CONTRACT OF LEASE

(Duplex House & Lot)

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease (the “Contract”), executed in Cebu City, on this __15___
day of _____April___________ 2018, by and between:

The LESSOR: Ian J. Alix, of legal age, Filipino, married to Sheryll T. Alix, and a
resident of _______Uldog, Talisay__________________________, Cebu City,
Philippines. And represented by Aileen Amodia, a resident of Lapu Lapu, Cebu City,
Philippines.
- and –

_Phil Alberto__D. Fabe____________________, Filipino, of legal

age, single/married, with permanent postal address at
_________________________________________
(hereinafter referred to as the “Lessee”);

Each of the Lessor and Lessee is referred to as a “Party”, and collectively

as the “Parties”;

WITNESSETH, that:

WHEREAS, the Lessor is the absolute and registered owner of that

certain real property consisting of a duplex house located at Block 5, Lot 25 Palm
Heights Subdivision Tabok Mandaue City and evidenced by Transfer Certificate
of Title No. ________ issued by the Registrar of Deeds of _Mandaue City_ on
_________________ (the “Property”);

WHEREAS, the Lessor offers to lease the Property and the Lessee
desires to lease the same on the terms hereinafter set forth;

NOW, THEREFORE, for and in consideration of the foregoing

stipulations and of the terms and conditions hereinafter set forth, the Parties have
agreed as follows:

1. LEASED PROPERTY. The Lessor leases unto the Lessee that

particular portion of the Property designated as a Duplex house with an
area of approximately eighty (80) square meters (the “Leased Property”).
The Lessee confirms, by the execution of this Contract, that the Leased
Property is in good and tenantable condition.

*2. RENTAL FEE. The Lessee agrees to pay the Lessor an initial base
monthly rental fee of SIXTEEN THOUSAND PESOS (PhP16,000.00),
Philippine currency, inclusive of the applicable Value Added Tax (VAT)
within the _______ calendar days of each month, without need of
demand, by delivering/ depositing payment at the above-stated office
address / Bank account of the Lessor (the “Rental Fee”). Any delay in the
payment of the agreed Rental Fee shall be subject to a fine of ONE
HUNDRED PESOS (PhP100.00) for every day of delay until full payment
of the total past due amount (the “Rental Fee Fine”) without prejudice to
the sanctions and remedies available to the Lessor for Default in Payment
and Breach of Contract by the Lessee under Clause 13 hereof.

*3. TAXES AND LICENCES. Real Estate Taxes on the Leased Premises
shall be borne by the LESSOR.

All real estate and all assessments imposed on the land shall be paid by
and shall be for the account of the LESSOR. Documentary stamp tax for
 the Contract of Lease shall be borne by the LESSEE. The deadline for
payment of the documentary stamps is within ten (10) days from the date
of notarization of this Contract of Lease.

4. ADVANCE PAYMENT. On the date of execution of this Contract, the

Lessee shall pay to the Lessor the amount equivalent to one (1) month’s
Rental Fee, as and by way of an advance payment of rental to be applied
on the first month of the Lease Term (the “Advance Payment”). Any
delay in the payment of the agreed Advance Payment shall be subject to a
fine of ONE HUNDRED PESOS (PhP100.00) for every day of delay until
full payment of the total past due amount (the “Advance Payment Fine”)
without prejudice to the sanctions and remedies available to the Lessor for
Default in Payment and Breach of Contract by the Lessee under Clause 13
hereof.

