LEYTE BANK OF COMMERCE

LBC Bldg.
Salazar St., Tacloban City

LOAN AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Loan Agreement, duly executed this 3rd day of March 2016 at Tacloban City, by and
between:
DEL CASTILLO LOTTERY, INC., a corporation duly organized and existing under Philippine
laws with principal address at 143, Del Castillo Bldg., Burgos St., Tacloban City (hereinafter
referred to as the BORROWER, irrespective of number) ;
-andABRIL GAMING MANAGEMENT CORPORATION, a corporation duly organized and existing
under Philippine laws with principal address at 9F, Tantioco Tower 343, Marasbaras, Tacloban
City (hereinafter referred to as the SURETY);
-andLEYTE BANK OF COMMERCE (LBC), a bank institution duly organized and existing under
Philippine laws, with principal office at Leyte Bank of Commerce Plaza, Zamora St., Tacloban
City (hereinafter referred to as the LENDER).
WITNESSETH: That
WHEREAS, at the request of the BORROWER and the SURETY, the LENDER has
agreed to extend to the BORROWER subject to the terms and conditions hereof of a new media
term loan (the Term Loan), under the terms and conditions hereinafter set forth on the reverse
side or other page hereof;
NOW, THEREFORE, for and in consideration of the foregoing premises and the following
terms and conditions and the other terms and conditions on the reverse side hereof, the
LENDER hereby grants the Loan to the BORROWER and the SURETY.
Section 1. Amount. The Loan which the LENDER has agreed to grant to the BORROWER

shall be in the maximum amount of PESOS: 300 MILLION (PHP300,000,000.00), Philippine

Currency.
Section 2. Purpose. The proceeds of the Loan shall be used by the BORROWER exclusively
for additional investment by the BORROWER in TAN AND TAN CASINO AND GAMES, INC.
Section 3. Loan Release. No release under the Loan shall be made unless all the conditions
required by the LENDER have been complied with by the BORROWER and subject to the
Terms and Conditions of the Loan Agreement and other documents thereof. The proceeds of
the Loan shall be subject to staggered releases and to be made in the following manner:

Credit Savings/Current Account Bo. 000099928282 of DEL CASTILLO LOTTERY, INC. at the
Leyte Bank of Commerce
The LENDER shall not be obliged to release the proceeds of the Loan after the lapse of 360 days from
the date of the approval of the Loan application by the LENDER.
Section 4. Notes. Each loan release, renewal or extension thereof, shall be evidenced by a promissory
note or notes (the Notes) of the BORROWER on the prescribed form of the LENDER.
Section 5. Interest. The Loan shall bear a fixed interest based on prevailing market rate at the time of
initial drawdown, payable monthly.
BORROWER and theSURETY agree that Gross Receipts Tax due on the loan shall be for their account.
The LENDER reserves the right to adjust the interest rate upward or downward should its cost of money
to fund or maintain the Loan increases or decreases, as the case may be, due to subsequently adopted
government economic or monetary policy or due to economic cases beyond the LENDERs control.
Section 6. Maturity. The Loan shall become due and payable, without need for notice, demand,
presentment or any other act or deed, 2 years in equal monthly installments of P12,500,000.00 each
exclusive of interest commencing at the end of the first month from drawdown date.
The amount contracted herein is based on the value of the peso at the time of execution of the Note, and
should there be any sudden decrease in the value thereof, due to extraordinary inflation or deflation, or
any other cause, the value of the peso at the time of the execution of the Note shall be the basis of
payment; for this purpose extraordinary inflation or deflation: takes place when so declared by the Central
Bank or in the event of an increase or decrease in any given year of 50% in the prices of prime
commodities based on the consumer price market index for Tacloban city as announced by the Central
Bank.
Section 8. Security. The Loan, interests, penalties and other charges thereon and the Notes, including
any renewal, extension, amendment or novation thereof, and all advances for taxes, fees, insurance
premiums and expenses made by the LENDER thereon shall be secured by the following security

