Republic of the Philippines )

Province of Cagayan ) S. S.
City of Tuguegarao )
x--------------------------------------x

LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at Tuguegarao City, Cagayan, this
January 03, 2018, by and between:

MELVIN P. VARGAS, SR. of legal age, with residence and postal address
TUGUEGARAO CITY, CAGAYAN hereinafter referred to as the LESSOR.

-AND-

MELVIN K. VARGAS, JR., Filipino and with residence and postal address at #
TUGUEGARAO CITY, CAGAYAN hereinafter referred to as the LESSEE.

WITNESSETH

THAT the lessor is the registered owner of the FL VARGAS COLLEGE BULDING
located at Tuguegarao City, Cagayan and hereby agrees to lease unto the LESSEE
under the following terms and conditions, to wit:

1. TERMS: That the term of this lease shall be for five years starting on January 03,
2018 and to end five years thereafter or on January 2023 which may be renewed yearly
upon mutual agreement of both parties and agred that the actual date of occupancy is
on ___________ because the lessee is given ten (10) days to introduce improvements
thereon as his own expense;

2. RENTAL RATE: That the monthly rental is FIFTEEN THOUSAND PESOS

(P15,000.00) inclusive of withholding tax and payable within the FIRST FIVE DAYS of
each month without a need for demand. That after two years the rental shall be
increased by 5% monthly;

4. ADVANCE PAYMENT AND SECURITY DEPOSIT: That immediately upon signing

hereof, the LESSEE shall pay to the LESSOR the amount of FORTY FIVE THOUSAND
PESOS (P45,000.00) representing the one (1) month advance and two (2) months
deposit which served as monthly rental to the 1st month and to be applied to the last
one(1) month rental and to any outstanding bills for water, electricity and telephone and
other utilities incurred by the LESSEE as well as damages to the property may have
sustained due to the negligence of the LESSEE and his guests;

5. PAYMENT OF ELECTRIC AND OTHER BILLS: The lessee shall pay for all defray at
his own expense the consumption of water, electric light, telephone or other services on
the leased premises;

6. IMPROVEMENTS: The LESSEE shall not make any or cause to be made it being
understood that such improvement in the premises shall be at the sole expense of the
LESSEE and in any case not renewable of this contract, any improvements shall
automatically belongs to the LESSOR.

Page 1 of 2
7. SUBLEASE: The LESSEE shall not directly or indirectly sublease, assign, or
transfer its right under this contract to a third party or parties, without the consent in
writing of the LESSOR;

The LESSEE hereby acknowledges that the leased premises are in good and
tenantable condition complying with all laws, ordinance and regulations of the city of tge
national government as regards the use, occupation and sanitation of the leased
premises;

8. RESCISSION OF THE CONTRACT: In case of non-payment of the rental herein

stipulated, or violation of any condition of this contract, the lease shall be considered
rescinded, and the LESSOR shall have the right to demand that the LESSEE vacate the
premises within five(5) days from demand.

9. VENUE OF COURT ACTION: Any court action arising from the violation of this
contract shall be filed exclusively in the courts of Tuguegarao City;

10. DISPLAY OF BUSINESS SIGN: the business of the LESSEE shall be limited to
the frontage of the space occupies without obstructing the frontage, or encroaching on
the premises of the other LESSES. In case there is a common area provided by the
LESSOR for business signs, the LESSEE will be given one (1) space thereof.

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

MELVIN K. VARGAS, SR. MELVIN K. VARGAS, JR.

LESSOR LESSEE

Signed in the presence of:

_____________________________ ______________________________

SUBSCRIBED AND SWORN TO BE BEFORE ME, this ______ day of

______________, 2018 at Tuguegarao City, Cagayan.

Page 2 of 2