CHATTEL MORTGAGE

Know All Men By These Presents:

That this mortgage is executed this __________________ by the Mortgagor CERVERA TECHNO SERVICES
& INDUSTRIAL SUPPLY, a company engaged in the business of machine shop/s, operating under Philippine
laws, located at Brgy. Lawa, Calamba City, represented by its President/General Manager/Owner,
_______________________________ and herein referred to as the MORTGAGOR,
IN FAVOR OF the Mortgagee ZOË & RST FINANCING CORPORATION, a corporation operating under Philippine
laws, located at PIA-A Business Ctr., P. Guevarra Ave. cor. Taleon St., Santa Cruz, Laguna, represented by its
Manager, ANNIE B. SORNE, and herein referred to as the MORTGAGEE.
WITNESSETH, THAT:
1. The MORTGAGOR hereby conveys and mortgages to the MORTGAGEE, its successors and assigns all of
the following described personal property, situated in Calamba City, Laguna, Philippines, and in the
possession of the MORTGAGOR, to wit:
I]. 1 unit LEI-SHIN BRAND CONVENTIONAL LATHE MACHINE
Lei-Shin Machinery Works Co., Ltd.
Taiwan, Republic of China
Swing over gap 610 mm (24”)
Swing over bed 432 mm (17”)
Swing over cross slide 272 mm (103/4”)
Distance between centers 1,700 mm (67”)
Number of spindle spreads 0.2 to 14 mm pitches
II]. 1 unit “WAKENKIKO” CONVENTIONAL LATHE MACHINE
Osaka, Japan
Swing over gap 26 Inches
Swing over bed 17 Inches
Swing over cross slide 10 Inches
Distance between centers 44 Inches
III]. 1 unit S.A. NEW TA SHING CONVENTIONAL LATHE MACHINE
S.A. New Ta Shing Machine
Taiwan, republic of China
Swing over gap 35” (890mm) maximum
Swing over bed 17” (430mm) maximum
Between centers 30” (760mm) maximum
Provided with three (3) sizes of steady rest and
One (1) follower rest
Can thread metric and English up to 1” pitch
Can thread pipes 6” dia. x 6 meters long
Can machine flanges up to 2.5 meters in dia.
3 hp electric motor
IV]. 1 unit “DANICHI DLG-SH” CONVENTIONAL LATHE MACHINE
Swing over gap 406 mm
Swing over bed 305 mm
Between centers 1448 mm
Over-all length 3048 mm
Spindle speed 12-1120 mm
Spindle motor 10HP 3 phase, 220 V
V]. 1 unit “TAIWAN CG206” CONVENTIONAL LATHE MACHINE
Swing over gap 660 mm
Swing over bed 457 mm
Between centers 1524 mm
Over-all length 2000 mm
Spindle speed 12-600
Spindle motor 5HP 3 phase, 220 V
VI]. 1 unit PRECISION BRAND NEW TURRET MILLING MACHINE
No. 3 “G-Tech/Pro Star Brand”
VII]. 1 unit BRIDGEPORT MILLING MACHINE
Bridgeport Machine Division of
Textron, England
Longitudinal table travel 26” (660mm) maximum
Traverse table travel 12” (250mm) maximum
Total traverse overhang of sliding arm from column 19” (480mm)
Provided with sets of English and Metric collets
1 unit boring head with dial
NOTE : PARTIES MAY ATTACH PICTURES WITH LABELS / COUNTERSIGNED BY THEM.
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2. The mortgage is given as security for the payment by the MORTGAGOR to the MORTGAGEE of that
certain promissory note executed on __________________________ by the MORTGAGOR in favor of the
MORTGAGEE for the sum of ___________________________________________________________________
(PHP_____________________) in which sum the MORTGAGOR acknowledge to be indebted to the
MORTGAGEE, which promissory note herein incorporated by reference and made part hereof, and further as
security for the payment of any total or partial extension, replacement, restructuring or renewal of the said
note.
3. The said sum of ______________________________________________________ (PHP_______________)
represents the principal obligation of the MORTGAGOR to the MORTGAGEE and is payable in the office of the
MORTGAGEE or in the office of the latter’s assignee in case the rights and interests of the MORTGAGEE are
assigned to a third person, under the terms of said promissory note, as follows a). ______________________
___________________________________ (PHP_________________) on or before _______________________
and b). the balance in _______________________ equal successive monthly installments on the _______day
of each and every succeeding month thereafter until the amount is fully paid with corresponding interests.
The interest on the foregoing installments shall be paid on the same date that the installments become
payable and additional interest at the rate of fourteen percent (14%) per annum will be charged on all
amounts, principal and interest, not paid on the date.
4. Should the MORTGAGOR further become indebted to the MORTGAGEE, in additional sums of money
under any concept whatsoever, then such sum shall be added to the principal sum of which the mortgage is
given as security and shall be payable in the manner stipulated in the corresponding invoice or instrument
and shall bear at the rate herein provided and said additional indebtedness shall become part of the sum
herein secured and shall likewise be guaranteed by this mortgage.
5. The MORTGAGOR agrees that the MORTGAGEE, at its sole option and discretion, may at any time, or
from time to time (a). extend or change the time, manner, place or terms of payment of the loan; (b). accept
an additional and/or substitute collaterals, exchange, release or surrender all or any of the security or any
part thereof, by whomsoever offered or executed which is now or may hereafter be held by the MORTGAGEE
in connection with the loan; and (c). settle or compromise with the MORTGAGOR or any other person, firm or
corporation hereon any or all of the loan; and subordinate the payment of the loan, or any part thereof to the
payment of any other debts or claims which may at any time be due or owing to the MORTGAGEE or any
other person or corporation; all in such manner and of such terms as the MORTGAGEE may deem proper
and without notice to or further assent from the MORTGAGOR.
6. In case the MORTGAGOR fails to pay any of the installment/s as an when the same falls due as herein-
above provided, or to pay the interest an/or compounded interest that may be due hereunder or otherwise
violates any of the terms and conditions of this agreement then the MORTGAGEE shall have the right at its
option, to declare the entire amount of all the obligations due an payable, and may, likewise at its option
either cancel the contract or foreclose this mortgage or file an ordinary civil action for collection of said
indebtedness as herein below provided, said MORTGAGOR hereby expressly renounce and waive its right to
the benefits provided under Article 1484 of the new Civil Code of the Philippines or in similar present or
future laws.

