ae d Yd Is gi le 2 5 a ; 3 8 E |B g a ag | ° a : s 3 5g ie oO i Ge Eee a a } , V8 s % g BW 82 bs \NeE Be i 38 5 i | vas 3 RENEWAL TO THE CONTRACT OF LEASE KNOW ALL MEN BY THESE PRESENTS: This CONTRACT OF LEASE, is made and entered into this MAY 08 20hy of 2019, inQTAHOE MANDMUNONG rita by and between: SUNNY OAK, INC., a corporation duly organized and existing under and by virture of the laws of the Republic of the Philippines with principal office at #571 Engracia Reyes Street, Ermita, Manila, Philippines, represented by it President, JOSE WILSON P. CHUA hereinafter referred as the “LESSOR”; -and- DEPARTMENT OF JUSTICE, a government entity with Principal office address at Padre’ Faura St., Ermita Manila represented in this act by its Undersecretary ADRIAN FERDINAND S. SUGAY, hereinafter referred to as the “LESSEE”; -and- WITNESSETH: building with a total floor area of 1,096 square meters more or less, located at #571 Engracia Reyes Street, Ermita Manila, hereinafter referred to as the LEASED PREMISES. WHEREAS, the LESSEE desires to renew the lease the above mentioned premises and the LESSOR is willing to lease the same unto the LESSEE, subject to the terms and conditions hereafter specified: NOW THEREFORE, for and in consideration of the foregoing premises and the mutual covenants herein contained, the LESSOI have let and. by these presents hereby lets and leases unto the LESSEE the aforesaid 7 storey building subject to the following terms and conditions: |. TERMS AND RENEWAL - This Lease shall be for a period of one Seat, renewable for another year, commencing on April 16, 2019 and shall continue up to April 15, 2020. Renewal shall be by mutual agreement of the parties made sixty (60) days before this Lease expires. The LESSOR and the LESSER shall Page 1 of 11 Contract of Leaseendeavor to execute a contract of lease for the Tenewed term at least thirty (30) days before the termination of this contract. 2, AMOUNT OF RENT and TERMS OF PAYMENT - The LESSEE shall pay to the LESSOR the monthly rental of Seven Hundred Sixty Seven Thousand Two Hundred Pesos (Php 767,200.00), Philippine Currency, inclusive of the applicable Withholding Tax and Value Added Tax. The water and electricity per month and other utilities shall be for the account of the LESSEE. All monthly rentals shall be paid thru issuances of Automatic Debit to Account (ADA) consistent with the provisions mandated by the Department of Budget and Management (DBM). LOWELL A. Pal Chief Accountant, Financial EI LESSEE shall withhold taxes and be incharge of paying the taxes on the 10% day of the succeeding month. The LESSEE shall submit BIR Form 2307 to the LESSOR upon submission of the Official Receipt. NE 0, CHUA 3. SECURITY DEPOSIT AND ADVANCE RENTAL - The security deposit equivalent to three (3) months rental in the amount of Two Million Three Hundred One Thousand Six Hundred Pesos (Php 2,301,600.00), Philippine Currency has already 4 been given through the first Contract, This security deposit A shall not earn interest while held by the LESSOR, and shall be used to pay any outstanding accounts the LESSEE may have with public utilities upon termination of this Contract. The security deposit shall answer for, and be forfeited as liquidated damages for any violation by the LESSEE of any of the terms and conditions of this Contract, apart from and in addition to other damages that may be sustained by the LESSOR except unpaid rentals. Moreover, once made, a deposit cannot be withdrawn or recovered until the expiration of the lease and surrender of the premises to the LESSOR under this contract or breach thereof has been fully determined and liquidated. The sum deposited or balance thereof, if any, shall be returned to the LESSEE after two (2) months from actual vacation of the said leased premises. President JOSE WILSON P, CHUA 2 In the event that payment of the monthly rental thru ADA was not credited to the LESSEE’S account on or before the 15% day of the applicable month , without any valid reason, the LESSOR has the option to: [a] terminate the Lease Contract, eject the LESSEE and padlock the property, the LESSOR forfeits the security deposit; or [b] in the event the LESSOR agrees to give the LESSEE a thirty (30) day grace period to pay the defaulted rent, such defaulted rent shall be subject to a penalty rate 3 equivalent to 3% per month. If