COMPROMISE AGREEMENT

This AGREEMENT made and entered into this __________________ at Muntinlupa

City, Metro Manila, Philippines, by and among:

REMEDIOS P. PROCUNA, of legal age, widow Filipino and residing at 172

Malvar Street, Ayala Alabang Village, Muntinlupa City, hereinafter called as the
OWNER)
- and ANTHONY P. DE LEON, of legal age, married, Filipino, residing 172 Malvar
Street, Ayala Alabang Village, Muntinlupa City hereinafter after called the
GRANDSON
- and RAY A. DUQUE, of legal age, married, American, and with address at The
Makati Tuscany, 6751 Ayala Avenue, Makati City, hereinafter after called the
MEDIATOR
(collectively, OWNER, GRANDSON and MEDIATOR shall be referred to as the
Parties)
- WITNESSETHWhereas:
The Parties are parties to the following mediation proceedings, either as
plaintiff/complainant/petitioner or defendant/respondent:
WHEREAS, the OWNER is the true and absolute registered owner and possessor
of a house and lot located at No. 172 Malvar Street, Ayala Alabang Village,
Muntinlupa City, duly evidenced and covered by TCT No. 19781, hereinafter
referred to as the Property;
WHEREAS, the GRANDSON was previously given and authorized by the
OWNER, by virtue of a Special Power of Agreement, to mortgage the house and
lot located at No. 172 Malvar Street, Ayala Alabang Village, Muntinlupa City, in
order for the former to obtain money for his business;

WHEREAS, presently there is a controversy between the OWNER and

GRANDSON concerning their claims, participations and interests vis--vis the
construction of the residential house thereon, under Tax Declaration No. F00913581, Muntinlupa City.
WHEREAS, in the spirit of peace and harmony in the family, the OWNER and
GRANDSON have agreed to amicably settle their differences arising from the
foregoing, with the help and assistance of the MEDIATOR, as accommodation
peacemaker and facilitator.
NOW, THEREFORE, for and in consideration of the foregoing premises and the
terms and conditions set forth herein, the parties agree, as they hereby agree, as
follows:
The parties agree to mutually prohibit themselves from instituting any possible future
legal cases that each party may have against the other party in any and all courts of law in the
Philippines.
Now Therefore:
1.
The Parties warrant that they and/or their representatives have full capacity and
power to sign, execute, deliver, and file this Agreement.
2.

The following are agreed between the Parties:

a.

OWNER and GRANDSON agree to mutually prohibit and forbid the institution of
any possible future legal cases that they may have against each other in any and
all courts of law in the Philippines which may arise from the existing dispute
between them.

b.

The PARTIES confirm and acknowledge that the lot situated at No. 172 Malvar
Street, Ayala Alabang Village, Muntinlupa City, duly evidenced by TCT No.
19781, from the Registry of Deeds for Muntinlupa City was acquired exclusively
by the OWNER in the year 2007 for the total amount of P8,600,000. Such being
currently registered solely in her name.

c.

The PARTIES also admit and acknowledge, though pending compliance with
paragraph d hereof, that the buildingconstruction of the residential house on said
lot was financed and paid by the following: (1) by the OWNER, in the amount of
FOUR MILLION (P4,000,000) PESOS which was deducted and given to the
GRANDSON as trustee and caretaker of the construction of the house; and (2) by
the GRANDSON, in the amount of NINE MILLION (P9,000,000) PESOS but
subject to the condition as provided for by paragraph (d) hereof and upon due
audit and presentation by the GRANDSON of all the necessary official receipts
and documents which were incurred by him in the building of the said residential
house. From these amounts respectively paid and contributed by them, there is

apparently a conditional rate of THIRTY PERCENT (30%) for OWNER and

SEVENTY PERCENT (70%) for GRANDSON.
d.

For audit purposes and in order to validate the Grandsons claimed contribution,
the OWNER and GRANDSON agree that, within __ days from execution hereof,
the GRANDSON shall conduct a full accounting of the following: (a) OWNERs
loans obtained, processed and received by him from the Rural Bank of Canlubang
Planters Inc., by virtue of the OWNERS special power, from the Rural Bank of
Canlubang Planters Inc. in the amount of P7,000.000 and from the subsequent
take out loan of P14,000,000 from Rhodora C. Jocson; and (b) show and present
all supporting official receipts, vouchers, invoices, contracts, plans, drawings, and
other specifications validating cost of labor, materials, supplies and other matters
for audit, validation and confirmation by the OWNER or through her duly
authorized auditor, expert, civil or engineer or representative/s. As for the
OWNER, she is obligated to submit her audit, validation and/or rejection report
within __ days from submission by the GRANDSON of the last paper, document
or thing requisite or necessary therefor. Provided, however, if the GRANDSON
should fail to render such full accounting of the preceding loans and does not
deliver and present the foregoing papers and things to the OWNER, then the
GRANDSONs claim of capital contribution for the construction of the residential
house evidenced by papers and things amounting to P 9,000,000 shall
automatically become inoperative and void without force and effect whatsoever.
Provided, finally, in the event that the audit, validation and confirmation by the
OWNER be less than the claimed P 9,000,000 contribution of the GRANDSON,
then paragraph c(1) shall be reduced and adjusted accordingly.

