» CONTRACT OF LEASE KNOW ALL MEN BY THESE PRESENTS : O 2p This Contract of Lease, made and executed in Caloocan citythis_! ° ay of September 2015 by and between: MANILA CENTRAL UNIVERSITY, a private educational institution duly organized and ing under the laws of the Republic of the Philippines with office address at Manila Central sity, Epifanio Delos Santos Avenue (EDSA), Caloocan City, represented by its President, Dr. ARISTOTLE T. MALABANAN. Here in referred to as the LESSOR, exis -and- BENEFRANCO PROPERTY LEASING, a private company ,duly organized and existing under the laws of the Republic of the Philippines with business address at 3129 Bagong Panahon St. Sta Mesa Manila, represented by MARIE LOURDES M. GARCIA, 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 described in and covered by Transfer 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 ONE HUNDRED NINETY-EIGHT (198) square meters more or less, herein attached as Exhibit “ A“ under the terms and conditions hereunder set forth; WHEREAS, the LESSEE has proposed to lease the aforesaid portion of the parcel of land and the building developments therein for use in commercial purposes; NOW, THEREFORE for and in consideration of the foregoing premises and their covenants and premises, the LESSOR hereby agrees to lease the demise unto the LESSEE and the LESSE hereby accepts in lease the aforementioned premises subject to the terms and conditions hereinafter set forth: < 1, TERM — The lease shalll be for a term of one year commencing after signing of this Contract or from September 15, 2015 to September 16, 2016. 2. RENTAL ~The LESSE hereby agree to pay the LESSOR a fee of SEVENTY NINE THOUSAND. THREE HUNDRED PESOS (Php 79,300.00) within the first ten (10) days of each calendar month at the LESSOR’s Office at MCU, Caloocan City. 3. RENEWAL RENTAL ESCALATION RATE- The LESSE agrees that there will be a rental escalation rate of 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 LESSE 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 LESSE 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 LESSE shall automatically be transferred to the LESSOR. 4, ADVANCE RENTALS — The LESSE hereby agrees to pay the LESSOR upon signing of this Contract the sum of SEVENTY NINE THOUSAND THREE HUNDRED PESOS (Php 79,300.00) representing one month Security Deposit and ONE HUNDRED FIFTY EIGHT THOUSAND. ‘SIX HUNDRED PESOS (Php 158,600.00) representing two months Advance Rental Payments for the leased premises. CONSTRUCTION OF THE BUILDING, IMPROVEENT, 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 driveway 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 LESSE. Unless the lease is extended upon mutual agreement between the parties, the LESSE 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 to the LESSOR. The LESSEE can make such improvements, additions and installation on the leased premises as maybe necessary for the LESSSEE’s purpose. 6. USE OF THE PREMISES — The leased premises shall be used by the LESSEE for legitimate commercial purpose. 7. ASSIGNMENT/SUBL-LEASE OF PREMISES — The LESSEE has the right to assign LESSEE’s interest and obligations under this Lease or sub-lease the premises or any portion thereof without the consent of the LESSOR; provided said leased area will strictly utilized for similar use only as provided in item (5) hereof. 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 tenants or other associates. . 8. 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 LESSE 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 ) 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 building preventing 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 in no case be more than ninety (90) days, and the Lease shall be extended for the same period of repair and reconstruction. 9. AFFIRMATIVE COVENANTS — The LESSEE undertakes to confine the drainage-system within the leased premises and so directly connected to the City road drainage system. The LESSE shall likewise have, the wall of the leased premises fronting the Botanical Garden of the LESSOR painted; and, on best effort basis, shall make provisions for perimeter lighting at the wall of the leased premises for the benefit of the LESSOR. 10. NEGATIVE COVENANT ~ The LESSE shall not construct/build a toilet within the leased premises. 