CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE made and entered into in Culasi, Antique, Philippines this
__________ 2022, by and between:

ERN ALEXIS N. ECO, a Filipino, of legal age, married, a Filipino citizen with address at
Supa, San Jose, Antique, now and hereinafter referred to as the “LESSOR”,

and

DOK-ALTERNATIBO MACHINERIES AND HERBAL PRODUCTS TRADING

represented by its CEO, EDELEIN E. DELIBO, of legal age, single, a Filipino citizen with
address at Parallel Street, Brgy. Tiguman, Digos City, hereinafter referred to as the “LESSEE”;

WITNESSETH:

WHEREAS, the LESSOR is the lawful possessor and absolute owner of a commercial
building known as E.I BUILDING located at Dioso Street, Centro Poblacion, Culasi, Antique,
Philippines;

WHEREAS, the LESSEE desires to lease one door located at the first (1 st) floor of the
afore described commercial building, which the LESSEE has previously inspected and
satisfactorily found to be in good, safe and sanitary condition, suitable for commercial purposes
which the LESSEE intends to undertake in the afore described premises, and the LESSOR agrees
to grant such lease.

NOW, THEREFORE, for and in consideration of the foregoing and of the material
covenants and stipulations hereinafter set forth, the LESSOR and the LESSEE have agreed and
hereby agree as follows:

1. PERIOD OF THE LEASE. The lease of the premises afore described and this
CONTRACT OF LEASE shall be for a fixed period of five (5) years commencing on
February 18, 2022 and terminating on February 17, 2027 without need of any notice or demand
and not subject to pre-termination by the LESSEE, without prejudice to a renewal of lease for
such a period and upon such terms and conditions as may be mutually agreed upon between the
LESSOR and the LESSEE;

2. MONTHLY RENTAL. During the term and effectivity of this CONTRACT OF

LEASE, the LESSEE shall pay at the address of the LESSOR, without need of any notice or
demand, a net monthly rental of FIFTEEN THOUSAND PESOS(PhP15,000.00), Philippine
currency, payable on or before the end of the month, and all net monthly rentals shall be
inclusive of any withholding tax, revenue, charge or imposition of whatever kind and nature
which may be due or may hereafter become due to the national government or to any provincial,
municipal, and barangay government units; Provided, however, that in case of the failure of the
LESSEE to timely and satisfactorily pay to the LESSOR the monthly rental as herein stipulated,
the LESSEE shall be additionally liable and pay to the LESSOR a monthly penalty equivalent to
ten percent (10%) of the monthly rentals in arrears or which have become due and payable. After
the period of two (2) years, there shall be a 10% increase on monthly rentals, then after two (2)
years thereafter, a 10% increase on rentals based on the previously succeeding monthly rentals as
scheduled:

From __________, 2022 to ________, 2024 = PhP 15,000.00

From __________, 2024 to ________, 2026 = PhP 16,500.00
From __________, 2026 to ________, 2027 = PhP 18,150.00

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 3. DEPOSIT FOR DAMAGES. Upon the execution of this CONTRACT OF LEASE,
the LESSEE shall deliver to and deposit with the LESSOR the sum of FORTY FIVE
THOUSAND PESOS (PhP 45,000.00), Philippine currency, from which the LESSOR shall have
the absolute right and authority to charge and debit any amount to cover and pay for damages
deliberately or negligently caused by the LESSEE or by the employees, agents, or customers and
clients, or visitors of the LESSEE on the leased premises or on the other portions of the
commercial building, such as the stairs, hallways, toilets, and reception areas which are
commonly used by all lessees therein; Provided, however, that the said deposit may be applied
by the LESSOR for payment of the monthly rentals in arrears at the option of the LESSOR;
Provided, furthermore, that the LESSEE shall maintain the original amount of the deposit and
shall promptly replenish any and all amount charged against it or debited therefrom by the
LESSOR to cover and pay for the aforementioned damages applied as payment of monthly
rentals in arrears; and Provided, moreover, that the amount of the deposit or any remaining
balance thereof shall be reimbursed by the LESSOR to the LESSEE upon the termination of the
lease or the pre-termination thereof by the LESSOR.

