MORTGAGE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This Mortgage Contract, made and executed by and between:

Eversol G. Ragsac, of legal age, Filipino and with residence at Calao East, Santiago City,
Philippines, hereinafter referred to as Mortgagor,

and

Sherwin M. Luna, also of legal age, Filipino and with residence at Dubinan East, Santiago City,
Philippines, hereafter referred to as Mortgagee.

WITNESSETH:

That for and in consideration of the loan of THIRTY Thousand Pesos(Php 30,000), extended by
the Mortgagee to the Mortgagor, payable in 12 equal monthly installments. Said monthly installments
shall be paid as follows:

1.Php2,500, on or before 6. Php2,500, on or before

2. Php2,500, on or before 7. Php2,500, on or before

3. Php2,500, on or before 8. Php2,500, on or before

4. Php2,500, on or before 9. Php2,500, on or before

5. Php2,500, on or before 10. Php2,500, on or before

6. Php2,500, on or before 11. Php2,500, on or before

7. Php2,500, on or before 12. Php2,500, on or before

Any monthly installment due and unpaid shall bear interest at the rate of 5% per month
computed from the date of default until paid. That failure of the Mortgagor to pay three(3) consecutive
months shall obliged the Mortgagor

And to secure payment of thereof, the Mortgagor hereby transfers, conveys by way of mortgage
unto and in favor of the Mortgagee, his heirs, successors and assigns, a Motorcycle , particularly
described as follows:

MAKE:

TYPE:

MOTOR NO:

SERIAL/CHASSIS NO:

PLATE NO:

of which Mortgagor is the absolute owner.

It is the essence of this contract of mortgage that if the Mortgagor pays the obligations together
with the interests thereon, secured by this mortgage, when the same become due, the mortgage shall
become null and void and of no effect.

However, if the Mortgagor fails to comply with his money obligations on due date and the
matter is referred to counsel for enforcement, the Mortgagor agrees to pay attorney’s fees of
P50,000.00 and other expenses related thereto. In this connection, effective upon the breach of any
condition or stipulation of the mortgage or upon the cancellation of this mortgage for causes
attributable to the Mortgagor, the Mortgagee or his lawful representative or the sheriff is hereby
appointed attorney-in-fact of the Mortgagor with full powers and authority, take actual possession of
the mortgaged properties , without the necessity of any judicial order or any other permission or power,
to remove, sell, or dispose of the mortgaged property or any improvements attached thereto, belonging
to the Mortgagor; to execute bills of sale or agreement that may be deemed convenient. The payment
of any expenses advanced by the Mortgagee in connection with the purposes herein indicated is hereby
secured by this mortgage. The Mortgagee is hereby authorized to apply the proceeds of the sale and
disposal of the properties mortgaged to pay taxes, assessments, and all incidental expenses and
obligations, including attorney’s fees in the amount stipulated, and to pay the original obligations and
interests thereon. The Mortgagor hereby ratifies all that the Mortgagee or his representative or the
sheriff may do and execute under this power of attorney. This power shall remain in full force and effect
during the lifetime of this mortgage.

Executed this ______ day of __________, 20___ at _________________, Philippines.

EVERSOL G. RAGSAC SHERWIN M. LUNA

Mortgagor Mortgagee

SIGNED IN THE PRESENCE OF:

___________________________ ___________________________

REPUBLIC OF THE PHILIPPINES)

CITY OF SANTIAGO ) Sc.
x------------------------------------x

ACKNOWLEDGMENT

BEFORE ME, this ______ day of ________________, 2010 in the City of Santiago, personally
appeared:

Name Competent Evidence of Identity Place and Date of Issue

_________________________ __________________________ ___________________

_________________________ __________________________ ___________________

known to me to be the same persons who executed the foregoing instrument, and acknowledged that the
same are their free act and deed.

This Instrument, consisting of ______ (____) page/s, including the page on which this
acknowledgment is written, has been signed on the left margin of each and every page thereof by
_____________ and ________________ and their witnesses, and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand on the date and place above written.

