June 13, 2012 INTERPIPE PLUMBING 74-C N. Ramirez Street Galas, Quezon City Attention : Mr.

Ben Bagsit -------------------Sir: We are pleased to offer for rent the following equipment under the following terms and conditions: One (1) Unit Two (2) Units 175 CFM AIR COMPRESSOR Powered by diesel engine w/batteries. PAVING BREAKERS complete with Blades, Oilers, 50 ft. Air Hose/Breaker.

TERMS AND CONDITIONS: -------------------------------------01. RENTAL RATE PER HOUR (Plus 12%Vat) ......... P260.00 (Additional rental of P2.00/ft./day for air hose in excess of 100 ft.) 02. RENTAL shall be based on a minimum of 8 hours daily. Only actual hours shall be charged in case of machine breakdown. Breaker breakdown shall be deducted at P25.00/hour/breaker. An additional charge of P260.00/hour for work done beyond 8 hours. 03. STANDBY CHARGE of P1,040.00 per day for reasons due to the fault of INTERPIPE PLUMBING with or without the presence of comp. Operator shall be billed to INTERPIPE PLUMBING excluding Sundays, Holidays and inclement weather. 04. INTERPIPE PLUMBING shall provide diesel and oil for equipment daily consumption for its account. 05. AR EQUIPMENT, INC. shall recommend operators for compressor under the control, supervision and account of INERPIPE PLUMBING. Operator for paving breakers shall be provided by INTERPIPE PLUMBING for its account.

Page two (2) ---------------06. AR EQUIPMENT, INC. shall provide personnel for the maintenance of comp. and paving breakers for its account. 07. Delivery of unit and its accessories to project site (Quiapo, Manila) and pull out shall be charged to INERPIPE PLUMBING at the amount of P1,000.00, payable in advance. 08.Upon the request of INTERPIPE PLUMBING to replace paving breakers being delivered, INTERPIPE PLUMBING shall be charge on such delivery depending on the distance of the worksite and except when replacement is due to breakdown. 09.The basis of our billing shall be our Equipment Daily Time Record duly signed by the project in charge. 10. Advance payment equivalent to 56 hours or P14,560.00 is required before comp. and its accessories is delivered to jobsite. Additional payment is required before the initial payment is fully consumed. REFUND of your excess payment can be drawn the day after comp. and paving breakers is returned to AR EQUIPMENT in good condition. 11. Rental shall be paid always in advance. 12. Supervision of rented compressor its accessories and comp. operator shall be under the full control of INTERPIPE PLUMBING, therefore, any accident arising at jobsite shall be for the account of INTERPIPE PLUMBING. SAFEKEEPING of the compressor and paving breakers against loss and damages at jobsite shall be for the account and responsibility of INTERPIPE PLUMBING except for normal wear and tear. In case of loss, INTERPIPE PLUMBING shall be liable to pay the amount of P400,000.00 for the rented compressor and P75,000.00 per unit for the rented paving breakers or secure an insurance to relieve INTERPIPE PLUMBING from its liability INTERPIPE PLUMBING is required to secure insurance. 13.AR EQUIPMENT has the right to terminate the rental in case of any fraud arising from the reporting of time sheets or any violation stipulated in this agreement. 14.Minimum rental is 24 hrs. used or non-used of the compressor and paving breakers.

Very truly yours,

AR EQUIPMENT, INC. HAYDEE B. TANANG For & Behalf RUTH B. CABILING Manager CONFORME:

BEN BAGSIT --------------------------------INTERPIPE PLUMBING Authorized Signature

July 13, 2012

TO: INTERPIPE PLUMBING Attention : Mr. Ben Bagsit As Agree upon, you will pay the salary of compressor operator we have recommended based on a minimum wage law and the industry standard, as follows: 1 first 8 hours ( regular time) P375.00/day Succeding beyond 8 hours.. 46.87/hour Operators salary will be paid daily or weekly directly to them. Please signify your approval by signing the conforme below.

CONFORME:

BEN BAGSIT -------------------------------INTERPIPE PLUMBING Authorized Signature

July 13, 2012

TO: INTERPIPE PLUMBING Attn.: Mr. Ben Bagsit Hereunder is the computation for the deposit and other charges For the rental of compressor and breakers. 56 hours @ P260.00/hourP14,560.00 Plus 12% Vat. CHARGES for the delivery & pull out..P1,000.00 Add: 12% Vat... 120.00 -----------1,747.20 -----------P16,307.20 1,120.00 -------------

T O T A L .. P17,427.20 ========

HAYDEE B. TANANG