CONTRACT OF LOAN

This Contract of Loan (the “Contract”) is entered between:

[Juan dela Cruz], Filipino, of legal age, with address at [1234

ABC, Metro Manila].(the “BORROWER”)

and

[Michael Rodriguez], Filipino, of legal age, with address at

[5678 DEF, Metro Manila].(the “LENDER”)

(LENDER and BORROWER each also called a “Party” and

collectively referred to as “Parties”)

The Parties agree as follows:

1. LOAN

The LENDER grants to the BORROWER a loan of [Php 100,000.00].(the

“Loan”).and the BORROWER promises to repay the Loan according to the
Contract, together with any required interest.

2. TERM AND REPAYMENT

A down payment of [Php 20,000.00].will be paid by [July 30, 2022].and the

balance of [Php 80,000.00].will be payable in [12].equal monthly installments at
[Php 9,026.03].per installment, including interest at the rate of [5% per month]
starting from [July 31, 2022] on the unpaid balance, and payable every 30th.day of
the month, beginning [August 30, 2022].until [July 30, 2023].

Any default or delay in payment will bear a penalty interest of [3% per month]
based on the total amount due, computed from the due date thereof until full
payment, which will be added on each unpaid installment from due date thereof
until fully paid

3. PREPAYMENT

The BORROWER may prepay the Loan in whole or in part at any time without
penalty with the LENDER’s written consent..Any prepayment will first be applied
to the interest and then to the unpaid balance of the Loan.

4. STATUS

The Loan will rank on equal footing at all times with all other present, unsecured
and unsubordinated obligations of the BORROWER except for obligations which
may be preferred by mandatory provisions of law.

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The BORROWER will not do any act which may prejudice the LENDER’s rights
or give to any of the BORROWER’s creditors priority over the LENDER’s rights.

5. TAXES AND EXPENSES

All taxes, fees, charges and other expenses arising from the execution of the
Contract and the Parties’ performance of their respective obligations will be for the
BORROWER's account.

6. EVENTS OF DEFAULT

Notwithstanding any other provisions of the Contract, if any of the following

events (the "Event of Default") occur for any reason the BORROWER will be
considered in default:

a. Breach of obligation

The BORROWER fails to comply with any obligation under the Contract $
{GRACEPERIODPHRASE}

b. Breach of warranty

If any representation or warranty the BORROWER made will be or become

false in any respect.

c. Cross Default

If the BORROWER will default in paying any principal or interest on any

other obligation for borrowed money beyond any grace period provided in
respect thereof or if he will fail to honor any guarantee or indemnity.

d. Insolvency

If the BORROWER will

(i) become insolvent.

(ii) if a bankruptcy petition or winding up against the BORROWER
is filed.
(iii) if a receiver is appointed over the BORROWER’s assets.
(iv) if the BORROWER is unable to pay his debts as they fall due.
(v) if the BORROWER will stop or threaten to stop payment all or
a material part of his debts.
(vi) if the BORROWER will begin negotiations or take any steps to
readjust, reschedule or defer any part of his indebtedness.

e. Cessation of Business

If the BORROWER will cease or threaten to cease to carry his business.

f. Enforcement Proceedings

If execution is levied upon the BORROWER’s assets.

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 g. Legal Proceedings

If any legal proceedings or actions will be instituted against the

BORROWER which in the LENDER’s reasonable opinion will affect the
BORROWER’s ability to repay the Loan or affect any security held by the
LENDER herein. This opinion so formed being binding and conclusive.

h. Transfer of Assets

If the BORROWER will transfer or dispose all or substantially all of his

assets to any person or corporation without the LENDER’s consent.

i. Expropriation

If the government expropriates or nationalizes all or any part of the

BORROWER’s assets.

j. Illegality

If it is or will become unlawful for the BORROWER to perform any of his

respective obligations hereunder.

k. Material Adverse Change

If there will occur a material adverse change in the business, assets or

financial position of the BORROWER or if any situation will arise which in
the LENDER’s opinion will make it improbable that the BORROWER can
perform his obligations hereunder.

If any Event of Default will occur the LENDER may, by written notice to the
BORROWER, declare the whole of the Loan and all fees payable hereunder to be
immediately due without further demand or other legal formality of any kind from
the LENDER.

The LENDER will also be entitled to exercise all rights, powers and remedies as
the LENDER may be entitled to under any relevant laws and equity.

The LENDER may adopt any other legal and convenient actions to protect his
interests. The foregoing provisions will not prejudice the LENDER’s right to
proceed against all persons and entities who may subsidiarily or secondarily be
liable to the LENDER.