Doc. No. ______;

Page No. ______;
Book No.______;
Series of 2010.
 DEED OF SALE
KNOW ALL MEN BY THESE PRESENTS:

This Deed of Sale, made and entered into by and between EVERSOL G. RAGSAC, of legal
age, Filipino, and a resident of Calao East, Santiago City, Philippines (hereinafter referred to as
the "VENDOR");
- and -

SHERWIN M. LUNA, likewise of legal age, Filipino, and a resident of Dubinan East,
Santiago City, Philippines (hereinafter referred to as the "VENDEE");
WITNESSETH:

WHEREAS, the VENDOR is the true and registered owner of a certain motor vehicle,
which is more particularly described as follows:

Make: _____________ Motor No.: _____________

Series: _____________ Chassis No.: _____________

Type of Body: _____________ Plate No.: _____________

CR No.:_____________ MVRR No.: _____________

WHEREAS, the VENDOR desires to sell the said motor vehicle and the VENDEE is ready,
willing and able to buy the same.

NOW, THEREFORE, for and in consideration of the sum of

__________________________ PESOS (P_____________), receipt of which is hereby
acknowledged by the VENDOR to (his/her) full and complete satisfaction, the VENDOR does
hereby SELL, TRANSFER and CONVEY unto the VENDEE, (his/her) heirs, successors and assigns,
the above-described motor vehicle.

IN WITNESS WHEREOF, the parties have hereunto affixed their respective signatures
this _____________, in _____________, Philippines.

EVERSOL G. RAGSAC SHERWIN M. LUNA

VENDOR VENDEE

SIGNED IN THE PRESENCE OF:

 __________________________________

REPUBLIC OF THE PHILIPPINES)

CITY OF SANTIAGO ) Sc.
x------------------------------------x

ACKNOWLEDGMENT

BEFORE ME, this ______ day of ________________, 2010 in the City of Santiago, personally
appeared:

Name Competent Evidence of Identity Place and Date of Issue

_________________________ __________________________ ___________________

_________________________ __________________________ ___________________

known to me to be the same persons who executed the foregoing instrument, and acknowledged that the
same are their free act and deed.

This Instrument, consisting of ______ (____) page/s, including the page on which this
acknowledgment is written, has been signed on the left margin of each and every page thereof by
_____________ and ________________ and their witnesses, and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand on the date and place above written.

Doc. No. ______;

Page No. ______;
Book No.______;
Series of 2010.
 ____________________,2010

PROMISSORY NOTE

I PROMISE TO PAY SHERWIN M. LUNA OR ORDER, THE SUM OF THIRTY TWO THOUSAND FOUR
HUNDRED PESOS IN TWELVE(12) INSTALLMENTS AS FOLLOWS:

1.Php2,700, on or before 8/30/10 7. Php2,700, on or before 2/28/11

2. Php2,700, on or before 9/30/10 8. Php2,700, on or before 3/30/11

3. Php2,700, on or before 10/30/10 9. Php2,700, on or before 4/30/11

4. Php2,700, on or before 11/30/10 10. Php2,700, on or before 5/30/11

5. Php2,700, on or before 12/30/10 11. Php2,700, on or before 6/30/11

6. Php2,700, on or before 01/30/11 12. Php2,700, on or before 7/30/11

Furthermore, if I fail to comply with my money obligations on due date and the matter is
referred to counsel for enforcement, I agree to pay attorney’s fees of P50,000.00 and other
expenses related thereto.

EVERSOL G. RAGSAC

MAKER
 CHATTEL MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

This Chattel Mortgage, made and executed by and between EVERSOL G. RAGSAC, of
legal age and a resident of Calao East, Santiago City, Philippines, hereinafter called the
MORTGAGOR, in favor of SHERWIN M. LUNA, of legal age and a resident of Dubinan East,
Santiago City, Philippines hereinafter called the MORTGAGEE;

WITNESSETH;

That The MORTGAGOR hereby CONVEYS by way of CHATTEL MORTGAGE unto the
MORTGAGEE the following described personal property, situated and ordinarily kept at Calao
East, Santiago City and presently in the possession of said MORTGAGOR, to wit:

MOTORCYCLE

Make: _____________ Motor No.: _____________

Series: _____________ Chassis No.: _____________

Type of Body: _____________ Plate No.: _____________

CR No.:_____________ MVRR No.: _____________

That this CHATTEL MORTGAGE is given as a security for the payment of a certain
promissory note, dated 14 August 2010, for the sum of Thirty Two thousand four hundred
Pesos (Php 32,400.00), with interest thereon at the rate of five (5%) percent per month,
according to the terms and conditions thereof, and in the words and figures as follows:

