CONTRACT OF LEASE

KNOW ALL MENT BY THESE PRESENTS

This Contract of Lease made and entered into, by the following:

_________________, of legal age, Filipino, and a resident of Davao City,

Philippines, hereinafter referred to as the LESSOR”;

-and-

_________________, of legal age, Filipino, and a resident of

_____________________________________, Davao City, Philippines, hereinafter referred
as the “LESSEE”;

WITNESSETH:

WHEREAS, the LESSOR is the registered owner of a boarding house, situated at

Purok Waling Waling, Baguio District, Davao City, Philippines, hereinafter referred to as
“BOARDING HOUSE”.

WHEREAS, the LESSOR is willing to lease the said BOARDING HOUSE to the
LESSEE subject to the terms and conditions hereinafter stipulated, the parties have
mutually agreed as follows:

1) OBJECT OF THE LEASE:

The LESSOR hereby offers unto the LESSEE, to lease ROOM NO. ___________ of
the foregoing BOARDING HOUSE and the latter hereby accepts.

2) MONTHLY RENTAL:

The LESSEE shall pay the LESSOR a monthly rental in the amount of
_____________________________________ PESOS (PHP______________), payable on
every _______ day of each month, for a term of ________________..

3) TERMS

This Contract shall be for a term of _______ month from the execution of this
Contract.

4) DEPOSIT AND ADVANCE RENTAL:

Upon execution of this contract, the LESSEE shall pay one (1) month advance
rental in the amount of _____________________________________ PESOS
(PHP______________),, and one (1) month security deposit in the amount of
_____________________________________ PESOS (PHP______________).

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 The security deposit shall be returned at the termination or end of this contract,
less whatever amount for the unpaid Light, Water, and other utilities.

The security deposit is separate and independent of the monthly rental of which
the LESSEE is obliged to pay the LESSOR in accordance with terms of this contract. The
security deposit shall never be applied to unpaid rentals. Thus, failure of the LESSEE to
pay any rental as they fall due shall constitute default or breach of this contract.

5) USE OF THE PREMISES:

The BOARDING HOUSE shall be exclusively for residential purpose. The LESSEE
shall not use the BOARDING HOUSE to any other purpose without prior written consent
from the LESSOR. Otherwise, it may be deemed to be gross violation of this Contract
and the LESSOR may terminate this contract after notice.

6) PROHIBITATION FROM SUB-LEASING:

The LESSEE shall not directly or indirectly sub-lease any room of the BOARDING
HOUSE or any portion thereof without the written approval of the LESSOR. Any such
contract made in violation of this clause shall be null and void, and be deemed to be gross
violation of this Contract. It is expressly understood and agreed by the parties that the
personal character of the leased premises as above the restricted and constituted are the
special consideration for granting of this lease by the LESSOR, consequently, any
violation directly and unequivocally terminates this contract of lease from the time such
violation occur.

7) INTRODUCTION OF IMPROVEMENTS, ETC.:

The LESSEE is prohibited to introduce improvements on the BOARDING HOUSE

without the prior written consent of the LESSOR. In case the LESSOR allows the
introduction of such improvements, it shall be made at the LESSEE’S expenses. Any
damage caused to a third person due to the introduction of such improvement or damage
caused to the premises not in consonance with what has been agreed upon between the
LESSOR and the LESSEE, shall be borne by the LESSEE.

Upon the termination of the lease, any improvement that cannot be removed on
the premises without causing damage thereto shall belong to the LESSOR therefore,
unless the LESSOR elects to compel the LESSEE to remove them forthwith, in which event
the LESSEE shall undertake such removal at his own expenses, restoring the premises in
the same condition in which the received from the LESSOR.

8) CARE OF THE BOARDING HOUSE:

The LESSEE acknowledges that prior to the commencement of this Contract, the
LESSEE has inspected the room of the BOARDING HOUSE, as well as its common areas,
and is satisfied that it is in good and tenantable condition. The LESSEE shall, at his
expenses, maintain the BOARDING HOUSE in a clean and sanitary condition, free from
noxious odors, disturbing noises, or other nuisances and upon expiration of lease, shall
surrender and return the premises and fixtures in as good conditions as they were

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actually found at the beginning of this lease, ordinary wear and tear expected. for the
account of the LESSEE. The sidewalks, entrances, passages and corridors of the building
shall not be obstructed or used by the LESSEE for any purposes other than for ingress to
egress from the building.

The LESSEE shall comply with any and all laws, ordinances, regulations or orders
of the national or local government regarding the use, the occupation, the introduction of
improvement and the sanitation of the BOARDING HOUSE. Expenses arising from the
failure to comply with such laws, ordinances, regulations or order shall be for the account
of the LESSEE. The LESSEE shall likewise comply with any sanitation and safety
regulations, which may be promulgated by the LESSOR from time to time.

