LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the City of Iloilo,

this 1st day of January, 2005, by and between:

APPLE CORPORATION, a corporation organized and existing

under Philippine laws, with principal office at Iloilo Business Park,
Megaworld Boulevard, Mandurriao, Iloilo City, Philippines, represented
herein by its President and CEO, Ms. Purple Twinkle Star, and
hereinafter referred to as the “LESSOR.”

-AND-

A BLUE VALENTINE, SCARLET SNOW, and RED SPARROW,

Filipino citizen, of legal age, and whose residence and postal address is
at Brgy. Calumpang, Molo, Iloilo City, Philippines, and hereinafter
referred to as the “LESSEES.”

WITNESSETH:

WHEREAS, the LESSOR is the absolute and registered owner of THE

LEASED PREMISES, with all the improvements thereon, consisting of a total
land area of ONE THOUSAND EIGHT HUNDRED TEN SQUARE METERS
(1,810 sq. mtrs), more or less, situated at Zone 1, Brgy. Calahunan,
Mandurriao, Iloilo City covered by Transfer Certificate of Title No 1234 issued
by the Register of Deeds of Iloilo City and Tax Declaration No. 1234 copies of
which are hereto attached as Annexes “A-1” and “A-2,” respectively;

WHEREAS, the LESSOR has agreed to lease-out the entire property as

described above to the LESSEES and the LESSEES are willing to lease the
same;

NOW THEREFORE, for and in consideration of the foregoing premises,

the LESSOR leases unto the LESSEES and the LESSEES hereby accept from
the LESSOR the LEASED premises, subject to the following terms and
conditions:

1. PURPOSES: That premises hereby leased shall be used exclusively by

the LESSEES for residential purposes only and shall not be diverted to
other uses. It is hereby expressly agreed that if at any time the premises
are used for other purposes, the LESSOR shall have the right to rescind
this contract without prejudice to its other rights under the law.

2. TERM: This term of lease is for FIVE (5) YEARS from 1 January 2005 to
1 January 2010 inclusive. Upon its expiration, this lease may be renewed
under such terms and conditions as may be mutually agreed upon by
both parties, provided that a written notice of intention to renew the
lease shall be served to the LESSOR not later than seven (7) days prior to
the expiry date of the period herein agreed upon.

3. RENTAL RATE: The monthly rental rate for the leased premises shall
be in THREE THOUSAND PESOS (Php 3 000.00), Philippine Currency.

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 All rental payments shall be payable to the LESSOR or through its
authorized representative/s.

4. DEPOSIT: The LESSEES shall deposit to the LESSOR upon signing of

this contract and prior to move-in an amount equivalent to the rent for
THREE (3) MONTHS or the sum of NINE THOUSAND PESOS(Php
9,000.00), Philippine Currency, wherein the two (2) months deposit shall
be applied as rent for the 11th and 12th months and the remaining one
(1) month deposit shall answer partially for damages and any other
obligations, for utilities such as Water, Electricity, CATV, Telephone,
Association Dues or resulting from violation(s) of any of the provision of
this contract.

5. DEFAULT PAYMENT: It is expressly agreed upon that should the

LESSEES fail to pay monthly rental or should any of any of the check for
any payment be dishonored for whatever reason, the LESSOR shall first
issue a written demand to the LESSEES within five (5) days from default
or breach and in case of non-payment after the expiry of the period
stated in the demand letter, the LESSOR, at its option, may terminate
this contract and eject the LESSEES.

In such event, the LESSSOR or the latter’s representative is authorized to

enter into the leased premises, take possession thereof, and expel the
LESSEES and the latter’s agents and effects from the leased premises, all
without necessity of a prior court action. It is likewise agreed under the
foregoing case that the LESSEES shall continue to pay the monthly
rentals until the possession of the leased premises is fully returned or
taken over by the LESSOR.

All arrears in rentals shall bear interest at the rate of three (3) % a month
as penalty without prejudice to any other remedy available to the
LESSOR under this contract and under the law.

6. ASSIGNMENT/SUBLEASE/TRANSFER OF RIGHTS: the LESSEES shall

not directly or indirectly sublet, allow or permit the leased premises to be
occupied in whole or in part by any person, form or corporation, nor
shall the LESSEES assign their rights hereunder to any other person or
entity. No right of interest thereto or therein shall be conferred on or
vested in anyone by the LESSEES without the LESSOR'S
written approval.

