CONTRACT OF LEASE

This Contract of Lease (“this Contract”) is made and executed at the City of Iligan, this 27th day of
January, 2018, by and between:

(1) Juan Dela Cruz, Filipino, of legal age, and with residential address at Barangay Tibanga, Iligan City
(the “LESSOR”); and

(2) ABC Bank, with its address at Barangay Tambo, Iligan City (the “LESSEE”).

Recitals

(A) LESSOR is the owner of the 250 sq. m. residential property lot situated at Brgy. San Miguel, Iligan City
(the “Apartment”).

(B) LESSEE desires to lease the Apartment and the LESSOR is willing to lease the same subject to the
terms and conditions specified in this Contract.

NOW THEREFORE, for and in consideration of the payment of rents and other sums due hereunder, and
the faithful compliance with all the conditions and covenants hereinafter contained, the LESSOR hereby
leases and lets unto LESSEE, and the latter does hereby accept under lease, the Apartment subject to the
following terms, covenants, conditions and restrictions:

TERMS AND CONDITIONS

1. PURPOSE: The Apartment shall be used exclusively by the LESSEE as a private residence only and
shall not be diverted to other uses. It is hereby expressly agreed that if at any time the Apartment is used
for other purposes, the LESSOR shall have the right to terminate this Contract without prejudice to its
other rights under the law and shall result in the automatic forfeiture of the advance rental and security
deposit in favor of LESSOR.

2. TERM: The term of the lease is for FIVE (5) YEARS commencing on February 4, 2018 and expiring on
February 4, 2023.

3. RENTAL RATE: The monthly rental rate for the leased premises shall be FIVE THOUSAND PESOS
PHILIPPINE PESOS (Php 5,000.00). All rental payments shall be paid to the LESSOR in cash on every 30th
day of the month.

4. ADVANCE RENTAL: Upon execution of this Contract and prior to move-in, the LESSEE agrees to pay in
advance two (2) months’ rent and one (1) month deposit which will be applied to rental payments for
the last two (2) months of the lease term.

5. SECURITY DEPOSIT: Upon execution of this Contract and prior to move-in, the LESSEE agrees to pay a
security deposit in an amount equivalent to two (2) month’s rent, as security for the faithful compliance
by the LESSEE of all terms and conditions of this Contract and for the return of the Apartment in good
and proper condition, and to answer for any and all repairs or damages to the Apartment and other
liabilities of the LESSEE under this Contract, including unpaid utilities such as water, electricity,
telephone, internet and cable TV. This security deposit cannot be applied by the LESSEE to any unpaid
rental(s) or to any other liability of the LESSEE to the LESSOR. The security deposit shall, unless the same
is subject to forfeiture under this Contract, be refunded to the LESSEE, without any interest thereon and
less the allowable deductions herein, within sixty (60) days after the expiration of the lease and after the
LESSEE has moved out of and vacated the Apartment, whichever is later.

6. UTILITY SERVICES: All charges for water, electricity, telephone, internet, cable TV and other utility
services to the Apartment shall be for the sole account of the LESSEE. The LESSEE shall promptly pay all
utility charges directly to the utility company concerned. The LESSOR will not be liable for the
discontinuance of or interruptions in utility services to the LESSEE due to any cause or reason
whatsoever.
7. LOSS: The LESSOR is not liable to any resident, guest, or occupant for injury, damage, or loss to person
or property, from any cause including fire, smoke, rain, flood, water leaks, lightning, wind, explosions,
interruption of utilities, pipe leaks, theft, negligent or intentional acts of resident, occupants, guests, or
criminal conduct of other persons including theft, burglary, assault, vandalism or other crimes.

8. FORCE MAJEURE: If whole or any part of the Apartment shall be destroyed or damaged by fire, flood,
lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to
render the leased premises during the term substantially unfit for use and occupation of the LESSEE,
then this Contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in
writing to the other.

9. DEFAULT PAYMENT: In case of default by the LESSEE in the payment of the rent, the LESSOR at its
option may terminate this contract and exercise its rights under clause 16.

10. SUB-LEASE AND ASSIGNMENT: It is expressly understood and agreed that the personal character of
the LESSEE and the nature of occupancy of the Apartment are special considerations for LESSOR’s grant
of this lease to the LESSEE. Accordingly, the LESSEE shall not assign or transfer its rights under this
Contract, nor sublease all or any part of the Apartment or enter into any arrangement whereby the use
or possession of any part of the Apartment is transferred to any person without the prior written
consent of the LESSOR.

