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NOTICE TO PROCEED

MS. FLORDELIZ G. BORJA·CARLOS President K2 PROPEflTY AND MANAGEMENT VENTURES, INCORPORATED No. 8, Governor Pascual Avenue Barangay Catmon, Malabon City

Re: Contract of Lease with Memorandum of Agreement on the Renovation of the Leased Premises

In view of the execution of the Contract of lease dated 17 April 2018 Lease with Memorandum of Agreement on the Renovation of the Leased Premises with a contract amount of Nine Miiiion Fjve Hundred Ihirtv tf,ine Thou1and Pesos and 35/100 (Pho9,~~9.Q00.3~). you are hereby directed to commence work for the subject project. Day one {1) for the execution of the project shall reckon from the time oft.he issuance of the building permit by the Office of the Building Official of Malabon City, but which should not be later than three (3) weeks from receipt of this notice.

Please acknowledge receipt hereof by returning the duly signed copy of this notice within three (3) days therefrom. .,.

20 April 2018

I acknowledge receipt of this NoticE! on

Name of Contractor's Representative:

Authorized Signature:

~Jrt Administrator 'ds and Awards Committee Hal/s of Justice

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9 er: \5 Q

CONTRACT OF LEASE WITH MEMORANDUM OF AGREEMENT ON

THE RENOVATION OF THE LEASED PREMISES

KNOW ALL MEN BY THESE PRESENTS: I

This CONTRACT OF LEASE made and entered into this day of APR 1 7 2018 , 2018 by and between:

' K2 PROPERTY AND MANAGEMENT VENTURES, IN CORPORA TED, a corporation duly organized and existing under the laws of the Republic of the Philippines, with office and principal place of business at No. 8, Governor Pascual Avenue, Barangay Catmon, MalabQJl City, represented by itc;; President, Ms. Flordeliz G. Borja­Carlos, who is of legal age, Filipino citizen, with the same address as that of the corporation, and duly authorized to enter into this contract pursuant to Board Resolution No. 2018-05 dated March l, 2018 1

,

hereinafter referred to as the LESSOR;

and I

The SUPREME COURT OF THE PHILIPPINES, with address at Padre Faura Street, Ermita, ManiJa, Philippines represented by Honorable COURT ADMINISTRATOR JOSE MIDAS P. MARQUEZ, of legal age, Filipino citizen and duly authorized to enter

~ into this contract pursuant to. the Resolutions dated January 1\>,2018 of ~ the Court en bane in A.M. No. 18-01-01-SC (Re: Lease of Office Spcae Y with Refurbishment for the Use of the Trial Courts of Malahon City), ~ hereinafter referred to as the LESSEE. 0 co .

" WITNESS ETH:

~ ~ WHEREAS, there is an immediate need for the Court to provide to

~ house the newly created Regional Trial Court Branches 289,290,291,292,293 and one (I) newly created Family Court.

WHEREAS, in its meeting on 01 June 2017, the Bid."< and Awards ' Committee-for the Halls of Justice (BAC-HOJ) deliberated and resolved to accept

&::I the offer of the LESSOR subject to the terms and conditions hereinafter specified;

~

*ct WHEREAS, the Office on Halls of Justice-Technical Services Division

HJ-TSD) submitted to the BAC-HOJ its matrix of space requirements and termined the total minimum spatial requirement of Seven Hundred Two (702)

:i square meters to house the five (5) trial courts and one (1) newly created Family LU

~ Court. ...., ..

PtH2'C, t (1 f i ~

WHEREAS, after requests to submit offers for lease to different property

owners located in Malabon City were disseminated by the Executive Judge thru the Office of the Clerk of Court ,three (3) proposals were submitted, among which is K2 Property and Management Ventures Inc., owner of the a two-storey (2) building known as Paseo De San Antonio Building located along Governor

U'I Pascual Avenue, Barangay Catrnont' Malabon City; 9 0::

5 WHEREAS, after several ocular inspections and extensive discussions on ~ the merits of the different proposals, as well as the technical evaluations conducted 5 by the OHJ-TSD, the BAC-HOJ, in its meetings held on 01 June 2f)l 7, resolved to

hoose Pasep De San Antonio Builtiingas the temporary office space for the courts of Malabon City, for having presented the most advantageous offer to the

"-1 Government.

~8 2 ;3 WHEREAS, through its Memorandum dated October IO~ 2017 , the BAC-:5 HOJ recommended to award the contract of lease with ancillary obligation of ~ reconfiguration and partitioning to K2 Property and Management Ventures, owner z :i of the Paseo De San Antonio Building, over the 702 square meters portion of the 3 said property for a period of three (3) years at a monthly rental rate of ONE

HUNDRED EIGHTY NINE THOUSAND, FIVE HUNDRED FORTY PESOS

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(Php 189,540.00), exclusive of taxes, plus two (2) months advance rental and two (2) months deposit fee.

Monthly Rental -702 sqm xP250 = One Hundred Seventy Five Thousand Five Hundred Pesos (Phpl 75,500.00).

