Sample Promissory Note

PROMISSORY NOTE Philippine Peso: ______________________ (₱ __________)

PN No. ____________ Date: _____________

FOR VALUE RECEIVED, the Borrower unconditionally promises to pay (jointly and severally in case of more than one Borrower) to the order of _____________________ (the “Lender”) the principal sum of PHILIPPINE PESOS: _______________________________________ (₱ __________), in the installment amount of PHILIPPINE PESOS: _______________________________________ (₱ __________) for _________ (__) months, due and payable without need of notice or demand every _________ day of each month starting ____________ 2011, provided that a late payment penalty of Three Percent (3%) per month shall be added on each unpaid installment from due date thereof until fully paid. This Note is the promissory note referred to, and is entitled to the benefits provided in, the Disclosure Statement and the Agreement, to which reference is hereby made and which is incorporated herein by reference. Unless otherwise defined in this Note, terms used herein shall have their respective meanings ascribed to them in the Disclosure Statement and the Agreement. The Borrower further promises to pay interest on this Note at the rate, time and manner set forth in the Disclosure Statement and the Agreement. The interest on this Note shall be fixed at __________ Percent (__%) per annum throughout the term of the Loan and shall be payable in arrears computed: [__] every _______day/s [__] monthly [__] quarterly [__] semi-annually [__] annually [__] others If the Borrower fails to pay any principal and/or interest under this Note when due, the Borrower shall, on demand by the Lender, pay a penalty charge at the rate of ____________ Percent (__%) per month, computed from the due date thereof until full payment. In case an Event of Default shall occur, as enumerated in the Agreement, the principal of, and accrued interest on, this Note shall be declared immediately due and payable in the manner and with the effect provided in the Agreement, presentment, demand, protest or notice of any kind being hereby expressly waived. Acceptance by the Lender of any payment after due date shall not constitute an extension of the time of payment nor a modification of the terms of this Note. Failure or delay in exercising any right or power of the Lender shall not operate as a waiver. Rights and remedies may be exercised by the Lender singly or concurrently and shall be cumulative and not exclusive of other rights or remedies provided under this Note or by law. In case this Note is referred to legal counsel for collection, the Borrower agrees to pay attorney’s fees in the sum equivalent to Ten Percent (10%) of the total claim but in no case less than Philippine Peso: One Hundred Thousand (₱ 100,000.00) plus an additional sum equivalent to Ten Percent (10%) of the total sum due as liquidated damages, aside from other necessary/incidental costs and expenses of litigation. In case of extrajudicial demand to enforce any and all provisions of this Note and the Agreement, the Borrower shall be liable to the Lender Two Percent (2%) of the total amount of the claim, reckoned from the date of demand, as and for liquidated damages. All legal action arising from this Note shall be brought solely in the proper courts of Makati City, Metro Manila, Philippines, to the exclusion of all other courts. This Note shall be governed by and construed in accordance with the laws of the Republic of the Philippines. This Note is executed by the Borrower and delivered to the Lender this ______ day of ____________ at _______________, Philippines. ____________________ Lender

____________________ Borrower

Witnesses: ____________________

____________________

ACKNOWLEDGEMENT Republic of the Philippines) ______________________) S.S

BEFORE ME, personally appeared on _________________ at __________________ the following: Name

Evidence of Identity

Date/Place Issued

known to me to be the same persons who executed the foregoing Promissory Note and acknowledged to me that the same is their free and voluntary acts and deeds and that of the corporation/s they represent. This Promissory Note consisting of two (2) pages, including the page on which this acknowledgement is written, has been signed on each and every page thereof by the parties and their witnesses, and sealed with my notarial seal. WITNESS MY HAND AND SEAL, on the date and place first above written.

Notary Public

Doc. No.______; Page No. ______; Book No.______; Series of 2011.