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This CONTRACT OF LEASE made and executed by and between:

DAGNY EMBERGA REALTY CORPORATION, a corporation existing and registered in

accordance with laws of the Republic of the Philippines, herein represented by HECTOR A.
EMBERGA1, of legal age, Filipino, and a resident of Davao City, herein designated as the LESSOR;

SUSUKINO JAPANESE GIRLS BAR AND PUB. a business existing and registered in
accordance with the laws of the Republic of the Philippines, herein represented by its registered
owner RICSAL MONSALE PEREZ, likewise of legal age, Filipino, and a resident of Davao City,
herein designated as the LESSEE;


1) DESCRIPTION: The LESSOR, in consideration of the rent reserved herein to be

paid by said LESSEE and of other covenants, agreements and conditions hereinafter contained to
be performed, kept and observed by said LESSEE, does hereby let and lease, unto said LESSEE, the
following described premises in the City of Davao, Philippines, to wit:

Door 3, Building A, Focal Point at

Eco West Drive, Davao City,
on an as is, where is basis including
the improvements found therein, consisting of
Sixty Square Meters (60 sqm), more or less;

2) TERM: This Contract of Lease shall take effect from _______________ and shall
remain in full force and effect for a period of one (1) year, which will end on ______________.

3) RENEWAL OF CONTRACT: This contract is renewable yearly, for a term of one

(1) year for every renewal. The LESSEE, should they wish to renew this contract, must inform the
LESSOR of their intent to renew, two (2) months prior the expiration of the existing contract, or
at least before ______________. The LESSOR reserves their right to refuse the offer to renew
should they find reasonable reasons to do the same;

4) USE: The leased premises is to be occupied and used only for the purpose of
putting up SUSUKINO JAPANESE GIRLS BAR AND PUB, and all other uses incident to said

In connection to this, and prior to the signing of this contract, the LESSEE shall submit to
the LESSOR an illustration of the proposed utilization of the Leased premises, through a drawn
perspective or design plan, subject to the Approval of the LESSOR. Upon the LESSOR’S approval,
the LESSEE binds himself/herself/themselves to adhere to the plan as approved by the LESSOR.
No modification of the plan shall be done unless approved by the LESSOR in writing. Any
deviation from the plan as approved by the LESSOR and the actual utilization of the LEASED
premises by the LESSEE without the latter’s written consent shall constitute as a violation of the
terms and conditions of this Agreement subject to the consequences as provided henceforth;

A copy of the approved perspective is hereto attached as ANNEXES “A” to “A-2”;

1 A copy of Secretary’s Certificate is hereto attached;

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Contract of Lease
5) NON-DIVERTION OF USE: The LESSEE shall not divert the premises to other
uses without prior written consent of the LESSOR it being expressly agreed that if at any time
during the existence of this lease, and without the previous written consent of the LESSOR, the
premises are used for other purpose, the LESSOR has the choice to (a) rescind the contract; (b)
increase the rent, or (c) compel the LESSEE to stop the new activities, at the option of the

6) RENT: The LESSEE, in consideration of the premises and of the covenants and
agreements made herein, leases from the LESSOR the said premises for said terms, and do hereby
promise and agree to pay to said LESSOR, his representative or assigns, as rental for said
premises, the amount of Forty Thousand Pesos (Php40,000.00) per month, subject to an
increment after the third year. (SEE: Item No. 7).

The monthly rental of Forty Thousand Pesos (Php40,000.00) shall be paid every 5th day
of the month, starting ______. This monthly rental payment shall be considered to cover the rent
for the month during which the payment was made. Failure of the LESSEE to pay the current
month’s rental on time shall be ground for the termination of this lease on the basis that the latter
has defaulted.


renew this contract for the next two (2) years, no increment in the amount of rent will be made.
The LESSOR and LESSEE further agrees that should this contract be renewed after the third year,
a 10% increase on the amount of rent per square meter will be implemented every year thereafter,
without need of further negotiations or execution of a new contract.

8) ADVANCE RENTAL: The LESSEE agrees to pay LESSOR the amount of Forty
Thousand Pesos (Php40,000.00) as advance rental payment, equivalent to one (1) month rent,
upon the signing of this contract.

