LOAN AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Loan Agreement, duly executed in the City of Marikina this 7th day of May, 2014, by and between:

Mark Fernandez, Filipino, of legal age, with address at No. 10 Dama de Noche Street Twinville Subdivision, Concepcion, Marikina City (hereinafter referred to as the Lender)

-and-

Joms Yllana, Filipino, of legal age with address at No. 145 Chico Street Greenland Subdivision, Nangka, Marikina City (hereinafter referred to as the Borrower).

WITNESSETH, That -

WHEREAS, at the request of the Borrower, the Lender has agreed to extend to the Borrower a loan under the terms and conditions set forth below;

NOW THEREFORE, subject to such premise and the mutual covenants contained herein, the parties hereto agree as follows:

1.Principal.The Lender shall extend to the Borrower, by way of a loan, the aggregate principal amount of TWO MILLION PESOS (PhP2,000,000.00) (the Loan).

2.Use of Proceeds.Unless otherwise permitted by the Lender, the Borrower shall use the proceeds of the Loan solely for the following purpose: for the continuation of the construction of the Borrowers house situated in Quezon City covered by and more particularly described under Original Certificate of Title (OCT) No. 4321 issued by the Register of Deeds for Quezon City (the Property).

3.Term. The term of the loan shall be one year, and shall be payable in equal monthly instalments.

4.Maturity.The Loan shall become due and demandable upon the lapse of the one-year term, without need of any demand from Mark Fernandez.

It is hereby agreed that any amount due under the Loan is based on the value of the peso at the time of the execution of the Note corresponding thereto, and should there be any sudden decrease in the value thereof due to extraordinary inflation or deflation or any other cause, the value of the peso at the time of the execution of the Note shall be the basis of payment. For this purpose, extraordinary inflation or deflation takes place when so declared by the Bangko Sentral ng Pilipinas (BSP) or in the event of an increase or decrease in any given year of 50% in the prices of prime commodities based on the consumer price market index for Metro Manila as announced by the BSP.

5.Interest.The Loan shall bear interest at the rate of 3% per month.

The Lender reserves the right to adjust the interest rate should the cost of money to fund or maintain the Loan increase or decrease, provided that such adjustment shall be effective only upon giving of notice to the Borrower.

6.Security.The Borrower agrees to provide the following security for the payment of its obligations under this Agreement and other instruments or agreements required hereunder, as well as for the prompt observance and performance of the terms and conditions contained herein and in such other instruments or agreements required hereunder: real estate mortgage over the Property with all the improvements thereto.

The foregoing security shall be evidenced by agreements and documents to be executed and delivered by the relevant parties (the Security Documents).

7.Default. Failure on the part of the Borrower to pay the Loan, or any portion thereof (including interest), when such payment becomes due in accordance with this Agreement and the Note(s), or any other material breach or default by the Borrower of the terms, conditions, representations, and warranties set forth in the foregoing agreements and instruments, shall cause the Borrower to be in default of its obligations to the Lender, in which case the Lender shall be automatically entitled to execute and/or foreclose on any collateral put up as and by way of security for the payment of the Loan and to liquidate damages in the amount of PhP1,000,000.00.

Nothing herein shall be construed as a waiver on the part of the Lender to avail of any and all other actions and/or remedies accruing to him, by law or otherwise, as a result of the default by the Borrower.

8.Waiver, Cumulative Rights.No failure or delay on the part of the Lender in exercising his right, power, or remedy under this Agreement shall impair any such right, power, or remedy, nor shall a waiver of any single breach or default be deemed a waiver of any other breach or default thereafter occurring, nor shall any single or partial exercise of any such right or power preclude any other or further exercise thereof or the exercise of any other right or power hereunder. All remedies, either under this Agreement, or by law, or otherwise afforded the Lender shall be cumulative and not alternative. No notice to or demand on the Borrower in any case shall entitle it to any other or further notice or demand in similar or other circumstances.

9.Taxes, Duties, Fees and Charges.All payments due to the Lender hereunder or under any instrument or agreement required hereunder shall be made without set-off or counterclaim, and free and clear and without any deduction or withholding on account of any taxes, levies, imposts, duties or other fees or charges, all of which shall be for the account of the Borrower.

10.Costs of Collection.If the Lender shall require the services of counsel to enforce any of its rights and remedies under this Agreement and related documents, the Lender shall be entitled to recover from the Borrower as and for attorneys fees, a sum equal to fifteen percent (15%) of the sum sought to be recovered, which in no case shall be less than One Hundred Thousand Pesos (P100,000.00), in addition to costs of suit and all other fees and expenses incurred by and reimbursable to the Lender by the Borrower.

11.Waiver in Case of Judicial Execution.In case of judicial execution of this obligation or any part thereof, the Borrower hereby waives all its rights under the provisions of Rule 39, Section 13 of the Rules of Court.

12.Conflict.If any provision of this Agreement is in conflict or inconsistent with any provision in any Note, this Agreement shall prevail notwithstanding that the Note is executed on a later date.

13.Assignment.The Borrower may not transfer its rights or obligations hereunder without the prior written consent of the Lender.

14.Venue for Suit.The Borrower irrevocably agrees that any legal action, suit, or proceeding arising out of or relating to this Agreement may be instituted, at the option of the Lender, in any competent court in the City of Marikina, Philippines, and by execution and delivery of this Agreement, the Borrower submits to and accepts with regard to any such action or proceeding for themselves and in respect of their properties or assets, generally and unconditionally, the jurisdiction of any such court, to the exclusion of others. The foregoing, however, shall not limit or be construed to limit the rights of the Lender to commence proceedings or to obtain execution of judgment against the Borrower in any venue or jurisdiction where assets of the Borrower may be found.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day and year first written above.

MARK FERNANDEZJOMS YLLANA

Lender Borrower

SIGNED IN THE PRESENCE OF

JALIAN FLORENCE T. CREMENSOPHIA NICOLE M. AGUILAR

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF MARIKINA ) S.S.

BEFORE ME, a Notary Public for and in the City of Marikina, personally appeared Mr. Mark Fernandez with Passport No. BD55491 issued at Pasay City on September 6, 2013, known to me and by me known to be the same persons who executed the foregoing Loan Agreement and who further acknowledged to me that the same is his free and voluntary act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal in the City of Marikina this 12th day of May, 2014.

Doc. No. 673;

Page No. 528;

Book No. B381;

Series of 2014.