CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

           This Contract of Lease, made and executed in _____________on  this   ____________ by and between --

(hereinafter referred to as LESSOR);

- and -

(hereinafter referred to as LESSEE);

WITNESSETH: THAT -

          WHEREAS, the LESSOR is the owner of that certain commercial space, containing a floor area of _____ square meters more or less, located at ____________ with address at _______________ including all fixtures, restaurant furniture, equipment, appliances, accessories and utensils which are listed under the Inventory of Fixtures, Restaurant Furniture, Equipment, Appliances, Accessories and Utensils dated ___________ which is hereto attached and made an integral part hereof as Annex “A” (hereinafter collectively referred to as PROPERTY);

          WHEREAS, the LESSEE has offered to lease the PROPERTY and the LESSOR has accepted the offer under the terms and conditions provided hereinbelow;

          NOW, THEREFORE, for and in consideration of the foregoing premises and more specifically of the stipulations provided hereunder, the herein LESSOR hereby leases the PROPERTY to the herein LESSEE, under the following terms and conditions, to wit:

Section 1. USE OF THE PROPERTY

            1a. The PROPERTY shall be used exclusively as a restaurant and/or other specific use which falls under such classification.

Section 2. TERM OF LEASE

            2a. The term of this Contract shall be one year, commencing on __________ until _______________ subject to renewal as provided hereunder.

            2b. This Contract of Lease is deemed automatically renewed in the absence of any formal notice of intent to terminate from either parties at least ninety (90) days prior to expiration of the original or any subsequent renewed contract.

Section 3. RATE OF LEASE

            3a. The LESSEE binds himself to pay the LESSOR the net Basic Monthly Rental (BMR) amounting to ______________, Philippine currency, during the first six (6) months of lease, that is, from ___________ to _______. Apart from the BMR, a net Percentage On Sales (POS) equivalent to ____ Percent (___%) of the gross sales shall be paid by the LESSEE from ________ to _______. These amounts are net of value-added tax, which shall be for the account of the LESSEE. 

               3b. The BMR shall be due and payable to the LESSOR monthly, or not later than the last day of every month; while the POS covering the gross sales within the period of three months shall be due and payable quarterly, or not later than the fifth day of the month following the subject quarter.

               3c. The consideration on any subsequent renewal of the Contract of Lease after the first year shall include the monthly payment of the BMR and the quarterly payment of the POS.

               3d. There shall be an escalation of the BMR equivalent to _____ Percent (___%), to commence from the third year and every year of renewal thereafter.

            3e. All BMRs corresponding to this Contract and every subsequent renewal thereof shall be covered by twelve (12) monthly post-dated checks.

            3f. For efficient sales / cash control and expedient determination of the POS, the LESSEE agrees to provide and use an appropriate cash register.

            3g. The LESSEE agrees to submit the restaurant’s sales records for inspection by the LESSOR at least once a month.

Section 4. DEPOSIT AND ADVANCE

            4a. Upon the execution of this Contract, the LESSEE shall pay the LESSOR the sum of _____________, representing a deposit equivalent to _____ months’ BRR and an advance equivalent to one month’s rent, including eleven (11) post-dated checks to cover the BMRs for this Contract.

            4b. The deposit is intended to secure payment of the following: rentals  covering the last month/s of occupancy of the PROPERTY prior to termination of this

Contract; unpaid utilities bills and services; unrestored damage to the premises; loss and/or damage to the items listed under Annex “A” hereof, among others.

Section 5. UTILITIES, INSURANCE AND OTHER PROVISIONS

            5a. The LESSEE shall provide and maintain an appropriate waste depository within the premises of the PROPERTY and shall bear the cost of waste collection and disposal services thereof.

            5b. All plans and designs of exterior signages and lighting fixtures shall be subject to the approval of the LESSOR and the cost of construction and maintenance thereof shall be borne by the LESSEE.

            5c. The LESSEE shall provide a security guard during daytime at his own expense and shall share 25-percent of the night guard’s salaries and wages.

            5d. The LESSEE shall share 25-percent of the fire insurance premium of the ____________ and shall provide, at his own expense, a fire insurance for its contents in favor of the LESSOR.

            5e. The parking space in front of the PROPERTY is available among ______________ occupants and guests only on a first come-first served basis; hence the LESSEE shall arrange for his customers’ parking spaces  outside of the building premises. Only one vehicle belonging to the LESSEE shall be allowed free parking overnight in front of the building. 

Section 6. REPAIRS, ALTERATIONS AND RENOVATIONS

            6a. The LESSEE warrants that he has inspected the premises of the PROPERTY and accepts the same “as is - where is”, and that should there be any defect/s of said premises which the LESSEE might have discovered or may discover in the future, said LESSEE holds the LESSOR free and harmless from any/all actions, damages, claims and liabilities of whatever kind and nature arising therefrom or connected therewith.

            6b. No alterations and renovations on and within the PROPERTY shall be effected by the LESSEE without the prior written consent of the LESSOR, and in case of authorized alterations and renovations, all costs of the same shall be borne by the  LESSEE. All subsequent improvements on and within the PROPERTY shall become the property of the LESSOR upon the termination or expiration of this Contract.

            6c. The LESSEE shall immediately effect replacement, repairs or restoration, at his own expense, for any loss and/or damage on and within the PROPERTY, including the windows, doors, toilets, bath, electrical and water systems and all items listed under Annex “A” hereof during the term of the lease, without prejudice to the LESSEE’s liabilities as a result of certain damages.

Section 7. OTHER CONDITIONS  

            7a. The LESSEE shall permit the LESSOR or her representative/s to enter and view the condition of the premises of the PROPERTY during hours which are reasonable and convenient to both parties.

            7b. The LESSEE assumes full responsibility, and shall hold the LESSOR free and harmless, for any damage or injury to third persons or property as a consequence of certain incidents arising from use of the  PROPERTY premises by the LESSEE, his employees, customers, guests, domestic help or agents.

            7c. Upon the expiration or termination of this Contract, the LESSEE shall peacefully vacate and surrender the PROPERTY to the LESSOR ; otherwise said LESSEE shall be liable to pay liquidated damages, rentals for as long as the premises are not vacated and interests on unpaid rentals at 3-percent every month.

            7d. Should the LESSOR find it necessary to engage the services of a lawyer, to protect and enforce her rights under this Contract, the LESSEE holds himself liable to pay the LESSOR the amount of not less than P________________ as attorney’s fee.

            7e. Any legal action arising from this Contract shall be brought before the court of competent jurisdiction in _________, waiving for this purpose any other proper venue.

Section 8. GENERAL PROVISIONS

   8a. This Contract of Lease shall constitute the entire agreement of the parties concerning the lease of the PROPERTY to the LESSEE.

   8b. All notices required or necessary to be given hereunder shall be sent by personal delivery at the respective addresses of the parties herein above set forth, or at the address as may be designated in writing by either party.

   8c. This Contract shall be binding upon the executors, administrators and assigns of the herein parties.  

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

 

                       ______________________________                      ______________________________
                                                              LESSEE                                                  LESSOR

 

SIGNED IN THE PRESENCE OF: