(DEED OF USUFRUCT OVER A MOTOR VEHICLE)

DEED OF GRANT OF USUFRUCTUARY RIGHTS

KNOW ALL MEN BY THESE PRESENTS:

This Deed of Grant of Usufructuary Rights entered into by and between:

_____________, of legal age, Filipino, (single / married /

widow), and a resident of _____________, Philippines,
(hereinafter referred to as the " GRANTOR");

- and -

_____________, of legal age, Filipino, (single / married /

widow), and a resident of _____________, Philippines,
(hereinafter referred to as the " GRANTEE");

W I T N E S S E T H:

WHEREAS, the GRANTOR is the true and registered owner of a certain motor
vehicle, more particularly described as follows:

Make: _____________Motor No.: _____________

Series: _____________Chassis No.: _____________
Type of Body: _____________Plate No.: _____________
CR No.: _____________MVRR No.: _____________

WHEREAS, the GRANTOR desires to give the GRANTEE the right of usufruct
over the aforedescribed motor vehicle with the latter having the full right to the possession,
use and enjoyment of the said motor vehicle in return for it assuming the obligation to
shoulder the yearly registration fees, insurance, and other charges over the said motor vehicle,
as well as the obligation to make the necessary maintenance and repairs to preserve the
vehicle during the lifetime of the usufruct.

NOW THEREFORE, for and in consideration of the mutual agreements, covenants

and stipulations hereinafter set forth, the GRANTOR hereby transfers and conveys unto the
GRANTEE by way of USUFRUCT the aforedescribed motor vehicle, subject to the following
terms and conditions:

1. This grant of Usufruct shall be valid and binding during the entire lifetime of the
GRANTEE subject to the condition that (he/she) shall actually retain possession and
control of the motor vehicle covered by the grant;

2. The GRANTEE shall pay and be liable for all registration fees, insurance, taxes,
licenses, permits, duties, levies and such other charges as the Government or any of
its instrumentalities and agencies may impose by reason of the use and operation of
the motor vehicle and/or arising out of this agreement and its implementation;

3. The GRANTEE may make improvements on the motor vehicle subject of this grant
and may make any addition, alteration or improvements on the vehicle without the
prior approval of the GRANTOR provided such additions, alterations or
improvements is necessary in the safe and proper operation of the vehicle or is
desirable in order to maximize the use for which it was intended;

4. The GRANTEE shall, at (his/her) own expense, make all necessary maintenance and
repairs to keep the motor vehicle in good running condition and to prevent it and all
its accessories from deteriorating in value or condition during the term of the grant,
 ordinary wear and tear excluded;

5. Only the GRANTEE or his duly-authorized agents or employees may operate the
motor vehicle and they shall have complete and unimpeded possession and use of the
afore-said vehicle during the lifetime of this grant;

6. The GRANTEE shall not lease the motor vehicle without the express consent of the
GRANTOR;

7. The GRANTOR hereby covenants with the GRANTEE that the latter shall peaceably
hold and enjoy the full use and possession of the motor vehicle afore-described
during the period of the grant;

8. During the effectivity of this usufruct or during the entire time that the GRANTEE
has material possession and/or control of the vehicle, the GRANTEE shall assume
any and all claims or liabilities in connection with any injury or wrongful death
inflicted on any person or for any damage to property caused by or arising out of the
operation or use of the motor vehicle, holding the GRANTOR free and harmless from
any liability thereby. Should a claim be filed against the GRANTOR, the GRANTEE
undertakes that (he/she) shall immediately intervene and assume all liabilities or
claims in behalf of the GRANTOR in the event that the claimant is justly entitled to
his claim;

9. The GRANTOR may immediately recover possession the afore-mentioned motor

vehicle and terminate the usufruct should the GRANTEE violate any of the
provisions of the Grant or fail to comply with its obligations as a usufructuary as
provided under the New Civil Code of the Philippines, the applicable provisions of
which are incorporated herein and deemed part of the provisions of this Deed;

10. Both parties acknowledge that this agreement is entered into in good faith and shall
require the faithful compliance of the respective obligations of the parties concerned
and respect of each other's rights as contained in this Deed. Any party who shall, by
its action or omission, directly or indirectly be responsible for the non-
implementation of any provision of this agreement shall be liable for actual, moral
and exemplary damages.

IN WITNESS WHEREOF, we have hereunto set our hands this _____________ at

_____________, Philippines.

GRANTOR GRANTEE

SIGNED IN THE PRESENCE OF:

__________________ __________________

(ACKNOWLEDGMENT)