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CUSA - 702 sqm x 20 pesos =Fourteen Thousand and .. Forty Pesos

Furthermore, since K2 Property and Management Ventures is more familiar

-...&..L....~ with the structural, electrical and mechanical components of its building, the BAC­

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HOJ also recommended that the former shall do the reconfiguration and refurbishment of the Paseo De San Antonio Building (hereinafter referred to as the "PROJECT") at a cost estimate of Nine Million Five Hundred Thirty Nine Thousand Pesos&35/100 {Php9,S39,000.35) as determined by the OHJ-TSD.

~ WHEREAS, the Court, in its Resolution dated January 10, 2018 in A.M.

~o.18-01-01-SC, approved the recommendation of the BAC-HOJ to award the ase to K2 Property and Management Ventures, Inc., to wit:

t -~ (a) .. AW ARD the procurement of lease with ancillary obligation of ~ reconfiguration and partitioning to Ia Property and Management .... .

2 Annex "F"

Pag1:.' 2 ff!' ~::;

Ventures, Inc., owner of Paseo De San Antonio, for the Seven Hundred Two (702) square meters, for a period of Three (3) years, at the monthly rate of ONE HUNDRED EIGHTY NINE THOUSAND, FIVE HUNDRED FORTY PESOS (Php 189,540.00), exclusive of taxes, chargeable against the appropriations for the Maintenance and Other Operating Expenses of the Halls of

g Justice; ai:::

5 (b) .. APPROPRIATE the following arpounts for the said lease:

-(1) Monthly Rate Pl 75,500.00 plusCUSA 14,040

Pl 89,540.00x12mos Pho 2,274,480.00 Two (2) Months security

1~ ~ ::;)

dep~sit Pbp379,080.00

Pl89,540x 2mos.

Two (2) Months advance rental fee

Php379,080.00 Pl 89,540.00x2mos.

(ii) Reconfiguration Nine Million Five Hundred Php9,539,000.35 and Refurbishment Thirty Nine Thousand indicative budgetary Pesos and 35/100 cost estimate '

.. I t

0 WHEitF.AS, the PROJECT was awarded to the LESSOR after due evalua-~ tion of the submitted bid proposa1s, the total amount of which does not exceed the '-! budget as approved by the Court En Banc in its Resolution in A.M. No. 05-7-18-c:s:: Ci? SC. ~ . I

WHEREAS, pursuant to the above resolution, the BAC-HOJ issued Notice

Award, dated January 19, 2018, confirming the award of the lease with :a.42 0 ancillary obligation of reconfiguration and partitioning to K2 Property and

it Management Ventures, Inc., owner of Paseo De San Antonio pursuant to the

Resolutions of the Court in A.M. No. 18 .. Ql-Ol-SC dated January 10, 2018.

WHEREAS, the Fiscal Management and Budget Office (FMBO) issued the N Certificate of Availability of Funds (CAF) for the above ABC of the PROJECT LI.I 5- on the Court's Lease Contract with Renovati~n of Paseo De San Antonio for the

I

.. Wai:: benefit of the trial courts at Malabon City .

~ NOW THEREFORE, for and in consideration of the foregoing premises

~ and the mutual covenant herein contained, the LESSOR do hereby let and lease ~ unto the LESSEE the LEASED PllEMISES and the LESSEE hereay accepts the

same by way of LEASE subject to the following terms and conditions:

Pag0 Jn( t:'\

' SECTION 1. LEASED PREMISES

\

1.1 The LEASED PREMISES consist of a portion of the ground floor and second floor of Paseo De San Antonio located at No. 8 Governor Pascual Avenue, Barangay Cannon, Malabon City, with a total area of approximately seven hundred two (702) square meters as shown in the attached Floor Plan. The LEASED PREMISES are specifically described as follows:

ITEM. FLOORS AREA LOCATION fuound 382

Second 320

1 g The LEASED PREMISES shall be used exclusively for the continuous and <t

TOTAL AREA 702

~ uninterrupted occupancy and use of the Regional Trial Court Branches ~ 289,290,291,292,293 and one (1) newly created Family Court provided that the use ~ thereof for .. any other legal purpose shall be with the written consent of the z S LESSOR. _,

1.2 In case fire, earthquake, war, typhoon, t0r other unforeseen event or force majeure wa.ulc.1 cause damage to the LEASED PREMISES, the following terms and conditions shall apply:

"' Q ~ 1.2.1 The LESSEE shall immediately notify the LESSOR about the ~ dru.nage caused and the parties shall jointly assess such damage; C2 0 a:I 1.2.2 The LESSOR shall shoulder the cost on major repairs to be done on

the LEASED PREMISES within a reasonable time provided that depending on ._ r * :me damage to be repaired but in no case more than two (2) weeks. provided that

' the monthly rental shall be deducted on a prorate basis that is in an amount

corresponding to the non-occupancy and non-use of the LEASED PREMISES.