7. SECURITY

As security for all of the BORROWER's obligations and liabilities to the LENDER
under the Contract, the BORROWER conveys unto the LENDER as collateral all
of the rights, title and interest to the property/s particularly described below (the
“Security”):

a. [Insert Collateral - For example: 2017 Honda Civic with plate

number ABC 12345 and Engine number 123456 ABC]

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The BORROWER agrees to take such additional actions as may be necessary or
advisable, at the LENDER’s reasonable request, to perfect and continue the
LENDER's security interest for the Contract.

8. REPRESENTATIONS AND WARRANTIES

The Parties represent and warrant that each has full power and legal capacity to
enter into the Contract and perform their obligations hereunder.

The BORROWER represents and warrants that:

a. The terms herein constitute legal and binding obligations of the

BORROWER and are enforceable against the BORROWER under the laws
of the Philippines.

b. All approvals, registrations, qualifications or filings with any governmental

authority required on the BORROWER’s part to execute the Contract or
perform any other transaction contemplated hereby will have been obtained
at such time as required by such governmental authority.

c. There is no existing contract, license, franchise or agreement binding on the

BORROWER which is being breached by his acceptance hereof or by his
performance of the obligations hereunder.

d. No Event of Default referred to herein has occurred, continuing or is

anticipated.

e. No litigation or administrative proceedings before any court or governmental

authority are presently pending or threatened against the BORROWER
which might have a material adverse effect on his assets, condition or which
would adversely affect his ability to perform his obligations hereunder.

f. The BORROWER is not in default in paying or performing any of his

obligations for borrowed money.

9. INDEMNITY

The BORROWER undertakes to indemnify and hold harmless the LENDER

against all claims, losses, or expenses the LENDER may suffer in connection with
the Contract or as a result of the occurrence of an Event of Default.

10. TERM AND TERMINATION

The Contract will take effect upon signing by all the Parties and will remain
effective until the full repayment of the Loan and any accrued interest by the
BORROWER to the LENDER’s satisfaction.

11. GOVERNING LAW

The Contract will be governed and construed in accordance with the laws of the
Philippines.

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12. GENERAL PROVISIONS

a. Binding Agreement

The Contract will inure to the benefit of and be binding upon the Parties’
respective successors and assigns. Nothing in the Contract is intended to
confer upon any third party any rights, remedies, obligations, or liabilities
under the Contract except as expressly provided herein.

b. Assignment

The Parties may assign their respective rights and obligations under the
Contract only with the other Party’s written consent.

c. Entire Agreement

The Contract constitutes the whole agreement between the Parties and
supersedes any previous agreements between them relating to the subject
matter hereof.

The Contract may be amended only by the Parties’ written agreement.

d. Severability

If any provision of the Contract is held to be invalid the remaining

provisions of the Contract will remain in effect.

e. Delays or Omissions

No delay, omission, forbearance or failure to exercise any right or remedy

by a Party as provided herein will impair any such right or remedy and will
not be deemed a waiver thereof or acquiescence to the event giving rise to
such right or remedy, but every such right or remedy may be exercised from
time to time and so often as may be deemed expedient by a Party.

No waiver of any single breach or default will be deemed a waiver of any

other breach or default thereafter occurring. Any waiver or consent by the
LENDER of any breach or default under the Contract, or any waiver by the
LENDER of any provisions of the Contract must be in writing and will be
effective only to the extent specifically set forth in writing and that all
remedies afforded to the LENDER will be cumulative and not alternative.

f. Notices

Notices required to be served under the Contract will be in writing and sent
to the Party’s address indicated in the Contract or to such other address
designated in writing by the Party to whom the notice is to be given.

g. Counterparts

The Contract may be executed in any number of counterparts, each of which

will be an original and all of which together will constitute the same
instrument.

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 h. Titles and Subtitles

The titles and subtitles used in the Contract are for convenience only and are
not to be considered in interpreting the Contract.

i. Cooperation

The BORROWER will cooperate with the LENDER, and execute and
deliver any instruments, and take all actions as the LENDER may
reasonably request the BORROWER to take from time to time, consistent
with the Contract, to effectuate the provisions and purposes of the Contract.

IN WITNESS WHEREOF, the Parties have affixed their signatures this

_________________ in __________________________________, Philippines.

Date: _________________
Name: .[Michael Rodriguez]
Title: ______________________

LENDER

Date: _________________
Name: .[Juan dela Cruz]
Title: ______________________

BORROWER