CONTRACT OF LEASE KNOW ALL MEN BY THESE PRESENTS: ‘This Contract of Lease, made and executed in Caloocan City this day of 2020 by and between: MANILA CENTRAL UNIVERSITY, a private educational institution duly organized and existing under the laws of the Republic ofthe Philippines with office address at Manila Central University, Epifanio Delos Santos Avenue (EDSA), Caloocan City, represented by its resident, MRS. LUNINGNING T, ESTANISLAO, herein referred to as the LESSOR, -and - MANILA CENTRAL UNIVERSITY - FILEMON D. TANCHOCO MEDICAL FOUNDATION, INC, a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with business address Manila Central University, Epifanio Feaae santos Avenue (EDSA), Caloocan City, represented by its Administrator MRS. PURIFICACION M. ECHIVERRI, herein referred to as the LESSEE, WITNESSETH THAT WHEREAS, the LESSOR is the registered owner of one (1) parcel of land situated in Caloocan City along Epifanio Delos Santos Avenue (EDSA) described in and covered by ‘Tranefer Certificate of Title No, 9362 issued by the Register of Deeds of Caloocan City duly registered under the name of Manila Central University with an area of SEVENTY FIVE THOUSAND FIVE HUNDRED FIVE HUNDRED FIFTY THREE (75,553) SQUARE METERS, more or less. WHEREAS, the LESSOR has agreed to lease to the LESSEE a portion of the aforementioned parcel of land with a total area of FIVE THOUSAND FOUR HUNDRED SEVENTY (5,470) SQUARE METERS, more or less, under the terms and conditions hereunder set forth; WHEREAS, the LESSEE has proposed to lease the aforesaid portion of the parcel of, iad and the building developments therein for use in healthcare services, education and offices; NOW, THEREFORE for and in consideration of the foregoing premises and their covenants and premises, the LESSOR hereby agrees to lease to the LESSEE and the LESSEE hereby accepts to lease the aforementioned premises subject to the terms and conditions hereinafter set forth: 1. TERM - The lease shall be for a term of five (5) ive (5) years con i i contract or from July 1, 2019 up to June 30, 2024. nee ae2. RENTAL FEE - The LESSEE hereby agree to pay the LESSOR a fee of THREE HUNDRED FIFTEEN THOUSAND PESOS (P315,000.00) within the first ten (10) days of each calendar month at the LESSOR’s Cashier at MCU EDSA, Caloocan City. 3, RENEWAL RENTAL ESCALATION RATE - The LESSEE agrees that there is a rental escalation rate of FIVE PERCENT (5%) during renewal negotiation, starting with the rental rate abovementioned, This stipulated monthly rental shall not be subject to any further adjustment or escalation for any reason whatsoever during the term of this Lease. ‘The LESSEE shall be held liable for any delay in remittance of monthly rentals at the rate of 0.05 % per day of delay. In the event that the LESSEE fails to remit the monthly rentals for three (3) consecutive months, the Contract of Lease is hereby terminated and absolute ownership of whatever developments done by the LESSEE shall automatically be transferred to the LESSOR, 4. CONSTRUCTION OF THE BUILDING, IMPROVEMENT, ADDITIONS AND INSTALLATIONS IN THE LEASED PREMISES - The LESSEE may construct improvements on the leased premises made of strong materials based on the design, plans and specifications by the LESSEE to be presented and approved by the LESSOR and shall be limited to the area so assigned by the LESSOR, and shall not in any manner encroach upon, extend to, or block the existing structures, driveways and the like, of the LESSOR. Upon termination or expiration of the lease, absolute ownership of the building shall automatically be transferred to the LESSOR without need of further act on the part of the LESSEE. Unless the lease is extended upon mutual agreement between the parties, the LESSEE shall have option to remove all improvements or additions provided that no substantial damage is caused to the building and premises. Permanent improvements which cannot be removed, without causing substantial damage to the premises shall belong tothe LESSOR. The LESSEE can make such improvements, additions and installation on the leased premises as maybe necessary for the LESSEE’s purpose. 5. USE OF THE PREMISES - The leased premises, i.e. as of this contract the MCU-FDTMF Hospital, Annex Building and Anatomy Building, shall be used by the LESSEE only for legitimate healthcare services, education and offices purposes. 