1.2.3 If the repair will render the LEASED PREMISES untenantable for more than two (2) weeks, the LESSOR shall inform the LESSEE, which shall be

&:I exempt from the payment of the corresponding rental until such time as the ::::> g LEASED PREMISES shall be ready for occupancy and use as courthouses,

l~hich in no case shall exceed one (1) month from the occurrence offorce majeure;

~ 1.2.4 If the damage renders the LEASED PREMISES untenantable, and

~ repair thereof will be for more than one ( 1 ) month, either party may demand

~ rescission of the contract. ...

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SECTION 2. TERMS OF THE CONTRACT

This Contract shall be for:

...

"ti) One HundredTwenty (120) calendar DAYS reckoned from

the date indicated in the Notice to Proceed (NTP) as to the RENOVATION of the space to be rented.

b) Three (3) YEARS for the LEASE of the renovated premises counted from receipt by the LESSEE from the LESSOR of the Occupancy Permit until the expiration of the said period;

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l 2.2 The term of the lease shall be renewable at the option of both parties in

0 accordance with law and pertinent rules. Q <C

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Either party may preterminate the contract in accordance with law and for such valid reasons mutually, agreed upon by the parties, including the completion of the Malabon City Hall of Justice, as shown by an Occupancy Permit i~nued by the appropriate autho;;ty. Should the reason for pre­terminatfon of the contract be for valid reasons other than the completion of the construction of the Malabon City Hall of Justice, the party terminating the contract shall notify the other party at least forty-five (45) days prior to the date of contract termination.

a:: 5 2.4 The continued possession by the LESSEE after the expiration of the term of • • ~ the contract or the pre-termination of the contract by the LE~SOR for valid

JI~ reasons(s) is not an extension of the contract or an implied new lease. Such · continued possession by the LESSEE shall be deemed to be on a month-to-

~ ~ ' month basis under the same terms and conditions stipulated in this contract, and as allowed by law and pertinent rules. Either party may terminate the month-to-month contract by serving the other party a notice of t~rmination that

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shall take effect after thirty (30) days from receipt by the party served thereby.

2.5 Upon the expiration of either the original, renewed or extended term of this

~ Contract, the LESSEE shall voluntarily vacate the LEASED PREMISES and a restore possession thereof to the LESSOR in good, clean, and tenantable

\12 condition, by the delivery to the LESSOR of all keys that were turned over to the LESSEE at the commencement of the lease.

Q.

<C ~ 2.6 All permanent improvements introduced by the LESSEE during the term of

~ the lease contract shall be removed by the LESSEE provided that such removal ~ shall not cause damage to the p~mises. Should it be impossible to remove the

permanent improvements introduced by the lessee without causing damage to

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the leased premises, the same shall remain and inure to the benefit and owner­ship of thfl l,ESSOR.

SECTION 3. AMOUNT OJi' MONTHLY RENTAL FEE, SECURITY DEPOSIT & ADVANCE RENTAL

9 3.t The MONTHLY RENTAL FEE shall be as follows: ex: 5

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PARTICULARS

LEASE AREA (702 sq. m.)

Plus CUSA (20x 702)

COST PER SQUARE METER

250.00 plus E-Vat

I

14,040.00

NET MONTHLY SPACE RENTAL

One Hundred Seventy Five (Phpl 75, 500.00)

Fourteen Thousand and Forty Pesos

1 ( 14,040.00)

z .. z :! The said monthly rental shall be subject to a seven percent (7%) escalation rate ::i every year during the period of the contract an.d the renewal thereof. This monthly

rental shall be promptly paid by the LESSEE to the LESSOR at the latter~s .. designated place of business.

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3.2 The LESSOR shall submit to the LESSEE a Statement of Account within the first five ( 5) working days of every month without need of demand. Subject to the rules on releases of public funds and on

withholding taxes, the monthly rental shall be paid by the LESSEE after ten ( 10) working days from the date of suhmission of the Statement of Accottnt but not later than the end of the second (2"d) week of each month.

3.3.Ihe LESSEE shall pay to the LESSOR the SECURITY DEPOSIT equivalent to two (2) months to answer for any df1.Il1ages in the

I

building structural and architectural finishes within the LEASED PREMISES and unpaid utilhies. Upon the expiration or pre­termination of this Contract, the LESSOR shall return to the LESSEE the security deposit which remains unexpended after the LESSOR shall assess the LEASED PREMISES and any and all unpaid fees pertaining to but not limited to utility fees and the like.

Two (2) I Two (2) Months security deposit

MONTHS SECURITY

P189,540.00x 2mos ""' Php379,080.00 exclusive of taxes

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. DEPOSIT ..

3.4 The LESSEE shall pay ADVANCE RENTALS t0 the LESSOR equivalent to three (2) months which shall be subject to taxes upon

payment, as follows:

.:Two (2) J Two (2) Months advance rental fee I MONTHS ADVANCE RENTAL

Pl 89,540.00x 2mos = Php379, 080.00 exclusive of taxes

1 0 The said advance payments shall be applied as rentals for the last two (2) months 6 ~ of the Contract subject to escalation as provided above .

"' 9 a::

.. 3.5 In no case, however, shall the LESSEE be deemed in default if failure

to pay rentals on time is attributable to the rules on the release of

public funds.

