CLASS D

LOAN AGREEMENT

This Loan Agreement is made and executed by and between LAND BANK OF THE PHILIPPINES, a
government financial institution created and existing under and by virtue of the provisions of Republic
Act No. 3844, as amended, with principal office at LandBank Plaza 1598, M.H. del Pilar corner Quintos
Streets, Malate, Manila (the "Lender"), acting for and on behalf of the DEPARTMENT OF
AGRICULTURE to implement its Agricultural Credit Enhancement Fund, and the Borrower as
specified in the Special Conditions (the “Borrower”, irrespective of number).

PART I – GENERAL CONDITIONS

Article 1. DEFINITIONS

1.1 Defined Terms

“Agreement” means this Loan Agreement inclusive of the General Conditions and Special Conditions,
respectively.

“Bangko Sentral” means the Bangko Sentral ng Pilipinas.

“Banking Day” means a day, other a Saturday, Sunday or non-working legal holiday, on which banks
and other financial institutions are open for business in Metro Manila.

“BIR” means the Bureau of Internal Revenue.

“Collateral” means all property, rights, title and interest of any kind or character covered by the
Security Agreement.

“Event of Default” means an event specified as such in Section 8.1.

“General Conditions” mean the General Conditions constituting Part I of this Agreement.

“Loan” means the aggregate principal amount of the drawdowns granted by the Lender to the
Borrower hereunder, or as the context may require, the amount thereof then outstanding;

“Loan Documents” means collectively this Agreement, the Notes, Security Agreement and all other
agreements or documents required or contemplated hereunder, as the same may be amended from
time to time.

“Lien” means any lien, pledge, mortgage, charge, encumbrance, title retention or other security
arrangement on or with respect to any asset or revenue.

“Note” means the promissory note of the Borrower evidencing the borrowing.

“Security Agreement” means the agreements, instruments or documents creating a Lien over a
Collateral as may be delivered pursuant to Section 7.

“Special Conditions” means the Special Conditions constituting Part II of this Agreement.

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ARTICLE 2. LOAN AMOUNT AND TERMS

2.1 Loan Amount

The Lender agrees to grant the Loan to the Borrower in the aggregate principal amount as specified
in the Special Conditions.

2.2 Use of Proceeds

Unless otherwise provided in the Special Conditions, the Loan shall be released in a single drawdown.

2.3 Notes

Each drawdown shall be evidenced by a Note which, once executed, shall be complemented by the
terms and conditions of the Agreement.

2.4 Term; Repayment

(a) The Borrower shall repay the Loan over a term and under such number and frequency of
instalments as specified in the Special Conditions.

(b) If any payment hereunder or under the Notes would otherwise be due on a day that is not a
Banking Day, such payment shall be made on the next immediately succeeding day that is a
Banking Day; provided, that the Borrower shall pay interest on the amounts due at the rate
as provided in Section 2.8 from the date such amounts are due up to the actual date of
payment.

2.5 Interest

a) The Borrower shall pay interest on the outstanding principal amount of the Loan at the rate
as specified in the Special Conditions.

b) The determination by the Lender of the amount of interest due and payable hereunder shall
be conclusive and binding on the Borrower in the absence of manifest error and bad faith in
the computation thereof.

c) The interest shall be subject to upward or downward adjustment if, during the term of the
Loan, any law rule or regulation is issued which has the effect of increasing or decreasing the
Lender’s cost of funds or intermediation cost, including reserve requirements or taxes. Such
adjustment in interest rate shall be effective upon a thirty (30)-day written notice to the
Borrower and each advice shall form part of this Agreement by reference.

2.6 Automatic Debit Authorization

The Borrower authorizes the Lender to debit, without need of notice, from any deposit account being
maintained with it for all such amounts that may be due the Lender under this Agreement, including
those that may result from acceleration.

2.7 Application of Payments

Any payment made to the Lender shall be applied first against any advances made by the Lender,
then against penalty, then against fees and other charges, then against interest due on the Loan,
then against the Loan due and payable.

