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CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE, made entered into, by and between:

OUR BUILDERS WAREHOUSE INC., a domestic corporation duly organized and existing
under the laws of the Republic of the Philippines, with Business address at Lot 2-A-3 Mac
Arthur Highway Brgy. Bulihan, Malolos Bulacan, Philippines. The Company is represented
herein by its President, Mr. JONITO C. RACAL, who is a Filipino, of legal age and duly
authorized by a Resolution of its board of directors. The Company is hereinafter referred to
as the “LESSOR”.

-and-

JED T. RACAL, single, Filipino and with residence and postal address at #01 Nehemiah
Street Metrogate Complex, Pandayan, Meycauayan, Bulacan, hereinafter referred to as
the “LESSEE”.

WITNESSETH:
WHEREAS, the LESSOR is the absolute owner of the BUILDING IMPROVEMENT
comprising an area of SIXTEEN THOUSAND EIGHT HUNDRED EIGHTY TWO (16,882)
SQUARE METERS situated at Lot 2-A-3 (LRA) PSD-E2016002546 and located at Mc
Arthur Highway, Brgy. Bulihan, Malolos Bulacan, hereinafter referred to as “LEASED
PREMISES”.

NOW THEREFORE, for and inconsideration of the foregoing premises, and mutual
covenants and stipulations hereinafter contained, the LESSOR hereby leases unto the
LESSEE, and the latter hereby accepts the aforesaid LEASED PREMISES, subject to the
following terms and conditions:
1.0 LEASE PERIOD – the term of this contract shall be a period of Three (3) years
commencing on November 25, 2020 to November 24, 2023.
This contract of Lease may be renewed upon and subject to the terms and conditions that the
LESSOR and LESSEE may hereinafter agree in writing.

During the term of this lease, the LESSOR warrants the peaceful possession and enjoyment of
the LEASED PREMISES by the LESSEE.

2.0 RENTAL – The rental for the LEASED PREMISES shall be:
2.1 The LEASED PREMISES shall have an area of FORTY NINE (49) square
meters.
2.2 Rental for the LEASED PREMISES shall be NINETEEN THOUSAND SIX
HUNDRED PESOS (PHP 19,600.00) per month;
2.3 That the aforementioned rental shall be paid by the LESSEE without the
necessity of verbal or formal demand every FIRST DAY of the month. The
LESSEE shall to give to the LESSOR twelve (12) postdated checks
representing one (1) year rental to avoid the five percent (5%) surcharge for
payment made after first day of the month due. In case any check is
dishonored, the said surcharge shall be applied until the rental shall have
been paid;
2.4 It is agreed that the rental is subject to fiverd percent (5%) escalation starting
on the second year up to the third (3 ) year. The five percent (5%)
escalation shall be added to the second year for the purpose of computing
the 5% increase for the third year and so and until the next renewal or
extension of this Lease Contract.

3.0 DEPOSIT AND ADVANCE RENTAL

3.1 Security Deposit- That the LESSEE shall give to the LESSOR three (3)
months security deposit amounting to FIFTY-EIGHT THOUAND EIGHT
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HUNDRED PESOS (Php 58,800.00) and one (1) month Advance Rental
amounting NINETEN THOUSAND SIX HUNDRED PESOS (Php 19,600) on
the date of signing of this Lease of Contract. The Security Deposit shall
answer for any delinquencies in the payment for electricity, water and
telephone bills and/or other obligations of similar nature, and the balance of
the Security Deposit to be returned to the LESSEE by the LESSOR after
termination of the Lease Contract. The remaining balance of the security
deposit, if any, shall be applied to the last months of the Leased period.
3.2 The one (1) month Advance Rental shall be applied on the first month after
the commencement of this contract.

4.0 COMMON USE SERVICE AREA

3.1 During the Lease Period, the LESSE shall pay for the CUSA every 1st day of
the month amounting to ONE THOUSAND NINE HUNDRED SIXTY
PESOS (Php 1,960.00) which is equivalent to ten percent (10%) of the
monthly rental.

5.0 USE OF LEASED PREMISES

5.1 The leased premises shall be used by the LESSEE exclusively for the
conduct of its business operations only and shall not bring therein any
flammable goods, explosives and other similar objects which the LESSOR
may prohibit for safety, security, hygienic or aesthetic reasons.

6.1 IMPROVEMENTS AND ALTERATIONS

6.2 The LESSEE may, at its expense and upon prior written approval of the
LESSOR, make improvements on the LEASED PREMISES. It is expressly
agreed that all permanent improvements, alterations or additions introduced
by the LESSEE, shall form an integral part of the LEASED PREMISES and
shall not be removed there from and ownership thereof shall pas

6.3 s to and become the exclusive property of the LESSOR upon the
termination of the Lease, without the need for reimbursement for the cost
thereof. All repairs necessary to maintain the LEASED PREMISES in good
condition shall be borne by the LESSEE.