the LESSEE continues to default g after the thirty (30) days grace period, then the LESSOR has the Page 2 of 11 Contract of Lease é i d j ; } & 3 5 E < a 8right to terminate this Lease and padlock the property, the LESSEE shall immediately vacate the Leased Premises and will forfeit the security deposit. All Lease Rentals paid shall be subject to the applicable withholding taxes. In the event there shall be a new law imposing a higher or lower rate of withholding tax the same shall be applied to thereon, The LESSEE shall furnish the LESSOR a statement of the tax withheld and the number and date of revenue tax receipts issued thereof, SENCE OF: eye@GL LOWELL A. PAR Chief Accountant, Financial 4. USE OF PREMISES - The leased premises hereby leased shall be used as an office for the Department of Justice. The LESSEE shall not divert the premises to any other purposes without the prior written consent of the LESSOR, it is being expressly agreed that if, at any time, during the existence of this lease, and without previous written consent of the LESSOR, the said premises are used for other purposes, the LESSOR has the choice to: a) rescind the contract or b) increase the rent, or ¢) compel the LESSEE to stop the new activities. In no case shall the leased premises be used for immoral, illicit or illegal acts or purposes. 5. SUB-LEASE AND/OR TRANSFER OF RIGHT - Without the LESSOR's prior written approval, the LESSEE is absolutely prohibited from selling, ‘ceding, assigning or otherwise transferring his leaschold rights over the leased premises. It is further expressly agreed that if, at any time during the term of the lease the LESSEE sublets or allows or permits the leased premises to be occupied in whole or in part by any other person, firm or corporation, the LESSOR shall have the right to rescind this Contract without prejudice to his other rights under the law. SIGNED IN THE PRE! a ohn ©. SERVICES AT LESSEE’S EXPENSE - The LESSEE shall assume to pay all expenses for electricity and water and other services during the lease period. At the termination of the Contract, the LESSOR shall retain the security deposit and use to pay any outstanding accounts for public utility companies that the LESSEE may have. The LESSOR shall return the balance of the security deposit to the LESSEE, but the security deposit shalll not be retained by the LESSOR for more than sixty (60) days after the LESSEE has left the premises for utilities. SUNNY OAK, INC. JOSE WILSON P. CHUA President by: 7. REPAIRS, MAINTENANCE AND ALTERATIONS — The LESSEE hereby expressly acknowledges that the leased premises is ina good and tenantable condition. The LESSEE shall, at all times maintain its surroundings in a clean and sanitary condition LESSEE is responsible for the maintenance of the Leased Premises and shall keep the same in good, clean and tenantable Page 3 of I Contract of Lease geéfsecretary se USLIC OFTHE PHILIPPINES grice. [AND S, SUGAY DEPARTMENT OF<== Chief Accountant, Financial apneXNOEL LOWELL A. PA SIGNED IN THE PRESENCE OF: Ms. whee CHUA President JOSE WILSON P. CHUA by: CE condition at all times, ordinary wear and tear excepted, promptly and properly, repair any damage in the Leased Premises suffered from or due to ordinary use, and provide security therefore in the ordinary course of operation thereof. LESSEE shall promptly inform LESSOR of any damage, defect. or similar conditions (for whatever cause) in the Leased Premises. In the event that LESSEE fails to undertake the maintenance and repair works stipulated herein, LESSOR may opt to itself perform the works and charge the cost thereof the account of LESSEE. Repairs or maintenance as stipulated under this paragraph shall be done by LESSEE’s own account using only contractors approved or acceptable to LESSOR. The LESSOR hereby also agrees and binds himself to undertake at its exclusive expense all Major Repairs Maintenance/cleaning of Aircon units shall be for the account of LESSEE. Should there be a need of repair/replace any of the aircon units, it shall for the account of the LESSEE. It is mutually understood and agreed by both parties that each occasion for repairs amounting to TEN THOUSAND PESOS (P10,000.00) Philippine Currency, or less is to be shouldered by the LESSEE (“Minor Repair’). All repairs amounting to more than TEN THOUSAND PESOS (P10,000.00) Philippine