PROMISSORY NOTE WITH CHATTEL MORTGAGE

Trafalgar Law with address at BLK 422 L 5 Signal St. By Tejeros Makati City.

FOR VALUE RECEIVED, the undersigned, Trafalgar Law, promised to pay to the order of RX
Motor’s Phil. INC at its office located at Paseo de Roxas, Makati City, Philippines under the
following terms and conditions:

1. PROMISE OF PAYMENT

FOR VALUE RECEIVED, Trafalgar Law (BORROWER/MORTGAGOR) hereby promises to

pay RX Motor’s Phil. INC the sum of five hundred thousand pesoss (PHP 500, 000.00) payable
for 50 months.

2. INTEREST RATE

The stipulated interest rate is (3%) payable Monthly basis including its principal loan.

3. SCHEDULE OF PAYMENTS

The note is due and payable with 50 equal consecutive installments/payments of ten thousands
pesos (PHP 10, 000.00) in cash or check deposited Monthly.

4. Upon failure or default of any payment of any installment due, all unpaid installments
shall become due and demandable. Unpaid installments/payments shall bear interest rate of three
PERCENT (3 %) compounded monthly.

5. All taxes, assessments, fees and other dues, due the government or any of its
instrumentalities on the transaction covered by this note, whether the same is based on laws,
rules and regulations existing at the time of execution or subsequently imposed during the
effectivity of this note shall be for the account of borrower(s).

6. To secure the payment of all obligations under this Note, I hereby transfer and convey by
way of first mortgage to RX Motor’s Phil. INC, its successors, and assigns, the properties subject
of this Mortgage, together with all the equipment, accessories, substitutions or attachments
which may now or from time to time be used in connections with or attached to the said
properties described, hereinafter collectively referred to as “Mortgaged Properties” and now in
the possession of Trafalgar Law the MORTGAGOR.

Make: 2014 Honda Shine Motor No.: 4A5UBH4520

 Series: Serial/Chassis No.
MMBSNA13DEHT14217

7. Trafalgar law (BORROWER/MORTGAGOR) is in default within the meaning and

contemplation of this Note, without need for a notice or any other act or deed, in case he:

(a) Fails to pay any of the installment payments as and when the same fall due or to pay the
interest and/or compounded interest that may be due hereunder, or
(b) Violates any of the terms and conditions of this agreement, or
(c) In the event of bankruptcy, insolvency, receivership, levy on execution of his/its property,
garnishment or attachment, or in case of conviction or a criminal offense by final judgment
carrying with it the penalty of civil interdiction or any cases covered by Article 1198 of the New
Civil Code, or
(d) Should the mortgage property be lost, destroyed, or damaged from any cause whatsoever
including fortuitous event (it being considered lost to all intents and purpose, if the
BORROWER/MORTGAGOR shall fail to produce the same or any part thereof, on demand by
the CREDITOR/MORTGAGEE) or suffers, in the CREDITOR/MORTGAGEE’s opinion, any
appreciable decline in value, or
(e) The security interest of the RX Motor’s Phil. INC over mortgaged property, in RX Motor’s
Phil. INC opinion, is threatened or contested or in any manner put in jeopardy, or
(f) Any adverse circumstance occurs which, in the reasonable opinion of the
CREDITOR/MORTGAGEE, materially or adversely affects BORROWER/MORTGAGOR’s
ability to perform the obligations under this Note.
RX Motor Phil. Inc shall have the right, at its option, to declare the entire amount of all the
obligation due and payable, and likewise at its option, either cancel the sale or foreclose this
mortgage or file an ordinary civil action for the collection and/or such other action or
proceedings as may be allowed under the law.

8. The Trafalgar Law (BORROWER/MORTGAGOR) irrevocably appoints the RX Motor

Phil. Inc, effective upon the nonpayment of this Note on demand at maturity or upon the
happening of any of the Events of Default, but without any obligation on the
CREDITOR/MORTGAGEE’s part should it choose not to perform this mandate, as the attorney-
in-fact of the BORROWER/MORTGAGOR, to sell and dispose of any property of the
BORROWER/MORTGAGOR which may be in the CREDITOR/MORTGAGEE’s possession
by public or private sale, and to apply the proceeds thereof to the payment of this Note. The
BORROWER/MORTGAGOR, however, shall remain liable for any deficiency

9. Any legal action arising out of this note shall be brought in the proper courts of the City
of Makati or any place where the holder has any branch office, at the option of the holder hereof.

10. Acceptance by the holder thereof of payment of any installment or any part thereof after
due date shall not be considered as extending the time for the payment of any of the installments
aforesaid or as a modification of any terms and conditions thereof and shall in no case release the
makers of this note from liability for the payment of the herein obligation.
11. Should the BORROWER/MORTGAGOR perform the obligation to pay hereinabove
cited indebtedness of three hundred thousand pesos (PHP 300, 000.00) together with
accrued interest thereon, this chattel mortgage shall at once become null and void of no
effect whatsoever, otherwise, it shall remain in full force and effect.

12. Any delay or failure in the performance by the BORROWER/MORTGAGOR shall not
be excused by the occurrence of a Force Majeure.
13. In case any provision in this Note shall be held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

IN WITNESS WHEREOF, the parties have hereunto set their hands, this 10 day of January 2016
at Makati City Philippines.

_____________________________________ _____________________________________
BORROWER/MORTGAGOR CREDITOR/MORTGAGEE

SIGNED IN THE PRESENCE

_____________________________________ _____________________________________

AFFIDAVIT OF GOOD FAITH

I/We severally swear that the foregoing Chattel Mortgage is made for the purpose of
securing the Obligations specified and defined in this instrument and for no other purpose;
that the Obligations are just and valid obligations; and that this Chattel Mortgage is not
entered into for the purpose of fraud.

_____________________________________ _____________________________________
BORROWER/MORTGAGOR CREDITOR/MORTGAGEE

SIGNED IN THE PRESENCE

_____________________________________ _____________________________________

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES )
_________________________ ) S.S.

BEFORE ME A NOTARY PUBLIC for and in ____________, this ____________ personally

appeared to me the following:

Names Valid Id. No. Date/Place Issued

known to me to be the same persons who executed the foregoing instrument and who
acknowledged to me that the same is their voluntary act and deed.

WITNESS MY HAND AND SEAL on the day and place first above written.

Doc. No. _____;

Page No. _____;
Book No. _____;
Series of 2018

known to me to be the same persons who executed the foregoing instrument and who
acknowledged to me that the same is their voluntary act and deed.

WITNESS MY HAND AND SEAL on the day and place first above written.

Doc. No. _____;

Page No. _____;
Book No. _____;
Series of 2015.