5. SECURITY DEPOSIT. The Lessee shall provide a security deposit in

the total amount equivalent to the Rental Fee for two (2) months, from
which any and all damage to the Leased Property or to the Property and
any injury to any party arising from the fault or negligence of the Lessee
or any person granted access to the Leased Property or Property on
account of the Lessee, any unpaid utility bills and other amounts owing
from the Lessee under this Contract, shall be deducted by the Lessor at the
end of the Lease Term (the “Security Deposit”). The Security Deposit held
in trust by the Lessor shall not earn interest and shall not be applied to
payment of any Rental Fee, balance of the Security Deposit, Hold-Over
Rental Fee, any fine, or any other amount due under this Contract other
than the stipulated purpose of the Security Deposit. Any balance on the
Security Deposit shall be returned to the Lessee within sixty (60) days
from the end of the Lease Term, subject to proof of full payment of all
utility bills by the Lessee. On the execution date of this Contract, full
remittance of the Security Deposit shall be made by the Lessee in the
amount equivalent to the Rental Fee for two (2) months.

Any delay in the payment of the agreed Security Deposit shall be subject
to a fine of ONE HUNDRED PESOS (PhP100.00) for every day of delay
until full payment of the total past due amount (the “Security Deposit
Fine”) without prejudice to the sanctions and remedies available to the
Lessor for Default in Payment and Breach of Contract by the Lessee under
Clause 13 hereof.

At any instance, the Security Deposit should not be used to pay for rent. If
the Security Deposit is used to pay for any Rental Fee arrears, a penalty of
Two Thousand Pesos (Php 2,000.00) for each month consumed will be
charged to the Lessee

*6. LEASE TERM. The term of the lease shall be for a period of ONE (1)
YEAR, commencing on _______________ and expiring at midnight of
___________________ (the “Lease Term”).

6.1 RENEWAL. The Lease Contract may be renewed for a period of

one (1) year at any instance, on terms and conditions to be agreed
by the Parties, subject to escalation of the Rental Fee and Security
Deposit at the agreed rate agreed to and amenable to both parties,
for every subsequent renewal of the lease, provided that the Lessee
furnishes the Lessor written notice of the intention to renew the
lease Term and a new lease contract is executed by the Parties at
least thirty (30) days prior to within a period of at least sixty (60)
days prior to the expiration of the Lease the expiration of the Lease
Term.

6.2 DUTY TO VACATE THE LEASED PROPERTY. The Lessee

undertakes to vacate the Leased Property and surrender the Leased
 Property to the Lessor in as good condition/ original appearance as
at the commencement of the Lease Term, fair wear and tear
excepted, together with the complete set of keys thereto, not later
than one (1) day following the expiration of the Lease Term or
three (3) days following Pre-termination pursuant to Clause 14 or
the termination of the Contract in accordance with Sub-Clause 13.3
hereof, without need of demand. Lessee shall indemnify Lessor for
any claim by a subsequent tenant or damage occasioned by any
delay in vacating the Leased Property.

6.3 HOLD OVER RENTAL FEE. In the event that the Lessee fails
to renew the lease and/or vacate the Leased Property within the
stipulated period under Sub-Clause 5.2 hereof, the Lessor shall
impose an agreed rental fee and penalty, payable in the manner set
forth in Clause 2, in an amount equivalent to twice the agreed
Rental Fee on the first month of hold-over or any fraction thereof;
twice the agreed Rental Fee on the second month of hold-over or
any fraction thereof; thrice the agreed Rental Fee on the third
month of hold-over or any fraction thereof; thrice the agreed
Rental Fee on the fourth month of hold-over or any fraction
thereof; four times the agreed Rental Fee on the fifth month or any
fraction thereof; and four times the agreed Rental Fee on the sixth
month or any fraction thereof (the “Hold-Over Rental Fee”). Any
delay in the payment of the agreed Hold-Over Rental Fee shall be
subject to a fine of ONE HUNDRED PESOS (PhP100.00) for
every day of delay until full payment of the total past due amount
(the “Hold-Over Rental Fee Fine”). The hold-over period shall not
exceed six (6) months from the end of the Lease Term and is
conditioned upon due payment of the Hold-Over Rental Fee, the
Hold-Over Rental Fee Fine and compliance with all other terms
and conditions of this Contract, otherwise the provisions on
Default in Payment and Breach of Contract under Clause 13 hereof
shall apply.

