Judicial Affidavit

REPUBLIC OF THE PHILIPPINES NATIONAL CAPITAL JUDICIAL REGION METROPOLITAN TRIAL COURT BRANCH 65, MAKATI CITY ERNESTO B. UNISA, Plaintiff, Civil Case No. 102142 For: Sum of Money

-versusSPS. MELCHOR OCAMPO and ESPERANZA T. OCAMPO, Defendants. x----------------------------------------------x

JUDICIAL AFFIDAVIT I, ERNESTO B. UNISA, of legal age, Filipino and presently residing at #4661 Cuangco St., Pio del Pilar, Makati City, after having been duly sworn to in accordance with law, hereby states and executes the following as my direct testimony in the afore-captioned case: COUNSEL: Your Honor, we are offering the testimony of ERNESTO B. UNISA to prove that Defendants loaned a principal amount of 25,000 Saudi Riyals and that the same incurred interest from the time the loan was secured; to prove that despite demands for payment, Defendants continuously failed and refused to pay the amount of the loan together with its interests; to prove that as a consequence of Defendants refusal to pay, Plaintiff suffered moral and actual damages; to identify documents, particularly this Judicial Affidavit, promissory note, documents proving the amount of the loan and the parties’ agreement, demand letter and other documents related to this case; and to testify as to other matters relative to the instant case.

1. Q: How do you know Spouses Ocampo, the Defendants in this case? A: Melchor Ocampo used to be my co-worker and friend back when we were both working at the same company at Saudi Arabia, Sir. Esperanza Ocampo is Melchor’s wife. 2. Q: How long have you known Melchor Ocampo? A: Since 1989, Sir. 3. Q: What brought about this collection case against Defendants? A: It started when Melchor loaned a sum of money from me amounting to 25,000 Saudi Riyals. I agreed because I trusted him. He was my friend and he promised to pay me a monthly interest of 8%.

4. Q: When did he loan money from you and for how much? A: There were two instances when he loaned money from me. On January 1, 2004, Melchor Ocampo initially borrowed 20,000 Saudi Riyals from me. The second instance was sometime in 2005 when he borrowed an additional 5,000 Saudi Riyals. 5. Q: What was the arrangement regarding the first loan? A: Melchor offered to pay me an 8% monthly interest on the first loan of 20,000 Saudi Riyals. At that time in 2004, I was still in Saudi Arabia working with Melchor that’s why he paid me 8% interest, or 1,600 Saudi Riyals, every month. 6. Q: What about the arrangement regarding the second loan? A: In 2005, I went home to the Philippines while Melchor remained in Saudi Arabia. I gave him an additional 5,000 Saudi Riyals to be added to the existing loan, which is also subject to the 8% monthly interest. However, since I was already in the Philippines, we had a different arrangement regarding the payment of interest. 7. Q: Before we proceed to the new payment arrangement, how much now is the total amount loaned and the monthly interest? A: Adding the two loans, the total amount of the principal loaned is 25,000 Saudi Riyals. He is supposed to pay me an amount equivalent to 2,000 Saudi Riyals as interest every month until the principal is paid. 8. Q: You mentioned a while ago a different arrangement regarding Melchor’s payment. What was it about? A: I was already back in the Philippines in 2005. We agreed that he would pay the interest in U.S. Dollar currency instead of Saudi Riyals and that he would buy medicine for me for my diabetes. Our arrangement was that he would pay me $500 U.S. Dollars and send my medicine. All in all it is equivalent to 2,000 Saudi Riyals as payment for the 8% monthly interest. 9. Q: Do you have any evidence of the loan agreement, its interest, and payment arrangement, which you just mentioned? A: Yes. Melchor signed a promissory note covering the first loan of 20,000 Saudi Riyals. He also admitted it in a letter-explanation to the barangay dated June 23, 2009, which he also attached to his Answer. 10. Q: What happened next, after Melchor contracted the loan? A: Melchor was able to pay the monthly interest at first, as we agreed. But later on, he stopped paying me anything. 11. Q: When did Melchor first stop paying the interest? A: In July of 2007, if I remember it correctly. 12. Q: Before he defaulted in paying the interest, was there any payment made on the principal amount loaned? A: No, Sir. All payments made by Melchor before he stopped paying me were on the interest. 13. Q: What happened next after Melchor stopped paying the interest? A: I got worried, Sir. I could not sleep and became anxious, more so, because I have not heard from the Ocampos regarding the loan for a considerable time. 14. Q: Did you confront Defendants regarding the non-payment? A: Yes, Sir. I was only able to confront Melchor when he was on vacation in the Philippines sometime in 2008, if I remember correctly. I went to his