2.8 No Counterclaim; Taxes

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All payments due to the Lender shall be made by the Borrower without any deduction, including those
for set-off, counterclaim or Tax.

ARTICLE 3. FEES AND CHARGES

3.1 Expenses

Within thirty (30) Banking Days from date of receipt by the Borrower of the invoices or request from
the Lender, in connection with the preparation, negotiation, execution, delivery and administration of
the Loan Documents, as well as costs and expenses, if any, in connection with the registration,
notarization and amendment thereof and the issuance of any consents or waivers in connection
therewith, and any and all fees, stamps and other taxes. The Borrower shall hold the Lender free
from any liability with the obligations of the Borrower under this Section are absolute and
unconditional. The fees, expenses and other amounts payable by the Borrower under this Section
shall be payable, and, if already paid, shall not be reimbursable by the Lender, notwithstanding the
failure by the Borrower to make any drawdown under this Agreement or any other failure of the
transactions contemplated herein. However, if the Lender fails to allow drawdowns after the
conditions precedent under Section 4 have been complied with by the Borrower, the Borrower shall
no longer be liable to such Lender for the fees, expenses and other amounts payable under this
Section, and any such fees, expenses and other amounts already paid by the Borrower to such
Lender shall be reimbursable by the latter.

ARTICLE 4. CONDITIONS FOR BORROWING

4.1 Conditions for Drawdown

The obligation
GEMMA G. SORIA of the Lender to allowA.the
RICHIE release of the proceeds
PROSPEROSO of each
BAYAN drawdown shall
U. UKAT be subject Y. WALI
ABDULRAHMAN
to the
OIC, SCOLCprior fulfilment of the following
Witness conditions: Chairman Treasurer

(a) The Borrower shall be in compliance with all terms and conditions set forth herein on his part
to be observed or performed, and no Event of Default or any event which, with due notice or
lapse of time or both, would become an Event of Default shall have occurred and be
continuing.

(b) The representations and warranties contained in Section 6.1 shall be true and correct on the
date of drawdown as if made on and as of such date.

(c) The Lender shall have received the Note and the Disclosure Statement duly executed and
signed by the Borrower.

ARTICLE 5. COLLATERAL

5.1 Collateral

Unless otherwise provided, the payment of the Loan, interest, advances, fees, penalties and other
charges, on the Loan, including those may be due to the amendment, extension or restructuring of
the Loan, shall be secured by the assets and securities specified in the Special Conditions.

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ARTICLE 6. REPRESENTATIONS AND WARRANTIES

6.1 Representations and Warranties

Except as otherwise disclosed to the Lender, the Borrower represents and warrants to the Lender
that:

(a) This Agreement will constitute his legal, valid and binding obligation, enforceable in
accordance with their respective terms; there is no judgment, decree or order of any court or
agency applicable to it which would be contravened by the execution and delivery of this
Agreement, or by the performance of any provision of this Agreement.

(b) There is no litigation, arbitration proceeding or dispute pending, or to his knowledge

threatened against or affecting it or his properties, the adverse determination of which might
have a material and adverse effect on his capacity to perform his obligations in this
Agreement.

(c) No event has occurred and is continuing, or would result from the making of this Agreement,
which constitutes an Event of Default or which, upon the lapse of time or notice or both,
would become such an Event of Default.

6.2 Survival of Representations and Warranties

The representations and warranties contained herein are true and correct as of the date of this
Agreement and shall remain true and correct as long as the Loan is outstanding.