6.4 ABANDONMENT OF THE LEASED PROPERTY. The

Lessee shall be deemed to have abandoned the Leased Property
upon the concurrence of any Default in Payment and locking-up or
leaving the Leased Property unattended for at least fourteen (14)
consecutive calendar days (“Äbandonment”). In case of
Abandonment of the Leased Property by the Lessee, the provisions
on Breach of Contract under Clause 14 hereof shall apply.

7. FINE. Any late payment of the Advance Payment, any Rental Fee, the
balance of the Security Deposit, any Hold-Over Rental Fee, Storage Fee
and/or all other amounts due under this Contract shall be subject to
cumulative fines in the stipulated amounts under this Contract. The Lessor
shall have the right to apply any payment made by the Lessee to accrued
cumulative fines prior to applying any balance thereof to any principal
amount due.

8. USE OF THE LEASED PROPERTY. The Leased Property shall be

used strictly and exclusively for residential purposes of the Lessee. The
Lessee shall abide by all rules and regulations imposed by the Lessor
within the Leased Property and Property, particularly the prohibition
against keeping any undomesticated pets of any kind therein; avoiding any
and all nuisances within the Leased Property and Property (i.e., noise,
pollution, unauthorized use and/or obstruction along common areas of the
Property, etc.); the prohibition against loitering, littering and smoking
within the Property of the Property; the prohibition against keeping or
storing inflammable, explosive, toxic, noxious and/or hazardous
substances within the Leased Property and Property; the prohibition
against affixing, inscribing or painting any notices, signages, graffiti or
 other advertising medium on any portion of the Property, on any part
outside of the Leased Property including the outer gates and walls thereof;
the prohibition against all acts contrary to law, morals and public policy
within the Leased Property and Property; and such other reasonable rules
and regulations as the Lessor may impose from time to time of which the
Lessee shall be duly informed in writing. Any violation of this provision
shall entitle the Lessor to apply the provisions of Clause 14 hereof for
Breach of Contract by the Lessee and to hold Lessee solely liable, with
right of indemnification to Lessor, for any damage, injury and/or increase
in insurance premium over the Leased Property or Property in
consequence thereof.

9. PROHIBITION AGAINST SUB-LEASE AND ASSIGNMENT OF

RIGHTS. The right over the lease under this Contract is personal to the
Lessee and not subject to sub-lease or assignment without the prior written
consent of the Lessor. Any violation of this provision shall constitute a
Breach of Contract over which the provisions of Clause 14 hereof shall
apply.

10. ALTERATION, ADDITION OR IMPROVEMENT. The Lessee shall

not introduce any alteration, addition or improvement within the Leased
Property or Property without the prior written consent of the Lessor.

10.1 AUTHORIZED ALTERATION, ADDITION OR

IMPROVEMENT. The Lessor shall have the sole option to
require the Lessee to remove any authorized alteration, addition or
improvement on the Leased Property or Property at the end of the
Lease Term or upon Pre-termination pursuant to Clause 14 or
termination of this Contract in accordance with Sub-Clause 14.3
hereof and to require the Lessee to restore the Leased Property or
Property to its original condition at Lessee’s cost, failing which the
Lessor may execute the restoration at Lessee’s sole expense
deductible from the Security Deposit, unless the Lessor opts to
appropriate the alteration, addition or improvement for the benefit
of the Leased Property or Property without need to reimburse the
Lessee for the value thereof.

UNAUTHORIZED ALTERATION, ADDITION OR

IMPROVEMENT. Any unauthorized alteration, addition or
improvement shall be removed by the Lessee within three (3)
calendar days from written demand by the Lessor, or by the Lessor
at the cost of the Lessee if the latter fails or refuses to do so,
subject to deduction from the Security Deposit of the cost of
removal thereof, restoration of the Leased Property to its original
condition, and any damage to the Leased Property or Property,
unless the Lessor opts to appropriate such unauthorized alteration,
addition or improvement for the benefit of the Leased Property or
Property without need of reimbursement for the value thereof to
the Lessee. The introduction by the Lessee of any unauthorized
alteration, addition or improvement; or the failure or refusal of the
Lessee to remove any authorized alteration, addition or
improvement from the Leased Property or Property at the end of
the Lease Term or upon Pre-termination pursuant to Clause 15 or
termination of this Contract in accordance with Sub-Clause 15.3
hereof shall be deemed a Breach of Contract over which the
provisions of Clause 13 shall apply.