Currency, are to be shouldered by the LESSOR (“Major Repair’), except repair of damage due to the fault or the negligence of the LESSEE, their clients and guest which repairs shall, irrespective of the amount, be for the account of the LESSEE It is expressly understood that the LESSEE shall not start or proceed with any renovation work or in any case introduce new improvements, alterations or fixtures thereon on any part of the Property without the prior written consent of the LESSOR. All permanent additions, alterations and improvements made on the Leases Premises by the LESSEE shall become the LESSOR's Property upon the termination of this Lease Contract, without any obligation on the LESSOR’s part to reimburse the LESSEE for the value thereof. The LESSOR however, may demand the removal at the LESSEE’s expense of the said additions, or improvements in whole or in part and the restoration of the Leased Premises to the condition in which they were delivered as of turn-over date normal wear and tear excepted, at the LESSEB’s expense. ; INJURY ORDAMAGE - The LESSEE hereby assumes full responsibility for any death, injury, loss or damage caused, suffered and sustained on her person or property or on the Person or property of any third person in or about the leased Premises, or while remaining either casually or on business in Page 4 of Contract of Lease Z 5 B a a a % | : DEPARTMENT OF JU;EL LOWELL A. PAN Chief Accountant, Financial § SIGNED IN THE PRESENCE OF: ‘Ms. MERLENE 0. CHUA President SUNNY OAK, INC. JOSE WILSON P. CHUA (CE or about the premises hereby leased to it, and binds herself to hold the LESSOR harmless and free from claim for any such injury or damage from whomsoever which arise out of or as a consequence of this Contract, or the use of the Leased Premises by LESSEE, its employees and agents, or the use of the other Leased Premises by the other occupants of the Building, where same is not directly or indirectly due to the fault of LESSOR or its agents shall be chargeable to the LESSEE, except where such damage or injury is caused by fortuitous events or acts of God. The LESSOR shall not be liable nor responsible for any injury, loss or damage which the LESSEE, employees and visitors might sustain on their property or belongings or on their person in and around the premises hereby leased, due to theft, robbery or other crimes. 9. BREACH OF CONDITIONS - In case of breach by the LESSEE of any of the conditions and covenants of this lease or herein above-stated or should the LESSEE abandon or vacate said premises before its expiration, the LESSOR has the option to automatically terminate this Lease and LESSEE forfeits the security deposit. 10. RIGHT TO SELL - In the event of sale, transfer, mortgage or any encumbrances of the leased premises, this Contract of Lease shall be guaranteed and respected and made part of any such sale or any other transfer of interest of the leased premises and the transferee shalll be bound by the terms and conditions of this Lease Contract, including the provisions on the renewal thereof, 1, PRE-TERMINATION CLAUSE - In case the LESSEE pre-terminates or cancels or abandons the leased premises before its expiration date, the LESSEE expressly agrees that it shall forfeit alll the deposits, unless it is able to immediately present a new LESSEE which is acceptable to the LESSOR. 12. REAL ESTATE TAXES AND INSURANCE - Real Estate Taxes for the land and structure shall be for the account of the LESSOR, General Insurance for the structure shall be for the account of the LESSOR while Fire Insurance for all the contents, furnishings and personal belongings inside the Leased Premises shall be for the account of the LESSEE. LESSOR and LESSEE may each obtain such insurance policy on the Leased Premises to cover their respective insurable interest therein. In this regard, LESSEE shall comply with all the conditions of any such insurance policy, shall not permit any article or act which will violate any term of the insurance Policy from being brought or committed in the Leased Premise; Page 5 of 11 Contract of Lease REPUBLICOF THE DEPARTMENT OF by:shall not at any time use or allow the use of the electrical system in excess of the capacity of the then existing risers, feeders and wirings of the Leased Premises, nor use or allow the use of such electrical equipment or appliances in