CONTRACT OF LEASE (RENEWAL)

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE (Renewal) is made and entered into this __________ at
__________, by and between:

MANUEL D. LO JR, of legal age, married to ROSITA T. LO, Filipino

citizen and with residence and postal address at Fordham St, Magsaysay
Avenue Naga City, hereinafter referred to as the “LESSOR”;

-and-

BICOL JL AGRI CORPORATION, a domestic corporation duly

organized and existing under and by virtue of the laws of the Philippines,
with principal office address at Ubaliw, Polangui, Albay, represented by
JEFFREY LO or MARY LO, hereinafter referred to as the “LESSEE”

WITNESSETH:

WHEREAS, the LESSOR is the absolute owner of that commercial lot including the two
storey commercial building found thereon, which real property is located in Poblacion Polangui,
Albay;

WHEREAS, the LESSEE has signified his intention to lease a portion of the aforesaid
commercial building particularly Door Nos. ___, ___, and ___, under the following terms and
conditions, to wit:

TERM OF LEASE:

The Contract shall be for a period of THREE (3) YEARS, commencing on JANUARY 1,
2019, and to expire on DECEMBER 31, 2021, (the “Lease Period”) renewable upon the option of
the LESSOR. However, the LESSEE may at any time upon giving at least thirty (30) days prior
notice to the LESSOR, terminate this lease before the expiration of this contract. In such event, the
LESSEE agrees to pay the LESSOR liquidated damages equivalent to the amount of rental
corresponding to the unexpired term of lease;

And I, MANUEL D. LO JR., for and in consideration of this contract of lease, do hereby let
and leases unto the lessee the above-described premises.

AND IT IS HEREBY FURTHER STIPULATED:

1. Use and purpose: That the premises, which have been received by the LESSEE in good and
tenantable condition, shall be used by the LESSEE exclusively as a commercial space. Said
LESSEE is hereby prohibited to use said premises for any other purpose or purposes without
the prior written consent of the LESSOR;

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2. Right of lessee non-transferable: That the LESSEE shall have no right to directly or
indirectly sublease, assign, or transfer his right of lease over the leased premises or any
portion thereof, whether by change of business, name, ownership, arrangement or under any
circumstance whatsoever and any such contract made in violation of this clause shall be null
and void;

3. Monthly Rentals, Taxes and Other Fees: The LESSEE undertakes to pay the LESSOR the
monthly rental LESS FIVE (5%) PERCENT withholding tax thereon payable without
demand or without the necessity of any notice/billing statement from the LESSOR on or
before every fifth (5th) day of each and every current lease month.

COMPUTATION OF RENT AND APPLICABLE TAXES IS AS FOLLOWS:

Period
YEAR Basic Rent Less 5%
From To Withholding TaxNet Monthly Escalation
1 1/1/2019 12/31/2019 34,650.00 1,732.50 32,917.50 -
2 1/1/2020 12/31/2020 36,382.50 1,819.13 34,563.38 5%
3 1/1/2021 12/31/2021 38,201.63 1,910.08 36,291.54 5%

For this purpose, the LESSEE shall issue and deliver to the LESSOR, twelve (12) monthly
post-dated checks representing the monthly rental for the year and every year thereafter of
the LEASE PERIOD. Each of the checks herein delivered corresponds to a monthly rental
and the same shall be due and payable on the 5th day of the month it covers.

Should any of the checks be dishonored when due, the same shall be subject to a penalty of
2% per month which shall be considered a penalty by reason of default. Failure of the
LESSEE to pay two (2) consecutive months shall be ground for the automatic rescission of
this Contract and in such event, the LESSEE may be evicted from the premises by the
LESSOR without need of any judicial proceedings. The monthly rental may be subject to the
legally allowed annual increase at the option of the LESSOR;

Should the LESSEE deduct Withholding Tax from the Rental payments, the LESSEE is
obliged to remit the same to the Bureau of Internal Revenue in the name of the LESSOR
within the time prescribed by law. The LESSEE shall furnish the LESSOR a duly certified
written statement showing the payment made by the LESSEE to the LESSOR during the
month and the amount of taxes withheld therefrom together with a copy of the Remittance
Return (BIR Form 2307). Any withholding tax deducted from rentals not supported by the
Certificate of Creditable Income Tax Withheld at Source shall not be honored and the
amount deducted shall be considered as deficiencies in the payment at the rentals.