PROMISSORY NOTE

I PROMISE TO PAY SHERWIN M. LUNA OR ORDER, THE SUM OF THIRTY TWO THOUSAND FOUR
HUNDRED PESOS IN TWELVE(12) INSTALLMENTS AS FOLLOWS:

1.Php2,700, on or before 8/30/10 7. Php2,700, on or before 2/28/11

2. Php2,700, on or before 9/30/10 8. Php2,700, on or before 3/30/11

3. Php2,700, on or before 10/30/10 9. Php2,700, on or before 4/30/11

4. Php2,700, on or before 11/30/10 10. Php2,700, on or before 5/30/11

5. Php2,700, on or before 12/30/10 11. Php2,700, on or before 6/30/11

6. Php2,700, on or before 01/30/11 12. Php2,700, on or before 7/30/11

EVERSOL G. RAGSAC

MAKER
 That the condition of this CHATTEL MORTGAGE is such that if the mortgagor ,his heirs,
executors and administrator, shall well and truly perform the full obligation above stated
according to the terms thereof, then this CHATTEL MORTGAGE shall be null and void;
OTHERWISE, the same shall remain in full force and effect and shall be enforceable in the
manner provided for by law.

Furthermore, if the Mortgagor fails to comply with his money obligations on due date
and the matter is referred to counsel for enforcement, the Mortgagor agrees to pay attorney’s
fees of P50,000.00 and other expenses related thereto. In this connection, effective upon the
breach of any condition or stipulation of the mortgage or upon the cancellation of this
mortgage for causes attributable to the Mortgagor, the Mortgagee or his lawful representative
or the sheriff is hereby appointed attorney-in-fact of the Mortgagor with full powers and
authority, take actual possession of the mortgaged properties , without the necessity of any
judicial order or any other permission or power, to remove, sell, or dispose of the mortgaged
property or any improvements attached thereto, belonging to the Mortgagor; to execute bills of
sale or agreement that may be deemed convenient. The payment of any expenses advanced by
the Mortgagee in connection with the purposes herein indicated is hereby secured by this
mortgage. The Mortgagee is hereby authorized to apply the proceeds of the sale and disposal of
the properties mortgaged to pay taxes, assessments, and all incidental expenses and
obligations, including attorney’s fees in the amount stipulated, and to pay the original
obligations and interests thereon. The Mortgagor hereby ratifies all that the Mortgagee or his
representative or the sheriff may do and execute under this power of attorney. This power shall
remain in full force and effect during the lifetime of this mortgage.

IN WITNESS WHEREOF, we have hereunto set our hands, this _____________ at

Santiago City, Philippines.

EVERSOL G. RAGSAC SHERWIN M. LUNA

MORTGAGOR MORTGAGEE

SIGNED IN THE PRESENCE OF:

_____________________________ ______________________________

REPUBLIC OF THE PHILIPPINES)

CITY OF SANTIAGO ) Sc.
x------------------------------------x

ACKNOWLEDGMENT

BEFORE ME, this ______ day of ________________, 2010 in the City of Santiago,
personally appeared:

Name Competent Evidence of Identity Place and Date of Issue

EVERSOL G. RAGSAC __________________________ _____________________

SHERWIN M. LUNA __________________________ ____________________

known to me to be the same persons who executed the foregoing instrument, and acknowledged
that the same are their free act and deed.

This Instrument, consisting of ______ (____) page/s, including the page on which this
acknowledgment is written, has been signed on the left margin of each and every page thereof
by _____________ and ________________ and their witnesses, and sealed with my notarial
seal.

IN WITNESS WHEREOF, I have hereunto set my hand on the date and place above
written.

Doc. No. ______;

Page No. ______;
Book No.______;
Series of 2010.

AFFIDAVIT OF GOOD FAITH

We, the undersigned MORTGAGOR and MORTGAGEE hereby jointly and severally swear
that we executed the foregoing Chattel Mortgage is made and executed for the purpose of
securing the obligation therein cited and for no other purpose or purposes contrary to law, and
that the same is a just and valid obligation, and one not entered into for the purpose of fraud

EVERSOL G. RAGSAC SHERWIN M. LUNA

MORTGAGOR MORTGAGEE

SUBSCRIBED and sworn to before me, this ______ day of ________________, 2010 in
the City of Santiago by ___________ with ____________ No., issued on _____________ at
__________.

Doc. No. ______;

Page No. ______;
Book No.______;
Series of 2010.