e.

The OWNER and GRANDSON mutually agree that the MEDIATOR shall secure
the services of CUERVO APPRAISAL to conduct an equitable appraisal of the
fair and reasonable market values of both lands separately including their existing
improvements. Cuervo Appraisals report shall be utilized as the basis to
determine the proposed selling price of the property, the proportions of the lands,
the improvements which shall be applied to the actual net selling price of the
subject property, and the participation of both the OWNER and GRANDSON in
the improvement of the residential house as per paragraph (c) hereof.

f.

The PARTIES agree that the subject PROPERTY shall be disposed to a third
party/entity in an amount acceptable to the OWNER, based on the appraisal report
as a guide in order to get the best possible price. For them to achieve this, the
MEDIATOR has consented to first advance, pay and discharge the current
loan/mortgage on the Property from Rhodora C. Jocson in such amount as shall be
approved by the parties, subject to recoupment or reimbursement from net sales
proceeds of the Property.

g.

In connection with paragraph (f) hereof on the payment of the Mediators cash
advance, the OWNER and GRANDSON agree to distribute the sales proceeds in
accordance with the following formula. Firstly, the proportion of the LOT and the

residential house vis--vis the net selling proceeds shall be determined based on
paragraph (e) hereof, in order to break and determine the respective values of the
land in comparison to the residential improvements. Secondly, the GRANDSON
will have a portion only on the residential house based on their alleged share as
per paragraph c (2) hereof, audited, proved or modified per paragraph (d).
h.

The OWNER and GRANDSON mutually agree to leave and abdicate the
Property within __ ( _ ) days upon execution of this agreement. This shall be done
without need of prior demand. The MEDIATOR shall hire a caretaker to maintain
and watch over the property until it is sold thereof.

3.
The Parties hereby agree to keep this Agreement, including all the foregoing
information confidential and shall not divulge the same except if the other party consents in
writing, or when compelled by law or regulation or order of a court or governmental agency or
when such disclosure is directed or requested by any regulatory or self-regulatory authority to
which a party is subject, or whenever necessary to the partys business.
4.
The Parties, assisted by their respective counsel, have read and fully understood
this Agreement, and have voluntarily and freely affixed their signatures hereunder with full and
complete knowledge of the meaning and intent of this Agreement and of their rights under
applicable facts, circumstances, laws and jurisprudence.
5.
The Parties acknowledge that this Agreement is not an admission of liability on
the part of either party and is entered into solely for the purpose of settling their differences, and
is not intended to grant any right or benefit to any party other than the Parties herein.
6.
The Parties warrant that this Agreement is not contrary to law, morals or public
policy, and is not an admission of liability on the part of any of them, except as to the extent
described above.
7.
OWNER and GRANDSON mutually, irrevocably, freely and voluntarily release
and forever discharge one another, including their successors-in-interest and their heirs and
assigns, from any and all manner of action, causes of action, sum of money, damages, liability,
responsibility, obligation, claims and demands whatsoever in law or equity, which they had, now
have or may have against each other as are arising out of all the cases pending before the courts
had it not been for the settlement of their differences embodied in this Agreement.
8.
The Parties agree to discharge, fulfill and undertake their respective obligations
under this Agreement promptly, completely, and in good faith.
9.
The Parties agree that failure of any party to comply with any of the terms and
conditions of this Agreement shall, without prejudice and in addition to all other remedies
provided by law, entitle the aggrieved party to seek its immediate execution and enforcement in
the appropriate courts by way of a motion for execution. In addition, the Parties agree that their
obligations in this Agreement may also be specifically enforced under pain of contempt.

IN WITNESS WHEREOF, we have set our hands on the date and place first above
written.
_________________________________
_________________________________
Remedios P. Porcuna
Leon
OWNER
GRANDSON

___________________________________
Ray A. Duque
MEDIATOR

Anthony P. De