9) SECURITY DEPOSIT: Upon signing hereof, the LESSEE shall pay to the LESSOR
the amount of Eighty Thousand Pesos (Php 80,000.00), equivalent to two (2) months rental, as
deposit. The security deposit made by the LESSEE upon signing of this Contract of Lease shall
answer for any of LESSEE’s obligations and damages, except rental arrears, under this Contract
and be returned at the termination of this lease, after deducting whatever account which the said
LESSEE might then be owing to the LESSOR including expenses incurred by the LESSOR to
restore and repair the leased premises in its original condition before its use was converted by the

10) WITHHOLDING TAX: The LESSEE shall withhold five percent (5%) of the
stipulated monthly rental payment which shall be remitted to the Bureau of Internal Revenue
(BIR) or paid at the accredited bank using BIR Form 1601E in a monthly basis. Further, the LESSEE
shall prepare and issue to the LESSOR using BIR Form 2307 quarterly as a certificate or proof of

11) TURNOVER: The Lessor agrees to turn-over the possession of the premises to the
LESSEE upon signing this contract. The LESSEE in turn, takes and accepts the leased premises on
“as is, where is” basis including the improvements found therein and shall be responsible in
addressing and fixing the needed repairs or renovations of the premises upon its turnover.
Improvements found at the time of signing this lease shall remain and existing even at the time of
the termination of the lease;

Existing improvements within the leased premises are the properties of the LESSOR and
the LESSEE shall not cut or remove them from the premises. LESSOR shall maintain and preserve
the same;

12) TURNOVER PERIOD: Upon signing of this contract and Ninety (90) days
thereafter, LESSOR allows the LESSEE to enter the property for the sole purpose of doing therein
the improvements and renovations necessary for the operation of the business the LESSEE
intends to do in the premises, without need of paying rent. Nonetheless, during this period, the

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Contract of Lease
LESSEE’ agrees to abide by the covenants of this contract pertaining to its use, and agrees further
to respect LESSOR’s right to enter the property at any time, when deemed necessary.

13) UTILITIES: The LESSEE further covenants and agrees to pay electric current,
water, telephone and other rates of charges payable during the entire term of this lease, and to
replace at LESSEE’S expense with like kind and quality any glass in the windows, toilet bowl,
lavatory, bathroom fixture, electric fixtures, etc., of said premises which may be broken or have
cracked during said term.

In the event the LESSEE will not pay on time and update the bills for electricity and water,
the LESSOR in whose account such services are registered with the service/utility firms shall
cancel the lease and terminate and discontinue the electric or water service by reporting the same
to the service and to cut-off the service;

14) REPAIRS AND ALTERATIONS: The LESSEE further covenants and agrees that
he/she will, at his/her own expense, during the entire term of this lease, keep the said premises
and every part thereof, and at the expiration of the term, yield and deliver up the premises in like
condition as when taken, LESSEE shall not make any alteration, addition or improvements to said
premises without the LESSOR’S prior written consent and all alteration, additions or
improvements made by the LESSEE without reimbursement of cost and expenses thereof, and
shall remain upon and be surrendered together with the premises at the termination of this lease
without hindrance or injury. The LESSEE further agrees that the rental deposit will be used to
answer for the expenses incurred to restore and repair the premises in its original condition;

15) ASSIGN AND SUBLEASE: The LESSEE further covenants that he/she will not
assign, transfer, mortgage or subject said premises or any part thereof, without the written
consent of the LESSOR first hand. Also, that the written consent to any assignment or transfer, or
subletting of this lease, shall not be considered as waiver of this covenant by the LESSOR to any
subsequent assignment, transfer or subletting, no such written assent to any assignment of
transfer shall release said LESSEE from liability hereunder;

16) COMPLIANCE OF LAWS: The LESSEE shall comply with any and all laws,
ordinances, regulations or orders promulgated by proper government authorities arising from or
regarding the use, occupation and sanitation of the leased premises, and non-compliance
therewith shall be at the exclusive risk and expense of the LESSEE;

17) NON-LIABILITY TO THIRD PERSONS: The LESSOR shall not be made party to
any actions, suits or claims for damages brought by or against LESSEE in relation to the business
or dealings done in the premises, by reason of non-observance of rules, regulations, ordinances or
laws, without prejudice to the right of the LESSOR to cancel the lease or exhaust other legal
remedies to protect its rights, in accordance with law and the penal provisions hereinafter

18) INSPECTION OF PREMISES: The LESSOR shall or his duly authorized

representatives shall have the right to inspect the leased premises at any reasonable hour of the