3.6 During the term of this contract, the LESSEE shall not renounce,

divide or abandon any portion1 of the LEASED PREMISES for

purposes of reducing the stipulated monthly rental. ..

SECTION 4. RENOVATION OF THE PREMISES FOR LEASE 5 < ~ 4.1 The renovation of the premises .for lease, referred to in this section as the CD

PROJECT, shall be at the total cost of Nine Million Four Hundred Eighty Four -<1'"if::::::::'.'.""-l=-""'"~-=Ph-ousand Six Hundred Ten Pesos (Php9,484,610.00), inclusive of taxes,

~ : _licenses and all fees, required by law for the works, which shall be released by the

~--~--!'!"'~ LESSEE tct the LESSOR in accordance with the technical specifications and plans hereto attached as Annex ''_" and the stipulations in this Section.

4.2 The LESSEE undertakes to release fifteen percent (15o/o) of the total cost as mobilization fee. The 120-day renovation period shall only cuT'lITl.ence upon

~ payment thereof. 1

g ~ 4.3The LESF.OR hereby agrees to:

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4.3.1 Shoulder all the costs for the necessary permits needed for the renovation of the LEASED PREMISES and the Permits required by law;

4.3.2Abide by the complete architectural and engineering plans, general conditions and technical specifications for the PROJECT prepared by the

Pag:-~ 7 (1f 15 ..

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Technical Services Division of the OHOJ, Supreme Court, and the plans,

conditions, and specifications that form part of this Contract.

4.3.3 Ensure that the impleme~tation of the PROJECT shall be in accordance with the Scope of Works and Material Specifications, Terms of Reference, Bid Documer.ts, and all laws and regulations 'including Republic Act 9184 (the Goverrunent Procurement and Reform Act), as amended, its Implementing Rules and Regulations (IRR) and GPPB Resolution No. 08-2009, "Approving by Referendum, the Implementing Guidelines for Lease of Privately Owned Real :Estate an.d Venue", and amendments thereto, which are all deemed incorporated in this Contract;

4.3.4Complete the renovation of the premises for lease not later than One Hundred Twenty (120) calendar days from Day One reckoned from the date indicated in the Notice to Proceed (NTP).

..

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Extension of this period shall be allowed for valid and equitable cause upon written notice

1to be served to the OHOJ wW lin seven (7)

working days from the occurrence of the cause. The OHOJ shall approve the rrquest for extension thru written a.uthority when the reason or grounds cited by the LESSOR are justifiable. No extension of the contract time shall be;; p;ranted due to inexcusable failure or' negligence of the LESSOR and the concerned civil works contractor. '

4.3.SSecure the Occupancy Permit, if necessary, and transmit the same to the LESSEE within the said One Hundred Twenty (120) calendar day period.

4.3.6 Submit every month to the LESSEE, through the Office on the Halls of Justice of the Supreme Court, Progress Reports on the accomplishments of the

PROJECT and the performance of the civil works contractor. A Progress Billing submitted at the end of the month shall serve as the basis for payment of the amount or value of the work accomplished.

4.3.7 Comply with all instructions of the LESSEE on the implementation of the civil '.vurks;

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4.3 .8 Allow the LESSEE and its representatives to conduct regular inspections I

of the project site; .. 4.3.9 Conduct a joint inspection of the completed project with the LESSEE to determine full compliance with the technical specifications of the civil works

not later than one ( 1) week before the scheduled project completion date;

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4.3 .10 Upon completion of the renovation, tum over to the LESSEE all materials paid for by the LESSEE but not used for the PROJECT; and

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4.4 No corttractual relationship shall exist between the LESSEE and the civil works contractor and its personne} that the LESSOR may engage to undertake the

9 PROJECT. a:: ~ ci 4.5 The LESSOR and the concerned CONTRACTOR shall be liable for any third "" S party injury for any acts arising frpm the implementation of the renovation and/or

construction in pursuance of this Contract.

4.6 For billing and other pertinent legal purposes, such as the imposition of 1 0 liquidated damages for delays in the execution of the PROJECT, the applicable 6 ~ law shall be Republic Act 9184, its Implementing Rules and Regulations and

t!)

~ Annexes, pertinent Government Accounting and Auditing Rules, and the New ~ Civil Code of the Philippines. Any delay incurred by the Court in the payment of ~ Progress Billings on account of observanc;y of Rules thereon shall not be

; considered g ~ach of contract. _, ..

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4. 7 The LESSOR shall allow the LESSEE to undertake the following in the

LEASED PREMISES:

4.7.1 Set up a flagpole and the official signage of the Courts, clearly indicating that the LEASED PREMIS)i:S are temporarily courthouses, subject to the

following conditions:

4. 7.2 The size, color and design of the signage shall be submitted to the LESSOR prior to its occupancy for its information only; however, the actual size and location thereof shall be mutually agreed upon by the parties and shal1

be subject to the appropriate space available;

4.8 The LESSOR's name shall not be used for any other purpose except as the

temporary address of the courthouses.

