Professional Documents
Culture Documents
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MANSEI BANSUK CORPORATION, a SEC-registered company duly organized and existing under and
by virtue of existing laws of the Philippines and with office address at Bldg. No.2, Floridablanca
Technology Center, Brgy. Apalit, Floridablanca , Pampanga, herein represented by its CEO/President,
SANG HYUN PARK, with home address at 38-C Mahogany St. Binitican, SBFZ, Olongapo City,
Zambales, herein referred to as the "LESSEE".
W I T N E S S E T H: That
WHEREAS, DOST is mandated to manage and administer an industrial area known as the Floridablanca
Technology Center located at Brgy. Apalit, Floridablanca, Pampanga, with factory buildings constructed thereon;
WHEREAS, the LESSEE is cognizant of DOST’s aforementioned mandate and hereby recognizes the
absolute right of DOST to lease, let and demise the subject property;
WHEREAS, the LESSEE desires to lease Bldg. Nos. 2 and 3 and DOST is willing to lease the same to
the LESSEE under the terms and conditions hereunder set forth;
NOW, THEREFORE, for and in consideration of the foregoing premises, the parties herein agree and
bind themselves as follows:
LEASED PREMISES
1. DOST hereby leases unto the LESSEE, and the latter hereby accepts to lease from the former Bldg. Nos.
2 and 3 with an area of 1260 sq.m. each at the Floridablanca Techno Center located at Brgy. Apalit,
Floridablanca , Pampanga.
2. The leased premises shall be used exclusively by the LESSEE for the establishment, operation and
maintenance of such machinery, equipment and other improvements as may be necessary to carry on its
business “To engage in the business of trading of goods such as but not limited to wood scraps on
wholesale basis only; and/or manufacture of such to wooden furniture and palette, and sales on a
wholesale basis only”. It is expressly agreed that, if at any time during the term of this lease and without
the previous written consent of DOST, the leased premises are used for any other purpose, DOST shall
have the absolute right to rescind this Contract in accordance with paragraph 29 hereof with the right to
damages.
The LESSEE shall be allowed to maintain a maximum of five (5) regular stay-in workers in the leased
premises to ensure security of its properties and for other purposes, which the company may deem
necessary. In no case, however, shall cooking, drinking of liquors and other intoxicating beverages, gambling,
illegal activities and other activities that may put the leased premises and its inhabitants at risk, be allowed.
Any damage to the leased premises, cost of loss and expenses for the restoration resulting from non-
compliance of the above restrictions shall be for the account of the LESSEE, and the LESSEE shall hold
DOST free and harmless from any damage arising there from.
3. The LESSEE shall not assign, transfer or encumber its rights under this Contract nor sublease or sublet all or
any part of the leased premises without the prior written consent of DOST. Provided, that any majority change
in the stock ownership of the LESSEE shall be considered as assignment or transfer for purposes of this
section.
4. The LESSEE shall not bring nor allow to be brought into the leased premises any articles which the law
prohibits nor shall the LESSEE carry on or permit upon said premises any trade or occupation or suffer to be
done any other activity which may prejudice in whole or in part any policy or insurance covering the premises.
5. The LESSEE, shall, at its sole expense, secure the leased premises and maintain the same in a good and
tenantable condition, free from obnoxious odors, disturbing noises and other nuisances except as is consistent
with the conduct of its business.
6. The LESSEE shall ensure that its operations during the course of manufacturing or production will
not endanger public safety or public health.
7. The LESSEE shall make provisions for the treatment and disposal of industrial waste and scraps in a manner
acceptable to existing government laws, rules and regulations.
DURATION OF LEASE
Upon expiration of the above-mentioned duration of the lease, the LESSEE, subject to approval by the DOST,
may renew the lease, which option must be exercised in writing by the LESSEE at least sixty (60) days prior to
the expiration of the lease contract. The terms and condition of the renewal of the contract shall be subject to
negotiation between the parties.
Nevertheless, the parties shall terminate this agreement prior to its expiration, when it is determined that the
necessity for the use of the properties no longer persists or when the property is needed for the furtherance
of the liquidation of TRC assets, provided that written notice is furnished to the other party at least sixty (60)
days prior to its intended date of termination.
