CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed this _____day of __________,

2020 at Lipa City by and between:

    MORADA’S SPACE RENTAL, with business and postal address at Bgry. San Sebastian,
Lipa City with its owner PERLA MORADA represented by OSCAR JONAS G. MORADA 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 a parcel of land situated at Brgy. San Sebastian, Lipa
City, Batangas;

WHEREAS, the LESSOR agrees to lease-out the properties to the LESSEE and the LESSEE is willing
to lease the same; and

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 by the LESSEE for BUSINESS USE only
(LESSEE’s Savings and Loans Office) 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 December 1, 2020 to November 30,
2021. Upon its expiration, this lease may be renewed under such terms and conditions as may 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 initial monthly rental rate for the leased premises shall be SEVEN
THOUSAND PESOS ONLY (Php7,000.00), Philippine Currency, subject to withholding tax to be
shouldered by the LESSEE. Rental is payable every 1 st day of each month and which the payment of the
Initial Monthly rental shall commence upon signing of the contract. All rental payments shall be payable
to the LESSOR. Realty taxes on the land and building shall be for the account of the LESSOR.

4. DEPOSIT: That the LESSEE shall deposit to the LESSOR upon the issuance of Building Permit and
other business requirements, One (1) month advance and One (1) month deposit or an amount equivalent
to the sum of FOURTEEN THOUSAND PESOS ONLY: (₱14,000.00), Philippine Currency, net of all
taxes and deductions.

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 three (3) months and may forfeit whatever rental deposit or advances have been given by the
LESSEE.

6. UTILITY CHARGES:  The LESSEE shall be responsible for the payment of utilities such as
electricity, water, telephone and other utility service.

7. IMPROVEMENTS - The LESSOR shall allow the LESSEE to make improvements necessary in the
conduct of the LESSEE’s business provided the improvements shall not destroy nor deface the leased
space. That all the improvements of whatever nature such as may be made on the leased premises shall
form as integral part of the leased premises and shall not be removed therefrom and the same shall belong
to
and become exclusive property of the LESSOR upon the termination of the lease, without the need of
reimbursement for the cost thereof.

8. PRE-TERMINATION OF LEASE. The LESSEE may pre-terminate the contract upon one (1) month
notice.

9. SIGNAGES AND ADVERTISEMENTS. The LESSOR shall allow the LESSEE to place any
signboard, advertising medium, signs, notices and the like necessary for LESSEE’s purpose

10. 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
one (1) month rent without prejudice to such other amounts as may be due LESSOR under this Lease
Agreement and/or by law.

11. 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.

12. INSURANCE. Either party to this contract may at his/her option own expense secure an appropriate
insurance policy over their respective interest on the premises subject to this Lease. The party who decide
not to secure any insurance shall shoulder his/her own loss or damage and shall hold the other party free
from such liability;

13. 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 and automatically cancelled and the deposit as well
as the unused portion of the advance rentals be refunded within THIRTY (30) days, minus any unpaid
obligation.

14. 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.

15. CONFIDENTIALITY CLAUSE. It is understood and agreed that the terms and conditions of this
Contract of Lease between LESSOR and LESSEE shall remain confidential. LESSEE and LESSOR, its
officers, employees and representatives shall not discuss this Lease terms, rates or conditions with any
third party unless authorized by or requested to do so by the parties in this Contract. Any breach of
confidentiality by either LESSOR or LESSEE shall be deemed a material default hereunder and in which
event, this Contract of Lease may be cancelled at without prior notice or demand.
 
16. TITLE. LESSOR concur 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.

17. 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 claimed in
the complaint as attorney's fees which shall in no case be less than Php 50,000.00 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.

PERLA MORADA HON.RICO B. GERON

LESSOR                                                  LESSEE

Signed in the presence of:

______________________                    _______________________

 
ACKNOWLEDGEMENT
Republic of the Philippines )
City of _________________ ) S.S

BEFORE ME, personally came and appeared this _____ day of ___________, 2020:

    Name                            CTC Number             Date/Place Issued

PERLA MORADA ___________ _______________
HON. RICO B. GERON 08460202 January 4, 2020 / Batangas City

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 2020.