7. In case of breach or default by the MORTGAGOR of any condition of this agreement and in the event of
foreclosure of this mortgage, or in the event any action is filed by the MORTGAGEE under this agreement, the
MORTGAGOR expressly agree to the MORTGAGEE an additional sum equivalent to twenty-five percent
(25%)of the amount due and unpaid as attorney’s fees which shall not be less than PhP 100.00 plus the
cost of collection an legal costs and in addition a further sum of ten percent (10%) o said unpaid amount as
liquidated damages which said sums shall be added to the principal sum for which this mortgage is given as
security, and shall become a part thereof and deemed secured by this mortgage.

8. Should the mortgaged properties be lost, destroyed or damaged due to any cause whatsoever, the
MORTGAGEE shall have the right to declare the whole amount of the indebtedness due, demandable and
payable, and may proceed at once as herein provided, either to foreclose this mortgage or file an ordinary
civil action for the collection of the entire indebtedness, including in both cases the interests, penalties,
attorney’s fees and damages, which as aforesaid deemed secured by this mortgage. The MORTGAGEE
however, upon evaluation of the attending circumstances, may grant a reasonable extension of time to the
MORTGAGOR for payment of the amounts secured by this mortgage. The said properties shall be considered
lost, for these intents and purposes, if the MORTGAGOR shall fail to produce the same or any part thereof,
on demand by the MORTGAGEE.
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9. In the event any insolvency proceeding is filed by or against the MORTGAGOR, or in the event any
petition for suspension of payments is instituted by or for said MORTGAGOR, or in the event any attachment
is levied upon the subject properties or any of them or part thereof at the instance of any creditor, claimant
or any party, the MORTGAGEE shall have the right at its option, to declare the herein obligations guaranteed
immediately due and demandable and may thereupon foreclose this mortgage or cancel any principal
and/or related or ancillary contract which may have given rise to this mortgagee such as but not limited to a
sale financed by the MORTGAGEE.

