USUFRUCT AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Agreement made and entered into by and between:

______________________________, a government instrumentality created and existing

pursuant to Presidential Decree No. ____________, as amended, with principal office address
at _________________________, represented by its CEO/Administrator,
_____________________ per Board Resolution No. ______________1 hereinafter referred to as
“_____________”;
-and-
__________________________, a government agency under the
_________________________, with Office address at
__________________________________, herein represented by the ___________________ 2,
________________________, hereinafter referred to as “___________”;

RECITALS:
WHEREAS, _______________ is empowered and authorized under Presidential Decree
No. ________________, as amended, to develop, operate, administer and manage an industrial
estate known as the ____________________, located in the municipalities of
____________________, Province of ________________;

WHEREAS, the _____________________ is likewise empowered and authorized by PD

_____________, as amended, to acquire all lands within the 3,000 hectare industrial estate,
and to subsequently lease portions thereof as deemed proper by the LESSOR’s Board of
Directors as it has herein deemed and authorized;

WHEREAS, the _______________ is the absolute owner of a building and parcels of

land, particularly designated as _____________________________________, containing an
area of _________________ SQUARE METERS (_______________) sq.m., more or less, situated
at _____________________, _____________;

WHEREAS, __________________ seeks to use the building located in the above-

identified parcel of land, free of charge, for ______________________ subject to mutually
agreed conditions;

WHEREAS, ________________ consents to the use by the _______________ of the

afore-described property to be exclusively devoted for the establishment of a
_________________ Building subject to mutually agreed conditions;

NOW THEREFORE, in the view of the foregoing premises and the mutual covenants, and
undertaking hereinafter provided, the parties hereto have agreed as follows:

SECTION 1. ________________ hereby allows _____________________ to use

_____________________________, located in _____________________, _______________,
with an area _________________________ SQUARE METERS (____________) sq.m., more or
less. The Sketch Plan with Technical Description3 is hereto attached and made as an integral
part hereto;

1
Attached hereto as Annex “A”;
2
A copy of the Appointment Order is hereto attached as Annex “B”;
3
Sketch Plan with Technical Description is hereto attached as Annex “C”;

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SECTION 2. The use of the aforesaid parcel of building and land is subject to the following
conditions, to wit;

1. The purpose for the use of the building and land is for _________________________;
2. The usufruct shall be for a period of forty-nine (49) years and renewable for the same
period of time at the option of __________________;
3. The _____________________ shall develop the area and construct their building at
their own expense. This shall include the provision, introduction and/or maintenance
of proper infrastructures, perimeter fences, and facilities that shall make the building
sustainable and viable for use;
4. Prior to construction of the _____________________ Building, the
_____________________ shall submit its design to ______________ for the latter’s
approval;
5. Upon completion of the _____________________ Building, the
_____________________ shall vacate the _________________ owned building which
they are currently occupying;
6. The _____________________ shall be responsible for the installation and payment of
its Utility Bills such as water and electricity, among others;
7. The _____________________ shall be responsible for the maintenance of its area
and building;
8. The _____________________ shall provide and make available ample space within
the building to be used as a business one-stop-shop for _______________ and/or
_____________________ stakeholders;
9. Should the aforesaid parcel of land be used by the _____________________ for
purposes other than that for which it was intended, the usufruct shall be deemed
revoked and the possession of the lot and ownership of all improvements shall revert
to _____________;
10. The _____________________ shall apply, obtain, and submit documents for securing
the necessary permits including but not limited to building permits, environmental
compliance certificates (ECC) and safety evaluation clearance and shall furnish
______________ a copy of such permits/clearances. It shall be the responsibility of
_____________________ to comply with all other requirements imposed by other
Government Offices for establishment of the Bureau of Customs Building;
11. In case there is no substantial compliance of the implementation of the project within
two (2) years from signing of the Agreement or the project is aborted/rescinded for
whatever cause, the Agreement shall be deemed terminated and the land and
improvements thereon shall automatically be reverted to _____________ without
any cost to ________________;

SECTION 3. The term of the Usufruct Agreement shall be for a period of forty-nine (49) years
unless renewed or pre-terminated for violation of any of the conditions stated herein.

SECTION 4. The Usufruct Agreement may not thereafter be modified or altered except by an
instrument in writing duly signed by the parties herein.

SECTION 5. This Usufruct Agreement shall be binding upon the successors, assignees,
executors, and administrator of the parties herein.

SECTION 6. The signatories hereto hereby manifest and declare that they have been duly
authorized by their respective Board of Directors/Head of Agency to enter into a Usufruct
Agreement in representation of respective principals. For this purpose, the parties hereto shall
submit to each other copies of documents evidencing approvals made by their respective Board
of Directors/Head of Agency authorizing the execution of this Usufruct Agreement.

SECTION 7. The following shall be deemed incorporated and/or reproduced to form as an

integral part of this Usufruct Agreement, to wit:
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 1. Presidential Decree No. ________, as amended;
2. Implementing Rules and regulations of P.D. No. ___________;
3. Board Resolutions and those that may thereafter be promulgated; and
4. Circulars, Memorandum and Directives.

IN WITNESS WHEREOF, the parties hereto have signed this _______________________

at ___________________________, Philippines.

______________________________ ______________________
By: By:

______________________________ _______________________
CEO/Administrator _______________________

SIGNED IN THE PRESENCE OF:

____________________________ ____________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

Province of _______________ )
Municipality of ____________ )
x-----------------------x

BEFORE ME, this ___________________________, personally appeared:

Name CTC No./Valid ID No. Issued on/Issued by/Issued at

________________________ __________________ ________________________

________________________ __________________ ________________________

known to me to be the same persons who executed the foregoing instrument and
acknowledgement to me that the same is their free and voluntary act and deed as well as
that of the entities herein represented.

Said instruments refers to a USUFRUCT AGREEMENT of building and land, consisting of

three (3) pages including this page whereon this acknowledgement is written signed by the
parties and their witnesses on each and every page thereof and sealed with my notarial
seal.

Doc. No. _____;

Page No. _____;
Book No. _____;
Series of 20____.

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