9. For the lease duration, the monthly rental rate for the building/s shall be computed at Php40.00 per square
meter per month or One Hundred Thousand Eight Hundred (Php100,800.00) Pesos, inclusive of the 12%
Reformed Value Added Tax (R-VAT), for the total building area of 2,520 square meters.
All payments shall be made without the necessity of any previous notice or demand, it being understood that
in case of default, or cancellation of payment, or bouncing check, any amount due shall automatically bear
penalty of two percent (2%) per month computed from due date until fully paid, and in addition, LESSEE shall
be liable to DOST for an additional sum equivalent to twenty-five percent (25%) of the rentals due as
attorney's fees in the event of litigation. Furthermore, DOST may terminate this Contract and eject the
LESSEE as hereinafter set forth. In the event LESSEE incurs any delay in the payment of rentals for a period
of thirty (30) days or more from the date the rentals become due, DOST shall have the right to cut-off all
electricity, telephone, water and other utility services to the Leased premises after 48 hours of written notice.
In the event that the outstanding rental obligation has exceeded the total advance rental paid by the LESSEE,
this Lease Contract shall likewise be automatically terminated without the need of any previous notice and/or
judicial or extrajudicial demand. The total advance rental shall be applied on the outstanding rental obligation
and the remaining unpaid balance, if any, shall become due and demandable.
The LESSEE also hereby agrees that non-payment of the lease for two (2) consecutive months or sixty (60)
days shall automatically authorize DOST, upon due notice to LESSEE, to padlock the leased premises and/or
withheld any and all unencumbered goods, machinery, equipment merchandise, raw materials, furniture and
other assets inside the such leased premises, and that this lease contract is considered deemed terminated.
11. Upon signing of this Contract, the LESSEE shall pay DOST one (1) month advance rental or in the amount of
One Hundred Thousand Eight Hundred (Php100,800.00) Pesos. The advance rental payments shall only be
applied to the end of the regular lease period. The LESSEE shall likewise pay one-time processing fee of Five
Thousand (Php5,000.00) Pesos per building.
12. Further, the LESSEE shall, upon signing of the Lease Contract, issue post-dated checks (PDCs) covering the
monthly lease payments for the entire duration of the lease.
RENTAL ADJUSTMENT
13. It is understood that there will be no rental rate adjustment or increase during the one-year lease period.
However, rental increase or adjustment can be made in the event of an inflationary situation within the period
of this lease. This shall be subject to a mutual assessment and evaluation of the event by both parties. The
terms and condition of the renewal of the contract shall be subject to negotiation between the parties.
SECURITY DEPOSIT
14. The security deposit shall be equivalent to one (1) month rental or Ninety Thousand (Php90, 000.00) Pesos
without R-VAT shall be paid by the LESSEE upon signing of the lease contract.
The deposit shall be considered and held by DOST as security for the full and faithful observance and
performance by the LESSEE of all the terms and conditions of this Contract. This deposit shall be forfeited in
favor of DOST in the event that the project implementation or occupation of the leased premises is not
commenced within forty-five (45) calendar days from the date of effectivity of the lease contract or in case of
pre-termination of the agreed term/duration of the lease.
15. Except in cases of force majeure, in the event of LESSEE's failure to comply with any of the terms and
conditions of this Contract, DOST shall appropriate and apply the said deposit or a part thereof as may be
necessary to compensate DOST for whatever expense, loss or damage it may sustain on account of such
breach by the LESSEE. Should the entire deposit or part thereof be appropriated or applied by DOST,
16. If the LESSEE has fully and faithfully complied with all of the terms and conditions herein, all utility bills,
common area and other charges accruing up to and when the LESSEE vacates the leased premises, said
security deposit or any remaining portion thereof shall be returned to the LESSEE within sixty (60) working
days after LESSEE has actually and permanently vacated the leased premises or until such time that charges
have been determined and applied against the security deposit and after a written clearance to vacate the
premises or bring any machinery and/or equipment has been issued by DOST. It is further understood that the
deposit shall not earn any interest whatsoever. It is also understood that security deposit shall not be used to
apply for monthly rentals but for the repair and restoration of the leased premises.
