REAL ESTATE MORTGAGE AGREEMENT

KNOWN ALL MEN BY THESE PRESENTS:

This Real Estate Mortgage Agreement executed by and between:

William Sherlock Scott Holmes, British and a Filipino citizen, of legal age, married and with
address at Talisay, Daanbantayan Cebu, Philippines, hereafter called the Debtor/Mortgagor;

-and -

John Hamish Watson, British and a Filipino citizen, of legal age, married, and a resident of
Maya, Daanbantayan Cebu, Phillipines, hereafter called the Creditor/Mortgagee;

Recitals:

WHEREAS, the Mortgagor is the legal owner of certain real property located at
_________________________________________ and desires to obtain a loan from the Mortgagee in
the amount of Four Million Three Hundred Thousand Pesos (P 4,300,000.00), and

WHEREAS, the Mortgagee is willing to extend the loan on the condition that the Mortgagor
grants a mortgage over the Property as security for the repayment of the loan.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein,
the Mortgagor and the Mortgagee hereby agree as follows:

1. The Property. – The Property subject of this contract is a parcel of land, more particularly
described as follows:

Transfer Certificate of Title No. __________________________

Registry of Deeds For ________________ City
[COPY TECHNICAL DESCRIPTION FROM THE TITLE]

together with all the improvements thereon, herein collectively referred to as the Property.

2. Grant of Mortgage:

2.1. The Mortgagor hereby grants, conveys, and mortgages the Property to the
Mortgagee as security for the repayment of the loan.

2.2. The Mortgagee accepts the mortgage and acknowledges the Property as collateral
for the loan.

3. Loan Amount and Terms: The Loan. – Debtor/Mortgagor has obtained a loan from the
Mortgagee in the sum of FOUR MILLION THREE HUNDRED THOUSAND PESOS ( P
4,300,000.00) subject to the terms and conditions hereunder prescribed, to wit:

3.1. The loan shall be payable on or before 16th of December 2028.

3.2. Interest Rate: The loan will bear interest at the rate of [12%] per annum payable
every 16th day of the month corresponding to the month for which interest is due.
 3.3. Loan Term: The loan term shall be _______________________________ [Loan Term in
Months/Years], commencing on _________________________________ [Loan Start Date].

3.4 The amount due by the way of interest payments shall be covered by [number] (____)
postdated checks of P _______________ each and the principal loan of P
_____________________ shall be also covered by a postdated check dated 16 th of
December 2028.

3.5. Failure and\or refusal or the Debtor/Mortgagor to pay two (2) consecutive monthly
interest (or when the checks are dishonored) shall automatically make the principal
loan of P ________________________ due and demandable, together with the unpaid
interest if any.

3.6. Repayment: The Mortgagor agrees to make regular payments of

P_______________________[Monthly Payment Amount] (or as otherwise specified) on the
________________________ [Payment Due Date] of each month.

4. The Mortgage - For and in consideration of the loan stated in paragraph 2 hereof and by
way of a security therefor, the Debtor/Mortgagor hereby constitutes a real estate mortgage on
the Property in favor of Creditor/Mortgagee, under the following terms and conditions:
4.1. The mortgage shall secure the payment of the loan, together with the unpaid
interest, if any.

4.2. In case the maturity of the loan is extended, upon mutual agreement in writing of
the Parties, this mortgage shall be a continuing security for the obligation/s of
the Debtor/Mortgagor to the Creditor/Mortgagee without the necessity of executing a
new contract of real estate mortgage.

4.3. If the Debtor/Mortgagor shall well pay and/or comply with his all and every
obligation under this Deed, then this mortgage shall cease to have any force and effect.
However, if the Debtor/Mortgagor shall fail and/or refuse, for any reason whatsoever, to
fully pay and/or comply with all or any of his said obligations, then
the Creditor/Mortgagee may judicially or extrajudicially, at his option, foreclose the
mortgage on the property in accordance with law.

4.4. In case collection of any amount due under this mortgage agreement is referred to
a lawyer by the Creditor/Mortgagor, the Debtor/Mortgagor is under obligation to pay the
former twenty percent (20%) of the amount due.

5. Insurance and Taxes:

5.1. The Mortgagor shall keep the Property adequately insured against loss or damage and pay
all taxes and assessments levied on the Property.
5.2. The Mortgagee may require proof of insurance coverage and payment of property taxes.

6. Expenses. - Expenses for notarial fees shall be for the account of the Debtor/Mortgagor. All
other expenses for the registration with the appropriate office / the Register of Deeds shall be
for the account of the Creditor/Mortgagee.