Taxes, Licenses, and Permits and Other Fees for the Account of the LESSEE

a. Notarial Fee, Documentary Stamps Tax, Value Added Tax (if applicable) and/or any
other internal revenue tax imposed by the Bureau of Internal Revenue and/or
Municipal/City Government on the rental income.

b. Corresponding real property tax on the land and building shall be paid by the LESSOR
while all other taxes and assessments on the business of the LESSEE shall be paid by the
said LESSEE. However, taxes imposed by the reason of the improvements introduced by
the LESSEE to the leased premises or property shall be assumed by the LESSEE;

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4. Rental Deposit: The deposit previously given by the LESSEE in the sum of THREE
HUNDRED THOUSAND (PhP300,000) PESOS shall likewise be applied in this renewal
contract for the faithful observance of all the covenants and provisions of this contract. From
the aforesaid rental deposit shall be deducted any liability incurred by the LESSEE during
occupancy. Such deposit cannot be applied against overdue rentals and outstanding accounts
so as to keep the LESSEE’s account current. However, the same shall be refunded by the
LESSOR, less any deductions for incurred liabilities, upon the termination of this contract
and shall be non-interest bearing.

5. Utilities and other charges: That the charges for water, light, gas, telephone, and other utility
services in said premises shall be for the exclusive account of the LESSEE;

6. Repairs, improvements and alterations: That any improvement of whatever nature made by
the LESSEE in the above premises shall form an integral part of the leased premises and
shall not be removed therefrom but shall belong to and become the exclusive property of the
LESSOR upon termination of the lease, without need for the reimbursement to the LESSEE
of the cost or value thereof. Likewise, ordinary repairs within the premises that arise in the
daily use of the facilities therein shall be for the sole account and expense of the LESSEE
without right of reimbursement. The LESSEE shall not make any alteration upon the
premises without the written consent of the LESSOR. And in case the LESSOR shall later on
opt to remove the alterations made upon the premises by the LESSEE at the termination of
this Contract, the latter shall pay the cost of repairing the damages and/or restoring the
premises to its original form;

7. Occupation after termination of lease: After this lease shall have terminated for any reason
whatsoever, if the LESSEE continues to occupy the premises without the consent of the
LESSOR, or his lawful heirs, such extension of lease shall be deemed only tolerated as
running from month-to-month, under the same terms and conditions herein stipulated, and
may be terminated by either patty by means of a written notice served upon the other party at
least thirty (30) days in advance;

8. Compliance with laws and regulations: That the LESSEE shall comply with any and all laws,
ordinances, regulations or orders promulgated by proper government authorities arising from
or regarding the use, occupation and sanitation of the leased premises;

9. Fire and other Hazards: The LESSEE shall not bring or store in the leased premises any
inflammable or explosive goods or articles which may expose the leased premises to fire or
increase fire hazards nor install therein apparatus, machinery or equipment which may cause
obnoxious odors, pollutions, tremors, noise and other nuisances. It being understood that
should the LESSEE violate this clause, she shall be answerable for all damages caused
thereby;

10. Signboards restrictions: The LESSEE shall not paint any inscription, hang or display any
signboard outside the leased premises, or in any portion of the building without the prior
consent of the LESSOR;

11. Loss by Typhoon, crimes or calamities: The LESSOR shall not be liable, directly or
indirectly, for any loss, damage or injuries that may be suffered by the LESSEE in the leased
premises caused by any fortuitous event like typhoons, lire, earthquake, hood, theft or
robbery;

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12. Insurance: The LESOR and the LESSEE may, at their own expense, secure and maintain
sufficient insurance for the protection of their respective properties and assets. However, in
the event that the loss or damage to the LESSOR is determined to be caused by the LESSEE,
its agent, employees or privies, said LESSEE shall be answerable to the LESSOR for all the
damage, loss and injury caused;

13. Liability for safety and security within the leased premises: The LESSEE shall be solely
responsible for the security and safety of the leased premises, its contents and the persons and
properties of its employees, customers, clients and the likes, and shall not hold the LESSOR
free and harmless from any claim, whether civil or criminal, arising therefrom;

14. Hold-harmless Clause: The LESSOR shall not be liable nor responsible, hence free and
harmless from any and all liability, claims, loss, damages or expense, including attorney’s
fees and/or costs;

 For the presence of bugs, vermin, ants, termites, insects and the likes, in the leased
premises, or
 For the failure of water supply and/ or electric current; or
 For any damage done or injury cause occasioned by, or arising from fire, plumbing,
gas, water, and/or other pipes, or the busting, leaking or destruction of any cistern
tank, wash stand, water closet, or waste pipe in, above, upon or about said leased
premises or caused or allegedly caused by some condition of the facilities, fixtures
and the likes, found in said premises or any part thereof;
 For the damages arising from acts or omissions of, the LESSEE, a co-tenant and their
agents, employees, representatives and/or guests of the LESSOR;

