CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease, made and entered into by and between:

NENITA NAKANO, of legal age, Filipino, widow, and a resident

of 118 Amoranto St. Retiro, Quezon City, Philippines, and
represented in this act by its Authorized Representatives,
Lynette Narido and Leticia Napa O, (hereinafter referred to as
the "LESSOR");

- and -

QUEENY ROSE ROLA AND ENRICO TEODORO, both of

legal age, Filipinos, and residents of 236-2C Crisolita St., San
Andres Bukid Manila, Philippines, (hereinafter referred to
collectively as the "LESSEE");

WITNESSETH: that -

WHEREAS, the LESSOR is the owner of a Residential House and Lot situated at # 2-B
Mahogany Road, Pilar Village, Las Pinas City.

WHEREAS, the LESSEE desires to occupy the above-named residential house and lot
and the LESSOR is willing to lease the same unto the LESSEE, subject to the terms and
conditions hereinbelow set forth.

NOW, THEREFORE, for and in consideration of the foregoing premises and the
covenants hereinafter stipulated, the parties hereby agree as follows:

1. Term: This LEASE shall be for a duration of One (1) year commencing from
_____________ and to end on _____________, renewable for such period as may be
mutually agreed upon by the parties.

The LESSEE shall give the LESSOR Sixty (60) days written notice in advance of his
intention to vacate the premises before the expiration of the term of the agreement.

Upon termination of this agreement, for whatever reason, the LESSEE shall immediately
vacate the premises and return possession thereof to the LESSOR without any need for a
demand from the latter, unless this lease is extended for another term.

2. Rental: The LESSEE agrees to pay the LESSOR the monthly rental fee of TWENTY
FIVE THOUSAND PESOS (P 25,000.00), Philippine Currency.

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 In case this agreement is renewed or extended for another term, the LESSEE agrees that
there will be an increase in the amount of Two Thousand Pesos (P 2,000.00) in the
Monthly Rental Fee and Advance Rental Payment.

3. Advance Rental Payment and Security Deposit: Upon signing of this Contract of
Lease, the LESSEE shall pay the LESSOR a sum of SEVENTY FIVE THOUSAND
PESOS (P 75,000.00), Philippine Currency, covering the Advance Rental Payment and
Security Deposit, broken down as follows;

a. The sum of TWENTY FIVE THOUSAND PESOS (P 25,000.00), Philippine

Currency as One (1) month rental in advance which to be applied on the last month of
the term of this LEASE.

b. The LESSEE shall also pay the LESSOR the sum of FIFTY THOUSAND PESOS
(Php 50,000.00), as Security Deposit, to guarantee the payment of any damage to the
leased premises, unpaid utilities and other obligations to third parties by the LESSEE
during the term of the agreement, which deposit shall bear no interest.

Unless applied to said damages, unpaid utilities and other obligations to third parties,
said deposit shall be returned to the LESSEE within Sixty (60) days after the
termination of this agreement and the lessee has actually and physically vacated the
premises: Provided further that the LESSEE compiled with the terms and conditions
of this contract and that all utility bills are paid up to the time the LESSEE leaves the
premises.

It is also understood that the deposit cannot be applied to unpaid back rentals owed by
the LESSEE prior to the expiration of this agreement. Furthermore, if the LESSEE
vacates the premises before the expiration of the period of lease, the total amount of
the deposit and advance rentals shall be forfeited in favor of the LESSOR.

4. Use of the Premises: The premises shall be used exclusively for residential purposes
only of the LESSEE and the immediate members of (his/her) family and shall not in any
way be used for any illegal or unlawful activity or to keep materials, chemicals and other
matters considered as fire hazards or nuisance to the building.

5. Improvements: The LESSEE shall not make any alteration, structural changes or
improvement in the leased premises without the prior written consent of the LESSOR.
However, at the termination of the lease, the same not having been renewed by the
parties, the LESSEE shall restore the leased premises in its original state existing at the
commencement of the agreement. Restoration of the LEASED PREMISES shall be for
the exclusive account of the LESSEE. Any improvement after the lease is terminated and
after the LESSEE shall have vacated the premises shall belong to the LESSOR.

