REAL ESTATE MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

This Real Estate Mortgage, made by and between:

JULIO VALIENTE, of legal age, single, and a resident of 123 ORACION

Village, Cebu City, Philippines (hereinafter known as the MORTGAGOR);

- and -

MARCIAL ZIGOMAR, of legal age, single, and a resident of 321 CARBON

Village, Cebu City, Philippines (hereinafter known as the MORTGAGEE);

WITNESSETH; That:

WHEREAS, the MORTGAGOR is the absolute and registered owner of a parcel

of land situated at Barangay of Calindagan, Dumaguete City, Province of Negros
Oriental, Is. of Negros., covered by Transfer Certificate of Title No. 38400 of the
Registry of Deeds for Dumaguete City;

WHEREAS, the MORTGAGOR is indebted to the MORTGAGEE in the principal

sum of Five hundred thousand pesos (Php 500,00.00), Philippine currency, under and
by virtue of a Promissory Note (“Note”) attached herewith and made an integral part
hereof as Annex “A”;

WHEREAS, the MORTGAGOR has agreed to secure the payment of the Note to
the MORTGAGEE by means of a good and valid mortgage upon the property herein
described below;

NOW, THEREFORE, for and consideration of the afore-mentioned indebtedness,

and to assure the performance of said obligation to pay, the MORTGAGOR does
hereby convey and DELIVER by way of MORTGAGE unto the MORTGAGEE, his heirs,
successors and as signs, the following parcel of land, together with all the
improvements found and standing thereon, more particularly described as follows:

TRANSFER CERTIFICATE OF TITLE No. 38401

“A PARCEL OF LAND Lot 69 Blk 69 of consolidation subdivision plan (LRC) Pcs-12345,

being a portion of the consolidation of Lots 1234-A and 1234-B (LRC) Psd-78945 situated in
the Barangay of Calindagan, Dumaguete City, Province of Negros Oriental, Is. of Negros.
Bounded on the E., along Line 1-2 by Zigomar St., on the S., along line 2-3 by Lot no. 6541,
Cid Estate, on the W., along line 3-4 by irrigation canal and Lot no. 7894 and on the N., along
line 4-1 by Lot no. 4562 both of the Cid Estate beginning at a point marked “1” on plan, being
N 21 deg. 58’E, 457,000 m. from no. 22 Cid Estate; thence S. 9 deg. 40’E, 23. 9 m. to the point
2; S. 78 deg 57’W., 26.1 m. to point 3; containing an area of (2,222) square meters.”

That it is the condition of this Mortgage that should the MORTGAGOR perform the
obligation to pay the afore-cited indebtedness of P2,000,000.00 together with accrued
interest thereon, within the agreed term, this Real Estate Mortgage shall be discharged
and shall at once become null and void and of no effect whatsoever, otherwise, it sm
Bldg. 69, 193 Pelaez St., San Antonio, Cebu City