CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS: This CONTRACT OF LEASE made and entered into by and between. TARCILA A. LIONG, legal age, married, Filipino citizen with residence and postal address at 113 M. Roxas St., Trancoville, Baguio City, Philippines, hereinafter referred to as the LESSOR; and FELY D. CRUZ, also of legal age, Filipino citizen, and with residence and postal address at No. 10 Bengao (Bakakeng Central), Marcos Highway, Baguio City, Philippines, hereinafter referred to as the LESSEE; WITNESSETH WHEREAS, the LESSOR, is the absolute owner of a residential house located at No. 113 M. Roxas St., Trancoville, Baguio City. WHEREAS, the lessee has offered to lease the __________________________________________________________. WHEREFORE, for and in consideration of mutual provisions and stipulations contained and reserved in the following clauses, the parties herein do contract and agree as follows: 1. DURATION OF LEASE: This Contract of Lease is to remain valid for a period of one (1) year lease starting from March 1, 2014 to March 1, 2015. The leased may be renewed by mutual agreement between the parties. 2. RENTAL: The monthly rental of the leased premises is hereby fixed at THREE THOUSAND PESOS (PhP 3,000.00), Philippine Currency, to be paid by the LESSEE without need of demand on or before the fifth (5th) day of each month of lease; in case of delay in the payment thereof, the LESSOR may assess and collect a surcharge of five percent (5%) on the amount to be paid per month. 3. MAINTENANCE: That the LESSEE hereby acknowledges that the leased premise is in good condition and agrees to help the LESSOR in the maintenance of the same. 4. That the personal characters of the LESSEE as herein represented and the nature of occupancy of the premises constitute special considerations in this lease. Consequently, any violation, direct or indirect, of any of the stipulation hereof shall be ground for the termination of this lease. 5. That the LESSEE shall immediately vacate the leased premises without need of further oral demand upon the termination of the period of this lease. Renewal of the lease agreement shall be at the option of the LESSOR. However, if the LESSEE intends to extend/renew the lease agreement, he shall intimate his intentions directly to the LESSOR within two (2) months prior to the termination of this agreement. Otherwise, his failure to do so may be construed to mean as loss of his interest to renew the same. 6. That the LESSEE shall not, directly or indirectly, assign, sublease, transfer or otherwise encumber the rights of lease herein granted. 7. The LESSEE shall not undertake any repair work which may not be necessary to prevent loss or damage to the leased premises or introduce improvements without the approval of the LESSOR, the improvements or alterations and shall form part of the

building and the costs thereof should not be subject to reimbursement unless otherwise stipulated in writing. 8. That the open spaces in the compound shall be free from articles or structures that may obstruct common use of the same. 9. That the LESSOR shall have the right to inspect the leased premises at any reasonable hour of the day. 10. That the abandonment of the leased premises or its being locked or closed for a period of more than thirty (3) days without the LESSEE paying the rentals due shall entitle the LESSOR to open the premises and have all the articles therein removed, stored in another place and declare the lease terminated. 11. That the LESSOR shall not be responsible for any loss or damage to any property of the LESSEE on the account of robbery, fir, storm or any events of which the LESSOR or his agents have no control or participation. 12. That the LESSEE shall keep the place clean and sanitary at all times. 13. That upon termination of the lease, the LESSEE shall turn over possession of the premises to the LESSOR in the same condition, save for wear and tear, and with all the fixtures as when he occupied the same. It is to be understood that all permanent structures introduced by the lessee with the conformity of the lessor shall pertain exclusively to the latter upon the termination of this agreement. IN WITNESS WHEREOF, the parties have hereunto set their hands this 17th day of February 2014 at Baguio City, Philippines.

TARCILA A. LIONG LESSOR Senior Citizen ID No. 19566 Issued On: 5-07-12 Signed in the presence of:

FELY D. CRUZ LESSEE

___________________________ _____________________________ REPUBLIC OF THE PHILIPPINES) Baguio City ) S.S. ACKNOWLEDGMENT BEFORE ME, a Notary Public for and in Baguio City, this 17th day of February 2014, personally appeared the above parties. Known and identified by me through competent evidence. They presented this integrally complete instrument and represented to me that the signatures on the instrument were voluntarily affixed by them for the purpose stated, declaring that they executed this instrument as their free and voluntary act and deed. The foregoing instrument refers to a CONTRACT OF LEASE consisting of two (2) pages including the page on which this acknowledgement is written, signed by the parties and their instrumental witnesses on each page hereof, and they acknowledged to me that the same is their free act and voluntary deed. WITNESS MY HAND AND SEAL. Doc. No. 430; Page No. 86; Book No. 6; Series of 2014.