6. Facilities: All charges for water, electricity, telephone, cable, association dues and other
public utilities used in the leased or any other charges as may be imposed by the

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 government shall be for the account of the LESSEE. The LESSEE hereby guarantee the
prompt payment of any and all charges heretofore mentioned as they fall due.

7. Repairs: The LESSEE shall, during the duration of the lease, make all minor repairs on
the leased premises to preserve the same in serviceable or tenantable conditions at the
LESSEE's expense except replacement of parts due to natural wear and tear. The
LESSEE, however, shall give advance written notice to the LESSOR of Ten (10) days
prior to undertaking any minor repair.

All damages caused to the leased premises due to the fault, misuse, carelessness, and/or
negligence or on account of the use thereof by the LESSEE and other occupants therein
shall be made good and repaired by the repairs done. Should the LESSEE fails to make
the necessary and appropriate repairs within five (5) days from demand, the LESSOR
shall undertake the needed repairs and shall charge the costs thereof to the LESSEE.

Installation of additional Air-condition Unit is hereby allowed by the LESSOR, provided

that the LESSEE shall ONLY install “Split-type AC Unit”. After the termination of the
lease, the LESSEE shall cause the restoration of the house to its original condition.

10. Inspection of the Premises: To ensure that the lease premises is being maintained in
good and tenantable conditions, the LESSOR or his authorized representative is hereby
given the right after due notice, to enter and inspect any part of the leased premises
during reasonable hours and as the occasion thereof might require.

11. Assignment and Sub-Lease: The LESSEE hereby shall have no right to assign or
transfer its rights, interest and obligations under the lease contract or sub-lease contract
premises or any portion thereof to any person or entity without the prior written consent
of the LESSOR.

12. Injury or Damage: The LESSEE hereby assumes the full responsibility for any damage
which may be caused to the person or property of any third person in the leased premises
during the duration of the lease. LESSEE further binds himself to hold the LESSOR free
and harmless from damages as a result thereof, unless such damage or liability arose out
of structural or other inherent defects in the leased premises or is due to the fault of the
LESSOR, his agent or representatives.

13. Sale of Leased Premises: The LESSEE recognizes the right of the LESSOR to sell or
otherwise convey ownership of the leased premises to any other interested party,
provided the LESSEE's rights under the lease are respected.

14. Hazardous and Prohibited Materials: The LESSEE shall not keep or store in the lease
premise any hazardous and obnoxious substance or inflammable material or substance
that might constitute a fire hazard or other chemicals and materials or prohibitive drugs in
violations of the laws of the Philippines.

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 16. Violations: The LESSOR may, at this options, consider this agreement automatically
rescinded and canceled, without need of any court action, upon ten (10) days’ notice
given to the LESSEE based on any of the following grounds:

a. Failure of the LESSEE to pay a maximum of two (2) months rental as they fall due
for any reason whatsoever within the period to pay.

b. For any violation made by the LESSEE or its agents and representatives of any of the
terms and conditions stipulated in this contract.

c. The LESSOR likewise prohibits the introduction of pets and animals in the premises.

d. The leased premises shall be vacated or abandoned for a period of thirty (30) days
without prior written notice to the LESSOR. Consequently, the LESSOR is hereby
permitted authorized by the LESSEE to enter the premises, either by force or
otherwise, without being liable to prosecution therefor.

Upon termination of the contact of lease based on any of the foregoing grounds and upon
demand, the LESSEE shall immediately vacated and peacefully surrender possession of
the lease premises to the LESSOR or his duly authorize representative.

17. Remedies: In addition to the provisions of the preceding paragraph, the LESSEE hereby
acknowledges and recognizes the right of the LESSOR to avail or resort to any or all of
the following remedial measures without need of court action:

a. In case of failure of the LESSEE to pay or settle any due and unpaid obligations
(rentals, electricity, water, telephone, association dues etc.) as provided for under this
lease contract, the LESSEE hereby authorizes the LESSOR, who is hereby given the
right, to disconnect all facilities such as but not limited to disconnect all facilities
such as but not limited to electricity, telephone, water in the leased premises without
need of further notice to the LESSEE.

