CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

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

SPOUSES RODOLFO V. DE GUIA AND BENILDA R. DE GUIA, both of legal age,

Filipinos, and with residence and postal address at Poblacion, Candelaria, Quezon Philippines,
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 lot with an area of approximately 163 sq.
meters situated at Bustamante St Poblacion, Municipality of Candelaria, Province of Quezon
covered by TCT No. T-509123;

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
COOPMART AND KOOPINOY 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 TWELVE (12) YEARS commencing on October 15, 2018
to October 15, 2030. 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 FIFTEEN
THOUSAND PESOS ONLY (Php 15, 000.00), Philippine Currency, exclusive of any taxes and
which shall be remitted on or before the 15th day of the calendar month without need of demand.
All rental payments shall be payable to the LESSOR.

Following the schedule below are rent/lease computed with ten percent (10%) increase for every
three (3) years.

October ___, 2021 – October ___, 2024 - Php 16,500.00

October ___, 2024 – October ___, 2027 - Php 18,150.00
October ___, 2027 – October ___, 2030 - Php 19,965.00

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 FORTY
FIVE THOUSAND PESOS ONLY: (Php 45,000.00), Philippine Currency. The LESSEE shall
issue twelve (12) post-dated checks each year of the term of the contract.

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

6. SUB-LEASE: Subleasing is not allowed in this contract of lease.

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, the building shall automatically belongs to the LESSOR except movable
thins and furniture as herein provided and 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.

____________________________ ______________________
MR. RODOLFO V. DE GUIA HON.RICO B. GERON
LESSOR LESSEE

______________________
MS. BENILDA R. DE GUIA
LESSOR

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 05237752 January 10, 2017 / Batangas City
MR. RODOLFO V. DE GUIA _________ __________________________
MS. BENILDA R. DE GUIA _________ __________________________

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 four (4) 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.