CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This AGREEMENT, made and entered into by and between:
HINTERLAND REAL ESTATE, a corporation
duly organized and existing under and by
virtue of the laws of the Republic of the
Philippines, with principal business and office
address
at
_____________________________,
represented herein by ROSARIO REGINA S.
JOVELLANOS, hereinafter referred to as the
SUB-LESSOR;
And
________________, of legal age, with residential
address at __________________________________
doing business under the name and style of
____________________, hereinafter referred to as
the SUB-LESSEE.
WITNESSETH: That WHEREAS
The SUB-LESSOR is the legitimate lessor of a parcel of land with
a two-storey building located at Burgos Street corner National
Highway, Bry. Pobl. II, Coron, Palawan, and is allowed to sub-lease the
premises and is authorized by Spouses Jose Jovellanos and Erlinda
Jovellanos to sub-lease the subject property;
The SUB-LESSOR hereby leases unto the SUB-LESSEE, and the
latter accepts to sub-lease from the former, the above-mentioned twostorey building, under the following terms and conditions:
NOW THEREFORE, for and in consideration of the foregoing
premises, the payment of the agreed lease consideration, and of the
mutual covenants and stipulations hereinafter set forth, the SUBLESSOR does hereby lease, let, demise, convey and deliver, by these
presents, unto the SUB-LESSEE, the LEASED PREMISES for a term of
two (2) years to commence on ____________ and shall expire on
_____________.
1. LEASE CONSIDERATION. The SUB-LESSEE hereby agrees to
pay the SUB-LESSOR every ___th day of each month lease
consideration of FIFTEEN THOUSAND PESOS (P 15,000.00),
plus the corresponding 12% VAT and withholding tax.
In the event of default of the SUB-LESSEE in the payment of the
rentals thereof, when the same becomes due and payable, the
amount of rental owing shall automatically bear interest at a rate
of three (3%) percent every month or a fraction thereof from the
date of delinquency until fully paid.
In the event the SUB-LESSEE terminates this contract before the
lapse of two (2) years from signing hereof for whatever reason,
the deposit shall be forfeited in favor of the SUB-LESSOR.
2. DEPOSIT OF LEASE CONSIDERATION.
The SUB-LESSEE
agrees to pay the SUB-LESSOR upon signing of this Agreement
the sum of ____________ THOUSAND PESOS (P _____,000.00) as
security deposit which shall not be applied by the SUB-LESSEE
to any unpaid rentals and other charges but shall be

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refunded/returned to the SUB-LESSEE upon the expiration of the

Contract, less whatever amount the SUB-LESSEE may owe in
favor of the SUB-LESSOR.
Post-dated checks covering one (1) year rental shall be delivered
to the SUB-LESSOR upon execution of this Agreement.
3. TAXES AND FEES. Except for property taxes on the LEASED
PREMISES, all other taxes, fees and other charges shall be for
the account of the SUB-LESSEE.
4. DELIVERY OF THE LEASED PREMISES. The SUB-LESSOR,
upon signing of this Agreement, shall forthwith deliver unto the
SUB-LESSEE the LEASED PREMISES, and for the entire term of
the lease, shall maintain the SUB-LESSEE in the peaceful and
adequate enjoyment thereof and for this purpose, the SUBLESSEE hereby accepts and acknowledges that the LEASED
PREMISES has been received by it in good satisfactory condition
and shall further binds itself to keep and maintain the same in
such condition.
5. REPRESENTATION AND WARRANTIES.
The SUB-LESSOR
represents and warrants to the LESSEE that:
a. The SUB-LESSOR is the lessee of the leased premises.
b. All taxes (such as real property taxes), duties, assessments
and other fees and charges due on the LEASED
PREMISES have been paid and shall continue to be paid
for by the Owner for the entire duration of this Agreement.
c. This Agreement constitutes a valid and legally binding
obligation of the SUB-LESSOR enforceable in accordance
with its terms.
The above representations and warranties by the SUB-LESSOR
have been relied upon by the SUB-LESSEE and are material
consideration hereof for the SUB-LESSEE in agreeing to enter
into this Agreement.
OBLIGATIONS OF THE SUB-LESSEE
6. PAYMENT OF THE LEASE CONSIDERATION. The SUB-LESSEE
shall strictly and faithfully pay to the SUB-LESSOR the lease
consideration in accordance with the schedule provided under
paragraph 1 hereof.
7. USE AND MAINTENANCE OF THE LEASED PREMISES. The
SUB-LESSEE shall use and enjoy the LEASED PREMISES as a
good father to a family and shall devote the same only
exclusively for purpose of a Restaurant and Small Souvenir Shop
and other related activities; and the SUB-LESSEE shall be
prohibited from using LEASED PREMISES to any other purpose
of business without prior written consent of the SUB-LESSOR.
a. The SUB-LESSEE shall, at its own expense and for its own
account and subject to the approval of the SUB-LESSOR,
cause
renovation/improvements
of
the
LEASED
PREMISES, and the parties agree that all improvement or
alterations of whatever nature such as may be made
thereon shall upon completion thereof form integral parts
of the LEASED PREMISES, and shall not be removed