b. Likewise, until the aforesaid unpaid obligations are paid or settled, the LESSEE
hereby given the rights, to re-renter the lease premises, remove all persons therefrom,
take possession of any of all furniture, fixtures and equipment's found thereon or
therein and/or padlocked the door of the premises.

c. Moreover, by way of a security or to secure the payment of any of the unpaid

obligations of the LESSEE, the LESSEE consents and authorizes the LESSOR to
retain possession of any of all the furniture, fixtures and equipment's that may found
on the premises as belongings to the LESSEE until such time that all the unpaid
obligations of the LESSEE are paid or settled.

d. If after ten (10) days from the date the LESSOR shall have taken possession of the
aforesaid furniture, fixtures and equipment by way of security, the LESSEE still fails
to pay or settle its unpaid obligations to the LESSOR the LESSEE hereby consents

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 and authorizes the LESSOR to sell by way of public or private sale any or all the
furniture's fixtures equipment as may be sufficient to pay or settle the lessee's unpaid
obligations plus the accrued interests and attorney's fee equivalent to 25% of the total
amount due and unpaid. All expenses that may be incurred in the sale shall be for the
account of the LESSEE.

For purposes of selling the aforesaid properties, the LESSEE hereby irrevocably appoint
the LESSOR as its attorney-in-fact to sell and dispose of any or all of the aforesaid the
property of the LESSEE in a private or public sale at a price as may be determined to be
just and reasonable by the LESSOR and to apply the proceeds therefrom to any or all the
unpaid obligations of the LESSEE.

If the sale proceeds should prove to be inadequate to fully payer settle the unpaid
obligations of the LESSEE, the LESSEE shall remain liable to the LESSOR for any of
the deficiency.

Should the proceeds of the sale of any of the aforesaid properties be sufficient to pay or
settle all of the lessee's unpaid obligations, the LESSEE may get back its other properties
not sold by the LESSOR. If after thirty(30) days from written notice of the LESSOR
directed to the last known address of the LESSEE, the LESSEE still fails to get back the
remaining properties, said properties shall then be deemed abandoned in favor of the
LESSOR.

The above enumerated remedies approved for the LESSOR shall not be exclusive, but
shall be cumulative and without prejudice to any court action that may be instituted by
the LESSOR for any causes of action that may arise under this contract of lease.

18. Attorney's Fee: In case the LESSOR resorts to judicial action base upon or in connection
with this lease contract, the LESSEE hereby agrees to pay attorney's fee as imposed by
the LESSOR’s lawyer plus all court expenses and/or costs of litigation.

19. Venue: All court actions from this contact of lease shall be filed only in the proper courts
of Manila, Philippines to exclusion of all other courts.

20. Time of Essense: Time is the essence hereof any waiver by the LESSOR of a breach of
any term, covenant or condition herein contained, whether express or implied, shall not
constitute of a waiver of any subsequent breach thereof, or a breach of covenant to pay
the rent so accepted. No waiver by the LESSOR shall be deemed to have been made
unless expressed in writing and signed by the LESSOR.

IN WITNESS WHEREOF, the parties have hereunto set their hands, this
_____________ at _____________, Philippines.

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 NENITA NAKANO QUEENY ROSE ROLA
LESSOR
LESSEE
Represented by;

LYNETTE NARIDO ENRICO TEODORO

LESSEE

LETICIA NAPA O
Authorized Representatives

SIGNED IN THE PRESENCE OF:

__________________ __________________

ACKNOWLEDGEMENT
 
Republic of the Philippines)
______________________) S.S
 

BEFORE ME, personally appeared:

 Name                               Valid Gov’t Issued Identification Card Number             Date/Place

Lynette Narido
Leticia Napa O
Queeny Rose Rola
Enrico Teodoro

Known to me and to me known to be the same persons who executed the foregoing instrument
and acknowledged to me that the same is their free and voluntary act and deed.

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This instrument consisting of 7 page/s, including the page on which this acknowledgement is
written, has been signed on each and every page thereof by the concerned parties and their
witnesses, and sealed with my notarial seal.
 

WITNESS MY HAND AND SEAL, on the date and place first above written.
                                                                    
                                                                                                                                                        
Notary Public
 
Doc. No.______;
Page No. ______;
Book No.______;
Series of 20___.

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