CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed this _____ day of _______, 2018 by and
between:

ERLINDA B. MACATANGAY, of legal age, Filipino, and with residence and postal address at Lourdes
Village, Bolbok, Batangas City , Phlippines, hereinafter referred to as the LESSOR.
-AND-
SOROSORO IBABA DEVELOPMENT COOPERATIVE (SIDC), a duly registered cooperative under the
Cooperative Development Authority and with business address at Sorosoro Ibaba, Batangas City represented by
its Chief Executive Officer, HON. RICO B. GERON hereinafter referred to as the LESSEE;

WITNESSETH;

WHEREAS, the LESSOR is the absolute owner of the building known as R & E with an area of approximately
sixty(60) square meters situated at Lot 10 Block 2, Don Pedro Pastor Subdivision, Talaibon Ibaan, Batangas under
TLT # T-44461;
WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is willing to lease the
same;
NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE
and the LESSEE hereby accepts 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 LESSEE for accessories and
general merchandize 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 ONE (1) YEAR commencing on March 15, 2018 to March 15, 2019. Upon
its expiration, this lease may be renewed under such terms and conditions as my be mutually agreed upon by both
parties, written notice of intention to renew the lease shall be served to the LESSOR not later than thirty (30) 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 THIRTEEN THOUSAND ONE
HUNDRED PESOS ONLY (Php 13,100.00), Philippine Currency, exclusive of any taxes and which the total
Monthly payment shall be remitted on or before the 5th day of the calendar month at ____________________,
without need of demand. All rental payments shall be payable to the LESSOR.

4. DEPOSIT: That the LESSEE shall deposit to the LESSOR upon signing of this contract a one (1) month
advance and two(2) months deposit or an amount equivalent to the sum of THIRTY NINE THOUSAND NINE
HUNDRED THIRTY PESOS ONLY: (Php 39,930.00), Philippine Currency, exclusive of any taxes to answer for
damages and breakage, if any; otherwise it shall be refunded.

5. DEFAULT PAYMENT: In case of default or delay by the LESSEE in the payment of the rent, such as when
the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The
LESSOR has the right to padlock the premises when the LESSEE is in default of payment for two (2) months and
may forfeit whatever rental deposit or advances have been given by the LESSEE.

6. SUB-LEASE: The LESSEE 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, neither shall the LESSEE assign its rights
hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested
in anyone by the LESSEE without the LESSOR'S written approval.
7. PUBLIC UTILITIES: Electric charges shall be for the account of the LESSOR, who in turn will bill or charge to
the LESSEE thru the individual electric meters provided in each commercial unit by the LESSOR. Any difference
between the electric bill as charged by the ____________ from the collated amount of electric charges from the
total number of tenants shall be paid by all the LESSEES in a pro-rata manner; failure to pay the monthly rental
gives the LESSOR the right to cut off the supply of water and electricity. Realty taxes on the land and building shall
be for the account of the LESSOR.

8. GENERAL MAINTENANCE, SANITATION, REPAIRS AND SAFETY. The cost of general

maintenance and upkeep of the Leased Property shall be for the account of the LESSEE. The LESSEE shall keep
the Leased Property in a clean, safe and sanitary condition and introduce all the needed repairs at all times. The
LESSEE shall dispose all its garbage, waste, and other pollutants in accordance with the rules promulgated by the
national or local government. All major repairs resulting from damages at the end of this agreement shall be for
the account of the LESSEE.
In case of damage to the Leased Property or its appurtenances by fire, earthquake, volcanic eruption, war or any
unforeseen cause, the LESSEE shall give notice to the LESSOR within a reasonable time. In the event that the
LESSEE through its own fault or negligence or that of its employees, agents or representatives, damages the
Leased Property, and LESSEE fails to repair the damage within a reasonable time, then the LESSEE shall be
liable to the LESSOR for liquidated damages in an amount equivalent to three (3) month rent without prejudice to
such other amounts as may be due LESSOR under this Lease Agreement and/or the law. Cooking is prohibited in
the area.

9. 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 disabling cause of acts of God, as to render the
leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract
may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.

10. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent shall after giving due notice to the
LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative 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 LESSEE, or for any other lawful purposes which it may deem
necessary.

11. EXPIRATION OF LEASE: At the expiration of the term of this lease or cancellation thereof, as herein provided,
the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good
and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable
furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give
the LESSOR the right, at the latter's option, to refuse to accept the delivery of the premises and compel the
LESSEE to pay rent therefrom at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall
have complied with the terms hereof. The same penalty shall be imposed in case the LESSEE fails to leave the
premises after the expiration of this Contract of Lease or termination for any reason whatsoever.

12. TITLE. LESSOR covenants and agrees that upon LESSEE paying the rent and observing and performing all
the terms, covenants and conditions on LESSEE’s part to be observed and performed hereunder, that LESSEE
may peaceably and quietly have, hold, occupy and enjoy the Leased Premises in accordance with the terms of
this Contract of Lease without hindrance or molestation from LESSOR or any persons lawfully claiming through
LESSOR.
LESSOR likewise warrants and represents, upon which warranty and representation LESSEE has relied
in the execution of this Lease Contract, and that the LESSOR is the owner of the LEASED PREMISES, in fee
simple absolute, free and clear of all encumbrances. LESSOR further warrants and covenants that this Lease is
and shall be a first lien on the Leased Premises; that LESSOR has full right and lawful authority to execute this
Lease Contract for the term, in the manner, and upon the conditions and provisions herein contained; that there is
no legal impediment to the use of Leased Premises as set put herein; that the Leased Premises are not subject to
any easements, restrictions, zoning ordinance or similar governmental regulations which prevent their use as set
out herein; that the LEASED premises presently are zoned for the use contemplated herein and throughout the
term of this Lease may continue to be so used therefor by virtue of said zoning, the doctrine of “non-conforming
use” or the valid and binding decision of the appropriate authority.
The LESSOR shall furnish without expense to LESSEE, within thirty (30) days after written request
therefor by the LESSEE, a title report covering the LEASED premises showing the condition of the title as of the
date of such certificate, provided however, that LESSOR’s obligation hereunder shall be limited to the furnishing
of only one(1) such title report.

13. JUDICIAL RELIEF: 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 clamed in the complaint as attorney's
fees which shall in no case be less than Php50,000.00 pesos in addition to other cost and damages which the said
party may be entitled to under the law.

IN WITNESS WHEREOF, the parties herein affixed their signatures on the date and place above written.

ERLINDA B. MACATANGAY HON.RICO B. GERON

LESSOR LESSEE

Signed in the presence of:

______________________ ______________________

ACKNOWLEDGEMENT

Republic of the Philippines )

City of Batangas ) S.S

BEFORE ME, personally came and appeared this ______ day of ____________, 2018:

Name CTC Number Date/Place Issued

HON. RICO B. GERON 30627998 January 11, 2017 / Batangas City
ERLINDA B. MACATANGAY ____________ ___________________________

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.

This instrument consisting of three (3) 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.

WITNESS MY HAND AND SEAL, on the date and place first above written.

Notary Public

Doc. No._______;
Page No. ______;
Book No.______;
Series of 2018.