LEASE CONTRACT OF EQUIPMENT

This Agreement made and executed by and among:

___________________________________, a domestic corporation and duly organized and

existing under and by virtue of the laws of the Philippines, with office address at
_______________________, represented by its Managing Director, _____________________, hereafter
referred to as the “LESSOR”.
-and-

_______________________, a corporation duly organized and existing under and by virtue of

the Philippine laws with office address at_________________, represented herein by its President,
___________________________ hereinafter referred to as the “LESSEE”.

WITNESSETH: THAT-

NOW THEREFORE, for and in consideration of the foregoing premises the parties hereto hereby
agree and bind themselves to the contract of lease as follows:

SECTION 1: THE PROPERTY

The LESSOR has agreed to lease and let as it does hereby lease and let unto the LESSEE, and later
agreed to accept, under the lease, one (1) heavy equipment , a _________________.

SECTION 2. THE RENTAL PAYMENT

In the beginning of each year’s rental period, the LESSEE shall issue 12 postdated checks dated
th
every 5 day of the month to cover the twelve months rental in accordance with the following:

PERIOD COVERED MONTHLY 12% VAT W/ TAX NET

BASIC RENT MONTHLY
RENT
November __,2018 Php ________ c/o LESSEE c/o LESSEE Php ________

Operator and fuel for the operation of the HEAVY EQUIPMENT shall be borne by the LESSEE,
including the cost of mobilization or transportation of the leased equipment from Naga City to Masbate
City.

In case of bounced check, LESSEE shall implement cash replacement with 10% penalty within
seven (7) days upon receipt of notice. Three (3) consecutive bounced checks entitled the LESSOR to
rescind this agreement with damages and LESSOR may further exercise any and all other rights given to
it elsewhere in this agreement.

The twelve percent (12%) Expanded Value Added Tax or other internal revenue taxes imposed
or to be imposed by the Bureau of Internal Revenue or Municipality/ City shall be paid by the LESSEE
simultaneously with the payment of the monthly lease rentals, without necessity of demand.

SECTION 3. THE LEASE PERIOD

This Contract of lease shall be for one (1) year commencing ______________ and ending on
____________________, and renewable for another period under the terms and conditions acceptable
to both parties and agreed upon in a separate instrument.

SECTION 4. OTHER TERMS AND CONDITIONS

1. Use of the Lease Equipment. The subject Leased equipment shall be uses exclusively for the
LESSEE’S project with the government in Masbate City.

If at any time during the existence of this lease, The LESSEE, his employees, agents, associates,
servants or guests, converts the use of the leased to any purpose other than authorized under

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 this Contract, the LESSOR may cancel this Contract of Lease, in which case, the LESSEE shall
immediately return the equipment, on increase the rent insofar as existing laws would permit,
or compel the LESSEE o stop the new activities, without the prejudice to LESOR’s right to recover
damages against the LESSEE as warranted under the circumstances.

2. Care of the Leased Property. The LESSEE shall, at his expenses maintain the Leased Property in
good operational condition and upon the expirations of the Lease, shall surrender and return
the Leased EQUIPMENT including in as good order and condition as they were actually found at
the beginning of the lease, ordinary wear and tear expected. All repairs or cost of maintenance
shall be borne by the LESSEE.

3. Fire Insurance. If the LESSEE secures any motor insurances to cover the heavy equipment, this
Leased Contract constitute a lien on the amount of such insurance to indemnify the LESSOR for
the damages that may be suffered by the leased equipment as a result of accident .

4. Injury, Damage or Other Crimes. The LESSEE shall be responsible at all times for all the acts,
damages, injuries, death and other crimes committed or caused by the LESSEE, his employees or
agents while using the leased equipment.

5. Fortuitous Events. In case of damage to the Leased Property or any of its appurtenance by fire,
earthquake, war or any other unforeseen cause, the LESSEE shall give immediate notice thereof
of the LESSOR. If the leased equipment shall be damaged by fire or any other causes with the
fault or negligence of the LESSEE, his employees, agents, clerk, servants, or visitors, the damage
shall be repaired against the account of the LESSEE as speedily as possible, without right of
reimbursements from the LESSOR. If the equipment be destroyed without the fault or
negligence of the LESSEE, either part demand the rescission of this Contract.

6. Sublease, Transfer of rights. the LESSEE shall not assign or transfer his rights in this Contract nor
sublease/ sublet all or any part of the Leased Property without the prior written consent of the
LESSOR and no right or interest therein shall be conferre d on or vested anyone other than the
LESSEE without such written consent of the LESSOR. Provided that, the LESSEE shall notify in
writing all parties in the possible assignment/ transfer of sublease/ sublet he existence of this
Contract including all the terms and conditions; and LESEE; and the LESSEE shall provide the
LESSOR with a copy of a said notice within five (5) days from notice to such parties.

Provided further, that all relevant and material conditions of this Contract shall be deemed
incorporated as integral part of the proposed assignment/ transfer or sublease / sublet, even is
not clearly or specifically stated on the document of such transaction.

7. Termination of Lease. The LESSEE agrees to return and the Leased Property at the expiration of
the term of this lease in as good order and condition as reasonable wear and tear will permit,
without any delay.

8. Non-Waiver. The failure of the LESSOR to insist upon the strict performance of any of the
terms, conditions, and covenants hereof, shall not be deemed a relinquishment or waiver of any
right or remedy owing to the LESSOR, nor shall be it construed as a waiver of any subsequent
breach of default by the LESSOR of any of his rights under this Contract. No waiver by the
LESSOR of any of his rights under this Contract shall be deemed made unless express in writing
and signed by the LESOR under oath.

9. Breach of Condition or Default. The LESSEE agrees that all the covenants and agreements herein
contained shall be deemed conditions as wee as covenants and that if default or breach be
committed by the LESSEE of any covenant or condition, then this lease at the discretions of the
LESSOR, may be terminated and cancelled forthwith and the LESSEE, shall be liable to the

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 LESSOR for any and all damage, actual and consequential, resulting from such default and
termination. Strikes or lockouts shall not excuse or absolve the LESOR from performing his
obligation under this Contract.

10. Judicial relief, attorney’s fee and venue. Should the LESSOR be compell ed to seek judicial relief
against the LESSEE, the latter shall, in addition to the damages mentioned in the preceding
paragraph, pay an amount equivalent to 25% of the amount claimed in the complainant as
attorney’s fee aside from the cost of litigation and other expenses which the law may entitle the
LESSOR to recover from the LESSEE.

The venue of action by the LESSOR against the LESSEE shall be in the City of Naga.

Provision of a penal character in other sections of this Contract shall be considered as

cumulative to relief granted be this section.

IN WITNESS WHEREOF, the parties hereunto affixed their signatures this________ day of
________ at Naga City.

____________________________________
Lessor
By:

__________________________________
Lessee
By:

________________________

SIGNED IN THE PRESENCE OF:

________________________ ___________________

ACKNOWLEDGMENT