CONTRACT OF LEASE
This Contract of Lease made and executed by and between:
XXXXXXX X. YNARES, Filipino, of legal age, with residence and postal
address at No. 25 Rizal St., San Xxxxxx Heights Subdivision, Tayuman,
Binangonan, Rizal, hereinafter known as the LESSOR;
-and-
MOMENTUM INTERNET (PHILIPPINES) INC., an entity in the process of
incorporation under the laws of the Republic of tile Philippines, with
office address at Xxxxxxxxx 0 Xxxxxx Luxury Condominium, Pearl Drive,
Ortigas Center, Pasig City, represented herein by its President, XXXXXXX
XXXXX, hereinafter known as the LESSEE.
WITNESSETH: That
In consideration of the payments, terms, conditions and stipulations
hereinafter stated, the LESSOR hereby leases and lets unto the LESSEE, and the
latter hires, takes and accepts in lease from former the property known as tile
Xxxx XX-0, Xxxxxx Luxury Condominium, located at Pearl Drive corner Gold Loop
St. Ortigas Center, Pasig City, with an area of 389.39 sq.m. more or less.
1. TERM OF LEASE: The term of lease shall be for a period of one (1) year,
commencing January 01, 1999 ending December 31, 1999. This lease may be renewed
under such terms and conditions that may be the subject of negotiation and
mutual agreement of both panics, provided that written notice of the intention
to renew is first served by LESSEE to the LESSOR at least sixty (60) days before
the expiry date of the lease and provided further that both parties shall have
agreed on the new rental and other conditions corresponding to the renewal
period not later than thirty (30) days before the expiration of the original
lease. In the event no mutual agreement is reached with respect to the new
rental rate and other conditions within , the said period, this lease contract
shall automatically expire at the end of tile one-year period and the LESSEE
agrees to vacate the premises as provided for in paragraph 13 hereof.
2. RENTAL: The monthly rental for the leased premises with one (1)
telephone line (000-0000) and two (2) parking slots (#39 and 40 at Basement 1)
shall be NINETY THOUSAND (P90,000.00) PESOS Only, Philippine Currency, net of
Five (5%) Percent Witholding Tax; Ten (10%) Percent EVAT and the Association
Dues.
Upon signing of this Contract of Lease, LESSEE shall pay to the LESSOR
advance rental equivalent to two (2) months amounting to One Hundred Eighty
Thousand (P130,000.00) Pesos Only. The monthly rentals shall be paid every first
(Ist) day of the month starting January 01, 1999. The two (2) months advance
rental shall be applied to (lie remaining two (2) months of the contract
immediately before its termination.
In case of default and after a grace period of one (1) week, in payment of
said rental, amount owing shall bear interest at thirty six (36%) percent per
annum to be computed daily from the date of default until fully paid. Payment of
such interest is considered as penalty by reason of such default, without
prejudice to [lie right of LESSOR to terminate the contract and eject LESSEE for
non-payment of rental on due date;
The payment of Five (5%) Percent Withholding Tax and Ten (10%) EVAT upon
its effectivity, as mandated by tile government, shall be for the account of the
LESSEE.
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3. SECURITY DEPOSIT: Upon signing or this agreement, the LESSEE shall
deposit with the LESSOR a cash bond in a sum equivalent to two (2) months rental
or the amount of One Hundred Eighty Thousand (PI80,000.00) Pesos Only. Said bond
shall answer for the faithful compliance by the LESSEE of ail the LESSEE's
obligations under this contract, it being understood that the same shall not
earn interest nor is it intended to be measure of the damages that the LESSOR
may collect from the LESSEE under this contract. The said bond shall not be
refundable to the LESSEE until the LESSEE shall have vacated the premises upon
termination of this lease, or its extension or renewal, and only after deducting
all amounts that may be payable by the LESSEE to the LESSOR under this contract.
The LESSOR shall have the right from time to time to deduct front the deposit
any and all advances and damages which the LESSEE liable to the LESSOR under any
provisions of this contract, and in the event that the deposit is reduced as a
result of such deduction, the LESSEE shall, within five (5) days from demand,
make an additional deposit with the LESSOR in order to maintain the deposit at
an amount equal to two (2) months rental.
4. FURTHER OBLIGATIONS: The LESSEE shall be liable for the corresponding
proportionate monthly assessment fee or condominium due of TWENTY PESOS
(P20.00/SQ.M.) PER SQUARE METER of the total leased area, which may be subject
to adjustment and/or change under the direction of the condominium corporation
as the case maybe, pertaining to light and water consumption of the common
areas, security, elevator service, maintenance of common areas and similar
services.
The LESSOR shall pay real estate taxes for the subject leased premises, and
the building insurance and real estate tax for the land which shall likewise be
subjected to change by the condominium corporation and/or other competent
authorities.
The LESSEE hereby agrees to allow any prospective buyer of the LESSOR to
view the leased unit.
5. USE OF PREMISES: SUB-LEASE: The leased premises shall be used solely and
exclusively by tile LESSEE as and for office / residential space. The rights of
the LESSEE hereunder shall not be assigned or sub-leased in whole or in part
without the prior written consent of the LESSOR.