11. REPAIRS, FIXTURES, APPLIANCES AND ELECTRICAL

INSTALLATIONS

11.1 REPAIRS. All repairs shall be for the account of the Lessee,
except necessary repairs that are structural in nature which
 shall be for the account of the Lessor. The Lessee undertakes
to maintain the Leased Property in good and sanitary
condition for the duration of the Lease Term and any hold-
over period, fair wear and tear excepted.

11.2 FIXTURES. All lighting and electrical fixtures other than those
provided within the Leased Property at the commencement of the
lease shall be for the sole account of the Lessee.

11.3 APPLIANCES. The Lessor shall provide the Lessee with 3 air-
conditioning units. Semi-annual maintenance of the air-
conditioning unit is for the account of the tenant. Due maintenance
is to be provided by the lessee.

11.4 ELECTRICAL INSTALLATIONS. Any additional electrical

installations required by the Lessee shall be considered an
Alteration, Addition or Improvement subject to the provisions of
Clause 9 hereof.

12. CHARGES FOR UTILITIES. All charges for public services, facilities
and utilities (i.e., electricity, water, telephone, cable, internet, etc.)
contracted and/or used by the Lessee during the effectivity of the lease
under this Contract shall be for the sole account of the Lessee and must be
duly paid at all times. The Lessor shall not be liable for any unpaid bills
incurred by the Lessee. Any violation of this clause shall constitute a
Breach of Contract over which the provisions of Clause 14 shall apply.

*13. INSPECTION OF PROPERTY. With prior 24 hour notice to the

Lessee, the Lessor or his/its authorized representative reserves the right to
inspect the Leased Property at any reasonable time on any day for the
purpose of monitoring its condition, making structural repairs, and/or to
show the same to prospective tenants in the event that the Lessee does not
confirm the intent to renew the lease pursuant to Sub-Clause 6.1 hereof,
within the presence of the Lessee.

14. BREACH OF CONTRACT. For the avoidance of doubt, a breach of

contract refers to a Default in Payment, Abandonment of the Leased
Property by the Lessee, failure by the Lessee to vacate the Leased
Property in accordance with Sub-Clause 6.2 hereof, and/or a violation by
either Party of any provision of this Contract (“Breach of Contract”), for
which the penalties and sanctions provided hereunder shall apply.

14.1 DEFAULT IN PAYMENT. Any delay in the remittance of the

Advance Payment, any Rental Fee, the balance of the Security
Deposit, any Hold-Over Rental Fee, Storage Fee, and/or all other
amounts due under this Contract shall constitute a default in payment
subject to the stipulated cumulative fines under this Contract and the
sanctions and remedies provided under Clause 14 hereof for Breach of
Contract (“Default in Payment”).