house in Las Piñas and demanded that he pay me back the money he loaned from me and the delinquent interests. 15. Q: What did he tell you when you demanded payment? A: He told me that he had no money and that the clients of his business, for which he loaned the money, did not pay him. 16. Q: What was your reaction to this, if any? A: I told him that his business had nothing to do with our agreement and that I was only concerned with getting back my money. I pleaded to him to give back my money because I will use it to buy a jeep so that I could support my medication. 17. Q: What did you feel when Defendant first told you that he could no longer pay you? A: I felt betrayed and hurt because I trusted him with my hard earned money. I trusted him because he was my friend. I also felt depressed and suffered sleepless nights because I did not know if I can still collect the money he borrowed from me. 18. Q: What happened next after he refused to pay you? A: He again went abroad without any advice regarding the payment of the money he loaned from me. 19. Q: What happened next after he went abroad? A: I waited for him to return to the Philippines so that I could try collecting from him again. He again took a vacation in the Philippines sometime in 2009. 20. Q: What did you do when you learned that he was back in the Philippines? A: I again went to him in Las Piñas City sometime in March 2009, if memory serves me right, hoping that I could collect the money he owed me. I demanded payment from Melchor. 21. Q: What did he say this time? A: He still refused to pay me, Sir. 22. Q: What did you do, if any? A: I think it was in March of 2009 when I went to the barangay to complain about his refusal to pay. 23. Q: What happened in the barangay? A: Melchor, his wife and Purita Agunday appeared before the barangay. We agreed to settle the matter instead of going to court. I agreed that I will no longer file a case against them and as settlement of the obligation, I was willing to accept a reduced amount of $4,000 as full payment of all his obligation to me. 24. Q: Do you have any proof of the settlement at the barangay? A: Yes, Sir. We executed a KASUNDUAN SA PAGBABAYAD, which was also attached to the Answer of Defendants. 25. Q: Regarding the agreement in the barangay of $4,000, how much was paid by Defendants? A: They were only able to pay $3,000 in separate instalments, Sir. 26. Q: What happened to the remaining $1,000 as agreed upon in the barangay?

A: They refused to pay the remaining $1,000, even after I sent them personal notes demanding payment of said amount. 27. Q: What did you do when they reneged on your settlement in the barangay? A: I consulted a private lawyer to help me collect the sum owed to me by Defendants. 28. Q: What did you and your former lawyer do, if any? A: My lawyer helped me in preparing demand letters. He made me sign the demand letter, which we sent through registered mail. In the letter, we demanded that Melchor pay me according to our original agreement. 29. Q: You earlier stated that pursuant to the agreement in the barangay, the remaining amount of the debt was only $1,000. Can you explain to this Honorable Court why you are demanding a considerably bigger amount in your demand letters and in your complaint? A: I hired a private lawyer before who helped me in preparing the demand letters and my complaint. He explained to me that when the settlement in the barangay was breached by non-payment, we can enforce the original obligation or agreement. Now since Defendants did not comply with our settlement in the barangay, we opted to enforce and demand the original loan agreement, together with interest, as computed in our demand letter. This was the basis of computation in my complaint. However, since Defendants and I used to be friends and to make it easier for them to pay, I opted further to reduce the amount to be collected, which is indicated in my complaint. 30. Q: According to your computation, how much would be the total obligation under the original loan agreement? A: The computation of the lawyer I previously hired is Php 430,500. But again, I am only enforcing Php 200,000 as principal and around Php 92,000 as interest, as stated in my complaint. 31. Q: What expenses or trouble did you incur as a consequence of this case, if any? A: I previously hired a lawyer and initially paid him Php7,500 to help me prepare my complaint and other documents. I also paid the appropriate filing fees. I also suffered sleepless nights because I was worried that I will never collect my hard earned money, which I loaned to Defendants. I was very anxious and restless. It was very burdensome to demand from the Defendants because I had to commute to their house and to the barangay in Las Piñas from my residence here in Makati. All of my efforts to collect were futile, which left me hopeless and worried.

COUNSEL: We have no further questions for the witness, Your Honor..

IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of September, 2012 at Makati City, Philippines. ERNESTO B. UNISA Affiant

SUBSCRIBED AND SWORN TO before me this 3rd day of September, 2012 at Makati City, Philippines. Affiant exhibited to me his Senior Citizen’s Card No. 1693 issued by the Office for Senior Citizens Affairs, City of Makati.

DAVID JULIAN G. PUZON Public Attorney I Ex-Officio Notary Public (Pursuant to R.A. 9406)

EXPLANATION In the absence of messengerial help, counsel for Defendants was served copy of the foregoing Judicial Affidavit through registered mail with return card and the registry receipt is hereto attached.

DAVID JULIAN G. PUZON

Copy Furnished: MALIT LAW OFFICE NORBERTO R. MALIT, JR. Counsel for the Defendants 2nd Floor, Room 201 Navarro Building, Real St., Pamplona, Las Piñas City

PAO Makati/DJGP