CONTRACT OF LEASE

KNOWN ALL MEN BY THESE PRESENTS:

This Contract of Lease, made and entered in to this 29th of June, 2018, in the City of Baguio,
Philippines by and between:

Rev. Antonio R. Reyes, President, Lutheran Church in the Philippines, of legal age, married and
resident of #4461, Old Sta. Mesa St., Manila now and hereinafter known as the LESSOR.

Ms. Donna Mae Ame, Administrator of Academia de Sophia International, Filipino, of legal age,
and resident of Baguio City, Philippines, now and hereinafter known as the LESSEE.

W I T N E S S E T H:

WHEREAS, the LESSOR is the President of the Lutheran Church in the Philippines a church
organization with Head Office at 4461 Old Sta Mesa St., Manila.

WHEREAS, the LESSEE has offered, and the LESSOR has accepted, to lease the entire
Third Floor, Ground Floor unit of Carino-Becker Hall, the entire Wooden Building, subject to the terms
and conditions appearing hereunder;

NOW THEREFORE, for and in consideration of the foregoing premises and of the covenants and
stipulations hereinafter set forth, the parties have agreed, as they do hereby agree, as follows:

1.a. The LESSOR, hereby leases unto the LESSEE the entire Third Floor & Ground floor unit of
Carino-Becker Hall. This lease shall also include the entire two-storey wooden building and
the use of playground area in front of and behind the large wooden house, located at #3 South
Drive, Baguio City, for a period of ONE YEAR (1) from July 1, 2018 to June 30, 2019
renewable at the option of the LESSOR at a monthly rental of PESOS TWO HUNDRED
FIFTY THOUSAND (P250,000.00) ONLY, exclusive of taxes, per month payable in
advance on or before the 10th of every month by the LESSEE to the LESSOR or his duly
authorized representative or to a bank designated by the LESSOR. At the beginning of the
lease THREE (3) month rent shall be paid in advance and TWO (2) months to provide rent
deposit until the end of this lease. Thereafter, this lease shall be on a month-to-month basis
subject to terms mutually agreed upon. Rental not paid on time when the same becomes due
and payable, shall earn interest (prevailing bank rate shall apply) per month until fully paid.
1.b. The LESSEE hereby also agrees with the LESSOR to rent the Canteen to cater the needs of
the students, teachers and staffs of the school with a monthly rental of PESOS THREE
THOUSAND PESOS & NO/100 (P3,000.00) only.
1.c. The LESSEE hereby agrees that the LCP-Lutheran Theological Seminary may use the ground
if needed or if classes during the vacation periods of the ACADEMIA de SOPHIA,
International. These arrangements shall be made in advance between official representatives
of ADSI & LTS.
1.d. The LESSEE hereby agrees with the LESSOR to provide a Security Guard during nighttime.
2. The LESSEE hereby covenants with the LESSOR, as follows:
a). The LESSEE confirms that the leased premises has been received in good order and
habitable condition and that the LESSEE undertakes the responsibility of taking
good care of the premises as it were their own;
b). All expenses incurred or may be incurred due to occasional defects which may be
necessary or incidental to the use of the premises by the LESSEE like leaking
faucets, clogged drainage, burned fuse, lighting fixtures and similar household
items or improvement shall be undertaken by the LESSEE for his account
provided, however, that the defects due to construction shall be for the account
of and undertaken by the LESSOR.
c). To pay the rent as aforesaid without necessity of demand thereof;
d). To keep the leased premises in good and tenant-able condition, making necessary
Repairs and Maintenance under the account of the LESSEE.
e) Not to make alterations or improvements on the leased premises without prior written
consent of the LESSOR; and any and all such improvements shall become the
 property of the LESSOR at the expiration or termination of the lease without any
obligation to reimburse the cost thereof;
f) Not to store inflammable or combustible materials inside the leased premises;
g) Not to use firewood or petroleum or gasoline stove for cooking inside the leased
premises.
h) To use the premises for educational activities of the ADSI only and not for any
immoral or illegal purposes.
i) To comply with sanitary rules and regulations, city ordinances and the laws with
respect to the use of the premises.
j) To pay from time to time as they fall due, during the term of this lease, all charges
water, electric current, garbage and sewage fees, and other charges and services in
the leased premises;
k) Not to assign or sub-lease the leased premises or any part thereof without prior
written consent of the LESSOR, and any breach of this condition shall be sufficient
ground to terminate this contract at the option of the LESSOR;
l) To permit the LESSOR or his agents or authorized representative to enter and view
the conditions of the leased premises at reasonable hours of the day and in a
convenient manner;
m) Upon the expiration or termination of this lease, to surrender the leased premised
quietly and peaceably to the LESSOR in the same condition in which found at the
beginning of the lease, ordinary wear and tear from reasonable use excepted;

1. In case the premises or any part thereof be damaged or destroyed by fire or any unavoidable
cause so as to be unfit for use and occupation, the rental shall be proportionately adjusted, or
the lease of contract terminated at the option of the LESSOR.
2. Should the LESSEE fail to pay the rent herein stipulated in accordance with the terms hereof,
or violate any of the terms and conditions or this contract, the LESSOR shall have the right to
eject the LESSEE, and to enter upon and take possession of the leased premises without
necessity of court action and without prejudice to the right of the LESSOR to collect and
recover from the LESSEE all accrued rents together with interests and damages including
attorney’s fees.
3. It is further agreed that the LESSEE shall solely be responsible, and absolve the LESSOR
from any liability therefrom, for all acts and omissions of the members of his family,
students, servants, and any and all persons by him allowed access to the leased premises.
4. That the LESSEE shall not hold the LESSOR responsible for any accident arising from
falling tree branches on the ground or from any parts of the building and or all other
calamities that might occur beyond human control;
5. In case the LESSEE shall back out after signing the CONTRACT OF LEASE, 20% shall be
deducted from the advance rental and deposit of the Lease.
6. In case the LESSEE shall decide to renew/terminate his/her stay, he/she should inform the
LESSOR two months (2mos.) before the CONTRACT OF LEASE expires, the rest of the
months until the Contract expires shall be paid by the LESSEE.
7. In Case of Court Litigation for the enforcement of this Contract, or for any breach thereof, the
LESSOR shall be entitled to collect from the LESSEE the sum of P10,000.00 as liquidated
damages plus Attorne’y fees equal to 25% of the amount due but in no case less than
P5,000.00, plus interest and costs.

IN WITNESS WHEREOF, the parties have hereunto set their signature on the date and place
first above written.

__________________________ __________________________
LESSEE LESSOR

R.C. #_____________Date_________ R.C.# Date:

Place______________________ Place Baguio City
TIN TIN # 182-430-842

IN THE PRESENCE OF:

____________________________________ _______________________________