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b.
c.

d.

e.

therefrom but shall belong to and become exclusive

property of the SUB-LESSOR without any right on the part
of the SUB-LESSEE to the reimbursement of the cost or
value thereof.
The SUB-LESSEE shall, at its own expense maintain the
LEASED PREMISES in a clean and sanitary condition, free
from noises and other nuisances.
The SUB-LESSEE shall keep up and maintain in good
repair the LEASED PREMISES and shall return the same
unto the SUB-LESSOR upon the expiration of the term of
lease in good order and condition as at the
commencement hereof.
The SUB-LESSEE hereby undertakes to comply with any
and all laws, ordinances, rules and regulations issued by
the National and/or Local Government or by any of its
agencies, divisions or instrumentalities, affecting or
pertaining to the LEASED PREMISES and the
improvements thereon, or to the use thereof or to any
effects or articles which SUB-LESSEE may or might have
in his possession or control therein. SUB-LESSEE hereby
absolves SUB-LESSOR from any liability arising from
violation of said laws, ordinances, rules and regulations,
including, but not limited to, injuries or damages that may
be suffered or sustained by his family, employees, or any
third person on the occasion of or incidental to the use and
occupancy of the LEASED PREMISES. Likewise, SUBLESSEE undertakes not to make or permit any disturbing
noise or annoyance within the leased premises that will
interfere with the rights, comfort, or convenience of other
persons.
The SUB-LESSEE shall be responsible and liable for all
acts or omissions of any member of his family, his guests,
his employees, servants, and agents, which acts or
omissions shall, for the purpose of the Agreement, be
considered as the SUB-LESSEEs.

8. ALTERATIONS. No alterations shall be done or made in or about

the LEASED PREMISES as to its present form. However, the
SUB-LESSEE may make alterations deemed necessary for the
enhancement of the LEASED PREMISES but only as and when
the SUB-LESSOR consents thereto and provided any and all
expenses to be incurred by reason thereof shall be for the
account of the SUB-LESSEE.
9. WATER, ELECTRICITY, TELEPHONE, etc. Charges of water
consumption, electricity, telephone and other utility services in
the premises, as well as for the repairs in the utility system shall
be for the exclusive account of the SUB-LESSEE.
SUB-LESSOR shall not liable for the failure of water supply
and/or electric power in the leased premises. Neither shall the
SUB-LESSOR be liable for any breakdown, failure, or nonperformance of any electric appliance of the SUB-LESSEE die to
low voltage, faulty electric current, or any other cause or reason
whatsoever.
10.
INSURANCE. The SUB-LESSEE shall not insure the SUBLEASED PREMISES and its properties therein in an amount
beyond the value thereof.