ARTICLE 7. COVENANTS

7.1 Affirmative Covenants

The Borrower covenants and agrees that during the term of the Loan and until payment in full of all
amounts due hereunder, unless the Lender shall otherwise consent in writing, which consent shall not
be unreasonably withheld, the Borrower shall:

(a) Use the proceeds from the Loan exclusively for the purpose as stated specified in the Special
Conditions;

(b) Maintain or cause the Collateral to be maintained in good condition and to keep it in state of
safety, maintenance and sanitation;

(c) Secure and maintain acceptable insurance against risks of fire, flood and earthquake in an
amount which is not less than the insurable value of the improvements. The insurance policy
on the property constituting the Collateral shall be endorsed to and delivered with the Lender
as beneficiary. The Borrower shall also submit proof of payment of premiums and renewal of
said policy no later than ten (10) days before the due date. Should there be any insurance
policy that was not endorsed to the Lender, the Borrower agrees and hereby appoint the
Lender as his/his Attorney-in-Fact with full authority to collect any indemnity or claim due
thereon in case of loss of the Collateral and apply such proceeds thereof in full or partial
payment of the Loan;

(d) Pay or cause to be paid all realty taxes, government charges and association dues and such
other assessments or charges due on the Collateral not later than ten (10) days before the
due date and deliver official receipts and proof of payment to the Lender upon demand;

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(e) Promptly, and in no case more than five (5) Banking Days after the occurrence of an Event of
Default, give written notice to the Lender of any Event of Default or other event which, upon
a lapse of time or giving of notice or both, would become an Event of Default, specifying the
details thereof and the steps which the Borrower is taking or proposes to take for the
purpose of curing the occurrence or preventing the occurrence of such an Event of Default;
and

(f) Execute and deliver such instruments, documents and reports as the Lender may reasonably
request to give full force and effect to this Agreement.

ARTICLE 8. EVENTS OF DEFAULT

8.1 Events of Default

Each of the following events shall constitute an Event of Default under this Agreement:

(a) The Borrower defaults in the payment of any of the principal, interest or any other sum
payable under this Agreement, as the same becomes due and payable, whether at maturity,
by acceleration or otherwise.

(b) Any representation or warranty in this Agreement, the loan application or in any writing at
any time furnished the Lender in connection with this Agreement becomes false or misleading
in any material respect.

(c) The Lien in favor of the Lender on any of the Collateral is not perfected as against third
parties or becomes ineffective or any right or Lien established or created in favor of the
Lender under the Security Document is lost or otherwise impaired, or an event of default
under any provision of the Security Agreement has occurred.

(d) The Borrower admits in writing his inability to pay his financial obligations generally as they
come due, files a petition for suspension of payments or any action for relief under insolvency
or moratorium laws, makes an assignment for the benefit of creditors, commences a
proceeding for the appointment of a receiver, trustee, liquidator, or conservator of his
properties.

(e) An involuntary petition is filed under any insolvency law against the Borrower, or a receiver,
trustee, liquidator or conservator shall be appointed to take possession of the properties of
the Borrower.

(f) A material change in the financial circumstances or condition of the Borrower occurs which, in
the reasonable opinion of the Lender, would materially and adversely affect the ability of the
Borrower to perform his obligations under this Agreement.

(g) A judgment against the Borrower or any attachment or execution against the Borrower in any
litigation the contingent or accrued liability of which would materially and adversely affect the
Borrower’s financial conditions or the Borrower’s ability to perform his obligations under this
Agreement is issued.

(h) The Borrower dies or becomes incapacitated or a guardian or administrator is appointed over
his person or properties.

8.2 Consequences of Default

(a) If an Event of Default has occurred and is continuing pursuant to this Agreement, the Lender
may, by written notice to the Borrower, declare all or part of the Loan, together with interest
accrued and unpaid thereon, and all other unpaid sums be forthwith due and payable,

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whereupon the same shall become immediately due and payable, without need of demand
which is hereby expressly waived by the Borrower.

(b) A declaration of default under this Section shall further result into the following
consequences:

(i) As to any undrawn portion of the Loan, the Lender’s obligation to allow drawdowns shall
forthwith terminate;

(ii) The Lender shall have the right to exercise and enforce all rights and remedies now or
hereafter available to it under the Loan Documents.

