CONTRACT OF LEASE
KNOW ALL MEN BY THESE PRESENTS:
This Contract of Lease made and entered into by and between:
TECHNOLOGY RESOURCE CENTER a government corporation with office address at #103 J. Abad
Santos cor. Lopez Jaena Sts. Little Baguio, San Juan City, represented herein by its Director-General,
ANTONIO Y. ORTIZ, for and in behalf of the Government of the Republic of the Philippines, as the
Administrator of certain Technology Centers, and hereinafter referred to as “TRC”;
__________________________________________, a ____________________ duly organized and
existing under and by virtue of existing laws of the Philippines, and with office address at
___________________________________________________ herein represented by its
________________________________________ herein referred to as the "LESSEE".
W I T N E S S E T H: That
WHEREAS, TRC is mandated to manage and administer an industrial area known as the
___________________ Technology Center located at ______________________________ , with factory
buildings erected thereon;
WHEREAS, the LESSEE is cognizant of TRC’s aforementioned mandate and hereby recognizes the
absolute right of TRC to lease, let and demise subject property;
WHEREAS, the LESSEE desires to lease BUILDING NOS. _____________________ and TRC is willing to
lease the same to the LESSEE under the terms and conditions hereunder set forth;
NOW, THEREFORE, for and in consideration of the foregoing premises, the parties herein agree and bind
themselves as follows:
1. TRC hereby leases unto the LESSEE, and the latter hereby accepts to lease from the former,
____________________________ containing an area of
USE OF LEASED PREMISES
2. The leased premises shall be used exclusively by the LESSEE for the establishment, operation and
maintenance of such machinery, equipment and other improvements as may be necessary to carry on its
business as a manufacturer. It is expressly agreed that, if at any time during the term of this lease and without
the previous written consent of TRC, the leased premises are used for any other purpose; TRC shall have the
absolute right to rescind this Contract in accordance with paragraph 29 hereof with right to damages.
The leased premises shall not be used as workers’ sleeping quarters, except in the event that overtime or
shifting is required. In this case, prior written notice from the LESSEE shall be required.
The LESSEE shall be allowed to maintain a maximum of ____________ regular stay-in workers in the leased
premises to ensure security of its properties and for other purposes, which the company deem necessary. In no
case, however, shall cooking, drinking of liquors and other intoxicating beverages, gambling, illegal activities
and other activities that may put the leased premises and its inhabitants at risk, be allowed.
Any damage to the leased premises cost of loss and expenses for the restoration resulting from non-compliance
of the above restrictions shall be for the account of the LESSEE and shall hold TRC free and harmless from any
damage arising there from.
3. The LESSEE shall not assign, transfer or encumber its rights under this Contract nor sublease or sublet all or
any part of the leased premises without the prior written consent of TRC. Provided, that any majority change in
the stock ownership of the LESSEE shall be considered as assignment or transfer for purposes of this section.
4. The LESSEE shall not bring nor allow to be brought into the leased premises any articles which the law prohibit
nor shall the LESSEE carry on or permit upon said premises any trade or occupation or suffer to be done any
other activity which may prejudice in whole or in part any policy or insurance covering the premises.
5. The LESSEE, shall, at its sole expense, secure the leased premises and maintain the same in a first class
condition, free from obnoxious odors, disturbing noises and other nuisances except as is consistent with the
conduct of its business.
6. The LESSEE shall ensure that its operations during the course of manufacturing or production will not endanger
public safety or public health.
7. The LESSEE shall make provisions for the treatment and disposal of industrial waste and scraps in a manner
acceptable to existing government laws, rules and regulations.
DURATION OF LEASE
8. The duration of this lease shall be for ____________________ commencing on _________________ for
____________________________ and expiring on ___________________. Upon expiration of the
_______________________, the LESSEE, subject to approval by the TRC, may renew the lease, which option
must be exercised in writing by the LESSEE at least _____________ prior to the expiration of the lease
contract. The terms and condition of the renewal of the contract shall be the subject of a negotiation between
RENTAL AND OTHER CONSIDERATIONS
9. For the ___________ lease duration, the monthly rental rate for the building/s shall be computed at
______________per square meter or _________________________________________, including 12%
Reformed Value Added Tax (R-VAT), for the entire area of ________________ square meters.
