Sir/ Madam:

Good day!
We would like to propose a Temporary Moratorium on all brand new releases for specified branches
under MMPI Area 06 Davao effective March 01 to May 31, 2017. This is to give ample attention to
resolve delinquent accounts and at the same time focusing all sales efforts on Repossessed Units.

We find this as a seemly option for us to properly address the recurring problem on dubious releases
that can have lasting effects on the quality of collection. Moreover we also hope to focus on the disposal
of repossessed units and alleviate its augmenting inventory especially now that we are making some
adjustments due to the NO OR/CR, NO RELEASE POLICY of the Land Transportation Office. The
proposed stores which will be placed under the said moratorium and will be given individual Repo Sales
Target are the following;

REPO SALES MONTHLY TARGET

BRANCH REPO INV.
INSTALLMENT CASH TOTAL
Riders Adventure Agdao
76 33 12 45
Branch
Motorkee Trading Bajada
51 30 12 42
Branch
Riders Adventure Cabantian
36 21 10 31
Branch
Riders Adventure Ulas
46 31 12 43
Branch
Motorkee Trading Calinan
53 32 12 44
Branch
NOTE: STRAIGHT MONTHLY TRANSACTIONS ONLY FOR INSTALLMENT SALES (with possible advance 1 month amortization)

The objective of this proposal is to stabilize the status of delinquent accounts for the entire area and at
the same time reducing the swelling repo inventory; as such we hope to restore every branch back to its
normal operation in compliance with Company standards. Currently, we have a 48% overall 2016 non-
moving delinquent accounts with a recorded LPD of September 2016 backwards. We are deeply
troubled by the overall status of the whole area and we are determined to recuperate its condition,
doing everything within our disposal so as to make a full recovery on delinquent accounts.

For the duration of aforesaid program all brand new applications will be accommodated by the
remaining stores not covered by the proposed moratorium namely; Riders Adventure Toril, Mintal, and
Matina branches so as not to disregard brand new sales.

Your deliberation to this letter would be greatly appreciated.

Thank you and God Bless!

Sincerely,