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GAISANO GRAND CITYGATE MALL

Buhangin Davao City ,
Contact Numbers: 032 412-8888 / 032 231-9198
Email: bhnleasing@gaisanogrand.com

NOTICE OF AWARD

September 9, 2019

MR. JOEY DEGAMO

Owner
J AND J FRUIT SHAKE KIOSK

Dear Ms. Degamo :

We are pleased to inform you that we agree to lease an area for you and your business!

The floor lay out is hereto attached as “Annex A” for your guidance. We also deemed it proper to elaborate on the
basic terms and conditions that we have shared to you.

LESSOR
Company Name: Dynasty Management and Development Corporation
Address: Cabantian Corner Tigatto Road, Buhangin Davao City
Represented by: Genevieve Anne Gaisano- Go
Designation: Executive Vice President
LESSEE
Company Name: J and J Fruit Shake Kiosk
Address:
Represented by: Mr. Joey Degamo
Designation: Proprietor
Trade Name: Sweet Tooth Mango Graham
Form of Business: Sole Proprietor
LEASED AREA
Branch Name: Gaisano Grand CityGate Mall
Branch Name: Buhangin, Davao CIty
Location Code: BHN-TFK- 7
Total Floor Area: 4.00 square meters
PERMITTED USE/S Mango Graham and Offer different varieties of flavors

LEASE & COMMENCEMENT PERIOD

Lease Term: One (1) Year
Commencement Period: Thirty (30) days upon turnover of space or upon store opening
(whichever comes first.)
MONTHLY CHARGES
Rate per square meter: Fixed Rate
Monthly Rental: Whichever is higher between:
1. Php15,000.00 + 12% VAT or
2. Percentage rent of 5% of Total Gross Sales + 12% VAT (Not Applicable)
Monthly CUSA (Common Usage Service Area): Php 1,500.00 + 12% VAT
ACU (Air-conditioning): Php 800.00 + 12% VAT or Php 896.00
FCU (Fan Coil Unit): Not Applicable
FBU (Fresh Air & Blower Unit): Not Applicable
Utilities- Power Whichever is highest among:
1. Php1,000.00 + VAT or (Not Applicable)
2. Actual consumption plus service charge or
3. Php10.00 per kilowatt hour (Not Applicable)
Utilities - Water Whichever is higher between:
1. Php500.00 + VAT or (Not Applicable)
2. Actual consumption plus service charge (If Applicable)
Data and Voice Connection (Telephone) To be determined
Data and Line Activation To be determined
Monthly Ads and Promo Fee: Whichever is higher between:
1. Php 500.00 + VAT
2. Php 10.00 per sq.m + VAT
Admin Fee Php 500.00 + 12% VAT - Fixed Rate per Contract upon renewal
Computation of Monthly Charges: Basic + 12% VAT - Withholding Tax
NOTE:
Tax withheld must be supported with BIR FORM 2307 upon payment; otherwise any withheld tax shall be returned by the LESSEE to the LESSOR.

DEPOSIT CHARGES
Reservation Fee: Php 15,000.00 or equivalent to One (1) month basic Monthly rent.
This amount shall automatically form part of the security deposit.
Advance Rent: Php 15,000.00 + 12% VAT or equivalent to One (1) month basic
monthly rent to be applied on the last month of the lease term.
Security Deposit: Php 45,000.00 or equivalent to Three (3) months basic monthly
rent. This is payable prior to the start of construction or the signing
of the Award Notice; refundable sixty (60) days after the complete
submission of clearance docs upon termination or cancellation of
contract, less unpaid obligation of the LESSEE.
Construction Bond: Not Applicable

NOTE: Reservation Fee, Advance Rent, Security Deposit and Construction Bond shall be forfeited by the LESSOR on
any of the following reasons:
1. Cancellation of this agreement after the Lessee has signed and confirmed the Offer Sheet and Award Notice.
2. If the Lessee fails to start operation within Thirty (30) days from commencement of lease, the Lessor reserves the
right to unilaterally cancel this agreement and offer the same premises to another party.
3. Termination of the contract for whatever reason prior to the expiry date of the lease term.
ANNUAL INCREMENT
Minimum of Ten percent (10%) per annum on Basic Rent, CUSA (Common Usage Service Area), ACU (Air-conditioning),
FBU (Fresh Air and Blower Unit) and Security Deposit.
MODE OF PAYMENT
The Lessee shall issue Eleven (11) post- dated checks (PDC) dated every first (5th) day of each and every month to
cover for the first year of lease. Checks made should be payable to DYNASTY MANAGEMENT AND
DEVELOPMENT CORPORATION. Overdue accounts shall be subject to a penalty charge and interest of three
percent (3%) and two percent (2%)respectively, per month. The penalty and interest are computed daily and
compounded monthly.
PRE-CONSTRUCTION CHARGES
1. Power and Water Refer to Discussion on Utilities Above
2. Electric Meter, Water Meter & Tenant to Provide
Grease Trap
3.Board up Provided by LESSEE
4.Marketing Tarpaulins: Provided by LESSEE

