DEED OF USUFRUCT

KNOW ALL MEN BY THESE PRESENTS:

This DEED is made and executed by and between:

NOE C. ELIZAGA, Filipino, married, of legal age, and a resident of 21 Rose St. Panorama Homes Subd., Buhangin, Davao City, hereinafter referred to as the OWNER;

-and-

CLARITA E. DOYUGAN, URSECINO C. ELIZAGA JR., DELIA E. ELAJAS, HEIRS OF ULDARICO C. ELIZAGA represented by ULDARICO S. ELIZAGA JR., and HEIRS OF RAUL C. ELIZAGA represented by JOVANY ELIZAGA, hereinafter referred to as the USUFRUCTUARIES.

WITNESSETH:

WHEREAS, OWNER owns a parcel of land known as Lot 11194 with a total area of _______ square meters, more or less, subdivided into Lot 1194-A, Lot 1194B, Lot 1194-B1, Lot 1194-B2, Lot 1194-B3, Lot 1194-B4, Lot 1194-B5, and Lot 1194-B6,with the following technical descriptions:

LINE BEARING DISTANCE1 – 2 N 33” 58’ E 61.90 M.2 – 3 S 66” 52’ E 172.04 M.3 – 4 S 72” 37’ E 104.70 M.4 – 5 S 63” 04’ E 121.77 M.5 – 6 S 67” 44’ E. 48.72 M.6 – 7 S 19” 44’ W. 32.81 M.7 – 8 S 50” 12’ E. 45.08 M.8 – 9 N 76” 30’ W. 73.15 M.9 – 10 N 63” 05’ W. 182.49 M.10 – 11 S 47” 25’ W. 29.77 M11 – 12 N 64” 39’ W. 13.90 M.12 – 1 N 64’ 41’ W. 223.01 M.

WHEREAS, the OWNER, by these presents offers for the use of the USUFRUCTUARIES, in their individual capacities, the parcels of subdivided lands known as Lot 1194-B1, Lot 1194-B2, Lot 1194-B3, Lot 1194-B4, Lot 1194-B5, and Lot 1194-B6, with the option to donate these lands in the future;WHEREAS, the USUFRUCTUARIES accept the above-stated offer of the OWNER with gratitude and deep appreciation; NOW, THEREFORE, for and in consideration of the foregoing premises and of the mutual convenants hereinafter contained, the parties hereby agree to the following terms and conditions:

A. USUFRUCT PROPER – The subdivided lands shall be offered for use by the OWNER to the USUFRUCTUARIES in the following manner:

1. TO: CLARITA E. DOYUGANa. LOT NO.: LOT 1194-B6b. AREA: ____ SQUARE METERSc. TECHNICAL DESCRIPTION:

LINE BEARING DISTANCE1 – 2 B 67” 44’ E. 7.0 M.2 – 3 S 19” 44’ W. 15.0 M.3 – 4 N 63” 05’ W. 7.06 M.4 – 1 N 19” 44’ E. 56.61 M.

2. TO: URSECINO C. ELIZAGA JR.a. LOT NO.: LOT 1194-B5b. AREA: ____ SQUARE METERSc. TECHNICAL DESCRIPTION:

LINE BEARING DISTANCE1 – 2 S 67” 44’ E. 7.0 M.2 – 3 S 19” 44’ W. 15.0 M.3 – 4 N 76” 30’ W. 2.39 M.4 – 5 N 63” 05’ W. 4.66 M.5 – 1 N 19” 44’ E. 15.0 M.

3. TO: HEIRS OF RAUL C. ELIZAGA, represented by _____________________a. LOT NO.: LOT 1194-B4b. AREA: _____ SQUARE METERSc. TECHNICAL DESCRIPTION:

LINE BEARING DISTANCE1 – 2 S 67” 44’ E. 7.0 M.2 – 3 S 19” 44’ W. 15.0 M.3 – 4 N 76” 30’ W. 7.04 M.4 – 1 N 19” 44’ E. 15.0 M.

4. TO: DELIA E. ELAJASa. LOT NO.: LOT 1194-B3b. AREA: ____ SQUARE METERSc. TECHNICAL DESCRIPTION:

LINE BEARING DISTANCE1 – 2 B 67” 44’ E. 7.0 M.2 – 3 S 19” 44’ W. 15.0 M.3 – 4 N 76” 30’ W. 7.04 M.4 – 1 N 19” 44’ E. 15.0 M.

5. TO: HEIRS OF ULDARICO C. ELIZAGA, represented by ULDARICO S. ELIZAGA JR.a. LOT NO.: LOT 1194-B2b. AREA: _____ SQUARE METERSc. TECHNICAL DESCRIPTION:

LINE BEARING DISTANCE1 – 2 B 67” 44’ E. 7.0 M.2 – 3 S 19” 44’ W. 15.0 M.3 – 4 N 76” 30’ W. 7.04 M.4 – 1 N 19” 44’ E. 15.0 M.

B. TERM – The term of the usufruct shall be for FIVE (5) YEARS and the OWNER may convert the usufruct into a donation in favor of the individuals named-above, their heirs, assigns or successors-in-interest at the sole discretion of the OWNER upon the expiration of the term.

C. OWNERSHIP – While the usufruct and/or the beneficial use of the lands is transferred to the USUFRUCTUARIES, the ownership and title of the lands remains with and continues to be in the name of the OWNER. Upon, the expiration of the contract, improvements introduced on the site shall accrue to the OWNER unless the lands are donated. If the lands are donated, such improvements will redound to the benefit of the donees.

D. MAINTENANCE OF CLEANLINESS AND PEACE AND ORDER – The USUFRUCTUARIES shall maintain the cleanliness and peace and order in the area in usufruct.

E. OTHER TERMS AND CONDITIONS:1) The lands shall be used exclusively by the USUFRUCTUARIES as future site for the

establishment of rest-houses or similar buildings;

2) Construction of the rest-houses or similar buildings shall be finished within THREE (3) YEARS from the signing of this contract. If no rest-house or similar building is constructed after THREE (3 YEARS, the land pertaining to a particular usufructuary shall revert back to the OWNER.

3) The USUFRUCTUARIES shall construct and maintain their rest-houses and similar buildings in accordance with local ordinance and/or national laws on environmental safety, maintenance and preservation.

IN WITNESS WHEREOF, the herein parties have set their hands this _____ day of ___________, 2015 at __________________, Philippines.

OWNER USUFRUCTUARIES