17. Subject to written approval by the DOST, the LESSEE, in addition to the existing factory building, may
construct its own building(s) on the unpaved portion in the Technology Center premises, subject to the
Technology Center Zoning and Land Use Regulations herein attached as Annex “A” which shall be covered
either by an addendum to this contract or a separate contract, whichever is applicable. The LESSEE may
likewise undertake improvements and repairs, and in addition thereto, install machinery and equipment of
every description and character as may be necessary for purposes of carrying on its business consistent with
the applicable provisions of Presidential Decree No. 1096, otherwise known as the National Building Code, as
amended, and such other applicable laws governing the issuance of building and occupancy permits,
mechanical or electrical inspections and visitations of the premises of the LESSEE. Provided that
constructions of such new building, including electrical connections, partitions, and other similar installations
and improvements on the leased premises shall be for the LESSEE's account. Provided further, that LESSEE
shall not make any alterations, additions, major repairs, nor start or proceed any major repair work, or in any
way, introduce improvements nor start work in the leased premises without first obtaining DOST’s written
approval and consent, as herein provided.
Constructions on the unpaved portions inside the Technology Center premises and building improvements
performed without prior written approval of DOST shall be penalized in the amount of FIFTY THOUSAND
PESOS (P 50,000.00) or the cost of restoration to the facility’s original condition at the option of DOST,
without prejudice to DOST’s right to terminate the contract. DOST, however, has the absolute and unqualified
right to refuse any request of the LESSEE to construct new buildings and make or introduce such alterations,
renovations, additions or improvements.
18. The LESSEE hereby acknowledges to have taken possession of the leased premises in good and tenantable
condition. At the end of the lease, DOST shall have the right to use the deposit stated in Section 14 hereof to
undertake repairs of the buildings to bring it into its original, good and tenantable condition, wear and tear
excepted. The excess portion of the deposit shall then be returned to the LESSEE. However, if the deposit is
not enough for the expenses mentioned, DOST may demand for such difference and shall have the right to
hold, store temporarily, or sell, or dispose any and all unencumbered goods, machinery, equipment,
merchandise, raw materials, furniture and other assets located in the leased premises and to apply the
proceeds of such sale equivalent to the said difference.
19. After the termination of the lease period or should the lease be terminated before such period, all im-
provements, additions, repairs or work of whatever nature made in the leased premises shall become the
property of DOST. However, if at the expiration of the term of the original lease or renewal thereof, DOST
should decide that the property be restored to its original condition, the responsibility and the expenses
incurred for the removal of said improvements shall be borne by the LESSEE.
20. The LESSEE hereby expressly recognizes the absolute right of DOST, or its duly authorized representatives,
to enter the leased premises at any reasonable time for the purpose of inspecting the premises or utility
21. The LESSEE shall, at its own expense, maintain the leased premises in good order and condition. All
expenses for replacement of electrical bulbs, broken window glasses and for the repair of locks, repair of
plumbing installations, electrical switches and all other items included in the leased premises, except for
structural defects in the building, shall be for the account of the LESSEE. Structural parts of the building
include foundation, plinth, walls, columns, floors, roof (including roof framing), staircase, beams and slabs,
lintels, and entrance steel doors.
In cases where the LESSEE advanced the costs of repairs of structural defects, which are for the account of
DOST and subject to LESSEE’s obtaining of prior written DOST clearance/consent, the costs shall not be
offset by the LESSEE automatically from the rental and other fees due to DOST. Offsetting shall only be
effected against the lease payments immediately following the acceptance and approval of DOST of the costs
incurred subject to presentation by the LESSEE of documents supporting the actual costs incurred and the
validation/verification of DOST.
22. In case the leased premises are deserted, abandoned or vacated without prior written notice or in case of
suspension of operations by the LESSEE at any time during the term of the lease for a continuous period of
thirty (30) calendar days, DOST shall have the right to enter the leased premises as an agent of the LESSEE
through force if necessary, without being liable for any prosecution therefore. In this connection, the DOST is
hereby appointed as an attorney-in-fact of the LESSEE to remove, store temporarily, or sell, or dispose of any
and all unencumbered goods, machinery, equipment, merchandise, raw materials, furniture and other assets
located in the leased premises and to apply the proceeds of such sale to the damages, interests, fees, unpaid
rentals or other outstanding obligations which the LESSEE may owe to DOST.
