CONTRACT OF LEAESE
KNOW ALL MEN BY THESE PRESENT:
T his Contract of Lease (this Contract) is made and executed this 10th day of February 2010 at Paranaque City, by and between:
ALLEGRO MICROSYSTEMS PHILS. REALTY, INC., a corporation duly organize d and existing under the laws of the Republic of the Philippines, with principal address at 91h Flo or Common Goal Tower, Industry cor. Finance Sts., Madrigal Business Park, Alabang, Muntinlupa, represented by its duly authorized President, Mr. Francisco N. Meroy, Jr., hereinafter referred to as the LESSOR;
ALLEGRO MICROSYST EMS PHILIPPINES, INC., a corporation duly organized and existing under the laws of the Republic of the Philippines, with principal address at Sampaguita Street, Marimar Village, Paranaque City, represented here in by its Managing Director, Frederick D. Reiersen, herein after referred to as the LESSEE;
WHEREAS, the LESSOR is the registered owner of a parcel of land, with an approximate area of Seven Thousand Seven Hundred Sixty-Nine (7,769) sqm more or less, situated at Paranaque City (here in after the Leased Premises ), covered by Transfer Certificate of Title Nos. 182652, I 82653 , 182654, 182655 , 1826 56, and 18265 7 and particularly identified in Annex A attached hereto and mad e an integral part hereof ;
WHEREAS, the LESSOR has offered for lease and the LESSEE desires to lea se the Leased Premises;
NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual covenants contain ed here in, the LESSOR hereby leases upon the LESSE E the Leased Premises and the LESSEE hereby accepts the same, under the following terms and conditions:
1. TERM OF LEASE. This lease shall be for a period of twenty-five (25) years commencing on 01 April 2009 to 31 March 2034, renewable for another twenty-five (25) years by giving written notice to the LESSOR at least ninety (90) calendar days prior to the expiration of the original twenty-five year term, upon terms and conditions mutually agreed by the parties.
2. RENTALS. The LESSOR shall pay qua11e rly rentals in the amount of One Million Eight Hundred Seventeen Thousand Nine Hundred Forty-Six Pesos (P 1,817,946.00) payable in advance within five (5) days from the start of the quarter, exclusive of VAT. The annual rental shall be subject to escalation equivalent to one percent (I%) at the end of every five (5) years.
3. REAL ESTAT E TAXES. All real estate taxes le vied or assessed or those, which may thereafter be le vied or asses se d on the Leased Premises, including real estate taxes assessed on the improvements introduced by the LESS EE on the Leased Premises shall be for the account of the LESSEE for the duration of the lease.
4. SECURITY DEPOSIT. Upon signing of this Contract and upon delivery of the LESSOR of the Leased Premises to the LESSEE, the LESSEE shall remit the s um of Six Hundred Five Thousand Nine Hundred Eighty-Two Pesos (P 605,982.00) (the Security Deposit). The Security Deposit shall remain intact during the entire term of the lease and shall not be applied by the LESSOR as payment for rentals, but shall serve as security to answer for any unpaid utility bills, charges and other obligations due to the LESSOR under this Contract, and real property taxes due on the improvements introduced by the LESSEE, which are payable by the LESSEE at the termination or expiration of the Contract. The Security Deposit shall be refund ed by the LESSOR and returned to the LESSEE, within thirty (30) days after the expiration or termination of this Contract and after presentation by the LESSEE to the LESSOR of proof that the former has paid all of its utility bills and real property taxes on improvements, if any, and provided that the LESSEE has vacated the Leased Premises.
5. USE OF THE LEASED PREMIS ES/SUB-LEASE. The LESSEE shall use the Leased Premises for any lawful purpose. The LESSEE shall have the right to sub-lease all or any port ion of the Leased Premises to any third party, upon written notice thereof to the LESSOR.
6. ALTERATIONS/IMPROVEMENT. The LESSEE shall have the right to erect upon the Leased Premises a laboratory, warehouse, office building, and install such machinery, facilities and equipment as it may consider necessary for the operation of its