7. Default and Remedies:

7.1. The Mortgagor shall be in default if any of the following events occur:

a. Failure to make timely loan payments.

b. Breach of any other material term or condition of this Agreement.

c. Sale or transfer of the Property without the Mortgagee's consent.

7.2. Upon default, the Mortgagee may exercise one or more of the following remedies:

a. Accelerate the loan, making the entire outstanding balance immediately due
and payable.

b. Foreclose on the Property as allowed by law.

c. Take possession of the Property and sell it to recover the outstanding debt.

8. The parties agree that all court actions concerning this Agreement shall be brought before
the proper courts of Quezon city or the city of Makati to the exclusion of any other venue.

9. If anyone or more of the provisions of this Agreement is declared invalid or unenforceable,

in any respect under any applicable law, the validity, legality or enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired.

10. This Real Estate Mortgage is constituted under the following conditions:

10.1. The ACCOMMODATED DEBTOR-MORTGAGOR shall keep the Mortgaged

Property in good condition, he/she shall maintain the integrity, quality and sufficiency
of the Mortgaged Property at a level acceptable to or directed by the CREDITOR-
MORTGAGEE.

10.2. The ACCOMMODATION MORTGAGOR, prior to the transfer of title over the
Mortgaged Property in the name of the ACCOMMODATED DEBTORMORTGAGOR, shall
not subdivide, lease, sell, dispose, mortgage, or encumber the Mortgaged Property
without prior written consent of the CREDITOR-MORTGAGEE nor commit any act
which may impair directly or indirectly, the value of the said Mortgaged Property.
Likewise, the ACCOMMODATED DEBTOR-MORTGAGOR, whether or not the Mortgaged
Property is transferred in its name shall not subdivide, lease, sell, dispose, mortgage, or
encumber the Mortgaged Property without prior written consent of the CREDITOR-
MORTGAGEE nor commit any act which may impair directly or indirectly, the value of
the said Mortgaged Property.
10.3. If the CREDITOR-MORTGAGEE finds that the Mortgaged Property is lost,
impaired or depreciated due to any cause whatsoever, it shall declare the obligation due
and demandable, unless it shall allow the 3 ACCOMMODATED DEBTOR-MORTGAGOR
to substitute the Mortgaged Property with new and/or provide additional collateral.

10.4. Both the ACCOMMODATION MORTGAGOR and ACCOMMODATED DEBTOR-

MORTGAGOR shall allow the CREDITOR-MORTGAGEE to inspect the Mortgaged
Property during reasonable hours to ascertain its condition or actual market value.

10.5. The ACCOMMODATED DEBTOR-MORTGAGOR shall promptly pay all taxes,

assessments levied or assessed upon the same; he shall ensure that the Mortgaged
Property is insured at all times at his expense with the pool of accredited insurance
companies established for the purpose by the SHFC against such risk as may be
determined by and for an amount satisfactory to the CREDITOR-MORTGAGEE and for
the latter’s benefit. Both the MORTGAGORS hereby authorize the CREDITOR-
MORTGAGEE to obtain for the DEBTOR-MORTGAGOR’S account all insurance policies
required under the Community Mortgage Program of the SHFC. Every insurance
policies obtained in connection herewith is hereby assigned to the CREDITOR-
MORTGAGEE, or its assignee notwithstanding DEBTORMORTGAGOR’s failure to
endorse or deliver said policy. Any additional insurance policy acquired by the
MORTGAGORS without proper endorsement in favor of the Mortgagee shall also be
considered assigned to the CREDITOR-MORTGAGEE. In the event of loss or damage to
the Mortgaged Property, the CREDITOR-MORTGAGEE or its assignee shall receive and
apply the proceeds of such policies to reduce or pay the ACCOMMODATED DEBTOR-
MORTGAGOR’s obligations secured hereby or to restore or repair the damage to the
Mortgaged Property whichever the CREDITOR-MORTGAGEE may deem appropriate.

10.6. In case the ACCOMMODATED DEBTOR-MORTGAGOR violates the terms and

conditions of the aforesaid Loan Agreement or if he fails to perform any of the condition
stipulated herein, the CREDITORMORTGAGEE may in addition to whatever legal
remedies it may have by law or agreement, declare the obligations secured by this
mortgage due and payable, and upon failure to receive full payment, the
CREDITORMORTGAGEE may proceed to judicially or extra-judicially foreclose this
mortgage.