14.2 DENIAL OF ACCESS, LOCK-UP, PLEDGE AND AUCTION

OF PROPERTIES. In the event of Abandonment of the Leased
Property by the Lessee as provided for under Sub-Clause 6.4 hereof,
Default in Payment by the Lessee under Sub-Clause 14.1 for a
duration of at least fourteen (14) consecutive calendar days and/or
failure of the Lessee to vacate the Leased Property in accordance with
Sub-Clause 6.2 hereof, or immediately at the end of a hold-over
period of six (6) months following the end of the Lease Term pursuant
to Sub-Clause 5.3 hereof, the Lessor shall have the right to: [1] deny
Lessee access to the Leased Property and Property except for the
purpose of settling all accountabilities; [2] enter the Leased Property
and break the existing locks to gain access if necessary; [3] padlock
 the Leased Property; and/or [4] retain Lessee’s belongings left within
the Leased Property by way of pledge, subject to payment of storage
fee by the Lessee in an amount equivalent to one half (1/2) of the
agreed Rental Fee per month or any fraction thereof (the “Storage
Fee”) and subject to a fine of TWENTY PESOS (PhP20.00) for every
day of delay (the “Storage Fee Fine”), with right of the Lessor to
dispose of the Lessee’s belongings in a public auction at the end of six
(6) months from the end of the Lease Term, the proceeds of which
shall be applied in payment of any amount due from the Lessee under
this Contract, without prejudice to the right of the Lessor to claim any
balance of the total amount due from the Lessee, to which the Lessee
hereby agrees and expressly grants consent by executing this
Contract.

14.3 TERMINATION AND EVICTION. In the event of any Breach

of Contract by the Lessee, the Lessor shall have the right to
extrajudicially terminate this Contract effective upon service of
written notice to the Lessee. Upon such termination of the
Contract, the Lessor shall have the right to evict the Lessee from
the Leased Property and forfeit the Security Deposit, Advance
Payment and any unused paid up Rental Fee. The provisions under
Sub-Clauses 6.2 and 14.2 hereof shall apply.

15. PRE-TERMINATION. Either Party may pre-terminate this Contract by

serving at least thirty (30) days’ prior written notice to the other Party
(“Pre-termination”), provided that:

15.1 PRE-TERMINATION BY THE LESSOR. In the event of Pre-

termination by the Lessor, any balance of the Security Deposit, the
Advance Payment, and any unused paid up Rental Fee shall be
refunded to the Lessee without interest, unless other expenses
oddur.

15.2 PRE-TERMINATION BY THE LESSEE. In the event of Pre-

termination by the Lessee, the full amount of the Security Deposit,
the Advance Payment, and any unused paid up Rental Fee shall be
forfeited in favour of the Lessor, in addition to any balance for
unpaid utility bills and damage to the Leased Property. Notice
given in less than 30days from egress will be charged another 1
month rental fee..

16. CHANGE AND LEVY OF ASSESSMENT. The Lessor reserves the

right to adjust the Rental Fee during the Lease Term in case of change in
the assessment of the Property, and to apportion such assessment among
the Lessor of the Property.

*17. SALE OR MORTGAGE. The LESSOR reserves the right to mortgage,

sell or otherwise dispose of or encumber the Leased Premises provided
that the LESSEE’s right under this contract shall be respected.

18. PEACEFUL POSSESSION OF THE LEASED PROPERTY. The

Lessor undertakes to maintain the Lessee in peaceful possession of the
Leased Property for the duration of the Lease Term, provided that any
disturbance thereof for cause beyond the control of the Lessor shall confer
no liability upon the Lessor.

19. NON-WAIVER. Failure by the Lessor to insist upon the strict

performance of any provision of this Contract shall not constitute a waiver
or relinquishment of any right under this Contract. Any waiver by either
Party of any right under this Contract must be made in writing.

*20. INJURY OR DAMAGE. The LESSEE, during its occupancy of the

 premises, shall hold the LESSOR free and harmless from any claim for
damage, liability or responsibility to any person or property caused by the
LESSEE, its family, relatives, friends and guests except when such
damage are caused by typhoon, earthquake, explosions, flood, etc. which
is beyond the control of the LESSEE, in which case, the latter shall be
liable to the LESSOR.