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11.
PRE-TERMINATION. The SUB-LESSOR reserves the right
to pre-terminate this Agreement at any time, provided that the
SUB-LESSEE shall be given two (2) months notice prior to pretermination of this Agreement. SUB-LESSEE shall be entitled to
reimbursement from the SUB-LESSOR only up to the extent of
the unused portion of the unused monthly rental paid by the
SUB-LESSEE at the time of pre-termination, as well as the
security deposit.
MISCELLANEOUS PROVISIONS
12.
DEFAULT AND CONSEQUENCES OF DEFAULT. The SUBLESSEE shall be deemed in DEFAULT within the meaning of this
Contract in any of the following instances:
a. The SUB-LESSEE fails or refuses to pay the rent for
whatever cause within a period of one (1) month or violate
any material provisions of this Contract, the SUB-LESSOR
may extra-judicially terminate the Contract without need of
court intervention and the SUB-LESSEE shall immediately
vacate the LEASED PREMISES and peacefully turn-over
the same to the SUB-LESSOR within thirty (30) days from
receipt of any notice of cancellation or termination from
the SUB-LESSOR. In this case, the security deposit shall
be forfeited in favor of the SUB-LESSOR.
b. If the SUB-LESSEE still fails to pay after two (2) months or
correct the violation of material provisions of the Contract,
the SUB-LESSOR shall have the right to padlock the doors
of the LEASED PREMISES without incurring any criminal
liability.
As such, the SUB-LESSOR may remove the
equipment, furniture or any properties inside the LEASED
PREMISES. The SUB-LESSEE hereby appoints the SUBLESSOR as the SUB-LESSEEs special attorney-in-fact
with full authority and power to sell or dispose of any and
all properties under the custody of the SUB-LESSOR for
such amount or prices which the SUB-LESSOR may deem
reasonable under the circumstances, and the proceeds
thereof shall be applied as partial or full payment of the
obligations of the SUB-LESSEE under this Contract, as the
case may be. It is understood, however, that if the
proceeds of the sale of all said properties shall have
satisfied the SUB-LESSEEs obligations, the SUB-LESSOR
shall turn-over to the SUB-LESSEE the unsold properties.
13.
ABANDONMENT OF LEASE PREMISES.
After the
prepaid period, should the SUB-LESSEE for one reason or
another and without written notice to the SUB-LESSOR, should
keep the LEASED PREMISES closed or locked or fail to use said
premises for a period of two (2) weeks during the life of this
Agreement, the SUB-LESSOR and his duly authorized agents
shall be empowered to open, or if necessary, break open and
inspect the said premises for security purposes. If thereafter, the
SUB-LESSEE should still keep the LEASED PREMISES closed,
locked or fail to use it for another two (2) weeks or a total of
thirty (30) days, such acts of non-use shall be considered by the
contracting parties as abandonment by the SUB-LESSEE of the
entire LEASED PREMISES and all its contents. Therefore, the
SUB-LESSOR and his agents shall have the right to immediately
remove all obstructions and use necessary force to break open,
enter and remove all contents and take complete

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control/possession of the entire LEASED PREMISES to the entire

