27 July 2018

Mr. SMITH GREGORY WINSTON

Chief Financial Officer
CARL ZEISS PTE.LTD.
50 Kaki Bukit, Place #05-01
Singapore 415926

Mr. BENEDICTO ESGUERRA II

Technical Support Engineer
Carl Zeiss Philippines
CLIPP Center, 11th Avenue Corner
39th Street, Bonifacio Global City

SUBJECT: NOTICE OF TERMINATION

Dear Mr. Winston/Mr. Esguerra:

This has reference to the Preventive Maintenance Services Contract for NKTI-
owned/purchased one Unit of Zeizz Libra 120 Energy Filtering Transmission Electron
Microscope (ZLEFTEM) entered into between National Kidney and Transplant
Institute (NKTI) and Carl Zeiss PTE. LTD. Singapore (CZPL) on September 7, 2018. 1

On January 3 and 4, 2018, we requested the LAND BANK OF THE PHILIPPINES to

facilitate Dollar Debit from NKTI Account the amount of US $3,554.20 and US
$5,216.17 and be credited in favor of CARL ZEISS PTE.LTD as payment for Printed
Circuit Board for Electron Microscope and Batteries 12V 42Ah and UPS Coolant for
Electron Microscope, respectively.

On January 22, 2018, CZPL acknowledge receipt of the Purchase Orders and
informed NKTI that instead of brand new Batteries and PCB, CZPL will deliver
refurbished UPS batteries.

On January 30, 2018, the undersigned officially communicated to CZPT that the
requirement of Philippine Law is to purchase “Brand new” Printed Circuit Board,
Thus, NKTI cancelled POs No. 17-00189 dated December 18, 2017 for batteries and
UPS Coolant.2

Thereafter, we allowed our end-users/implementing Units to discuss the issues

concerning the Preventive Maintenance Contract to strike an amicable settlement
through mutual consultation meeting pursuant to the requirements of RA No. 9184.

1
Annex “A”
2
Annex “B”
Unfortunately, however, considering that after the conduct of series of Mutual
Consultation, thru telephone calls and electronic communications, between herein
parties, to amicably settle the issue of non-delivery by CZPL of the for Printed Circuit
Board for Electron Microscope and Batteries 12V 42Ah and UPS Coolant for Electron
Microscope, up to date there was no agreement reached.

Consequently, you are hereby formally notified that NKTI hereby invokes Clause 11
of the Preventive Maintenance Service Agreement (Annex “A”),which provides that:

11. TERMINATION

The Agreement may be terminated/rescinded in the

following manner:

xxx

11.4 NKTI reserves the right to terminate the contract

agreement with 30 days written notice if upon
evaluation of the NKTI, the continuation of this
Agreement will not anymore redound to the benefit
of the Institution.

In view thereof, the Preventive Maintenance Services for NKTI-owned/purchased

one Unit of Zeizz Libra 120 Energy Filtering Transmission Electron Microscope
(ZLEFTEM) is hereby terminated within 30 days from receipt hereof.

This Notice of Termination is without prejudice to our 30 January 2018 demand

letter to refund the amount of US $3,554.20 and US $5,216.17 as payment for
Printed Circuit Board for Electron Microscope and Batteries 12V 42Ah and UPS
Coolant for Electron Microscope, respectively.

For your information and guidance

ROSE MARIE O. ROSETE-LIQUETE, MD

Executive Director

A C K N O W L E D G E:
______________________
(Signature over printed name)
______________________
(Date)

cc: Dept of Laboratory Medicine

Budget Division
Accounting Division