7.0 POWER CONSUMPTION AND CHARGSE FOR UTILITIES

7.1 Upon signing of this contract, all electric consumption charges, fees and
cost for telephone, water and other utilities used by the LESSEE in the
LEASED PREMISES shall be for the LESSEE’s account. Convenience
outlets and electric connections may be installed by the LESSEE, at its
own expense and with the prior written permission of the LESSOR and
shall comply with the rules and regulations of government authorities on
the installation and use thereof.

8.0 RULES AND REGULATIONS

8.1 The LESSEE will comply with all the reasonable rules and safety
regulations which may be promulgated from time to time by the
LESSOR, for the administration, use and occupancy of the LEASED
PREMISES and with all the rules and regulations, ordinance and laws
made by the health or other duly constituted authorities of the Provincial
and National Government arising from or regarding the use, occupancy
and sanitation of the LEASED PREMISES.

9.0 INSPECTION OF PREMISES

9.1 The LESSOR or its authorized agent shall, by previous arrangement

with the LESSEE, have the right to enter the LEASED PREMISES at
any reasonable time to examine the same, and to allow the LESSOR
during the last two (2) months of the term of the lease, to exhibit the
LEASED PREMISES to prospective tenants.

10.0 TERMINATION OF LEASE

10.1 Upon mutual agreement of both the LESSOR and the LESSEE, this
Contract of Lease could be pre-terminated by serving a Notice of
Termination at least sixty (60) days from the intended date of
termination.
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10.2 In the event that the LESSEE desires to terminate the Lease
Contract, the security deposit shall be forfeited in favor of the
LESSOR;

10.3 In the event that the LESSOR desires to sell the LEASED
PREMISES, the new owner shall be bound to respect all the
provisions of this Contract of Lease and that this Agreement shall be
in full force and effect up to the expiration thereof or upon
termination as stipulated herein.
10.4 The LESSEE agrees to return and surrender to the LESSOR the
LEASED PREMISES at the end of the term of this lease in good
condition subject to reasonable wear and tear, and without delay
whatsoever, free of all occupants, furniture, articles and effects of
any kind other than such alteration, additions or improvements
which shall be subject to the provision Item No. 6 above.

10.5 In the event that the LESSOR does not intend to renew this
Contract of Lease, the LESSOR shall inform the LESSEE of such
intention in writing at least three (3) months prior the expiration of
the lease. Otherwise, the parties may commence negotiation for
the renewal or extension of the Lease.

11.0 EFFECT OF DELINQUENCIES IN RENTAL PAYMENTS

11.1 Should the LESSEE fail to pay two (2) months rental, or in case of
violation of any of the terms and conditions stipulated herein, this
Contract shall be automatically terminated and cancelled with the
need of court action. Moreover, the LEASED PREMISES shall be
peacefully vacated by the LESSEE without the prejudice to the right
of the LESSOR to proceed against the LESSEE’s security deposit
to answer for any unpaid rental/s, damages which may be suffered
by the LESSOR and other monetary liabilities and obligations of the
LESSEE as well as the right conferred by law. Upon such
cancellation, the LESSEE hereby expressly and irrevocable
appoints the LESSOR as his duly authorized agent and attorney-in-
fact with full power authority to open, enter, occupy, padlock,
secure, enclose or discontinue public utilities inside the leased
premises and otherwise take complete and full physical possession
and control of the LEASED PREMISES without resorting to court
action.
11.2 The LESSEE hereby expressly agrees that any and all acts of the
LESSOR, his authorized agents, employees and representative
shall not be subject to any petition for a writ of injunction in court
and the LESSOR and his agents shall be free from any civil or
criminal liability.

12.0 SUCCESSORS

12.1 The provisions of the lease shall extend to and be binding upon LESSOR
and LESSEE and their respective legal representative, successors and
assigns.

13.0 FINAL PROVISION

13.1 The parties signified and certified that they have read or caused
to be read to them all the provisions of the foregoing contract and
that they have fully understood the same and have signed this
contract of their free will and voluntary act.

IN WITNESS WHEREOF, the parties hereunto have affixed their signatures to this
instrument this day of at _____________________.

OUR BUILDER’S WAREHOUSE INC. JED T. RACAL

(Lessor) (Lessee)
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Represented by:

JONITO C. RACAL
President

Signed in the presence of:

______________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES) S.S

___________________________ )

BEFORE ME, a notary public for and in (Province/City/Municipality) of

__________________________, personally appeared, with TAX
IDENTIFICATION NO. (TIN) , with
, who executed the foregoing instrument which they acknowledge to
me as their free and voluntary act and deed, consisting of only Four (4) pages including this
page in which acknowledgement is written, duly signed by them and their instrumental
witnesses on each and every page hereof.

WITNESS MY HAND AND SEAL this _____________ at __________________, Philippines.

Doc. No._____
Page No._____
Book No._____
Series of 2020