4. OBLIGATIONS OF THE LESSOR. During the term and effectivity of this

CONTRACT OF LEASE, the LESSOR shall warrant that the LESSEE shall enjoy peaceful,
quiet and uninterrupted possession of the leased premises, unless there is a just or valid cause or
ground for the LESSOR to pre-terminate the lease or the LESSEE fails to faithfully fulfill or
comply with any of the obligations assumed by the LESSEE as hereinafter set forth;

5. OBLIGATIONS OF THE LESSEE. During the term and effectivity of this

CONTRACT OF LEASE, in addition to the obligations of the LESSEE herein before set forth,
the LESSEE hereby assumes the continuing obligations, responsibilities and duties to:

5.1. Hold, use and devote the leased premises strictly only for lawful, legal and decent
purposes, and desist or refrain from doing or causing or allowing to be done therein any
felonious, immoral, lewd, indecent, unhealthy, illicit, prohibited, dangerous or similar acts or
activities;

5.2. Install in the leased premises fire extinguishers and other fire fighting equipment, and
desist or refrain from bringing, storing, displaying, or keeping therein any poisonous,
inflammable, incendiary or volatile substances or materials, and dangerous drugs or their
precursors, and from installing, operating, using or turning on any apparatus, equipment,
machinery or contrivance which may tend to cause nuisance, obnoxious odor, noise, tremor, or
electrical short-circuits or disturbances;

5.3. Maintain the good, safe and sanitary condition of the leased premises including the
electrical, plumbing, telephone and cable television fixtures, as well as the water and drainage
systems therein, and absolve and hold free the LESSOR from the expenses therefore;

5.4. Pay all fees, charges or billings for services of utilities and consumption or use of
light and electricity, water, telephone, television, computer and other similar gadgets, as well as
for security guards, janitorial and garbage collection services, and absolve and hold free the
LESSOR from such fees, charges or billings and from any outage, stoppage, failure or deficiency
in such services;

5.5. Desist or refrain from contracting to sub-lease or sub-let the leased premises or any
portion thereof to any person, whether natural or juridical;

5.6. Keep the leased premises free from dogs, cats, bugs, termites, vermin, snakes,
chickens, ducks, mosquitoes, flies, fleas, reptiles, fowls and other animals and insects;

5.7. Freely allow the LESSOR or the representatives or agents of the LESSOR to enter
and inspect the leased premises at any reasonable hour of any day, without need of any prior
notice or demand;

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 5.8. Absolve and hold free the LESSOR from any injury to or loss of life of any person,
or damage to any property, which may take place or occur in the leased premises for any cause
not directly and exclusively attributable to the LESSOR;

5.9. Abide by and comply with all laws, ordinances, rules, regulations and policies of the
national, provincial, municipal and barangay government units and those of administrative and
regulatory bodies, as well as the rules and regulations governing the use and enjoyment of the
leased premises which the LESSOR may promulgate from time to time;

5.10. Avoid installing business, commercial, professional or occupational signage, or

constructing or introducing fixtures or other improvement in the leased premises without first
consulting with, or obtaining the approval of the LESSOR; and

5.11. Peacefully surrender or deliver actual, physical possession and control of the leased
premises including the appertaining locks and keys to the LESSOR upon the termination or pre-
termination of this CONTRACT OF LEASE, without need of any notice or demand.

6. GROUNDS OR CAUSES FOR PRE-TERMINATION OF THE LEASE BY THE

LESSOR. During the term and effectivity of this CONTRACT OF LEASE, the LESSOR may,
by oral or other form of notice to the LESSEE, nevertheless pre-terminate, resolve or rescind the
same on any of the following grounds or causes.

6.1. The failure of the LESSEE to timely and satisfactorily pay any monthly rental as
stipulated under the terms on MONTHLY RENTAL;

6.2. The failure of the LESSEE to maintain the original amount of the deposit or to
promptly replenish any and all amounts charged against it or debited therefrom by the LESSOR
as stipulated under the terms on DEPOSIT FOR DAMAGES; and

6.3. The failure of the LESSEE to faithfully comply with the continuing obligations,
responsibilities and duties assumed by the LESSEE as stipulated under the terms on
OBLIGATIONS OF THE LESSEE;

7. CONSEQUENCES OF TERMINATION OF THE PERIOD OR PRE-

TERMINATION OF THE LEASE BY THE LESSOR. Should the lease period terminate as
stipulated under the terms on PERIOD OF THE LEASE, or should the LESSOR pre-terminate,
resolve or rescind this CONTRACT OF LEASE on any of the grounds or causes as stipulated
under the terms on GROUNDS OR CAUSE FOR PRE-TERMINATION OF THE LEASE BY
THE LESSOR, the following consequences shall ipso facto and cumulatively arise:

