way,
 pathway, pavement or roadway and shall provide an adequate and proper ingress and egress on
the leased premises adjacent thereto.
15. BINDING EFFECT. This contract shall bind the heirs, assigns, executors and successors-in-
interest of both parties.
IN WITNESS WHEREOF, the parties have hereunto set their hands on the date and place written above.

PAULINO T. MARIKIT CELIA U. CATALAN/DANDY L. CATALAN

Lessor Lessee

Witnesses

1. ______________________ 2. _______________________
(Signature over printed name) (Signature over printed name)

NOTARIAL AKCNOWLEDGEMENT

BEFORE ME, personally appeared, PAULINO T. MARIKIT AND CELIA U.

CATALAN/DANDY L. CATALAN with their Community Tax Certificates bearing the data indicated
above, known to me and to me known to be the same persons who executed the foregoing deed and they
acknowledged to me that the execution of the same is their own free act and deed.
SIGNED AND SEALED BY ME ON THE DATE AND IN THE PLACE GIVEN ABOVE.
Doc. No. _________;
Page No. _________;
Book No. _________;
Series of 2018