9) REPAIRS:

The LESSEE shall be responsible for all the repairs on the improvements on the
BOARDING HOUSE or any parts thereof, at his expense.

10) UTILITIES:

The LESSEE shall pay or defray at his exclusive expenses the consumption of
water, electric, or other utility services in the BOARDING HOUSE. All repairs in the
utility service system therein are for the exclusive account of the LESSEE. All fees related
to the usage of the lot within the duration of this contract.

11) FIRE HAZARD:

The LESSEE shall not bring into or store in the BOARDING HOUSE, any
inflammable or explosive goods or materials nor any article which may expose the leased
Premises to fire or increase the fire hazard or the rate of insurance of the Leases Premises.

12) INJURY OR DAMAGE TO THIRD PERSON:

The LESSEE hereby assumes full responsibility for any damage which he may
have caused to the person or property of the third persons or other boarders and further
binds himself to hold the LESSOR free and harmless from such any claim, injury or
damage is due to the negligence of the LESSEE. The LESSOR endorses the list of the
furnishing with good condition and thereby will accept the same termination of this
contract.

13) PRE-TERMINATION:

The LESSEE may pre-terminate the contract with or without cause by serving a
written notice to the LESSOR within five (5) days prior to the intended date of
termination: Provided however, that the whole amount of the security deposit shall be
forfeited in favor of the LESSOR to answer for the loss of income opportunity, without
prejudice to some other damages that may be due to the LESSOR.

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14) AUTOMATIC TERMINATION OF THE LEASE:

If the rental stipulated, or in any part thereof, at any time, shall in arrears or
unpaid, or if the LESSEE shall at any time fail or neglect to perform or comply with any
of the covenants, conditions, agreements or restrictions stipulated or if the LESSEE shall
become bankrupt or insolvent or shall compound with its creditors, or become legally
questionable or is a fugitive of his country of origin or any such above cases, this lease
contract shall become automatically terminated and cancelled and the premises shall be
vacated peacefully by the LESSEE for the LESSOR to hold and enjoy henceforth as if these
presents have not been made and it shall be lawful for the LESSOR or any person or
persons duly authorized in his behalf, without any formal notice or demand, to exercise
to any of all rights from the contract of lease and the LESSEE shall have vacate the place
peacefully.

15) RIGHT TO SELL, CEDE, TRANSFER OR ASSIGN:

The LESSEE hereby expressly recognizes the absolute right of the LESSOR to sell,
cede, transfer or assign the BOARDING HOUSE. However, in the event of sale, the
LESSOR hereby undertakes to cause the purchaser to respect the terms and conditions of
this Contract

16) REAL ESTATE TAXES, FEE, ASSESMENTS:

Real estate taxes, fees and assessments due on the BOARDING HOUSE shall be
for the account of the LESSOR.

17) INSPECTION OF THE PREMISES:

The LESSOR or his authorized representative shall have the right to inspect the
leased premises at any reasonable hour of the day provided that the LESSOR has notified
the LESSEE at least one (1) prior to the date intended for inspection.

18) DESTRUCTION THROUGH FORTUITOUS EVENT:

In the event that the leased Premises is partially or wholly damaged by fire,
earthquake, severe flood or any other fortuitous event, or cause not attributable to the
fault or gross negligence of the LESSEE or LESSOR, its agents or personnel, either party
may terminate this contract effective immediately upon written notice thereof to the other
party.

19) SURRENDER OF THE PREMISES:

The LESSEE shall, at expiration or termination of this Contract, promptly deliver

the room of the BOARDING HOUSE to the LESSOR in as good and tenantable condition,
reasonable wear and tear excepted, devoid of all occupants, furniture, articles and effects.

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20) VENUE OF ACTION:

Any action arising from this contract, shall be brought exclusively to the proper
court of the City of Davao only, to the exclusion of all other courts.

IN WITNESS WHEROF, the parties hereunto set their hands this

________________ 2018 at Davao City, Philippines

_________________________ ______________________
Lessor Lessee
Valid ID_________________________ Valid ID_________________________

SIGNED IN THE PRESENCE OF

_____________________________ _____________________________

Republic of the Philippines )

City of Davao ) s.s.

ACKNOWLEDGEMENT

BEFORE ME, a Notary Public for and in the City of Davao, personally appeared
the foregoing parties with their respective competent evidences of identity, known to me
and to me known to be the same persons who executed the forgoing instrument which
they acknowledged to me to be their free voluntary act and deed, consisting of five (5)
pages, including this page in which these Acknowledgement is written, duly signed by
them and their instrumental witnesses on each and every page hereof.

WITTNESS MY HAND SEAL this _____ day ___________________ 2018 at Davao

City, Philippines.

Doc. No.___;
Page No.___;
Book No.___;
Series of 2018.

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