10. The LESSEE shall pay to TRC, for the use and occupancy of the leased premises the monthly lease rental in
Philippine Currency at the offices of TRC or such other place as TRC may otherwise designate. Lease
payments shall be made every first day of each month.
All payments shall be made without the necessity of any previous notice or demand, it being understood that in
case of default, any amount due shall automatically bear penalty of ____________ per month computed from
due date until fully paid, and in addition, LESSEE shall be liable to TRC for an additiona l sum equivalent to
twenty-five percent (25%) of the rentals due as attorney's fees in the event of litigation. Furthermore, TRC may
terminate this Contract and eject the LESSEE as hereinafter set forth. In the event LESSEE incurs any delay in
the payment of rentals for a period of thirty (30) days or more from the date the rentals become due, TRC shall
have the right to summarily cut-off all electricity, telephone, water and other utility services to the Leased
All payments shall be subject to 12% R-Value added Tax.
11 Upon signing of this Contract, the LESSEE shall pay TRC ___________ months advance rental for the leased
premises, equivalent to __________________________________________. The advance rental payments
shall be applied at the end of the term of lease.
12. Further, the LESSEE shall, upon signing of the Lease Contract, __________________ post dated checks,
covering the monthly lease payments for the entire ____________ year duration of the lease.
13. It is understood that there will be no rental rate adjustment or increase during the period. However, rental
increase or adjustment can be made in the event of an inflationary situation within the period of this lease. This
shall be subject to a mutual assessment and evaluation of the event by both parties.
14. The security deposit shall be equivalent to ____________ months rental, or the sum of
________________________________________________________ without R-VAT.
The deposit shall be considered and held by TRC as security for the full and faithful observance and
performance by the LESSEE of all the terms and conditions of this Contract. This deposit shall be forfeited in
favor of TRC in the event that the project implementation is not commenced within forty-five (45) calendar days
from the date of effectivity of the lease contract.
15. In the event of LESSEE's failure to comply with any of the terms and conditions of this Contract, TRC may, at its
option, appropriate and apply the said deposit or a part thereof as may be necessary to compensate TRC for
whatever expense, loss or damage it may sustain on account of such breach by the LESSEE. Should the
entire deposit or part thereof be appropriated or applied by TRC, whether for the payment of rentals in arrears or
other sums due and payable to TRC by the LESSEE, then the LESSEE shall, upon written notice by TRC, within
____________ calendar days from receipt of such notice, remit to TRC such amount or amounts as will be
sufficient to restore the said deposit to the sum required herein, and the LESSEE's failure to do so shall
constitute a breach of this Contract.
16. If the LESSEE has fully and faithfully complied with all of the terms and conditions herein, all utility
bills, common area and other charges accruing up to and when the LESSEE vacates the leased
premises, said security deposit or any remaining portion thereof shall be returned to the LESSEE
_________________________ working days after LESSEE has actually and permanently vacated
the leased premises or until such time that charges have been determined and applied against the
security deposit. It is further understood that the deposit shall not earn any interest whatsoever.
LEASE OF RAW LAND
17. Raw land or unpaved portions inside the Technology Center mentioned in Section 18 hereof which shall be
used for the construction of new building/s shall be leased at a rate of ________________ per square meter
per month. Said lease rate is fixed and shall not be subject to adjustment duri ng the entire period of their
lease except in cases of extraordinary inflation.