11. CONDITION OF THE PREMISES AND ALTERATIONS: The LESSEE acknowledges to have received the
Apartment in a clean, safe, and good working condition. The LESSEE shall not make any alteration,
addition, or improvement within the Apartment or in any of the common areas, without the prior
written consent of LESSOR. No holes are allowed inside or outside the Apartment. Only items using non-
permanent or removable adhesive strips or tapes may be placed on the walls, floors, or ceiling of the
Apartment. Any improvements to the Apartment (with or without LESSOR’s consent) shall become
property of the LESSOR unless agreed otherwise in writing. The LESSEE must use customary diligence in
maintaining the Apartment and not damaging or littering the common areas.

12. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent shall after giving due notice to the
LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at
any reasonable hour to examine the same or make repairs therein or for the operation and maintenance
of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes.

13. RENEWAL: Upon its expiration, this Contract may be renewed under such terms and conditions as
may be mutually agreed upon by both parties. LESSEE shall give thirty (30) days’ prior written notice to
LESSOR of its intention to renew. In the event no renewal is agreed upon, LESSEE must vacate Apartment
on the date of expiration of lease for turn-over to LESSOR.

14. PRE-TERMINATION: Pre-termination of this Contract by LESSEE shall result in the forfeiture of the
advance rental and security deposit.

15. EXPIRATION OF LEASE: At the expiration of the term of this lease or termination thereof, as herein
provided, the LESSEE shall promptly deliver to the LESSOR the leased premises with all corresponding
keys and in as good, clean, sanitary, and tenantable condition as the same is now, ordinary wear and tear
excepted, devoid of all occupants, movable furniture, articles and effects of any kind.

16. REMEDIES FOR BREACH: If the LESSEE violates any of the terms or conditions of this Contract, the
LESSOR may, in addition to any other remedies or recourse prescribed by law, pursue any or all of
following remedies, simultaneously or successively, as follows:

(a) To terminate this Contract without the need of any prior notice, demand or judicial declaration;

(b) To immediately repossess the Apartment without the necessity or instituting any judicial or court
action. In this connection, the LESSEE hereby names, constitutes, and appoints the LESSOR, its
authorized agents, employees, and/or representatives, as its attorney-in-fact, with full power and
authority, to open, break-open, padlock, enter, occupy, secure, the Apartment, to clean up, make repairs
in, and re-let the premises, remove property left in the Apartment and to take such other steps and
employ such other means to enable the LESSOR to take full and complete physical possession and
control of the Apartment, barring the LESSEE from entering the Apartment.

The LESSEE hereby expressly agrees to hold the LESSOR and/or its authorized agents, employees, or
representatives will be free and harmless from any civil and/or criminal liability or responsibility for the
acts described under this provision.

(c) To demand and receive from the LESSEE payment for any and all unpaid rentals, fees, charges,
damages, and other financial obligations stipulated in, or arising out of this Contract.

(d) To automatically forfeit the advance rental and security deposit in its favor.

17. JUDICIAL RELIEF: Should the LESSOR be compelled to seek judicial relief against the LESSEE in order
to enforce any or all its rights under this Contract, the LESSEE, in addition to any other damages that may
be awarded by the court, shall pay an amount of twenty five percent (25%) of the amount clamed in the
complaint as attorney's fees which shall in no case be less than Fifty Thousand Philippine Pesos
(Php50,000.00) in addition to other cost and damages which the said party may be entitled to under the
law. The parties hereby agree to submit any action arising from or incident to this Contract to the
jurisdiction of the proper courts of Lucena City only, to the exclusion of all other courts.

18. SUCCESSION: This CONTRACT OF LEASE shall be valid and binding between the parties and their
successors-in-interest.

IN WITNESS WHEREOF, the parties herein affixed their signatures on the date and place above written.

JUAN DELA CRUZ ABC BANK

LESSOR LESSEE

Signed in the presence of:

_____________________________ ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

Name Government Issued ID Date/Place Issued

JUAN DELA CRUZ 885903756048 05/17/18

ABC BANK 948263056482 05/15/18

Known to me and to me known to be the same persons who executed the foregoing instrument and
acknowledged to me that the same is their free and voluntary act and deed.

This instrument consisting of four (4) page/s, including the page on which this acknowledgement is
written, has been signed on each and every page thereof by the concerned parties and their witnesses,
and and sealed with my notarial seal.

WITNESS MY HAND AND SEAL, on the date and place first above written.
 Notary Public

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