CONSTRUCTION PERIOD (RENT-FREE)

Construction Period Thirty (30) days upon turnover of space.
Construction Plans The management will provide a copy of the Construction and
Renovation Guidelines to be followed strictly.
NOTE: Complete plans of the work to be done must be submitted to and approved by Management prior to
construction. The exterior perspective should be done on an A-3 SIZE PAPER and must first be approved by
GAISANO GRAND GROUP OF COMPANIES. This includes kitchen lay-out if applicable.
OPERATING CHARGES
Documentary Stamps: Lessee’s Account
Pest Control: Lessee’s Account
The LESSEE or any of his agents and representatives shall strictly follow the LESSOR’S House Rules as attached
hereto.

Additionally, we emphasize the following:

1. Construction or renovation costs are for the account of the LESSEE.

2. The construction plans shall be pre-approved by Management
3. Before commencing any construction or renovation, the LESSEE shall procure a Contractor’s All Risk Insurance
with a minimum coverage of Php500,000.00. The LESSOR shall be furnished a copy of the policy.
4. Before construction / renovation, the LESSEE shall provide for a Construction Bond equivalent to one (1)
month basic rent. This shall be refundable after construction / renovation, once clearance has been processed
by the LESSEE.
5. That during construction / renovation, the LESSEE shall provide for the Feeder Line and any electric load
requirement in excess of the Mall provision shall be also be for the LESSEE’s account.
6. Pest Control Requirements and Documentary Stamp Tax shall be for the LESSEE’s account.
7. For purposes of advertisement and promotion, the LESSEE shall provide one soon-to-open tarpaulin two (2)
weeks prior to store opening and one (1) more tarpaulin on opening date.
8. This Notice of Award shall be considered cancelled if the LESSEE fails to start operation within thirty (30) days
from the signing hereof. All deposits and payments received shall be forfeited in favor of the LESSOR.
9. The LESSOR reserves the right to unilaterally cancel this agreement and offer the same premises to another
party.
10. Should the Lessee decide to pre-terminate this lease for any reason whatsoever, the security deposit shall be
forfeited in favor of the Lessor and the latter shall have the right to collect all remaining rentals consisting of
basic rent, CUSA, and other charges corresponding to the unexpired portion of this lease.
11. The LESSEE shall hold the LESSOR free and harmless from any liability or responsibility for loss, damage or
injury to any person or property arising out of or as a consequence of this Contract, or the use of Leased Unit
 and/or the common areas of the building by the LESSEE, its employees, guests and agents. The LESSEE shall
endeavor to address and attend to the damage, loss or injury caused within five (5) days from notice.
12. Should the LESSEE remain in possession of the Leased Premises after the expiration or termination of the
contract and Renewal Notice has not yet been returned to the LESSOR, the lease shall be understood to
continue on a month-to-month basis only, subject to the same basic terms and conditions. Under the month-
to-month lease, the LESSEE will pay the LESSOR a holdover charge equivalent to 25% of the Basic Rental.
13. GAISANO GRAND GROUP OF COMPANIES shall have the right to modify any provisions of the Award Notice if
and when deemed necessary. However, the LESSEE shall be informed in writing before any modification shall
be implemented.
14. The terms and conditions embodied in the Proposal Sheet and in this Notice of Award shall remain in force until
the execution of a Contract of Lease upon which time all terms and conditions provided for in said Contract of
Lease shall govern.
15. Please acknowledge your receipt of this Notice of Award and your conformity to the terms and conditions
stated herein by affixing your signature in the space provided below. We expect to receive the signed Notice
of Award on or before September 23, 2019. In the event we do not receive the signed copy within the above
period, we shall assume you are no longer interested and shall offer the space to another party.

We wish you and you forthcoming business the best of luck!

Prepared by:

MS. MAE L. RAMPOLA

Leasing Officer
Date: ________________

Noted by: Approved by:

MS. SHARON L. CARTAGENA MS. MARY GRACE MANTILLA

Leasing Supervisor Corporate Lease & Operations Manager
Northern Mindanao Cebu South and Mindanao Malls
Date: ________________ Date: ___9/11/19__________

CONFORME:

MR. JOEY DEGAMO

Proprietor
Date: ___________________