7. ALTERATION, ADDITION AND IMPROVEMENT: The LESSEES shall

not make any alteration, installation, improvement or any addition
whatsoever in the leased premises without the prior written consent of
the LESSOR, and the same shall, upon termination of the contract,
automatically become the property of the LESSOR without need of any
reimbursement. No electrical connection shall be authorized without the
corresponding electrical plan duly approved by the LESSOR.

8. REPAIRS AND MAINTENANCE OF LEASED PREMISES: The LESSEES

agree to undertake at their own expense any necessary repairs and/or
maintenance work on the leased premises including their facilities
without right of reimbursement from the LESSOR. The LESSEES shall
take good care of the leased premises and shall be responsible for any
damage, breakage, or loss not otherwise accountable to ordinary wear
and tear.

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9. THIRD PARTY LIABILITY: During the effectivity of this lease contract,
the LESSEES shall hold the LESSOR free and harmless from any
damage, liability or responsibility to any person or property arising out of
or resulting from the use of the leased premises by the LESSEES, the
latter’s agents, employees, representatives, guests, customers and/or
members.

10. PUBLIC UTILITIES: The LESSEES shall pay for its telephone,
electric, cable TV, water, Internet, association dues and other public
services and utilities during the duration of the lease.

11. PERMITS: The LESSEES shall be responsible for securing all the
necessary permits and licenses, and all costs thereof shall be for the sole
account of the LESSEES.

12. FORCE MAJEURE: If whole or any part of the leased premises shall be
destroyed or damaged by fire, flood, lightning, typhoon, earthquake,
storm, riot or any other unforeseen events constituting acts of God as to
render the leased premises during the term substantially unfit for use
and occupation of the LESSEES, this lease contract may be terminated
without compensation by the LESSOR or by the LESSEES provided that
in either case, one shall provide written notice within a reasonable time
to notice to the other.

13. LESSOR’S LIEN: It is agreed that the unpaid rents and charges payable
by the LESSEE to the LESSOR under this contract shall constitute a
preferred lien on all the personal properties of the LESSEES existing in
the leased premises in accordance with Article 2241 and Article 2243 of
the New Civil Code. For this purpose, the LESSOR or its authorized
representative/s is hereby authorized to prevent the removal of the said
properties from the leased premises and/or demand their return from
any possessor should they have been removed without the written
consent of the LESSOR.

14. POSSESSION: The LESSEES acknowledge the receipt of the possession

of the leased premises in good and sanitary condition for the use and
purpose for which the same is intended and agree that upon the
expiration of the lease contract or upon earlier termination thereof, the
LESSEES will voluntarily and peacefully surrender unto the LESSOR the
possession of the leased premises in the same satisfactory condition as
at the time of receipt, subject to reasonable wear and tear. The LESSEES
shall turnover and surrender to the LESSOR all keys to the leased
premises, including duplicates.

15. PRE-TERMINATION: This lease contract may not be terminated before

the expiration of the term agreed upon except by written approval of the
LESSOR. If, for any reason, the lease is terminated before the expiration
of the lease term, the following consequences shall arise:

a) LESSEES shall pay unliquidated damages in an amount equivalent to

the rentals for unexpired period of the lease term, in addition to the
rentals due for actual period of occupancy.

b) All advances and deposits made by the LESSEES shall be deemed

forfeited in favor of the LESSOR.

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 c) The LESSOR may immediately offer the premises for lease to a third
party.

16. INSPECTION OF PREMISES/LESSOR'S RIGHT OF ENTRY: The

LESSOR or its authorized agent may, after giving due notice to the
LESSEES, have the right to enter the premises in the presence of the
LESSEES or the latter’s representative/s at any reasonable hour to
examine the same or make repairs therein or for the operation and
maintenance of the building or to exhibit the leased premises to
prospective LESSEES, or for any other lawful purposes which it may
deem necessary.

17. ABANDONMENT: If, during the term of this lease, the premises shall be
deserted or remain unoccupied for a continuous period of fifteen (15)
days, without prior notice to the LESSOR, the LESSOR shall have the
right to enter the premises as agent of the LESSEES and to receive the
rent, if any, and to apply the same to the payment of the rent due for the
whole term of the lease, thereby holding the LESSEES liable for any
deficiency. At its option, the LESSOR may lease out the premises,
without prior notice to the LESSEES, to any party and under such terms
as it may decide upon.

The LESSOR shall have the right to retain properties of the LESSEES
found in the premises as security for the payment of the LESSEES’
obligations, without prejudice to the right of the LESSOR to collect on the
deficiency, if any, from the LESSEES.