*21. NOTICE OF DAMAGE. In case of damage to the Leased Premises or

its appurtenances by storm, typhoon, fire, earthquake, war or any
unforeseen causes, the LESSEE shall immediately give notice thereof to
the LESSOR. If the Leased Premises shall be damaged by fire or other
causes without default or negligence of the LESSEE, its family, relative,
friends, representatives or visitor, the damage shall be repaired at the
expense of the LESSOR as speedily as possible after such notice. If after
such notice, no repair has been done, the LESSEE shall have the option to
undertake the repair and deduct whatever is the cost of repair from the
rentals that will be due the LESSOR. If the Subdivision or Leased
Premises shall be so nearly destroyed as to make it untenantable without
default or negligence of the LESSEE or the LESSOR, either party may
rescind the Contract or elect to suspend the Contract the period of
reconstruction or repair, in which case, no rental shall be paid during the
period of reconstruction or repair and the lease shall be extended to the
same period of reconstruction or repair.

*22. INSURANCE. The LESSEE may obtain adequate insurance policy on

the Leased Premises to cover their insurable interest therein. In this
regard, the LESSEE shall not permit any article or act which will violate
any term of the insurance policy from being brought or committed in the
Leased Premises; shall not at any time use or allow the use of the electrical
system in the excess of the capacity of the then existing risers, feeders of
the Leased Premises, nor use or allow the use of electrical equipment or
appliances in the Leased Premises which may cause overloading of the
electrical circuits; and shall otherwise do or refrain from doing such acts
so as not to endanger the safety of Leased Premises or compromise
coverage under the said insurance policy.

*23. NON WAIVER OF STIPILATIONS. The failure of the LESSOR or

the LESSEE to insist upon strict performance of any of the terms,
conditions and covenants hereof, shall not be deemed a relinquishment or
waiver of any right or remedy that the LESSOR or the LESSEE may have
nor shall it be construed as a waiver of any subsequent breach or default of
the terms and condition and covenants hereof, which terms, conditions and
covenants shall continue to be in full force and effect. No waiver of the
LESSOR or the LESSEE, of any rights under this Contract shall be
deemed to have been made unless expressed in writing and signed by the
LESSOR or the LESSEE.

After the expiration of the term of the lease and the LESSEE continue to
occupy the Leased Premises with the consent of the LESSOR, such
extension of the leased shall be deemed only tolerated as running from
month to month under the same terms and conditions herein stipulated and
maybe terminated by the LESSOR by means of a written notice served
upon the LESSEE at least thirty (30) days in advance.

*24. WARRANTY. The LESSOR warrants the peaceful and continuous use,
possession and enjoyment of the Leased Premises by the LESSEE during
the effectivity of the contract.

25. GOVERNING LAW. This Contract shall be governed by the laws of

the Republic of the Philippines.
26. JUDICIAL RELIEF AND VENUE. In the event that the Lessor is
compelled to seek judicial relief to enforce its rights under this Contract,
the Lessee shall pay an amount equivalent to twenty percent (20%) of the
total amount claimed in the complaint by way of penalty, in addition to
any award of damages, attorney’s fees and judicial costs by the court. The
venue of any such action shall be in the proper courts in Cebu City to the
exclusion of any other venue.

22. EFFECTIVITY. This Contract shall take effect on the date of its
execution and shall remain valid and binding for as long as any obligation
arising therefrom remains to be satisfied.

IN WITNESS WHEREOF, the Parties have hereunto affixed their

signatures on the date and at the place above-written.

LESSOR LESSEE

_______________________ _________________________

SIGNED IN THE PRESENCE OF:

______________________ ________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU )S.S.

BEFORE ME, a Notary Public for and in the City of Cebu, personally
appeared the following persons with their respective Community Tax Certificate
details:

NAME I.D. No. I.D. Type Issued on

known to me to be the same persons who executed the foregoing Contract of

Lease, consisting of EIGHT (8) pages, signed on each page thereof by the Parties
and their instrumental witnesses, which they acknowledged to be their free and
voluntary act and deed and of the juridical entity herein represented.

WITNESS MY HAND AND NOTARIAL SEAL this ___ day of

_______________ 2013 at Cebu City, Philippines.

Doc. No. ____;

Page No. ____;
Book No. ___ ;
Series of 2013.