the Leased Premises which may cause the overloading of the electrical circuits; and shall otherwise do or refrain from doing such acts so as not to endanger the safety of the Leased Premises or compromise Coverage under the insurance policies. LESSOR shall not be liable to LESSEE for the operation of the electrical systems, generator sets, air-conditioning system, chillers, plumbing, fire alarm, sprinkler, mechanical systems, sanitary systems, and other similar facilities on the Leased Premises; the light and water on the Leased Premises; housekeeping, maintenance, security and other common services and licenses, UEL LOWELL A. PAI Chief Accountant, Financial § RESENCE OF z 13. EXPIRATION OR TERMINATION OF THIS LEASE - At the expiration of the term of this lease or cancellation /pre- termination as herein provided, LESSEE shall promptly deliver to the LESSOR physical possession of leased premises without any delay whatsoever, devoid of all occupants, articles and effects of any kind. LESSEE shall immediately vacate the Leased Premises and return possessions thereof to LESSOR. In the event that the Leased Premises are not in good and tenantable condition, ordinary wear and tear excepted and consistent with Section 7 upon the end of the Term, LESSEE shall continue paying Lease Rental up to the time the Leased Premises have been restored in good and tenantable condition, ordinary wear and tear excepted and consistent with Section 11 and have been turned over to the LESSOR. Ms. MERLENE 0, CHUA 14. HOLD-OVER PROVISION —_- In the event the LESSEE should fail to surrender the Leased Premises to the LESSOR and continues to occupy the Leased Premises beyond the end of the Term without the benefit of a formal written extension of this Contract, LESSEE shall be liable for three times the monthly Lease Rental as liquidated damages. Should the Hold- over period of LESSEE exceed 30 days, LESSEE shall pay LESSOR an amount equivalent to three times the monthly Lease Rental as substituted rental for every month of hold-over period. All other terms and condition of this contract shall continue in force during the hold-over period. SUNNY OAK; INC. JOSE WILSON P. CHUA President 15. LIABILITY FOR SUITS - The LESSEE shall indemnify and hold harmless the LESSOR against all actions, suits, damages, and claims by whomever that may be brought or made by reason of the LESSEE’s violations, non-observance of laws referred to and covenants set forth. LESSEE agrees to 5 indemnify LESSOR against any liability arising from or g 5 TICE connected with the use of the Leased Premises due to any Page 6 of 11 Contract of Lease INAND 8, SUGAY SPUBLIC OF THE PHILIPPINES DEPARTMENT OF by:SIGNED IN THE PRESENCE OF: SUNNY OAK, TiC. by: 8 Q 4 q ft E : o DEPARTMENT OF by: EL LOWELL A. PA Chief Accountant, Financial EI ENE O. CHUA Ms. JOSE WILSON P. CHUA FERDINAND 8. SUGAY President : A breach of violation by LESSEE of the stipulations of this Contract. The LESSOR shall indemnify and hold LESSEE harmless against any liability to any third party/parties claiming right of possession over the Leased Premises, 16, GOVERNMENT REGULATIONS - The LESSEE, shall at their own expense, secure the necessary permits to operate and comply with all laws, ordinances, and orders or requirements of any department of the government, national or local, affecting or pertaining to the leased premises, iv. JUDICIAL RELIEF AND PENALTY - That should the LESSOR file a civil action suit for the collection of unpaid rentals and /or enforce this Contract or eject the LESSEE, the LESSEE shall pay the LESSOR the amount of no less than SIX MONTHS additional rent as liquidated damages plus actual damages suffered by the LESSOR, and a minimum of 25% of the collectible amount as Attorney’s fees but in no case less than ONE HUNDRED THOUSAND PESOS (P100,000.00).. In case of appearances in court, the LESSEE will reimburse the LESSOR the cost of appearance at a minimum of Five Thousand Pesos (P 5,000.00) per appearance plus the cost of suit, and venue of action shalll be in Manila. Cost of documentation shall likewise be shouldered by the LESSEE. 