Such abandonment shall likewise give the LESSOR the option to cancel
this lease agreement and to exercise all rights under this contract and
under the law.

18. NON-WAIVER: The failure of the LESSOR to insist upon a strict

performance of any of the terms, conditions, and covenants hereof shall
not be construed as a waiver of any subsequent breach or default of the
rents, conditions and covenants hereof, which terms shall remain in full
force and effect. No waiver by the LESSOR of any of the right under this
contract shall be deemed made unless expressed in writing and duly
signed by the LESSOR.

19. NOTICE: Where demand or notice is required to be given to the LESSEE

under this contract, the parties herein agree expressly that notices
addressed and sent to the LESSEES at the leased premises or to the
address stated under this contract shall be considered a sufficient
compliance of the requirement of such notice or demand.

20. EXPIRATION OF LEASE: At the expiration of the term of this lease or

cancellation thereof, as herein provided, the LESSEES will promptly
deliver to the LESSOR the leased premises with all corresponding keys
and in the same good and tenable condition as of the time of the
execution of this contract, subject to the ordinary wear and tear. Non-
compliance with the terms of this clause by the LESSEES will give the
LESSOR the right, at the latter's option, to refuse to accept the delivery of
the premises and compel the LESSEES to pay rent therefrom at the same
rate plus Twenty Five (25) % thereof as penalty until the LESSEES shall
have complied with the terms hereof. The same penalty shall be imposed

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 in case the LESSEES fails to leave the premises after the expiration of
this Contract of Lease or termination for any reason whatsoever.

21. ATTORNEY’S FEES: Should any one of the parties herein be

compelled to seek judicial relief against the other, the losing party shall
pay an amount of One Hundred (100) % of the amount claimed in the
Complaint as attorney's fees which shall in no case be less than P50,
000.00 pesos in addition to other cost and damages which the said party
may be entitled to under the law.

22. INSURANCE OF THE LEASED PREMISES: The LESSOR shall pay for
the insurance premium of the residential unit used as leased premises.
The LESSEES, in turn, shall, at their own expense, insure their personal
properties placed in the leased premises.

23. VALIDITY OF THE LEASE CONTRACT: This lease contract shall be

valid and binding between the parties, their successors-in-interest and
assigns.

24. LAWS AND VENUE APPLICABLE: This contract shall be construed,

interpreted and governed by the laws of the Republic of the Philippines.
All actions or claims arising from this contract shall be brought before
the courts in Iloilo City.

25. CERTIFICATION: The LESSEES certify that they have read the
provisions of this lease agreement, that they have understood the terms,
conditions, and covenants of this agreement, and that they hereby
express full conformity thereof and have received a signed copy of this
agreement.

26. SEPARABILITY CLAUSE: In the event that any of the stipulations or

provisions under this contract shall be declared void or unenforceable,
the same shall not affect the other portions of the contract which shall
remain operative and binding upon the parties.

IN WITNESS WHEREOF, parties herein affixed their signatures on the

date and place above written.

APPLE CORPORATION BLUE VALENTINE

LESSOR LESSEE

SCARLET SNOW
LESSEE

RED SPARROW
LESSEE

Signed in the presence of:

GREEN FARMLAND MACY PINK

_____________________________ ____________________________

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 ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

I certify that on this 1st day of January, 2005, before me, a notary public
duly authorized in the city named above to take acknowledgements,
personally appeared the following:

Name CTC Number Date/Place Issued

Apple Corporation 10000000 January 01, 2005 / Iloilo City

Blue Valentine 10000000 January 01, 2005 / Iloilo City
Scarlet Snow 10000000 January 01, 2005 / Iloilo City
Red Sparrow 10000000 January 01, 2005 / Iloilo City

Who were 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.

This instrument consisting of 6 page/s, including the page on which this

acknowledgement is written, has been signed on each and every page thereof
by the concerned parties and their witnesses, and sealed with my notarial seal.

IN WITNESS WHEROF, I hereunto set my hand and affix my notarial

seal on the date and at the place above written.

Notary Public

Atty. Kenneth T. Go
NOTARY PUBLIC FOR ILOILO CITY
UNTIL DECEBER 31, 2020
6th FLOOR ST IVESCENTER,
6741 PASEO CENTER,
ILOILO CITY, PHILIPPINES
ROLL NO. 56881/01-09-09
PTR NO. 1677015/02/06/10
1BP NO. 07834LT/0114/RIZAL CHAPTER

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