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SECTION 5. RESPONSIBILITIES OF THE LESSEE

~

\!Jn The LESSEE, acknowledging that the LEASED PREMISES are in good d tenantable condition, hereby binds and obligates itself to:

' ~ Keep and maintain the good and tenantable condition of the LEASED LI.I

·"' PREMISES· 0 ' ...,

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Undertake necessary repairs to maintain 1the LEASED PREMISES in good

and tenantable condition; provide<L that major structural repairs for the preservation and conservation of the building shall be the responsibility of the LESSOR and the LESSEE shall not hold the LESSOR liable for any inconvenience, annoyance or disturbance that such major repairs may cause;

provided further, that the LESSOR shall see to it that major repairs are done promptly, efficiently, and fil\ unobtrusively as possible so as n Jt to disturb or dispossess the LESSEE of the LEASED PREMISES to the prejudice of the administration of justice;

Engage the services of a security agency for the deployment of security guards to protect the LEASED PREMISES and it~ occupants, and coordinate with the LESSOR in the enfbrcement of security rules;

Designate safe smoking areas within the LEASED PREMISES as may be

allowe<l by law, and see to it that no obnoxious substances or inflammable

materials are stored in the saine premises;

Provide occasional pest control measures as the need arises, and adequate receptacles for waste, refuse and rubbish as required by sanitation and

environmental laws and niles;

I

Immediately report to the LESSOR any damage, both minor and major, caused to the LEASED PREMISES, as well as acts of occupancy and

usurpation thereof by third parties.

Ensure that its officials and employees shall not commit an) act that shal1

cause damage to the property of the LESSOR outside the LEASED PREMISES, its but inside its buildings and compound;

Be responsible for the injury, loss, damdge or even death of court officials,

persotl.nel, litigants, and guests, and damage or loss of court properties,

equipment, furniture and effects within the LEASED PREMISES, except when such injury, loss, or damage or death is caused by an act, fault or negligence of the LESSOR and its agents, or by property of the LESSOR

even outside the LEASED PREMISES;

I

Comply with the tenns and conditions of this Contract, on condition that the LESSOR cannot deem it in default for non-compliance with contractual obligations within thirty (30) days from receipt by the LESSEE of written notice of non-compliance if the LESSEE shall have commenced to

diligently cure such default; '

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5.9 Comply with the reasonable rules agreed upon prior to occupancy of the LEASED PREMISES, and provided further, that any House Rules imposed

during the lease shall not be inconsistent with the provisions of this Contract and agreed in writing by the parties; and

"' 5.10 9

Comply with laws, ordinances, rules and regulations on the use, occupancy, operation and sanitation of LEASED P~MISES, and release and relieve the LESSOR from liability for any violation thereof.

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SECTION 6. COMMON USAGE SERVICE AREAS (CUSA) PARKING SPACES, AffiCONDITION, ELECTRICITY, WATER, TELEPHONE AND

OTHER UTILITIES

1~ 6.1 The l ESSOR shal1 determine and designate with rea~onableness the Common Usage Service Areas (GUSA) and the common facilities, utilities

and services, and be responsible for the upkeep and maintenance of peace and security of the LEASED PREMISES.

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The LESSEE shall shoulder administration and overhead expenses over the leased premises, decorating expenses, janitorial, security services; cost of repair and maintenance of equipment and facilities; lighting of common areas; water & power. For the insuranae of the building, including smoke and tire detector, fire water sprinkler, the same shall be for the account of the LESSOR.

:s <l: 6.3 The LESSOR shall provide the LESSEE with Ten (10) parking spaces free

of charge for the exclusive use of the judges and court- employed

lawyers and personnel.

2 ' 0 ca

The CESSOR shall at its oWn cost, install the meters for all utilities such as

water and electricity. The LESSOR shall provide assistance in providing

access points to connections.

6.5 The LESSEE shall pay the actual consumption of its utilities as registered in the meters from receipt of the Statement of Account issued by the utility

providers.

The LESSEE shall be responsible for the cost of air conditioning units as well as the cost of installation and maintenance thereof iu the LEASED

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PREMISES, with condenser units installed in such areas as .the LESSOR

~ may designate within its building. w "' 0 ....

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SECTION 7. SALE, TRANSFER OF RIGHTS, SUBLEASE, ASSIGNMENT OR ABANDOMENT OF LEASED PREMISES ..

7. The LESSOR shall not sell, encumber, assign or transfer its rights over the LEASED PREMISES during the term of this Contract, including extensions or

"' renewals thereof allowed by law. In the event that it does, the LESSOR shall: 9 0::

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7.1.1 Incorporate this Contract in the document evidencing relinquishment of its rights over the LEASED PREMISES;

7.1.2 Ensure the registration of, this Contract in any existing I

.. encumbrance over the same premises; and

1 g 7 .1.3 Be responsible for any acts of third parties that shall in any way

~ t3 disturb the peaceful possession of the LEASED PREMISES by

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the LESSEE .