8.3 Default Interest

(a) Without prejudice to the provisions of Section 9.2, if the Borrower fails to make payment
when due of any sum payable hereunder (whether at stated maturity, by acceleration or
otherwise and whether for principal, interest or otherwise), the Borrower shall, without
prejudice to his obligations to pay the said principal, interest and other amounts, pay the
following penalty fees computed from the time the amount fell due until the same is fully
paid:

(i) On the defaulted amount of principal – three percent (3%) per annum on top of the
existing interest rate; and

(ii) On the defaulted amount of interest – three percent (3%) per annum.

In the event that this Agreement is signed by several borrowers, the obligations shall be joint and
several with each other.

8.4 Waiver; Cumulative Rights

No failure or delay on the part of any party in exercising any right or remedy under this Agreement
and no course of dealing between them shall operate as a waiver thereof, nor shall any single or
partial exercise of any right or remedy preclude the exercise of any other right under this Agreement.
The rights and remedies expressly provided are cumulative.

8.5 Governing Law; Submission to Jurisdiction

(a) This Agreement shall be governed by, and construed in accordance with, the laws of the
Republic of the Philippines.

(b) The Borrower irrevocably agrees that any legal action, suit or proceeding arising out of or
relating to the Loan Documents shall be instituted in any competent court in the City of
Manila or in the place where the Lender’s Lending Center is located, to the exclusion of all
other courts. The foregoing, however, shall not limit or be construed to limit the right of the
Lender to commence proceedings or to obtain execution of judgment against the Borrower in
any venue or jurisdiction where the Collateral or any asset of the Borrower may be found.

8.6 Severability of Provisions

If any one or more of the provisions contained in the Loan Documents or any document executed in
connection therewith shall be declared by any court of competent jurisdiction as invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions contained therein or
such document executed in connection therewith shall not in any way be affected or impaired.

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8.7 Successors and Assigns

(a) This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

(b) The Borrower may not assign his rights or obligations hereunder without the prior written
consent of the Lender.

8.8 Notices

(a) All communications and notices provided for herein shall be in writing and shall be personally
delivered or transmitted by postage prepaid registered mail or facsimile transmission
addressed to the other party at the addresses set forth below in the Special Conditions (or
such other address, contact details or contact person as shall be designated by a party in a
notice to the other party in accordance herewith).

(b) Except as otherwise specified herein, all notices shall be deemed duly given (i) on the date of
receipt, if personally delivered, (ii) seven (7) days after posting, if by registered mail, or (iii)
upon receipt of the written confirmation of the facsimile, if by facsimile transmission. Any
party hereto may change his address for purposes hereof by written notice to the other party.

8.9 Set-Off

The Lender shall have the right to set off and apply any credit balance on any account of the
Borrower.

(a) Pursuant to Bangko Sentral Circular No. 472, Series of 2005, and BIR Revenue Regulation No.
4-2005, as the same may be amended from time to time, to verify with the BIR in order to
establish the authenticity of the tax returns and any accompanying financial statement and
documents or information submitted by the Borrower;

(b) To inquire into any of the deposit accounts or properties maintained by the Borrower with the
Lender, his subsidiaries and affiliates for the purpose of implementing the automatic debit
authorization or the set-off provisions under this Agreement;
(c) Obtain from or disclose to his parent, subsidiaries, affiliates, or credit bureau any information
regarding the Borrower and the Loan as the Lender may deem necessary to exercise his
rights under this Agreement or as may be allowed or required by applicable laws, rules and
regulations; and

(d) Pursuant to Republic Act No. 9510, otherwise known as the Credit Information System Act, to
submit basic credit data pertaining to him to the Credit Information Corporation.