18. RIGHT OF INSPECTION -— LESSOR or its agents shall have the right but not the obligation to enter the Leased Premises at reasonable hours upon reasonable prior notice to LESSEE, to examine the Leased Premises; to perform watchmen’s duties; to make repairs the LESSEE may neglect or refuse to make in accordance herewith; to make improvements and repairs therein or on other parts of the Leased Premises as LESSOR may deem necessary; or to do such other similar protective acts, 19, GUARANTEED LEASE ~ The LESSOR hereby warrants that the LESSEE will have continuous and uninterrupted Possession of the Leased Premises throughout the entire term of this Contract and its renewal when the option is exercised by the LESSEE. The LESSEE guarantees the LESSOR a three years Lease Contract. However the LESSEE shall have the option to pre- terminate this Contract provided the LESSEE informs the LESSOR in writing 90 days prior to the actual date the LESSEE intends to vacate the Leased Premises. Notwithstanding however the LESSEE agrees to pay a pre-termination penalty equivalent to three (3) months rental. Other utilities, common expenses as specified in this contract until the day the LESSEE Page 7 of 11 Contract of LeaseSIGNED IN THE PRESENCE OF: ‘SUNNY OAK, INC. THE PHILIPPINES a DEPARTMENT OF B a (UEL LOWELL A. PA. Chief Accountant, Financial ENE 0, CHUA BM Ms. JOSE WILSON P. CHUA RDINAND S. SUGAY President. 3 vacates the premises in full shall remain to be for the LESSEE’s account, 20. EXTRAORDINARY INFLATION - In case of an extraordinary increase in inflation rate, which is defined by the increase in Consumer Price Index (CPI) for Metro Manila published by the National Economic Development Authority exceeding fifty percent (50%) within the twelve (12) months period using the based CPI for the month commencing the last Contract price escalation, the LESSOR shall advise the LESSEE. of the same within ten (10) days of such advice, the LESSOR and LESSEE shall endeavor to agree on an adjusted rental rate after mutually determining the fair market rental rate for office space within the same building as Leased Premises. If the parties are unable to agree on an adjusted rental rate, this Contract shall be terminated. 21. EVENTS OF DEFAULT - The LESSEE shall be considered in default upon its (1,) failure to pay, in whole or in Part, the Lease Rental on the due date and/or any of the fees, charges, dues and other Payments required of the LESSEE. under this Contract, except when the LESSEE was prevented in doing so by the occurrence of riot, war, natural calamity or any acts of God similar to the foregoing; (2.) failure to comply with any of the terms and conditions of this contract; and (3.) abandonment by LESSEE of the Leased Premises ( the ‘events of Default”). It is hereby understood that LESSEE shall be deemed to have abandoned the Leased Premises should the LESSEE be in arrears in the payment of Lease Rentals or other accounts herein provided for a period of at least One (1) month and the Leased Premises be closed for business or remain unused for the same period, without any notice of closure having been furnished to the LESSOR. 22. INTEREST ON LEASE RENTALS UPON DEFAULT — In case of LESSEE’s default in payment of the Lease Rentals, the amount of Lease Rentals due shall bear interest at the rate of three (3%) percent per month or a fraction of a month to be computed as of the date of delinquency, compounded every 30 days. In addition should LESSOR be compelled to seek judicial ief against LESSEE, LESSEE shall be liable for judicial cost attorneys fee of twenty percent (20% of the Lease Rental due, which shall in no case be less than Pesos: ONE HUNDRED THOUSAND (Php 100,000.00) 23. TERMINATION AS CONSEQUENCE OF DEFAULT. Should the LESSEE be in default, LESSOR shall have the option to demand specific performance of the pertinent provisions of this Contract, or to consider this Contract terminated and without further force and effect. Upon such Page 8 of 11 Contract of LeaseSIGNED IN THE PRESENCE 01 SUNNY OAK, INC. REPUBLIC OF THE PHILIPPINES DEPARTMENT OF JUSTICE by: EL LOWELL A, PAI Chief Accountant, Financial 5 -RLENE 0. CHUA Ms. JOSE WILSON P. CHUA WAND Ss. SUGAY President termination, LESSEE shall vacate and deliver possession of the Leased Premises to LESSOR in accordance with Section 15. Moreover LESSOR shall forfeit or confiscate the Security Deposit provided in Section 3 without prejudice to any other rights and remedies available to LESSOR under the law. 24 REFUSAL TO VACATE UPON TERMINATION — Should LESSEE refuse to vacate the Leased Premises upon termination of this Contract. LESSOR shall have the right to eject LESSEE from the Leased Premises and recover all amounts due as Lease Rental with interest, together with prejudicial costs and attorney’s fee as provided in Section 17 herein above. Should LESSEE continue in possessions of the Leased Premises beyond the Term of the Lease Contract, the Hold-Over provision shall come into effect. The Obligation of LESSEE to pay Lease Rental shall cease only after the Leased Premises shall have been vacated by LESSEE and Turned over to LESSOR. 