~ The LESSEE shall not: ::i ::::;

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7 .2. 1 Sublet the whole or a part of the LEASED PREMISES to any entity nor assign, mortgage, encumber or in any manner dispose of its rights and interests under this Contract to any third party.

7.2.2 Enter into contracts with third parties, directly or indirectly, except contracts or services needed by the courts in the

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performance of official functions, such as contracts for the lease of photocopying machines, provided that such services shall not be conducted as business open to litigants, guests of the courts and other third parties; and

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7.2.3 Abandon the LEASED PREMISES, and any such act of .. relinquishment of the right of possession over the LEASED PREMISES during the tenn of this Contract shall be deemed a breach thereof subject to liabilities under this contract and law.

SECTION 8. INSURANCE

\ba:: 8. The LESSOR's insurance policy over the leased premises shall inure to the

benefit of the LESSOR only. However, the LESSEE shall have the right to procure an insurance policy over the leased premises over which it has

~ insurable interest, and such insurance pr~eeds shall inure to its benefits. W I Cl'I .. Q 8.1 The LESSOR shall procure an insurance policy or policies, copy or copies

of which shal I be furnished to the LESSEE. over all its properties in in the

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LEASED PREMISES pursuant to rules and regulations of the Commission on Audit (COA), which policy or policies shall be in force during the entire duration of this Contract or for as long as the LESSEE is in kgal possession of the LEASED PREMISES.

V') 8. 2 The insurance proceeds shall inure to the benefit of the LESSEE. 9 a: c:l SECTION 9. BREACH OF CONTRACT ci !!! 3 9.1 Any s.ub~tantial breach or violation of the contract by either the LESSOR or

the LESSEE shall be brought in writing to the attention of the other party within en (10) days from the time the notifying party took note of such breach. The party

~ notified shall remedy the breach but should it fail to responci in writing and g g remedy the substantial breach wf thin ten ( 10) days from receipt of the notice of ~ breach of contract, the notifying party may send the notified party a notice of ...

termination of contract to be effective thirty (30) days from receipt of such notice. In all instances of breach of contract, be it substantial or not, the responsible party

shall be liable for consequential damages.

9.2 If any dispute or difference of any kind whatsoever shall arise between the

CONTRACTOR, LESSOR and the LESSEE in connection with or arising out of this Contract, the parties shall make every effort to resolve amicably such

"" dispute or difference by mutual consultation and shall be resolved in accordance .~ with RepubLi.; Act 9285, otherwise known as the "Alternative Dispute Resolution

~ Act of 2004." 1

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~ SECTION 10. GENERAL PROVISIONS

The duly authorized representative of the LESSOR may inspect the

LEASED PREMISES at any reasonable business hour of the day to check the general conditions thereof. During the last month of the contract term and there being no written notice of renewal within forty-five ( 45) days prio1 to the date of

contract termination, the LEASED PREMISES may be shown by the LESSOR to prospective lessees, provided that there is a prior notice to the LESSEE and

~ provided further, that it does not interfere or interrupt the normal operations of the

i courts.

'( t.::.2 Leni·mcy in the observance of a contractual term or condition shall not )(ilply relin(iuishment or waiver of any right or remedy of the party arising

~ therefrom, .. unless the party concerned expresses in writing such waiver or

~ relinquishment of right or remedy.

P~tgc lJ f}f 15

10.3 The LESSOR is responsibJ.e for the payment of the documentary stamp tax

while the LESSEE is responsible for the notarization of this Contract.

10.4 This Contract shall constitute the entire agreement between the parties. Any amendments thereto shall be mutually agreed upon by them anci embodied in a document that shall be signed by their duly authorized representatives.

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IN WITNESS WHEREOF, we have hereunto affixed our signatures on this __ day ~atq 1Jll18Jt Manila, Philippines.

By:

SUPREME COURT OF THE PHILIPPINES

'- ~ ~{ff MARQUEZ ~~~~inistrator

LESSEE

SIGNED IN THE PRESENCE OF:

J,~i'i:'JtH.;;:: Accounting Division

..

By:

K2 PROPERTY AND MANAGEMENT VENTURES,

IN CORPORA TED

~ Z G. BORJA-CARLOS

Prfsident LESSOR

Pnge !.< nf f5

ACKNOWLEDGEMENT

REPUBLIC OF THE PIDLlPPINES) CITY OF MANILA ) S.S.

9 BEFORE ME, personally appeared the following:

a: 5 ci

1. JOSE MIDAS P. MARQUEZ 2. FLORDELIZ BORJA-CARLOS

SC ID No. 60037000 Passport EC259868

The former as the Court Administrator, Supreme Court of the Philippines and latter as the President of K2 Property and Management Ventures Incorporated,

1 both known to me to be the same persons who executed the foregoing instrument 6 g and acknowledged and swomed to before me that the same is their free and ~ voluntary act and deed as well as the institution and agency they represent. ::.a ::::>

~ This CONTRACT OF LEASE WITH MEMOR.t~NDUM OF ~AGREEMENT ON THE REN'OVATION1 OF THE LEASED PREMISES 3 consists of Fifteen (15) pages, including this page on which this

Acknowledgement is written and signed by the parties and their witnesses at the left hand margin on each and every page, except this page.