[This space intentionally left blank]

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PART II - SPECIAL CONDITIONS

Name and Residential LAMBAYONG MNLF MPC
Address of Borrower Brgy. Zeneben, Lambayong, Sultan Kudarat
Section 2.1 (Amount) P 3,870,000.00
Section 2.2 (Use of To finance the acquisition of one (1) unit 10-wheeler Tractor Head with
Proceeds) Trailer, Refrigerator Container Van and Generator Set
Section 2.4 Principal - Payable in equal monthly amortization to start a month after
(Repayment) loan release.
Interest - Payable monthly in arrears, simultaneous with the Principal
amortization
Section 2.5 (Interest) Fixed at 2% per annum
Section 5.1 (Collateral) Chattel Mortgage on the following:
 Sinotruck Hohan 10-Wheeler Tractor Head
 Trailer Skeleton with Refrigerator Container Van
Other Terms and 1. Loan proceeds shall be released directly to the supplier upon
Conditions acceptance of the Borrower of the unit and inspection/validation of
the truck by the PV-CID personnel.
2. Advance payments shall be applied to the next maturing
amortization. Pre-payment fee shall be waived.
3. The Bank shall issue a Bank Guaranty in favor of the supplier in the
amount of P3.87M to facilitate the issuance of Encumbered
Certificate of Registration (ECR) in favor of the Borrower and
annotation of Chattel Mortgage.
4. Cost overruns shall be for the account of the Borrower.
5. The Borrower shall be required to open a Savings Account with an
LBP Branch
6. Loan application fee, commitment fee, and pre-termination fee shall
be waived.
7. The Borrower shall allow LANDBANK to disclose client and
loan/deposit information including his/her name, account number,
amount of loan/deposit to the program partners and Credit Bureaus.
8. The Borrower shall settle its amortization via Over-the-Counter
transaction or through Automatic Debit. The Borrower shall submit a
duly accomplished Authority to Debit form in favor of LANDBANK for
the satisfaction of the loan.
9. The Borrower may avail of subsequent loans subject to repayment
performance and the evaluation.
10. Insurable collateral shall be insured for full-appraised value with an
insurance company accredited by LBP and LBP Insurance
Brokerage, Inc. (LIBI) as the designated insurance broker.
Pre-release Requirements:
 Execution, registration, and annotation of Chattel Mortgage in the
amount of P3.85M.
 Submission of Encumbered Certificate of Registration (ECR) with
mortgage amount of P3.87M in favor of LANDBANK.
 Submission of Official Receipt from the supplier representing the ten
percent (10%) equity of the Borrower amounting to P0.43M.

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IN WITNESS WHEREOF, this Agreement is signed at _______________________, Philippines, on this

_________________________.

LAND BANK OF THE PHILIPPINES LAMBAYONG MNLF MPC

Lender Borrower

By:
IVYJANE D. CORTUNA By: BAYAN U. UKAT ABDULRAHMAN Y.
OIC, SCOLC WALI
Chairman Treasurer
(Signature over printed name) (Signature over printed name)

Signed in the presence of:

RICHIE A. PROSPEROSO GEORGY ANNE A.

GUERRERO
Witness Witness
Signature over printed name Signature over printed name

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ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

_____________________________ ) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction on this of
____________________________________ personally appeared:

Name Competent Evidence of Identity

BAYAN U. UKAT TIN 158-295-792

ABDULRAHMAN Y. WALI TIN 709-010-919

personally known to or identified by me to be the same person/s who executed the foregoing
instruments, and he/she/they acknowledged to me that his/her/their signatures, that the same is
his/her/their own free and voluntary act and deed.

This instrument which consists of eleven_____ [_11] pages, refers to a Loan Agreement
signed by the parties and the instrumental witnesses on each and every page.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on
_________________________, in the above jurisdiction.

Doc. No. _______;

Page No. _______;
Book No. _______;
Series of _______.

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ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

_____________________________ ) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction on this of
____________________________________ personally appeared:

Name Competent Evidence of Identity

IVYJANE D. CORTUNA TIN 929-082-911

personally known to or identified by me to be the same person/s who executed the foregoing
instruments, and he/she/they acknowledged to me that his/her/their signatures, that the same is
his/her/their own free and voluntary act and deed.

This instrument which consists of _eleven____ [_11] pages, refers to a Loan Agreement
signed by the parties and the instrumental witnesses on each and every page.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on
_________________________, in the above jurisdiction.

Doc. No. _______;

Page No. _______;
Book No. _______;
Series of _______.

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