19) SURRENDER OF PREMISES: The LESSEE further covenants and agrees that
upon the expiration of said term or upon the termination of the lease for any cause authorized in
this contract, he/she will at once peacefully surrender without need of any demand and deliver
the whole of the premises to the LESSOR, his agents and assigns, with all improvements and
devoid of all occupants, furniture, articles and effects of any kind owned by the LESSEE;

If said premises not be surrendered at the expiration of the term, the LESSEE shall be
responsible to the LESSOR for all the damages which the LESSOR shall suffer any reason thereof,
and will indemnify the LESSOR against any and all claims made by any succeeding tenants
against the LESSOR, resulting from the deal for the LESSOR in delivering possession of the
premises to such succeeding tenants, so far such delay is occasioned by the failure of the LESSEE
to surrender the premises on time;

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Contract of Lease
20) ABANDONMENT OF PREMISES: In case the leased premises shall be deserted or
vacated before the expiration of this lease, this contract is deemed terminated, without prejudice
to the filing of the LESSOR of appropriate action in court to protect his rights. In addition, the
LESSOR or their duly authorized representative shall have the right to enter the same either by
force or otherwise without being liable to any prosecution and take possession thereof;

21) DAMAGE THROUGH FORTUITOUS CAUSES: In case of damage to the leased

premises or its appurtenances by fire, earthquake or war or any cause beyond LESSEE’s control
and without his fault or negligence, the LESSEE shall give immediate notice thereof to the
LESSOR. In such cases, the injury will be repaired at the expense of the LESSOR, as speedily as
possible, after such notice.

If LESSEE should fail to inform the LESSOR of the damage caused by any fortuitous events
mentioned above as soon as relaying said information is possible, and the damage caused to the
property worsened due to said delay, the LESSEE will shoulder fifty percent (50%) of the expenses
for the repair of the damage.

If the building of the leased premises be so nearly destroyed as to make it untenantable,

without the fault or negligence of the LESSEE, either party may demand rescission of this

22) DEFAULT OR VIOLATIONS: It is the essence of this Contract that the LESSEE
agrees that the covenants herein contained shall be deemed essential conditions and that if
default or breach be made of any such conditions, the LESSOR shall have the right to terminate
and cancel this Contract, whether judicially or extra-judicially upon five (5) days notice delivered
at the leased premises or posted on the main doors thereof. Upon such termination or
cancellation, the LESSOR may forthwith either lock the premises and exclude the LESSEE there
from, whether forcefully or otherwise, without incurring any civil or criminal liability for the

23) TAXES: The LESSEE shall be liable for all the taxes, fees and charges arising from
the operations of its business and dealings and shall hold the LESSOR free and harmless from the
aforementioned obligations;

24) DISPUTES: In case of disputes, the parties hereby agree to settle the same only in
the Courts of Davao City. Breach by any of the parties of any of the stipulations of this contract
would mean the automatic termination of the contract by the other. All remedies granted to any
of the parties under this contract or elsewhere shall be deemed cumulative.

25) NON-WAIVER OF CLAIMS. The failure of the LESSOR to insist upon strict
performance of the terms, conditions and covenants shall not constitute as a waiver thereof. No
waiver by the LESSOR of any of his/her rights under this Contract shall be deemed to have been
made unless expressed in writing and signed by the LESSOR;

IN WITNESS WHEREOF, we have hereunto set our hands this 6th day of August 2018 at
Davao City, Philippines.



Represented by: Represented by:


ID Type: Taxpayer’s ID ID Type: Voter’s Identification Card
ID No.: 180-645-926 ID No.:2402-2143B-G0690RMP10000

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Contract of Lease
Signed in the presence of:

________________________ & ___________________________


Republic of the Philippines)

In the City of Davao )

In the City of Davao, Philippines, this 6th day of August 2018, appeared before me the
parties who represented to me to be the same persons who executed the foregoing instrument,
consisting of six (6) pages including this page wherein this acknowledgement is written, signed by
the parties and their instrumental witnesses on each and every page thereof and that they
acknowledged to me that the same is their own free act and deed.

WITNESS MY HAND AND SEAL, this 6th day of August 2018 in Davao City, Philippines.

Doc No. _____;

Page No. _____;
Book No. _____;
Series of 2018.

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Contract of Lease