10. At any time after the breach or default in the performance of any condition herein stipulated more
particularly the MORTGAGOR’s failure to pay any installment as above provided or to pay when due any other
obligation which said MORTGAGOR may incur, or upon the occurrence of any of the contingencies provided
for in the preceding paragraphs, the MORTGAGEE may foreclose this mortgage immediately before the
expiration of thirty (30) days from date of default in the payment of two (2) installments as provided for in
Article 1484 of the New Civil Code, the MORTGAGOR by these presents waive an renounce expressly in
advance whatever right it may have to any term, right or privilege granted to it by the Chattel Mortgage Law
(Act 1508) or similar law which may hereinafter enacted.

It is further agreed that in case of the sale at public auction under foreclosure proceeding of the
properties herein mortgaged or any part thereof, the MORTGAGEE shall be entitled to bid or the properties so
sold or for any part / portion thereof and to have the amount of its bid applied to the payment of its
collectibles from the MORTGAGOR.

11. The MORTGAGORMORTGAGOR, for all purposes of this mortgage and in the event of its foreclosure,
hereby fixes its residence address at the place herein-above indicated without regard to the actual or future
other address(es) of said MORTGAGOR or the place that the mortgaged properties will be found. In any case
of default on the part of the MORTGAGOR, it shall upon demand by the MORTGAGEE, deliver said properties
to the MORTGAGEE in the condition at the time of execution of this agreement (ordinary wear and tear
excepted) in the MORTGAGEE’s address above-stated or other address(es) indicated in the demand free of
all charges; an should the MORTGAGOR not deliver the said property(ies) as aforesaid, the MORTGAGEE is
hereby authorized to take possession of the said property wherever it may be found and have the same
brought to its office as given above or in any city or municipality where the MORTGAGEE may have an office
at the option of the MORTGAGEE. The expenses for locating and bringing the said properties as well as any
damage(s) which the properties may suffer thereof (ordinary wear and tear excepted) shall be for the
account of the MORTGAGOR and shall form part of the sum secured by this mortgage. Provided however,
that the MORTGAGEE shall have the have the option of selling the said properties at any place where the
same may be found or in the address(es) or places hereinabove provided.

12. In the event of foreclosure or cancellation of any principal and/or related an/or ancillary contract which
may have given rise to this mortgagee such as but not limited to a sale financed by the MORTGAGEE, the
MORTGAGOR expressly waives any right to be refunded the amount/s which said MORTGAGOR may have
previously paid to the MORTGAGEE. Said amounts shall remain for the exclusive use and benefit of the
MORTGAGEE.

13. The MORTGAGEE shall have the right to institute an ordinary civil action instead of foreclosing the
mortgage properties, at its option, in which event the indebtedness shall be considered; and the
MORTGAGEE shall have further right to execute against other assets of the MORTGAGOR.

14. The MORTGAGOR covenants and agrees that it will cause the properties herein mortgaged to be insured
against loss or damage by accident, theft and fire for a period of one year from date before and every year
hereafter until the mortgage obligation is fully paid. Said insurance shall be procured from an insurance
company or companies acceptable to the MORTGAGEE in an amount not less than the outstanding balance
o the mortgage obligation. The MORTGAGOR shall make the proceeds under such policy or policies payable
to the MORTGAGEE or its assigns as its interest/s may appear or be affected at any point in time an shall
deliver such policy or policies to the MORTGAGEE forthwith. The MORTGAGOR further agrees that in the
event it defaults in the effecting or renewing such insurance and delivering the policies so endorsed to the
MORTGAGEE within five (5) days after execution of this mortgage, or upon the expiry date of the insurance,
the MORTGAGEE may at its option but without any obligation to do so, effect such insurance or obtain such
renewal or the account o the MORTGAGOR; and that any money so disbursed by the MORTGAGEE shall be
added to the principal indebtedness hereby secured, which amount shall become due and payable at the
time for payment of the first installment bearing interest in case of default at the same rate as the principal
indebtedness.
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In case of loss or damage, the MORTGAGOR hereby irrevocably appoints the MORTGAGEE as its
attorney-in-fact with full power and authority to file, follow-up, prosecute, compromise or settle insurance
claims; to sign, execute and deliver the corresponding papers, receipts and documents to the insurance
company as may be necessary to prove the claim and to collect from the latter the insurance proceeds to the
full extent and satisfaction of its interests.