In case of termination of agreement either due to expiration or validation of stipulations thereof and the
LESSEE has abandoned any and all unencumbered goods, machinery, equipment, merchandise, raw
materials, furniture and other assets located in the leased premises, the DOST is hereby appointed as an
attorney-in -fact of the LESSEE to remove, store temporarily, or sell, or dispose the same without need of
court action and to apply the proceeds of such sale to the damages, interests, fees, unpaid rentals or other
outstanding obligations which the LESSEE may owe to DOST.
UTILITIES
23. That the LESSEE shall pay for and defray all expenses for electric power, telephone, water and other
utility services which may be used or required by the LESSEE in the leased premises. The cost of the
maintenance of all public services and utilities in the leased premises shall be for the sole account of the
LESSEE. Facilities and/or services used in common by the LESSEES of the Technology Center shall be paid
for by them in proportion to the areas leased. Repairs in the utility service system, including water pipes and
toilet equipment and facilities within the leased premises shall be undertaken by and shall be for the sole
account of the LESSEE. Provided, however, that if the LESSEE shall delay in undertaking the necessary
repairs and shall not make the repairs in a satisfactory manner, DOST reserves the right to undertake or make
such repairs and charge the LESSEE for the expenses of the cost thereof and deduct the same from the
LESSEE's security deposit.
GARBAGE RECEPTACLES
25. That LESSEE shall promptly comply with any or all laws, ordinances, rules, regulations and orders which the
national, provincial or local government, or any department, bureau, board, commission or other agency or
instrumentality thereof might promulgate and will likewise comply with all regulations that DOST might from
time to time adopt and enforce regarding the use, occupation, sanitation and safety of the leased premises.
INSURANCE
26. DOST shall insure and keep insured the building against loss or damage caused by fire to the extent of the full
insurable value thereof. The LESSEE shall however be responsible to insure and keep insured the raw
materials,
finished and in-process goods, machinery and equipment inside the leased premises.
In case of damage and losses due to fire and other causes during the term of the lease, DOST may
reconstruct or restore the lost or damaged property to its original condition using the proceeds from insurance
for the continued lease and use by the LESSEE. In the event that the insurance proceeds are insufficient for
purposes of reconstruction or restoration as herein required and when the damage or loss is due to the
LESSEE’s negligence/fault, as supported by the Bureau of Fire Protection Report, then the LESSEE shall
provide necessary funds to augment the insurance proceeds. In the same case, the LESSEE shall also
continuously pay for the regular monthly rental during the rehabilitation and reconstruction period but not
exceeding six (6) months, or the pre-construction and reconstruction periods.
27. The DOST may, at its option, terminate or suspend the lease contract upon the occurrence of any of the
following events:
a) Failure of the LESSEE to pay any of its monthly rentals when the same falls due;
b) Use of leased premises for purposes other than agreed upon in Section 2 hereof;
c) Failure of LESSEE to generate employment and start its business operations within the projected time
table;
d) Violation by the LESSEE of any provision and/or condition of this Lease Contract, including failure to
pay the rent and to issue post-dated checks of the monthly rental for the entire lease period;
e) Declaration or filing by the LESSEE of a petition for insolvency; or
f) Change of corporate name/structure without justifiable reasons and/or prior written approval from
DOST.
DEFAULT
28. Any violation or default in the performance of the covenants and obligations set forth in this Contract, including
non-payment of rentals shall constitute a ground for DOST to revoke or rescind this Contract without the need
of judicial or extra judicial demand/action within thirty (30) days from written notice of such violation or default.
FORCE MAJEURE
INDEMNITIES
30. The LESSEE hereby agrees to hold DOST free and harmless from any and all claims of LESSEE's
employees, customers, guests or by any third party for loss or damage, including claims for property damage,
personal injury or wrongful death arising out of any event or accident on the leased premises or occasioned by
any nuisance made or suffered on the premises, or by any fire thereon, or growing out of or caused by any
failure on the part of the LESSEE to maintain the premises in a safe, sanitary and secure condition, or by
reason of LESSEE's violation, non-observance or non-performance of rules, regulations, ordinances, laws
and conditions of the government or its instrumentality or as required by this Contract concerning or
affecting the leased premises or the improvements therein.