7.1. This CONTRACT OF LEASE shall be vacated, abrogated and rendered without
force and effect; Provided, however, that the LESSOR shall not be deemed to have waived but
shall be considered to have retained any and all rights, claims, or actions which have earlier
ripened, or accrued, or become vested in favor of the LESSOR under and pursuant to the terms
and conditions stipulated in this CONTRACT OF LEASE;

7.2. The LESSEE shall be deemed to have conferred special authority to the LESSOR
who shall have the right and power, personally or through authorized representatives, to take or
recover or seize the actual, physical possession and control of the leased premises from the
LESSEE, and to close or lock the leased premises or exclude, oust, or eject the LESSEE
therefrom extra judicially, without need of any court order or judicial writ, and without need of
any notice or demand; and

7.3. The LESSEE shall be considered to have conferred special authority to the LESSOR
who shall have the right and power, personally or through authorized representatives, to
impound, retain, seize and take actual, physical possession and control of the furniture, stocks-in-

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trade, equipment and gadgets, and other movable assets of the LESSEE, in the leased premises,
which the LESSOR may sell, alienate or dispose at a public auction to the end that the proceeds
thereof may be applied by the LESSOR towards the payment of any and all sums due to the
LESSOR and owing from and payable by the LESSEE.

8. COMMON COVENANT. The LESSOR and the LESSEE likewise mutually agree
that the breach, non-observance or disuse by either of them of any of the stipulations, terms and
conditions embodied in this CONTRACT OF LEASE shall not be construed or interpreted as a
cancellation, repeal, waiver, amendment or modification of such stipulations, terms and
conditions which shall, therefore, remain valid and effective until this CONTRACT OF LEASE
is terminated or pre-terminated by the LESSOR.

9. WRITTEN ADVICE OF INTENT FOR RENEWAL OF LEASE. Should the

LESSEE desire or intend to renew this CONTRACT OF LEASE for such a period and upon such
terms and conditions as may be mutually agreed upon between the LESSOR and the LESSEE, it
is mandatory and indispensable that the LESSEE shall give to the LESSOR a written advice of
intent for the renewal thereof at least fifteen (15) days prior to the date of the termination of the
lease and this CONTRACT OF LEASE as stipulated under the terms on PERIOD OF THE
LEASE.

10. APPLICABILITY OF CIVIL CODE PROVISIONS. In all other respects not

herein expressly stipulated or covenanted by the parties, the provisions governing leases under
the Civil Code of the Philippines shall be applicable.

11. LITIGATION. In the event of a suit or litigation between the LESSOR and the
LESSEE, the exclusive venue shall be in San Jose, Antique before any court of competent
jurisdiction, and if the action upon this CONTRACT OF LEASE is commenced by the LESSOR
against the LESSEE, the claim for damages shall include attorney’s fees in the sum of not less
than Twenty Thousand Pesos (PhP 20,000.00), Philippine currency, or thirty percent (30%) of
the total amount of damages adjudged, whichever is higher, for which the LESSEE hereby
confesses judgment, or otherwise stipulates as a fact.

IN WITNESS WHEREOF, the parties hereunto affix their customary signatures this
______ day of _____________, 2022 at Culasi, Antique, Philippines.

DOK-ALTERNATIBO
MACHINERIES AND HERBAL
PRODUCTS TRADING
Represented by:

ERN ALEXIS N. ECO EDELEIN E. DELIBO/ CEO

LESSOR LESSEE

SIGNED IN THE PRESENCE OF:

1. _________________________ 2. __________________________

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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

PROVINCE OF ANTIQUE ) S.S.
MUNICIPALITY OF SAN JOSE )
x--------------------------------------------x

BEFORE ME, a NOTARY PUBLIC for and in the Province of Antique, Philippines,
personally came and appeared ERN ALEXIS N. ECO who exhibited to me his TIN 416-767-
750-000 and EDELEIN E. DELIBO with TIN 769-117-900-000 which are competent evidence
of identification at San Jose, Antique, Philippines who are known to me and by me known to be
the same persons who executed the foregoing instrument and they acknowledged to me that the
same are their free and voluntary act and deed.

This document pertains to a CONTRACT OF LEASE consisting of five (5) pages,

including this page on which this acknowledgment is written, which is signed by the parties and
their instrumental witnesses on each and every page thereof.

WITNESS MY HAND SEAL this _____ day of ____________, 2022 in San Jose,
Antique, Philippines.

Doc. No. _______;

Page No. ______;
Book No. ______;
Series of 2022.

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