arrangement:
a. Continuing Surety Agreement of Abril Gaming Management Corporation
b. Real Estate Mortgage over parcels of land with all improvements thereon located along
Salazar St., T Tacloban City within Brgy. 99, Tacloban City covered by TCT Nos.
22332020 and
20202948 issued by the Registry of Deeds for the City of Tacloban under the
name of Del
Castillo Lottery, Inc., and Tax Declaration No. F83884849 under the name
of Del Castillo
Lottery, Inc.
Section 9. Surety. The BORROWER and SURETY are bound to the LENDER in the sum of PESOS:
300 MILLION (PHP300,000,000.00), which shall be paid in installments in the manner provided in Section
6 herein, for the payment of which both jointly and severally bind themselves, their successors, assigns,
and legal representatives, and under the following conditions:
9.1. Duration. This obligation shall run continuously and shall remain in full force and effect until and
unless the bond is terminated and cancelled as provided herein or as otherwise provided by law.
9.2. Condition of Obligation. If BORROWER fully performs its obligation or indemnifies LENDER
against any loss resulting from the breach of any part of the original contract by BORROWER, this
obligation shall be void.
9.3. Notice. No liability shall attach to SURETY hereunder unless upon discovery of any fact or
circumstance indicating a possible claim hereunder, immediate written notice thereof containing all details
then known is given to SURETY at its principal office.
9.4. Termination. Surety may terminate its obligation by giving written notice to LENDER, but such
notice shall not affect any obligation which may have arisen prior to the receipt of such notice by
LENDER.
9.5. Completion of Original Contract: Subrogation. In case of default by principal, surety may assure and
complete or procure completion of the obligations, BORROWER, and SURETY shall be subrogate and
entitled to all the rights and properties of BORROWER arising out of the original contract.
Section 10. Attorneys Fees. If the LENDER shall require the services of counsel to enforce any of its
rights and remedies in and to this Agreement, the Notes, Collaterals, the Surety Agreement and related
documents, the LENDER shall be entitled to recover from the BORROWER as and for attorneys fees, a
sum equal to twenty percent (20%) of the sum sought to be recovered, which, in no case shall be less
than FIVE THOUSAND PESOS (P5,000.00), in addition to costs of suit and all other fees and expenses
incurred by and reimbursable to the LENDER by the BORROWER.
Section 11. Venue. Any legal action or proceeding arising out of or connected with this Agreement, the
Notes, the Collateral and related documents shall be brought in the proper court of Tacloban City.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands on the date and at the
place first above written.

LEYTE BANK OF COMMERCE

(LENDER)

By:
CARINA SYLVIA R. AMADO
Vice-President
(Duly Authorized for the Purpose)

PABLO JOAQUIN R. LIM

Senior Executive Vice-President
(Duly Authorized for the Purpose)

DEL CASTILLO LOTTERY, INC.

(BORROWER)
By:
PAULA SANCHEZ-BARTOLOME
Director
(Duly Authorized for the Purpose)
ABRIL GAMING MANAGEMENT CORPORATION
(SURETY)
By:

RICARDO R. HONTIVEROS
Chairman
(Duly Authorized for the Purpose)

Signed in the Presence of:

________________________
MIGUEL ANTONIO R. BUENA

__________________________
TAN CHU LING

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

TACLOBAN CITY

) S.S.

BEFORE ME, a Notary Public in and for the above jurisdiction, this 4th day of March 2016
personally appeared:

all known to me to be the same persons who execute the foregoing Loan Agreement and
acknowledgment to me that the same is their own free an voluntary act and deed as well as that of the
Corporations herein presented.
WITNESS MY HAND AND NOTARIAL SEAL on the date and at the place first above written.

ATTY. EDUARDO JACINTO R. MOLEHEAD

NOTARY PUBLIC
Valid until 12/31/16
IBP No. 451125, 6/8/15,
TC
PTR No. 778787, 6/8/15, TC
Attorneys Roll No. 351662
MCLE Compliance No. 11-981716
Doc No. 33;
Page No. 8;
Book No. V;
Series of 2016