In using the leased premises, the LESSEE shall faithfully comply with the
following conditions:
5.1 The LESSEE shall not bring into nor store in the leased premises any
inflammable nor explosive goods and materials, nor any article which may expose
the leased premises to fire, or thereby increase the fire hazard of tile
building, or increase the rate of the insurance of the building, or any article
which the LESSOR reasonably prohibit; nor shall the LESSEE carry on and permit
upon the said premises any trade or occupation or suffer to be done any other
thing, which may make void or voidable in whole or in part any policy for such
insurance. The LESSEE shall be held liable for any and all damages the LESSOR
may suffer through any such act or omission of the LESSEE.
5.2 The LESSEE shall not use the corridors and patios of the building
except as passageway or aisle to go in and out of the leased premises; nor shall
the LESSEE make or cause to be made any openings in the leased premises to be
used as a counter to transact business with the general public from outside of
the leased premises, nor as door, chute, window, skylight, air-conditioning of
similar purpose.
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5.3 The LESSEE shall not make any alterations, additions or repairs, nor
start or procerd with any repair work, or any case, introduce improvements
without obtaining the LESSOR's written approval and consent: and the parties
hereto agree that all improvements or alterations, additions, repair or works of
whatsoever nature made on the leased premises shall upon completion, from an
integral part of the leased premises and shall not be removed there from and
shall belong to and become the exclusive property of the LESSOR; without any
right an the part of the LESSEE to be reimbursed for the cost nor value thereof.
5.4 The LESSOR reserves the right to prescribed or limit the weight of any
machinery, heavy safe, equipment or others or other articles which the LESSEE
may warrant to place in the leased premises. The LESSOR shall have the right to
designate the position or location for such subject. No machinery, furniture nor
other equipment may be brought into nor out of the building or leased premises
without the prior written approval of die LESSOR.
5.5 The LESSEE shall maintain the leased premises in a clean, safe and
/sanitary condition; the LESSEE shall dispose of all rubbish only through the
means that the LESSOR may require or provide.
5.6 The LESSEE shall not make, permit or suffer to be committed upon the
lease premises any disturbing noise caused by them or persons under their
control that may constitute a nuisance or convenience of the other tenants in
the above-mentioned office building or condominium.
5.7 The LESSEE must not, in any way, block the passageway leading to the
fire escape, nor use the said passageway as storage.
6. UTILITIES: During the existence of this lease, the LESSEE shall pay the
expenses for the electric power, water, telephone, and other utility services
which may be used or consumed by the LESSEE in the leased premises. Any
breakdown for any reason or cause of whatsoever of any said utilities within the
building or the leased premises shall not make tile LESSOR answerable for
damages.
Repair in the utility service system, including water pipes and toilet
equipment and facilities within the leased premises shall be undertaken by the
LESSOR, provided however, that if the making of such repair has been rendered
necessary due to damage resulting from the fault or negligence of the LESSEE's
employee, agent, guest, client or customer, said repairs shall be at the
LESSEE's expense. No delay in the making of such repairs nor defectiveness or
unsatisfactory condition thereof shall render the LESSOR liable for damage to
the LESSEE.
7. LESSOR'S EXEMPTION FROM LIABILITY: The LESSOR shall not be liable for
any damage caused or arising from the failure of tile water supply, failure of
fluctuation of the electric current, or defects from the plumbing, water or
electric installation, or the bursting, leaking or running of any washstand,
water closet, cistern, tank or waste pipe in or adjacent to the leased premises,
or for damage caused by water coming through the roof. The LESSEE during the
occupancy of the leased premises hold the LESSOR free and harmless from any
damage, liability or responsibility to any person arising out or as a
consequence of the used of the leased premises by (lie LESSEE, members of their
staff and guests.
8. COMPLIANCE WITH LAWS. REGULATIONS AND RULES AND RESTRICTIONS: The LESSEE
shall promptly comply with any and all laws, ordinances, rules & regulations,
orders which national, provincial or local government, or any department,
bureau, board, commission, or other agency or instrumentality thereof may
promulgate, and with all regulations that the LESSOR may, from time to time,
adopt and enforce regarding the use, occupation, sanitation and safety of the
leased premises.
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IN WITNESS WHEREOF, the parties have hereunto signed these present in Pasig
City, Philippines, this _ day of December, 1998.
/S/ Rebceca A. Ynares
XXXXXXX X. YNARES MOMENTUM INTERNET
Lessor (PHILIPPINES) INC.
By: /s/ Xxxxxxx Xxxxx
XXXXXXX XXXXX
President
SIGNED IN THE PRESENCE OF:
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
)S.S.
BEFORE ME, a Notary Public for and in, ________________, Metro Manila, this
________ day of December, 1998 personally appeared the following:
Name Xxx.Xxx/Passport No. Date/Place Issued
Xxxxxxx X. Ynares
Xxxxxxx Xxxxx B339203 July 18, 1989 / Manila
known to me and to me known to be the same persons who executed the foregoing
CONTRACT OF LEASE, and acknowledged to me that the same is their true act and
voluntary deed.
WITNESS MY HAND AND NOTARIAL SEAL on the date and place first above written.
Doc. No.
Page No.
Book No.
Series of 1998.