31. Failure or delay of DOST to insist on the strict performance by the LESSEE of any stipulation or condition
of this Contract and/or to exercise any right or option herein shall not be construed as abandonment,
withdrawal, waiver or cancellation of such right, stipulation, condition or option.
The parties herein warrant that their respective authorized signatories to this contract are the duly authorized
representative of the concerned parties and are authorized to bind the parties they represent in this Contract.
AMENDMENTS
32. To be operative, any amendment to this Contract shall be in writing and upon mutual consent of the parties.
DISCLAIMER OF LIABILITY
33. DOST shall not be held liable by the LESSEE in any manner for the non-operation (due to breakdown
or any other cause) of the water pump and/or other facilities of the leased premises, nor for the failure of
electricity or other utilities.
DISTURBANCE OF POSSESSION
34. Disturbance or discontinuance of the LESSEE's possession of the leased premises due to
causes beyond the reasonable control of the DOST shall confer no right of any kind to the LESSEE as against
DOST. However, the LESSEE shall have the right to terminate or discontinue possession of the leased
premises if the disturbance cannot cease and stop provided that DOST is duly notified thereof.
35. The LESSEE hereby recognizes that DOST has the absolute and unrestricted right to assign, transfer
or otherwise convey its rights under this Contract in favor of any person, corporation, affiliate or any other
agency.
Nevertheless, the assignee shall fulfill DOST’s contractual obligation pertaining to this Contract.
BUILDING ADMINISTRATION
36. The LESSEE hereby recognizes the authority of DOST to designate an Industrial TC Administrator, who shall
act as DOST’s representative in all matters related to this Contract of Lease. The LESSEE further recognizes
and acknowledges the authority of the TC Administrator in all matters pertaining to this Contract.
SECURITY
37. The LESSEE, in coordination with DOST, shall provide a 24-hour security detail to police the main entrance
and other access points, if necessary, in the TC premises, but DOST shall not in any manner be held
accountable or liable for any loss or damage that may be suffered by the LESSEE in or about the leased
premises due to theft, robbery, arson and other crimes. The LESSEE may provide its own security guards for
its leased premises, but LESSEE shall give prior written notice to the DOST designated TC Administrator and
furnish such details and other information as may be reasonably requested.
REPORTORIAL REQUIREMENTS
38. The LESSEE shall provide DOST the Standard Reportorial Requirements on an annual basis such as;
a) List of Employees;
b) Payroll;
c) Power Consumption;
d) Local Taxes Paid; and
e) Audited Financial Statement.
The LESSEE shall be informed of additional reportorial requirements that may be deemed necessary and
required by DOST in the process of determining the impact of the project in the area.
NOTICES
39. All notices or demands of any kind, which DOST may serve on LESSEE under the terms of this lease, may be
served by leaving a copy of such demand or notice received by the locator’s officer or employee who is present
at the lease premises at the time of serving.
VENUES
40. Venue of all actions, arising from or in connection with this Contract shall be exclusively at the proper courts of
Makati City only, all other venues being expressly waived.
BINDING EFFECT
41.. This agreement constitutes the entire agreement of the parties and shall not be changed in any manner
except in writing subscribed by the parties through their respective duly authorized officers or
representatives.
EFFECTIVITY
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be signed and executed this ______
day of __________________, 2020.
__________________________________ _______________________________
TEODORO M. GATCHALIAN, Ph.D. SANG HYUN PARK
Assistant Secretary for Administration and President
Head, DOST-TRC Transition Committee TIN # 336-040-305-000
TIN #157-537-083
WITNESSES:
________________________________ ______________________________
JULIUS CAESAR V. SICAT, Ph.D., CESO III ALLAN T. GARCIA, MPA
Regional Director Project Officer V
Department of Science and Technology-Region 3 Department of Science and Technology-Techno
Centers
ACKNOWLEDGMENT
Before me Notary Public for and in the City of ____________ this ______day of _____ 2020, personally
appeared:
both known to me to be the same persons who executed the foregoing instrument and they acknowledged to me
that the same is their free act and deed as well as of the principal they represent.
WITNESS MY HAND AND SEAL on the date and place above written.
Notary Public
Doc. No.
Page No.
Book No.
Series of 2020