11. SIGN AND LOGO — The LESSEE shall have the right to install its sign and logo on any part of the leased premises without any obligation to pay additional rental. 12. FACILITIES — All charges for water, electricity, telephone and other public utilities used in the leased premises as well as janitorial services, shall be for the account of the LESSE. 13. WARRANTY ~ The LESSOR warrants LESSE’s peaceful and continuos possession of the leased premises during the entire life of this 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 lien; and hereby agrees to indemnify and save harmless the LESSEE against any claims for damages, compensation or otherwise by any person or entity. 114. 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 shall restitute to the LESSE the expropriated area by replacing the affected premises with another portion of the above- described parcel of land acceptable to the LESSEE. In any event the LESSOR shall allow the suspension of the rental payments due under the term of the Lease shall correspondingly be extended for the same period consume in the reconstruction. 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 ing out such expropriation proceedings, without prejudice to whatever recourse the LESSEE may have against the expropriating entity on account of damage done or caused to. its properties. 15. BINDING EFFECT — This lease shall be binding not only between the parties hereto but also upon their respective successors and assigns. The LESSOR expressly agrees that in case the property is to be sold, the LESSOR grants and gives to the LESSEE the right and ‘option, any time while this Lease is in effect, to purchase the said property at the same price offered to a legitimate third party. In the event the LESSEE does not purchase the property, the LESSOR shall make the necessary provisions to the end that the new ‘owner shall recognize and respect this Lease. oy16. ANNOTATION OF LEASE ~ The LESSE may, if it so desires require the annotation of its rights under this Contract on the appropriate certificate of title and registration of this Lease with the appropriate Register of Deeds and all expenses thereto shall be for the account of the LESSEE. 17. VENUE-All actions under this Lease are to be instituted at the proper court of Caloocan, to the exclusion of allothers. IN WITNESS WHEREOF, the parties have hereunto affixed their signatures on this_ day of 2015. BENEFRANCO PROPERTY LEASING MANILA CENTRAL UNIVERSITY BY By MARIE LOURDES M. GARCIA OR. Sy MALABANAN EE LESSOR IRAACKNOWLEDMENT REPUBLIC OF THE PHILIPPINES) ) BEFORE ME, a Notary Public in and for Metro Manila, on this day of, 2015, personally appeared the following: NOV ozo CTC No. Date/Place Issued DR.ARISTOTLE T. MALABANAN 1G 044 2015] Cakotan City MARIE LOURDES M. GARCIA (214 4311 Wfjx | Caleecan, Oy Known to me 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 consist of five (5) pages including this page including this page of which the Acknowledgment is written and their instrumental witness on each and every page. WITNESS MY HAND AND SEAL on the date at the place first mentioned hereit ly Doc. No. Page No. Book No, Series of, SF Vargas Bkig. #103 Kalayaan Ave, Diiman Quez. gas Big. ve., Dilan Quezon CityDEPARTMENT OF PHILIPPINES, This certifies that BENEFRANCO PROPERTY LEASING (Barangay) BARANGAY 84, CALOOCAN CITY, NCR, THIRD DISTRICT, NATIONAL CAPITAL REGION (NCR) 8 a business name registered in this office pursuant to the provisions of Act 3883, as amended by Act 4147 and Republic Act No. 863, and in compliance with the applicable rules and regulations prescribed by the Department of Trade and industry. This certificate issued to MARIE LOURDES MENDOZA GARCIA 3129 BAGONG PANAHON ST., STA. MESA NCR, CITY OF MANILA, FIRST DISTRICT, NATIONAL CAPITAL REGION (NCR) is valid from 28 July 2015 to 28 July 2020 subject to continuing compliance with the above-mentioned laws and all applicable laws of the Philippines, unless voluntarily cancelled. In testimony whereof, | hereby sign this Business? Mencate. Of stration . and issue the same on this 28th day of July 2015 in the Philippines. oi nok CoeilKeo Secretary Certificate No. 03657759 This certificate is not a license to engage in any kind of business and valid only at the scope indicated herein. sumentary Stamp Tax Paid PhP 15,00 TRN 6913285,