UNDERTAKING

This UNDERTAKING is made and executed by and between MARY

LIBERTY P. PRECIA, of legal age, Filipino, widow and a resident of Aguinaldo
Street, Barangay Poblacion Ilaya, Municipality of Calinog, Province of Iloilo,
hereinafter referred to as FIRST PARTY;
-and-
RELIO L. LOPEZ, of legal age, Filipino, married and a resident of
Barangay Tiring, Municipality of Cabatuan, Province of Iloilo, hereinafter
referred to as SECOND PARTY.

WITNESSETH:

WHEREAS, the FIRST PARTY and SECOND PARTY has executed a

MEMORANDUM OF AGREEMENT wherein the both parties put up a capital of
SEVEN HUNDRED THOUSAND PESOS (Php 700,000.00), contributed as
follows:
a. That the FIRST PARTY contributed FOUR HUNDRED THOUSAND
PESOS (Php 400,000.00) (60%);
b. That the SECOND PARTY contributed THREE HUNDRED
THOUSAND PESOS (Php 300,000) (40%);
c. That the FIRST and SECOND PARTY agreed to a 60/40 sharing ratio
respectively;
WHEREAS, the FIRST PARTY and SECOND PARTY subsequently
executed a SUPPLY AGREEMENT wherein the FIRST PARTY agreed to supply
2,000 cu.m. of sand and gravel to the SECOND PARTY;

THAT, due to circumstances after the execution of the MEMORANDUM

OF AGREEMENT and SUPPLY AGREEMENT, the FIRST PARTY and SECOND
PARTY hereby MUTUALLY rescind, revoke and terminate the stated
agreement;

THAT, the FIRST PARTY hereby agree to return THREE HUNDRED

THOUSAND PESOS (Php 300,000.00) contributed by the SECOND PARTY in
the MEMORANDUM OF AGREEMENT;
 THAT, the FIRST PARTY hereby agree to give to the SECOND PARTY
his FORTY PERCENT (40%) share on the sand and gravel hauled from the
commencement of the SUPPLY AGREEMENT to date;

THAT, the SECOND PARTY hereby agree to give to the FIRST PARTY
her SIXTY PERCENT (60%) share on the sand and gravel hauled from the
commencement of the SUPPLY AGREEMENT to date;

THAT, this UNDERTAKING is binding between the parties, their heirs,

successors and assigns.

MARY LIBERTY P. PRECIA ROGELIO L. LOPEZ

FIRST PARTY SECOND PARTY
UMID CRN-0113-0207856-4 TIN: 419-642-161

WITNESSES:

1. ________________________ 2. _________________________