10.7. In case of extrajudicial foreclosure under Act 3135, as amended, the auction
shall take place in the city or the province where any of the mortgaged property is
located. Effective upon the breach of any condition of this Mortgage, the
ACCOMMODATION MORTGAGOR and/or ACCOMMODATED DEBTOR-MORTGAGOR
hereby appoints the CREDITOR-MORTGAGEE as their attorney-in-fact of, with full
power of substitution and authority to perform such acts as may be necessary to
dispose of the mortgaged property in accordance with the provision of Act No. 3135 as
amended, and pending such disposition to perform all other acts of administration and
management in the manner most advantageous to and for the best interest of the
CREDITOR-MORTGAGEE. The latter hereby reserves its right to bid at the appropriate
public auction. In case of judicial foreclosure, the ACCOMMODATION MORTGAGOR
and/or ACCOMMODATED DEBTOR-MORTGAGOR hereby consents to the appointment
of CREDITOR-MORTGAGEE or of any of its designated representative as Receiver,
without any bond to take charge of the Mortgaged Property at once and to hold
possession of the same including the rents, 4 benefits and profits derived from the
Mortgaged Property before the sale, less the cost and expenses of receivership. The
proceeds of the foreclosure sale of the Mortgaged Property shall be applied in the
 following manner and order: a. Expenses and costs of foreclosure sale, including costs
of publication and attorney’s fees b. Accrued interests, penalties and charges c.
Principal amount of obligations.

10.8. If it becomes necessary for the CREDITOR-MORTGAGEE to institute any legal

action or proceedings, judicial or extrajudicial, to enforce this mortgage, the
ACCOMMODATED DEBTOR-MORTGAGOR shall pay the CREDITOR-MORTGAGEE as
attorney’s fee a sum equivalent to at least twenty five percent (25%) of the total amount
due plus all expenses of such action or proceedings.

10.9. In case of judicial execution of this obligation or any part of it, the venue for
the foreclosure suit is the Regional Trial Court of Makati or elsewhere at the option of
the CREDITOR-MORTGAGEE.

10.10. Should the Mortgaged Property be expropriated by the Government of the

Philippines or any of its branch, department, division, agency or instrumentality, or by
any province, city or municipality, all moneys paid or which may become due and
payable, or any property given in exchange as a result of such expropriation shall be
immediately delivered to the CREDITOR-MORTGAGEE, the latter shall have the
authority to collect said moneys or receive the property given in exchange for said
expropriation. The proceeds of such expropriation shall be applied by the
CREDITORMORTGAGEE against the outstanding obligations of the ACCOMMODATED
DEBTOR-MORTGAGOR.

10.11. If the mortgage cannot be recorded in the corresponding Register of Deeds,

the obligations secured shall immediately become due, demandable, and payable.

10.12. The ACCOMMODATION MORTGAGOR shall pay the notarial fees, documentary
stamps and other expenses in connection with this mortgage and all other transactions
which may have been or may hereafter be executed in connection herewith, as well as
the fees for the registration of this and other documents related hereto.

10.13. All correspondence of whatever kind, pursuant to or relative to this

Agreement, shall be sent to the ACCOMMODATED DEBTORMORTGAGOR at the
address given above. The mere act of the Mortgagee mailing such correspondence
postage prepaid to said address shall be a valid and effective notice to the
ACCOMMODATED DEBTOR-MORTGAGOR for all legal purposes. In case of latter’s
change of address, the Mortgagee shall be immediately notified in writing.

11. Governing Law:

11.1. This Agreement shall be governed by and construed in accordance with the laws
of The Republic of the Philippines.

11.2. This Mortgage shall be binding upon the parties herein and their successors in –
interest and assigns.

12. Entire Agreement:

12.1. This Mortgage constitutes the entire understanding between the Parties and
supersedes all prior agreements, understandings, and representations.
13. Signatures:

IN WITNESS WHEREOF, the Parties affixed their signatures this 16 th day of October 2023, in
Cebu City, Philippines.

WILLIAM SHERLOCK SCOTT HOLMES JOHN HAMISH WATSON

(MORTGAGOR) (MORTGAGEE)

SIGNED IN THE PRESENCE OF:

MYCROFT HOLMES ROSAMUND MARY MORSTAN

WITNESS WITNESS

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES

_______________________________) SS.

BEFORE ME personally appeared:

PERSONS I.D

WILLIAM SHERLOCK SCOTT HOMES Driver’s License No. _______________

JOHN HAMISH WATSON Driver’s License No. _______________

Presenting their competent evidence of identity, known to me and to me known to be the same
persons who executed the foregoing Real Estate Mortgage Agreement and they acknowledged to
me that same is their knowing, free, and voluntary act and deed.

This document relates to the mortgage of a parcel of land registered under TCT No.
___________ of the Registry of Deeds for _______________ City and consist of SIX (6) pages,
including this page, each of which had been signed by the Parties and their instrumental
witnesses.

WITNESS my signature and notarial seal this 16th day of October 2023.