I

vi WITNESS MY HAND AND SEAL, for and in the City of Manila, this ~ day of APR 1 7 2018 , 2018.

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~ Doc. No. ___ , CJ ~ Book No. __ _

~~ageNo. ~eries of2018.

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4iwlo.~ EDEN T. CANDELARIA Deputy Clerk of Court and

Chief Administrative Officu Stlpreme Court of the

Philippi11es

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EN BANC

. NOTICE

Sirs/Mesdames:

Please take notice that the Court en bane issued a Resolution dated JANUARY 10, 2018, which reads as follows:

"A..M. No. 18-01-01-SC (Re: Lease of Office Space with Refurbishing for the Use of the Trial Cou11:s of the Malabon City).- The Court ~olved, upon the recommendation of the Bids and Awards Committee for the Halls of Justice, to

(a) AWARD to 1(2. Property and Management Ventures, Inc., owner of Paseo De. San Antonio, No. 8 Gov. Pascual Avent.le, Barangay Cannon, Malabon City, the contract of lease with ancillary obligation of reconfiguration and partitioning over the seven hundred two (702)-square-meter­portion of the. said property for the use of the newly created Branches 289, 290, 291, 292, 293 and the Office of the Clerk of Court of the Regional Trial Court of Malabon City for a period of three (3) years at the following terms and conditions:

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(i) Monthly rental fee of One Hundred Eighty Thousand Five Hundred Pesos (P180,500.oo ), exclusive of truces, with an escalation rate of seven percent (7%) after two (2) years of occupancy, chargeable against the amount allotted for the Rent/Lease Expenses under the General Appropriation Act for FY 2017 (Republic Act No. io924); and

(ii) Cost for the reconfiguration and refurbishment of the Paseo De San Antonio property in the amount of Nine Million Four

· Hundred Eighty-Four TI1ousand Six Hundred Ten Pesos (J.29,484,610.00) to be sourced against the amount allotted for Repa.ii:s and Maintenance of Halls of Justice;

(b) ALLOT the budgetary a1uount of Two Million One Hundred Sixty-Six Thousand Pesos Gi22,166,000.')0), exclusive of truces, rep1\esenting the yearly lease rental for the

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i' Q~ ( " '; Notice q~: Resolution

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.. '2 - A.M. No. 18-01-01-SC March 6, 2018

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Pesos (f!9,484,610.00J to be sourced against the amount allotted for Repairs and Maintenance of Halls of Justice;

(b) ALLOT t~e budgetary amount of Two Million T~ Hundred Seventy-Four Thousand Four Hundred Eighty Pesos (j;l2,274.480:00), exclusive of taxes, representing the yearly lease rental for the Paseo de San Antonio Property, and the amount of Nine Million Four Hundred Eighty-Four Thousand Six Hundred Ten Pesos (P9,484,610.00) for the renovation/refurbishmeht of the said establishment;

{c) APPROVE the draft Contract of Lease with Ancillary Obligation of Reconfiguration and Pprtitioning; and

{ d) AUTHORIZE Court Administrator Jose Midas P. Marquez to sign, for and in behalf of the Court, the subject contract of lease. x x x [Am~ndments underscored]

ii ! i L i' Ii 1e Court further Resolved to NOTE the Memorandum dated March 2, lj 2018 o Atty. Michael Ocampo, Office of the Chief Justice, re: Request for tl Amen ent in the Approved Monthly Lease Rental and Escalation Rate in the ! 1 Lease : Office Space with Refutbishment for the Trial Courts of Malabon City.,, I; Sereno C.J., on leave. (adv66)

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Vecy truly yours,

~ O~ ARIC~JFTA Clerk of Court '\A

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, , . Supreme Court . i

·Bid~· ilnd;Awards Committee for Halls· of Justice

NOTICE OF AW ARD

MS. FLORDELIZ G. BORJA-CARLO President

January 19, 2018

K2 PROPERTY AND MANAGEMENT VENTURES, INCORPORATED \ No. 8, Gove!nor Pascual Avenue Barangay Cannon, Malabon City

Re: Procurement of Lease of Office Space with Refurbishing for the use of the Trial Courts of Malabon City)

Dear Ms Carlos:

Relative to the subject procurement conducted by the Bids and Awards Committee for the Halls of Justice ~(BAC-HOJ), please be advised that the Supreme Court En bane, through its Resolution dated 10 January 2018 in A.M. No. 18-01-01- ··· SC (Re: Lease of Office Space with Refurbishing for the use of the Trial Courts of .. •;. Malabon City), has approved the recommendation to award the said lease in favor of of K2 PROPERTY AND MANAGEMENT VENTURES, INCORPORATED, the owner of the Paseo De San Antonio Property located at No. 8, Governor Pascual Avenue, Barangay Cannon, Malabon City, based on the following proposal:

-Property to ~e Leased Paseo de San Antonio Property

1st and 2°d Floor of the Left wing of the Pa.seo De San Antonio Bld2.