BUILDING AND IMPROVEMENTS
18. Subject to written approval by the TRC, the LESSEE, in addition to the existing factory building, may erect its
own building(s) on the unpaved portion in the Technology Center premises, subject to the Technology Center
Zoning and Land Use Regulations herein attached as Annex “A” attach it in all contracts which shall be
covered either by an addendum to this contract or a separate contract, whichever is applicable. The LESSEE
may likewise undertake improvements and repairs, and in addition thereto, install machinery and equipment of
every description and character as may be necessary for purposes of carrying on its business consistent with
the applicable provisions of Presidential Decree No. 1096, otherwise known as the National Building Code, as
amended, and such other applicable laws governing the issuance of building and occupancy permits,
mechanical or electrical inspections and visitations of the premises of the LESSEE. Provided that constructions
of such new building, including electrical connections, partitions, and other similar installations and
improvements on the leased premises shall be for the LESSEE's account. Provided further, that LESSEE shall
not make any alterations, additions, major repairs, nor start or proceed any major repair work, or in any way,
introduce improvements nor start work in the leased premises without first obtaining TRC’s written approval and
consent, as herein provided.
Constructions on the unpaved portions inside the Technology Center premises and building improvements
performed without prior written approval of TRC shall be penalized in the amount of FIFTY THOUSAND PESOS
(P 50,000.00) or the cost of restoration to the facility’s original condition at the option of TRC, without prejudice
to TRC’s right to terminate the contract. TRC, however, has the absolute and unqualified right to refuse any
request of the LESSEE to construct new buildings and make or introduce such alterations, renovations,
additions or improvements.
19. The LESSEE hereby acknowledges to have taken possession of the leased premises in good and tenantable
condition. At the end of the lease, TRC shall have the right to use the deposit stated in Section 14 hereof to
undertake repairs of the buildings to bring it into its original, good and tenantable condition, wear and tear
excepted. The excess portion of the deposit shall then be returned to the LESSEE. However, if the deposit is
not enough for the expenses mentioned, TRC may demand for such difference.
20. After the termination of the initial lease period or should the lease be terminated before such period, all im-
provements, additions, repairs or work of whatever nature made in the leased premises shall become the
property of TRC. However, if at the expiration of the term of the original lease or renewal thereof, TRC should
decide that the property be restored to its original condition, the responsibility and the expenses incurred for the
removal of said improvements shall be borne by the LESSEE.
21. The LESSEE hereby expressly recognizes the absolute right of TRC, or its duly authorized representatives, to
enter the leased premises at any reasonable time for the purpose of inspecting the premises or utility facilities
of the leased premises or otherwise to assure TRC that the LESSEE is complying with all the terms and
conditions of this lease, and during the last six months of the lease, to exhibit the leased premises to
REPAIRS AND MAINTENANCE
22. The LESSEE shall, at its own expense, maintain the leased premises in good order and condition. All expenses
for replacement of electrical bulbs, broken window glasses and for the repair of locks, repair of
plumbing installations, bathroom tiles, toilet bowls, interior/ exterior paintings, electrical switches, roofing sheets,
leaks and all other items included in the leased premises, shall be for the account of the LESSEE.
ABANDONMENT OF LEASED PREMISES/SUSPENSION OF OPERATIONS
23. In case the leased premises are deserted, abandoned or vacated without prior written notice or in case of
suspension of operations by the LESSEE at any time during the term of the lease for a continuous period of
thirty (30) calendar days, T RC shall have the right to enter the leased premises as an agent of the LESSEE
through force if necessary, without being liable for any prosecution therefore. In this connection, the TRC is
hereby appointed as an attorney-in-fact of the LESSEE to remove, store temporarily, or sell, or dispose of any
and all unencumbered goods, machinery, equipment, merchandise, raw materials, furniture and other assets
located in the leased premises and to apply the proceeds of such sale to the damages, interests, fees, un paid
rentals or other outstanding obligations which the LESSEE may owe to TRC.
24. That the LESSEE shall pay for and defray all expenses for electric power, telephone, water and other
utility services which may be used or required by the LESSEE in the leased premises. The cost of the
maintenance of all public services and utilities in the leased premises shall be for the sole account of the
LESSEE. Facilities and/or services used in common by the LESSEES of the ______________________
Technology Center shall be paid for by them in proportion to the areas leased. Repairs in the utility service
system, including water pipes and toilet equipment and facilities within the leased premises shall be undertaken
by and shall be for the sole account of the LESSEE. Provided, however, that if the LESSEE shall delay in
undertaking the necessary repairs and shall not make the repairs in a satisfactory manner, TRC reserves the
right to undertake or make such repairs and charge the LESSEE for the expenses of the cost thereof and
deduct the same from the LESSEE's security deposit.
