DEED OF USUFRUCT

KNOW ALL MEN BY THESE PRESENTS:

This DEED is made and executed by and between:

The MIUNICIPAL GOVERNMENT OF TANAY , RIZAL, a local

government unit, created under the laws of the Republic of the Philippines, with
office address at the M.H. Del Pilar St. Tanay , Rizal, represented by its Municipal
Mayor REX HON. MANUEL C. TANJUATCO, as authorized by Sangguniang
Bayan Resolution (SB) No. _________ Series of 2018, hereinafter referred to as
the OWNER;

-and-

The PROVINCIAL GOVERNMENT OF RIZAL, a government unit, created

under the laws of the Republic of the Philippines, with office address at
Circumferential Road, Antipolo City, represented by its Provincial Governor
HON. REBECCA A. YNARES, herein referred to as the USUFRUCTUARY.

WITNESSETH:

WHEREAS, it is a well-entrenched constitutional principle that “The State shall

protect the right to health of the people and instill health consciousness among
them (Sec. 15, Art. II, 1987 Phil. Constitution);

WHEREAS, “Every local government unit shall exercise the powers expressly
granted, those necessarily implied there from, as well as powers necessary,
appropriate, or incidental for its efficient and effective governance, and those
which are essential for the general welfare”(Sec. 16, Chap. II, Title I, local
Government Code of 1991);

WHEREAS, the OWNER is the registered owner of a parcel of land covered by

Transfer Certificate of Title (TCT) No. 069-2015008941 located at interior,
Sagbat-Pililla Road, Barangay Tandang-Kutyo, Tanay , Rizal, wherein a hospital
building with twenty-five (25) bed capacity is constructed. (A copy of the Sketch
Plan with the technical description is hereto attached as Annex “A” to form part
hereof”

WHEREAS, the OWNER, by these presents offers for the use of the
USUFRUCTUARY;

WHEREAS, the USUFRUCTUARY accepts the above-stated offer of the

OWNER with gratitude and deep appreciation.

WHEREAS, pursuant to Resolution No.____, dated June ____2018 of the

Sangguniang Bayan, the Municipal Mayor Hon. REX MANUEL C.
TANJUATCO, has been authorized to sign, execute and deliver this Deed of
Usufruct for and in behalf of the Municipality of Tanay;

WHEREAS, pursuant to Sangguniang Panlalawigan Resolution No. ____ dated

June ____, 2018, Provincial Governor HON. REBECCA A. YNARES, has been
authorized to enter into, sign and accept in behalf of the Provincial Government
of Rizal;

NOW THEREFORE, for and in consideration of the foregoing premises

and of the mutual covenants hereinafter contained, the parties hereby agree to the
following terms and conditions:

1. TERM – The term of the usufruct shall be for a period of Twenty-five(25)

years, renewable at the discretion of the both parties. The
USUFRUCTUARY is hereby given the right and privilege to exclusively
use the above-said property (Hospital building), land and medical tools and
equipment which the OWNER shall initially provide;

2. OWNERSHIP – while the usufruct and /or the beneficial use of the
building is transferred to USUFRUCTUARY, the ownership and title of the
land and hospital building remains with and continues to be in the name of
the OWNER. Upon the expiration or non-renewal of the contract,
improvements introduced on the site shall belong to and be owned by the
Municipality of Tanay;

3. OPERATION AND MANPOWER – the infirmary shall be operated as

an Annex of the Rizal Provincial Hospital where the USUFRUCTUARY
shall exclusively assume and answer for its operation, including but not
limited to hiring of medical personnel and employees including payment of
their salaries, wages and other benefits;

4. INFRASTRUCTURE FACILITIES AND IMPOVEMENTS. – Apart

from the hospital building, the OWNER shall initially provide the needed
hospital equipments and furniture. The OWNER shall also provide
airconditioning system, information and communication technology, closed
circuit television camera, sufficient and fitting in structure and design of the
hospital building;

The OWNER shall be responsible for the electric, water and internet
connection of the hospital;

The OWNER shall provide an ambulance vehicle for operation of the

hospital;

5. EXPENSES - the USUFRUCTUARY shall exclusively assume and

answer electricity, communication, water facility and other maintenance
expenses during the lifetime of the usufruct;

6. EXCLUSIVE USE – The USUFRUCTUARY shall exercise its right to

the exclusive use of the hospital building and hospital tools and equipment
which the OWNER initially provided. The USUFRUCTUARY shall
maintain the facilities, structures and improvements in accordance with
local ordinance and/or national laws on environmental safety, maintenance
and preservation;

7. The parties and its successors in interest shall at all times exercise good
faith in the performance of their obligations and the exercise of their rights
under this DEED and no termination of usufruct shall be availed except in
case of a serious and substantial breach amounting to a denial or deprivation
of a party’s rights under this contract
 IN WITHNESS WHEREOF, the herein parties have set their hands
this _____________ day of June 2018 in ___________, Philippines.

MUNICIPALITY OF TANAY , RIZAL PROVINCIAL GOVERNMENT OF RIZAL

Owner Usufructuary

Represented by: Represented by:

REX MANUEL C. TANJUATCO REBECCA A. YNARES

Municipal Mayor Provincial Governor

Signed in the presence of:

__________________ _____________________