15. The MORTGAGOR shall not have any alteration or conversion made on the mortgaged properties without
the written consent of the MORTGAGEE and notice is hereby given to the whole world that the MORTGAGEE
shall not recognize and will not be responsible for any damage which may arise from the use of the
mortgaged properties. And the MORTGAGOR agrees not to have the mortgage properties or part thereof
covered by any other lien for any other indebtedness whatsoever, except the indebtedness herein secured
and those which may be further agreed upon with herein MORTGAGEE only.

16. The MORTGAGOR furthermore hereby bins itself not to sell, transfer, encumber or otherwise dispose of
the mortgaged properties or any portion thereof nor shall said mortgaged properties be removed or
transported outside and beyond its location herein-above mentioned.

17. The payments herein mentioned, whether or not covered by note/s, are payable in the office of the
MORTGAGEE or its assignee/s in case its interests and rights in this agreement may be assigned to another
party in the future. In case of litigation arising out of this contract, or by virtue of the promissory note
mentioned in paragraph 2 hereof, or by virtue of the transaction(s) which gave rise to this mortgage contract,
it is hereby agreed upon that such action be commenced in the proper court/s in the province of Laguna, or
that of any of the cities and/or municipalities of Metro Manila, or in the place of execution of this contract, at
the sole option of the MORTGAGEE or its assignee in the event the rights under this contract are assigned by
the MORTGAGEE to a third person whomsoever.

18. Any provision of law, present or future, to the contrary notwithstanding, the value of Philippine peso at
the time of execution of this contract (as shown in the index of prices published by the Bangko Sentral ng
Pilipinas) shall be the basis for payment of the amount stipulated herein.

19. If at any time during the effectivity of this mortgage contract there should occur a substantial and/or
drastic inflation of the Philippine currency, the amount to be paid under this mortgage from the date o such
inflation shall be increased in the same proportion as the decrease in value registered at the time of such
adjustment in valuation. A substantial inflation for the purpose of this mortgage shall be understood to exist
if the Official Index of Prices as published or provided by the Department of Trade and Industry (DTI), or the
Bangko Sentral ng Pilipinas (BSP), or the Bureau of Customs (BOC) [whichever is the higher inflation rate]
shows that the purchasing power of the Philippine Peso decreased by at least thirty percent (30%) from its
purchasing power at the time of execution of this contract.

20. The MORTGAGOR hereby waives any benefit which it may be entitled under Article 1252 of the New Civil
Code, and the MORTGAGEE at its option may apply the payments (if any) made by the MORTGAGOR to any of
its obligation to the MORTGAGEE covered by this mortgage.

21. The remedies of the MORTGAGEE under the power hereby conferred upon it shall be and are in addition
and cumulative of such rights of the MORTGAGEE or its assigns under present and future laws of the
Philippines.

22. The costs and expenses of execution, registration or approval by any concerned government office(s) if
necessary for purposes of this mortgage, as well as those incurred for its cancellation thereafter shall be for
the account of the MORTGAGOR. If this mortgage cannot be registered for any reason whatsoever, the
obligation herein secured shall immediately be due and demandable, as if the MORTGAGOR defaulted.

23. Should any of the terms in this contract be declared invalid in a final judgment by a competent court or
quasi-judicial body vested with jurisdiction, the remaining provisions shall continue to have full force an
effect and shall not be affected by any such declaration of invalidity.