25. The LESSEE shall provide, at its own expense, receptacles to hold and contain its waste matter,
garbage and refuse and shall place them at such place/s as may be designated by TRC. The garbage
fees assessable against the building shall be for the account of the LESSEE.
COMPLIANCE WITH LAWS AND REGULATIONS
26. That LESSEE shall promptly comply with any or all laws, ordinances, rules, regulations and orders which the
national, provincial or local government, or any department, bureau, board, commission or other agency or
instrumentality thereof might promulgate and will likewise comply with all regulations that TRC might from time
to time adopt and enforce regarding the use, occupation, sanitation and safety of the leased premises.
27. TRC shall insure and keep insured the building against loss or damage caused by fire to the extent of the full
insurable value thereof. The LESSEE shall however be responsible to insure and keep insured the raw
materials, finished and in-process goods, machinery and equipment inside the leased premises.
In case of damage and losses due to fire and other causes during the term of the lease, TRC may reconstruct or
restore the lost or damaged property to its original condition using the proceeds from insurance for the
continued lease and use by the LESSEE. In the event that the insurance proceeds are insufficient for purposes
of reconstruction or restoration as herein required and when the damage or loss is due to the LESSEE’s
negligence/fault, as supported by the Bureau of Fire Protection Report, then the LESSEE shall provide
necessary funds to augment the insurance proceeds. In the same case, the LESSEE shall also conti nuously
pay for the regular monthly rental during the rehabilitation and reconstruction period but not exceeding six (6)
months, or the pre-construction and reconstruction periods.
GROUNDS FOR TERMINATION/SUSPENSION OF LEASE CONTRACT
28. The TRC may, at its option, terminate or suspend the lease contract upon the occurrence of any of the following
a) Failure of the LESSEE to pay any of its monthly rentals when the same falls due;
b) Use of leased premises for purposes other than agreed upon in Section 2 hereof;
c) Failure of LESSEE to generate employment and start its business operations within the projected
d) Violations by the LESSEE of any provision and/or condition of this Lease Contract.;
e) Declaration or filing by the LESSEE of a petition for insolvency; or
f) Change of corporate name/structure without justifiable reasons and/or prior written approval from
29. Any violation or default in the performance of the covenants and obligations set forth in this Contract, including
non-payment of rentals shall constitute a ground for TRC to revoke or rescind this Contract without the need of
judicial or extra judicial demand/action within thirty (30) days from written notice of such violation or default.
30. Neither the TRC nor the LESSEE shall be held liable for any delay in or failure of performance of their
respective obligations set hereunder if such delay or failure arises from or are the consequence of force
majeure; provided, it has taken proper precautions, due care and reasonable alternative measures to avoid or
otherwise minimize the effects thereof or the delay or failure; provided further, that any party claiming the
benefit of the terms set herewith shall within thirty (30) calendar days from the occurrence of force majeure
give notice thereof to the other party including sufficient information as to its cause.
The term force majeure shall mean all events which could not have been foreseen, or though foreseen, were
inevitable and beyond the control of the LESSEE, and which may materially affect the ability of the LESSEE
to comply with any of its obligations under this lease contract, and shall include, among others:
a) Acts of war or public enemy whether war be declared or not; and
b) Public disorders, acts of public enemies, sabotage, rebellion, revolution, civil commotion, strikes,
lockouts, boycotts or other industrial or labor disputes, acts of the Government or any other cause or
causes, whether similar or dissimilar to the foregoing, beyond the reasonable control of the LESSEE
and the TRC.
31. The LESSEE hereby agrees to hold TRC free and harmless from any and all claims of LESSEE's employees,
customers, guests or by any third party for loss or damage, including claims for property damage, personal
injury or wrongful death arising out of any event or accident on the leased premises or occasioned by any
nuisance made or suffered on the premises, or by any fire thereon, or growing out of or caused by any failure on
the part of the LESSEE to maintain the premises in a safe, sanitary and secure condition, or by reason of
LESSEE's violation, non-observance or non-performance of rules, regulations, ordinances, laws and
conditions of the government or its instrumentality or as required by this Contract concerning or affecting
the leased premises or the improvements therein.