exclusion of the SUB-LESSEE, without prejudice on the part of
the SUB-LESSOR to enforce other rights and powers stipulated
in this Agreement.
In the event that the SUB-LESSEE
abandoned the LEASED PREMISES prior to the expiration of the
period of this original lease or any extension or renewal, the
SUB-LESSOR may re-let said premises or any part thereof under
such terms and conditions as the SUB-LESSOR may deem
proper and convenient. All amounts thus realized shall, after
paying expenses or repossession or collection, be applied to the
rentals and damages payable by the SUB-LESSEE to the SUBLESSOR under this Contract. Such re-letting or receipt of rentals
however, shall not operate as a waiver of the SUB-LESSORs
right to terminate the lease of the SUB-LESSEE at any time or
other right of the SUB-LESSOR as stipulated or adverted to in
any covenant of this Contract.
It is further agreed that the deposit will not be refunded to the
SUB-LESSEE in the event that the SUB-LESSEE abandons the
LEASED PREMISES prior to the expiration of the period of the
original lease or any extension or renewal.
14.
PROHIBITION AGAINST SUB-LEASE. The SUB-LESSEE
shall not sub-let nor shall enter into or cause the execution of
any sub-lease contract or Agreement in any form or manner over
the LEASED PREMISES or any portion thereof without the
written consent of the SUB-LESSOR.
15.
PROHIBITION AGAINST ASSIGNMENT OR MORTGAGE
OF THE LEASE. This Agreement shall inure only for the benefit
of the parties hereto and, for this purpose, the SUB-LESSEE
shall not assign, mortgage or otherwise encumber any or all its
rights, interests and participation created and established under
this Agreement.
16.
IMMORAL AND ILLEGAL USE. The SUB-LESSEE shall
not use the LEASED PREMISES or any portion thereof for any
immoral or illegal purpose or purposes.
17.
In case the SUB-LESSEE decides to avail of any additional
electrical and telephone services, the expenses for the
application, installation and consumption thereof shall be
exclusively for the account of the SUB-LESSEE.
18.
It is understood that the failure of the SUB-LESSOR to
demand strict compliance with any and all the terms and
conditions of this Agreement shall not be construed as a waiver
and/or estoppel on the part of the SUB-LESSOR for the
enforcement of any of its rights in connection herewith.
19.
If the said LEASED PREMISES be not delivered at the end
of the term, the SUB-LESSEE shall be responsible to the SUBLESSOR for all the damages which the SUB-LESSOR shall suffer
by reason thereof and will indemnify the SUB-LESSOR against
all claims made by any succeeding tenants resulting from the
delay by the SUB-LESSOR on delivering possession of the
premises to such succeeding tenant, insofar as such delay is
occasioned by failure of the SUB-LESSEE to surrender the
premises.

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20.
The relationship of the parties under and in relation to this
Agreement shall be limited to the matters herein contained and
nothing herein provided shall be considered or interpreted as
constituting the relationship of the parties or any of them as a
partnership in which any one or more of the parties may be liable
for the acts or omissions of any other parties, nor shall anything
herein contained be considered or interpreted as constituting any
party as the general agent of the other.
21.
This contract constitutes and embodies the entire and
complete agreement between the parties herein and no other
terms and conditions, verbal or otherwise, not herein expressly
contained, shall affect, change, modify, or in any manner alter
the provisions herein agreed upon unless such amendments
is/are expressly stipulated in writing and duly signed by both
parties.
22.
Should any provision of this agreement be declared invalid
and/or null and void, it shall not in any way affect the validity of
any of the other provisions of this Agreement.

IN WITNESS WHEREOF, the parties have hereunto set their hands

this ______ day of ____________________.
ROSARIO REGINA S. JOVELLANOS
Hinterland Real Estate
Lessor

Lessee

SIGNED IN THE PRESENCE OF:

______________________________

_____________________________

ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)
____________, Metro Manila

) S.S.

BEFORE ME, a Notary Public, for and in above jurisdiction,

personally appeared:

Proof of Identity
ROSARIO
REGINA
JOVELLANOS

S. TIN 146-780-909-000

Date and
Issued

Place

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known to me 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 and of the persons the parties herein
represents.
This instrument which refers to a Contract of Lease consists of
six (6) pages including this page wherein this acknowledgment is
written, signed by both parties herein and their instrumental witnesses
on each and every page thereof.
WITNESS MY HAND AND SEAL OF OFFICE.

NOTARY PUBLIC
Doc. No. ____________;
Page No. ____________;
Book No. ___________;
Series of 2011.