RURAL BANK OF LANUZA (SDS), INC.

Single Payment Loan Package Secured by Retirement Benefit for SUDECOR Employees
By virtue of the Memorandum of Agreement entered into by and between SUDECOR & RB LANUZA, INC. a new loan package is made available to SELECTED REGULAR STAFFS who met the following program criteria: 1. An applicant must be a Regular Employee of the Surigao Development Corporation who serves the company for at least 17 (seventeen) years. 2. Applicants are required to submit an official retirement benefit computation issued by the SUDECOR management duly signed by the resident manager. The management helps in identifying the person who really has the attitude of a good borrower;

3. In the event that the applicant doesnt have any savings account with the bank, they are required to deposit the amount equivalent to 2% of the amount of Loan which will be deducted from the proceeds of loan and use the same as the initial deposit to the borrower's new savings account. Opening of an account will serve as an access to credit services of the bank.

4. Applicants are required to group themselves by ten (10) that they could make themselves comaker to each other (Solidarily Liable) to ensure repayment of any ailing account due to termination of any existing borrower as a SUDECOR EMPOYEE for a just cause that deprives the latter of his / her retirement benefit. This will make them an assurer of each others accountabilities; Their accountability will proportionately be computed before being charged to them personally; Their share will be deducted from their monthly income;

5. This type of loan adopts a single payment scheme hence the whole interest together with the service charge must be deducted upon release of loan. 6. For purposes of amassing an amount equivalent to the total required charges for future renewal, a semi-monthly amortization will be required from the borrower to be automatically deducted from the latters payroll as a SUDECOR employee. 7. Penalty of 36% per annum will be charged as soon as the term of loan expire or become due. 8. A maximum amount of loan must not be higher than 50% (fifty percent) of the applicants computed retirement benefit, provided that the semi-monthly amortization which is intended for the payment of charges for its renewal should the borrower opted to, could still be covered with

RURAL BANK OF LANUZA (SDS), INC.

the applicants semi-monthly income. The determination of which shall be the sole prerogative of the Rural Bank of Lanuza, Inc management. 9. The maximum term that the management could grant must not go beyond one (1) year. 10. This type of loan must not be construed as more secured than those with the REAL ESTATE MORTGAGE hence, any existing loan of the borrower secured by Real Estate Mortgage could not be paid off ahead of it. 11. Borrowers must be covered by a group life insurance with the maximum amount of P 50,000. 12. Financial charges are as follows: Interest Rate - 18% per annum. Service Charges / Processing Fee - 4% per cycle. Group insurance premium for P 50,000 as the maximum coverage; -o0o-