Section 5Sec./Art. 5

Limitations.

1. Foreign individuals, corporations, associations, or partnerships not otherwise investing in the Philippines as defined herein shall continue to be covered by Presidential Decree No. 471 and other existing laws on lease of lands to foreigners.

2. Withdrawal of the approved investment in the Philippines within the period of the lease agreement entered into under this Act, or use of the leased area for the purpose other than that authorized, shall warrant theipso factotermination of the lease agreement without prejudice to the right of the lessor to be compensated for the damages he may have suffered thereby.

3. Any lease agreement under this Act which is renewable at the option of the lessee subject to the same terms and conditions of the original contract shall be interpreted to mean as renewable upon the mutual agreement of the parties.

4. In addition to the conditions for the renewal of a lease agreement after the period of fifty (50) years as provided herein, the foreign lessee shall show that it has made social and economic contributions to the country.

5. In the case of tourism projects, lease of private lands by foreign investors qualified herein shall be limited to projects with an investment of not less than Five million ($5M) US dollars, seventy percent (70%) of which shall be infused in said project within three years from the signing of the lease contract.1a⍵⍴h!1