Disturbance or discontinuance in the premise leased by the LESSEE for cause beyond the
control of the LESSOR shall confer no right of any kind to the LESSEE against the LESSOR

15. Inspection of premises: That the LESSOR or his duly authorized representatives shall have
the right to inspect the leased premises at a reasonable hour on a business day;

16. Sufficiency of Notice to vacate: That a deposit in the leased premises of a notice to vacate
shall constitute due and sufficient notice for the LESSEE. In such event, the LESSEE shall
have thirty (30) days from such notice to vacate the premises;

17. Violation of provision: That any violation by the LESSEE and/or its managers, agent or
employees of any term or condition of this Contract or of any rule or policy promulgated by
the LESSOR shall automatically cancel this contract without the need of any previous
demand, notice or judicial action for rescission or ejectment, and by reason thereof, the
LESSOR or his assigns and employees, are hereby irrevocably appointed by the LESSEE as
its duly authorized attorney-in-fact with full and unlimited power and right, even after the
cancellation or termination of this contract:

 To extra-judicially and summarily enter, repossess, secure, control and/or padlock

immediately the leased premises and to retain and sequester its contents, inventories,
stock-in-trade, appliances, furnishings, etc. whether owned by or consigned to
LESSEE, as additional guarantee for the payment of all or any account or liabilities of
the LESSEE to the LESSOR, including exemplary damages, interests and the like;

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  To exclude the LESSEE, his managers, agents and employees from the leased
premises and to free and make available the leased premises for lease by another
lessee;
 After due inventory and notice to LESSEE, the LESSOR may extra-judicially and
summarily dispose of the above-enumerated properties of LESSEE at a public sale by
the Notary Public and apply the proceeds thereof to all the above-mentioned
outstanding obligations of LESSEE, including storage fees, notarial fees, security
costs and the like, and the balance, if any, shall be turned over to the LESSEE,
without prejudice to LESSEE’s liability for any deficiency. PROVIDED, that Failure
of LESSOR to act immediately on any violation of this contract or his toleration
thereof shall not be interpreted in any manner as a condonation or waiver of
LESSOR’S rights herein nor as precedent to justify future violations;

18. Remedial measure: That for any valid reason it shall become necessary for the LESSOR to
institute a court action for the enforcement of its rights under this Contract, it shall be the
Courts of Naga City and not elsewhere that shall be the exclusive venue for the same. In such
case, the LESSEE agrees to pay to the LESSOR the amount of FIFTY THOUSAND (Php
50,000.00) PESOS as liquidated damages, exclusive of any arrearages in rental plus the
amount of 25% of the total sum due as attorney’s fees which in no case shall be less than
TWENTY THOUSAN D (Php 20,000.00) PESOS aside from the costs of litigation and other
damages which the law entitles the LESSOR to recover tom the LESSEE. Moreover, the
LESSEE agrees and obligates not to bring any malicious action or suit intended to stifle,
prevent, stop, delay, or otherwise interfere with the exercise by the LESSOR of any of its
rights, privileges and prerogatives under this contract. And in case of breach hereof, LESSEE
agrees and warrants to immediately vacate the leased premises. Any failure or delay on the
part of the LESSOR to enforce any of its rights, privileges or prerogatives under this contract
shall not be construed as waiver or renunciation of such right, privilege or prerogative. That
the LESSEE shall assume all expenses relative to the execution of this contract, such as
among others, expenses for notarization, documentation, registration and the like.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands this
___________, in _______________, Philippines.

MANUEL D. LO JR
Lessor

JEFFREY S. LO MARY LO
For: Bicol JL Agri Corporation
Lessee

SIGNED IN THE PRESENCE OF:

________________________ _________________________

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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

NAGA CITY ) S.S.

BEFORE ME, a Notary Public for and in Naga City this ___________________personally
came and appeared the following, exhibiting to me their competent evidence of identity as follows:

NAME Evidence of Identity Date Issued Place Issued

MANUEL D. LO JR. TIN 112-512-852-000 BIR NAGA
CITY
JEFFREY S.LO
MARY LO

and 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 and the free and
voluntary act and deed of the party which they represent.

This Acknowledgement refer to a CONTRACT OF LEASE (Renewal) consisting of SIX

(6) pages, including this page whereon this Acknowledgement is written and all such pages are
signed by the parties and witnesses.

WITNESS MY HAND AND NOTARIAL SEAL, on this_______________, 2019 at

__________.

NOTARY PUBLIC

Doc. No. _____;

Page No. _____;
Book No._____;
Series of 2019.

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