NON-WAIVER OF RIGHTS
32. Failure or delay of TRC to insist on the strict performance by the LESSEE of any stipulation or condition of this
Contract and/or to exercise any right or option herein shall not be construed as abandonment, withdrawal,
waiver or cancellation of such right, stipulation, condition or option.
33. To be operative, any amendment to this Contract shall be in writing.
DISCLAIMER OF LIABILITY
34. TRC shall not be held liable by the LESSEE in any manner for the non-operation (due to breakdown
or any other cause) of the water pump and/or other facilities of the leased premises, nor for the failure of
electricity or other utilities.
DISTURBANCE OF POSSESSION
35. Disturbance or discontinuance of the LESSEE's possession of the leased premises due to causes beyond
the reasonable control of the TRC shall confer no right of any kind to the LESSEE as against TRC. However,
the LESSEE shall have the right to terminate or discontinue possession of the leased premises if the
disturbance cannot cease and stop provided that TRC is duly notified thereof.
ASSIGNMENT OF LEASE
36. The LESSEE hereby recognizes that TRC has the absolute and unrestricted right to assign, transfer
or otherwise convey its rights under this Contract in favor of any person, corporation, affiliate or any other
agency. Nevertheless, the assignee shall fulfill TRC’s contractual obligation pertaining to this Contract.
37. The LESSEE hereby recognizes the authority of TRC to designate an Industrial TC Administrator, who shall act
as TRC’s representative in all matters related to this Contract of Lease. The LESSEE further recognizes and
acknowledges the authority of the TC Administrator in all matters pertaining to this Contract.
38. TRC shall provide a 24-hour security detail to police the main entrance and other access points in the TC
premises. TRC shall not in any manner be held accountable or liable for any loss or damage that may be
suffered by the LESSEE in or about the leased premises due to theft, robbery, arson and other crimes. The
LESSEE must provide its own security guards for its leased premises, but LESSEE shall give prior written
notice to the TRC designated TC Administrator and furnish such details and other information as may be
39. The LESSEE shall provide TRC the Standard Reportorial Requirements on a quarterly basis such as;
a) List of Employees;
c) Power Consumption;
d) Local Taxes Paid; and
e) Audited Financial Statement.
The LESSEE shall be informed of additional reportorial requirements that may be deemed necessary and
required by TRC in the process of determining the impact of the project in the area.
40. All notices or demands of any kind, which TRC may serve on LESSEE under the terms of this lease, may be
served by leaving a copy of such demand or notice, or by mailing a copy thereof at the leased premises.
41. Venue of all actions, arising from or in connection with this Contract shall be exclusively at the proper courts of
San Juan City only, all other venues being expressly waived.
42. This agreement constitutes the entire agreement of the parties and shall not be changed in any manner except
in writing subscribed by the parties through their respective duly authorized officers or representatives.
43. This contract shall take effect on ______________________ and the provisions thereof shall be valid and
binding within _____________ years from there.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be signed and executed this _____ day
of __________ 2008.
TECHNOLOGY RESOURCE CENTER _____________________________________________
ANTONIO Y. ORTIZ Printed Name
A C K N O WL ED G M EN T
REPUBLIC OF THE PHILIPPINES)
SAN JUAN CITY ) S.S.
Before me Notary Public for ______________________ this day of _____ 2008, personally appeared:
NAME RES. CERT. NO. DATE/PLACE ISSUED
ANTONIO Y. ORTIZ 06220638 Jan. 7, 2008/Quezon City
NAME RES. CERT. NO. DATE/PLACE ISSUED
both known to me to be the same persons who executed the foregoing instrument and they acknowledged to me
that the same is their free act and deed as well as of the principal they represent.
This instrument refers to the Contract of Lease consisting of ______________ pages including this page,
signed by the parties and their witnesses on each and every page and sealed with my notarial seal.
WITNESS MY HAND AND SEAL on the date and place above written.
Series of 2008.