6. ASSIGNMENT / SUB-LEASE OF PREMISES - The LESSEE may assign the LESSEE's interest and obligations under this Lease or sub-lease the premises or any portion thereof with the written consent of the LESSOR and provided that said leased area will be strictly utilized for similar use only as mentioned in Item 6. ‘At the end of this contract or if by any reason this contract is terminated, the LESSOR cannot be held liable for any agreement or related transaction between the LESSEE and its associates. 7. ‘TAXES AND INSURANCE - For the entire duration of this lease, the LESSOR shall pay the real property taxes on the land and other government assignments on the parcel of land subject thereof due to the national government, its subdivisions, or instrumentalities. Should the LESSOR fail to do so, the LESSEE may, but without obligation to do so, pay the same and all amounts so paid shall be deducted from the monthly rentals or reimbursed to the LESSEE at the LESSEE’s option with the interest at the maximum rate allowable under the law.The LESSEE, on the other hand, shall pay the property tax on the building for the entire term of the lease. In case of fire or damage of the buildings preventing the full occupancy thereof, the lease shall be deemed suspended and no rentals shall be paid during the period of reconstruction or repair which suspension of rentals shall be more than ninety (90) days, and the lease shall be extended for the same period of repair and reconstruction. 8. WASTE DISPOSAL AND DRAINAGE - The LESSEE ensures that they will segregate all the wastes they generate from operations and dispose of these properly in accordance with the LESSOR'S policies and procedures, The LESSEE undertakes to confine the drainage-system within the leased premises and directly connected to the City road drainage system. 9. SIGNS, LOGO AND ANNOUNCEMENTS ON BILLBOARDS - The LESSEE may install signs, logo and messages on LESSOR assigned areas of the leased premises without any obligation to pay additional fees for as long as these have the written approval of the LESSOR. 10. FACILITIES - All water, electricity, telephone and other utilities charges used in the leased including janitorial services shall be in the account of the LESSEE. 11. WARRANTY- The LESSOR warrants LESSEE’s peaceful and continuous possession of the leased premises during the entire lease or any extension thereof. The LESSOR further warrants that the parcel of land described in the First and Second Whereas Clause hereof is free and clear of any liens, encumbrances and adverse claims of whatever kind and nature, including among other heir’s or creditor's liens; and hereby agrees to indemnify and save harmless the LESSEE against any claims for damages, compensation or otherwise by any person or entity. 12. EXPROPRIATION - In the event that expropriation proceedings are instituted during the period of this lease by any instrumentality of the government or by any other entity with authority to exercise such power, the LESSOR and the LESSEE shall discuss and agree on what is best for both parties. However, in case the leased premises become no longer useful for the purpose of this lease because of the expropriation, the LESSEE may rescind the contract upon giving the LESSOR thirty (30) days previous written notice thereof. In such event, the LESSEE relieves and releases the LESSOR from any and all liability under this contract in connection with or arising out of such expropriation proceedings, without prejudice to whatever recourse the LESSEE may have against the expropriating entity on account of damage done or caused to it or its properties. All actions under this lease are to be instituted at the proper court of Caloocan, to the exclusion of all others.IN WITNESS WHEREOF, the parties have hereunto affixed their signatures on this __dayof = gaa MANILA CENTRAL UNIVERSITY MCU - FDT MEDICAL FOUNDATION, INC. by by MRS. LUNINGNING T. ESTANISLAO ‘MRS. PURIFICACION M. ECHIVERRI LESSOR LESSEE, SIGNED IN THE PRESENCE OF ACKNOWLEDGMENT REPUBLIC OF THE PHILIPPINE: aus 2 BEFORE ME, a Notary Public in and for __day of 2020, personally appeared the following: Metro Manila, on this CTC No. Date/Place Issued MRS, LUNINGNING T. ESTANISLAO MRS. PURIFICACION M. ECHIVERRI Known to me to be the same persons who executed the foregoing Contract of Lease which acknowledged to me that the same is free and voluntary act and deed, ‘This instrument consists of four (4) pages including this page including this page of which the Acknowledgement is written and their instrumental witness on each and every page. WITNESS MY HAND AND SEAL on the date and at the place first mentioned herein, NOTARY PUBLIC Book No. Series of.