25. LESSORS RIGHT OF RETENTION UPON LESSEE’s DEFAULT- Upon LESSEE’s default, LESSOR shall, in addition have the power and authority padlock the Leased Premises and prevent LESSEE and/or any of its employee's agents and guests from entering and using the Leased Premises until all outstanding accounts of LESSEE are paid in full. LESSOR shall have the right and authority to open and enter the Leased Premises, take inventory of any and all furniture, effects, materials, and other properties found therein or in the Premises but pertaining to the Leased Premises , remove the same from the Leased Premises, and place them in storage, LESSOR shall have the right to retain by the way of pledge and store any piece of furniture, fixture, equipment, material or other personal property in the Leased Premises until Full settlement of such obligations. In such event, LESSEE hereby waives any and all rights and causes of action against LESSOR for any damage and depreciation upon said properties. LESSEE shall be charged storage fees in accordance with actual warehouse billings. One month after the removal of LESSEE’s Properties from the Leased Premises, if LESSEE’s account remains outstanding, LESSOR has the option to dispose of such furniture, effects and other properties as provided by the law. In the event that the LESSOR does not avail of this option. LESSOR shall release the said properties to LESSEE only at such times as the overdue obligation shall have been fully paid. 26. INTRODUCTION oF IMPROVEMENTS, MOVABLES AND EQUIPMENTS - The LESSEE reserves the right to retain Possession and ownership over all improvements, movables and equipment it introduced during the effectivity of this contract. Page 9 of 11 Contract of Leaseby: JOSE WILSON P. CHUA 27. __ BINDING EFFECT - All the terms, covenants, conditions and provisions of this Contract shall be binding and enforceable upon the parties and their heirs, executors, administrators, Principals, successors-in-interest and assigns, 28. AMENDMENTS. Neither this Contract nor any term herein may be amended, modified, waived, discharged. or terminated orally, but only by any instrument in writing signed by the parties hereto. 29. VENUE - Any legal action or proceeding arising out of connected with this Contract and any and all relative documents shall be brought in the proper courts of Manila only. By execution and delivery of this Contract, the parties hereby irrevocably submit to such venue to the exclusion of all other Venues. 30. GOVERNING LAW - This Contract shall be construed in accordance with Philippine Law. IN WITNESS WHEREOP, the parties have hereunto set their hands this __ day of in aaa Metro Manila. SUNNY OAK, INC. DEPARTMENT OF JUSTICE by: — S&S President Undersecretary SIGNED IN THE PRESENCE OF: Ms. MERLENE-O. CHUA EMI VEL LOWELL A. PANDAAN Hef Accountant, Financial Service Page 10 of 11 Contract of LeaseSIGNED iN THE PRESEN ni 0. CHUA SUNNY OAK, INC. IPPINES REPUBLIC OF THE PHILI DEPARTMENT OF JUST} by: E (UEL LOWELL A. PAI Chief Accountant, Financial a JOSE WILSON P. CHUA RDIVAND S, SUGAY President ACKNOWLEDGMENT REPUBLIC OF THE PHILIPPINES) CITYIORMANDALUKONGS | BEFO! tary Public, for and in the GfVasRMANBALUYONG onthis__ cast 0 Bis , personally appeared: NAME, VALID IDENTIFICATION ADRIAN FERDINAND S. SUGAY. JOSE WILSON P. CHUA TIN NO. 127-701-989-000 known to me and to me known to be the same persons who executed the foregoing document, consisting of eleven (11) pages including this Acknowledgement, signed by the parties and their instrumental witnesses and they acknowledged to me that the same is their free and voluntary act and deed, IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the date and at the place first above written, Doo. No. 70S, Page No._7/ ; Book No. XI; Series of 2019 Page 11 of 11 Contract of Lease