24. The MORTGAGEE reserves its right to sell, cede, assign, transfer or turn over to any person or entity
whomsoever its rights and interests in and to this mortgage. The term “MORTGAGEE” includes its assignees
and successors in interest.

EXECUTED at ______________________________ Philippines, this ______ day of ______________20______.

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ZOE & RST INANCING CORPORATION CERVERA TECHNO SERVICES & INDUSTRIAL SUPPLY
MORTGAGEE MORTGAGOR

By - By –

___________________________ ___________________________

Signed In the Presence of:

___________________________ ___________________________

OATH

WE severally swear that the foregoing mortgage is made for the purpose of securing the obligations
specified in the conditions thereof and for no other purpose; and that the same is a just and valid obligation,
not entered for the purpose of fraud.

ZOE & RST INANCING CORPORATION CERVERA TECHNO SERVICES & INDUSTRIAL SUPPLY
MORTGAGEE MORTGAGOR
By - By –

___________________________ ___________________________

Republic of the Philippines )

Mun./City_________________ )
Prov._____________________ )

ACKNOWLEDGEMENT

BEFORE ME, a notary public for and within the _____________________, personally appeared –

Name(s) Comm. Tax Certificate and /or Place and Date Issued
Identification Card / Number

__________________________ ________________________ ________________________

__________________________ ________________________ ________________________
__________________________ ________________________ ________________________
__________________________ ________________________ ________________________

known to me to be the parties in the foregoing CHATTEL MORTGAGE contract, consisting of five (5) pages
including this page where this acknowledgment appears, signed by them in their presence and in the
presence of two (2) witnesses who together with them likewise signed on this page and on each and every
page hereof. And they acknowledged to me that the same is their free and voluntary act and deed as well as
the entity(ies) represented.

WITNESS MY HAND AND NOTARIAL SEAL this __________________ in _____________________.

Doc. No. _____;

Page No._____;
Book No._____;
Series of _____.
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DEED OF ASSIGNMENT
For and in consideration of the sum of ____________________________________________
(PHP_________________) Philippine currency, receipt of which is hereby acknowledged by the ASSIGNOR
doing business under the firm/tradename_____________________________________________________,
with office at _______________________________________________________________________________,
the ASSIGNOR hereby SELLS, CEDES, TRANSFERS and CONVEYS unto the ASSIGNEE ___________________
_________________________________________________________, a corporation organized and operating
under and by virtue of the laws of the Philippines, with principal office at ______________________________
_________________________________________________________, its successors and assigns: (a). all its
title, rights, equities and interests (excluding obligations to buyer/s, client/s and warranties which the
Assignor shall retain), to or arising out of the foregoing contract and the subject properties therein; (b). all
moneys due and collected and/or to be due thereunder; and (c). the properties described therein, including
spare replacements, substitutions, attachments and accessories.

IN WITNESS WHEREFORE, the ASSIGNOR-SELLER signed these presents at ______________________

Philippines, this ______ day of ______________20______.

ZOE & RST INANCING CORPORATION CERVERA TECHNO SERVICES & INDUSTRIAL SUPPLY
ASSIGNEE- MORTGAGEE ASSIGNOR-MORTGAGOR
By - By –

___________________________ ___________________________

Signed In the Presence of:

___________________________ ___________________________

ACKNOWLEDGEMENT

BEFORE ME, a notary public for and within the _____________________, personally appeared –

Name(s) Comm. Tax Certificate and /or Place and Date Issued
Identification Card / Number

__________________________ ________________________ ________________________

__________________________ ________________________ ________________________
__________________________ ________________________ ________________________
__________________________ ________________________ ________________________

known to me to be the parties in the foregoing Deed of Assignment, signed by them in their presence and in
the presence of two (2) witnesses who together with them likewise signed on this page and on each and
every page hereof. And they acknowledged to me that the same is their free and voluntary act and deed as
well as the entity(ies) represented.

WITNESS MY HAND AND NOTARIAL SEAL this __________________ in _____________________.

Doc. No. _____;

Page No._____;
Book No._____;
Series of _____.