Total Area to be Leased Seven Hundred Two (2) square meters Monthly Rental I One Hundred Eighty Tbou·;and Five Hundred

(Pbp180,000.00), Exclusive of Taxes Lease Period Three (3) years Escalation Rate Seven percent (7%) after two, years of

occupancy /

Please acknowledge r~ceipt and conformity hereof by returning tp.e duly signed notice within (3) days therefrom.

Conforme: M-S-.-F-L_O_RD_E_L_IZ-_,.b-.-B-O_R_J-A-CARLO

President, K2 Property and Management Ventures, Inc. Date -----------

SUftREME <;OU~T OF T!-fE PHU. S.

wrrOF ~AtAU~ ·~~IDl ~P,:~lu 11f f4e J4iliµpiu?s $uptittu~ Cltnuff

~niht

PROCUREMENT PLANNHNG COMMITTEE

1st Indorsement March 29, 2017

Respectfully referred to . Hon. Raul. B. Villanueva, Ht puty Court I

Administrator and Chairperson, SC Bids and Awards Committee for

Halls of Justice (BAC - HOJ), for whatever action his Honor may deem

appropriate under the pre1nises, the Certificate of Availability of Funds

amounting to Four Million Thirty Two Thousand Pesos (P4,032,000.00)

issued on March 24, 2017 by Ms. LiHan11e E. Ulgado, Chief Accountant, '

Accounting Division, FMBO and duly noted by Atty. Corazon G. Ferrer-

Flores, Deputy Clerk of Court and Chief of Office, FMBO, for the Lease of

Office Space housing the RTC Branches 289 to 293, MeTC Branches 55

and 56 and OCC, '.M;~~b~ij~;~~ for the period of one (1) year.

.. &Ci:;:A·~~ SC Assistant Chief of Office

Office of Administrative Services and Chairperson, Procurement Planning Committee

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<r<tpu6lic of tlie <PliiGppines Supreme Court

I !M.anifa

Pisca(;M.anagement atttfQJuaget Office

SUPREME COURT OF THE PHILS.

mrr~~;1~ BY: li!~~ c TIME:_ £ 11\ ·

MEMORANDUM TO:

Atty. MA. CARINA M. CUNANAN Assistant Chief of Office, Office of Administrative Services and Chairperson, Procurement and Planning Committee

Re: Certificate of Availability of Funds

In CQ1111.ection with your memorandum dated March 20, 2017, enclosed is the Certificate of Availability ofFWlds (CAF) No. 2017-21/PPC, dated March 24, 2017, in the amount of FOUR MILLION THIRTY-TWO THOUSAND PESOS (P4,032,000.00) for the l<;mse of office space housing the Reg; onal Trial Court Branches 289 to 293, Metropolitan Trial Court Branches 55 anrl 56 and the Office of the Clerk of Couft:, Malabon City for a period of one (1) year, chargeable against the amount allotted for Rent/Lease Expenses ttnder the General Appropriations Act for FY 2017 (R.A. 10924).

encl: al.~ llml

March 24, 2017

2017-149

co~~~REs Deputy Clerk of Court and Chiefo/Office

~ .... ~,

Republic of the Philippines Supreme Court

1 Manila Pisca[ 911.anagement and <Butfoet Office

Accounting Division

CERTIFICATE OF AV AJtABILITY OF FUNDS

This is to certify that the amount of NINE MILLION FIVE HUNDRED THIRTY NINE THOUSAND PESOS AND 38/100 (P9,539,000.38), will be made available for the refurbishment and procurement of furniture for the Regional Trial Courts Branches 2&SL,to,2.Q3,Jhe newly created family courts and the Offices of the Clerk of Court 0£,\N:1aU1ben CHy, chargeable against the amount allotted for Repairs and Maintenance of the Halls of Justice, unde: the· General Appropriations Act for FY 2017 \R. A. 10924).

Apri119, 2017

Noted:

c~t G~~LORES Deputy Clerk of Court and Chief of Office

{'' CAF No. 2017-06 HOJ

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Lvl~~O Chi~[ Accountant

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Republic of the Philippines Supreme Court

Manila Pisca{ :M.anaoement antf CJJwfeet. Office

I

Accounting Division

CERTIFICATE OF AVAILABILITY OF FUNDS

This is to certif)r that the amount of FOUR MILLION THIRTY TWO THOUSAND PESOS (f'4,032,000.00) .. will be made available for the lease of office space to house the Regiona.l Trial Court Branches 289 to 293, >Aetropolitan Trial Court Branches 55 and 56 and the Office of the Clerk of Court of Malabon City at I-336,000.00 per month for a period of one (1) year, chargeable against the

. a1nount allotted for Rent/Lease Expenses~ under the General Appropriations Act for FY 2017 (R. A. 10924).

March 24, 2017

~~ Chief Accountant

Noted:

~~..rt:~· . I CO~ON ~ FE . · - LORES Deputy Clerk of Court a a Chief of Offic{;._

i i i

CAF No. 2017-21/PPC