REPUBLIC OF THE PHILIPPINES NATIONAL CAPITAL JUDICIAL REGION METROPOLITAN TRIAL COURT BRANCH EIGHT (8) MANILA

ROSANNA C. ORTIZ Complainant

CIVIL CASE NO. __ FOR: Ejectment

-versus-

ARNOLD O. CAPISTRANO Defendant x-------------------------------------------------x ANSWER

1. That defendant Arnold O. Capistrano, is of legal age, Filipino, residing and with postal address at # 711 Maria Cristina St., Sampaloc, Manila, where he may be served with summons and other processes; 2. That before the Contract of Lease has expired, defendant notified the owner, Rosanna Ortiz, to include the deposit in the amount of Php 50,000 and the useful expenses incurred in repairing the house ceiling and comfort room in the monthly rental; 3. That the owner and the defendant agreed that starting March 2, 2011 the defendant will initiate the repair of the house ceiling and the comfort room for they are already causing inconvenience in their day to day living; 4. That the owner and the tenant agreed that the useful expenses incurred in the repair of the house shall be deducted from the monthly rental; 5. That the owner and the defendant agreed to reconcile all useful expenses incurred in the repair of the house ceiling and the comfort room after such construction; 6. That the owner did not release the Php 50,000 so he can apply such to the monthly rental of the tenant in the succeeding months; 7. That after the construction was made the owner refused to reconcile all the useful expenses incurred and refuse further to deduct them from the monthly rental; 8. That on March 2, 2011, the defendant bought the required construction materials to repair the house ceiling and comfort room; 9. That the owner was duly notified that on April 2, 2011 the repair of the house ceiling and comfort room has already been completed; 10. That the defendant sent the owner copies of the receipts of the expenses incurred for the repair of the house ceiling and the comfort room; 11. That on or before the end of the Contract of Lease the tenant notified the owner to have an offsetting of the useful expenses incurred for the house improvements and the deposit of Php 50,000 which is still in the possession of the owner; 12. That the defendant was willing to pay whatever the amount due is after deducting from the total arrears the amount of useful expenses incurred in the repair; 13. That the owner has not provided the tenant a copy of the total amount of arrears for the rent after deducting the useful expenses incurred and the deposit;

14. That the tenant is just waiting for the owners notification as to the total amount due in excess of all the deductions caused by useful expenses and deposit for the former to make the necessary payment; 15. That the Compromise Agreement did not include the Addendum stating the deduction of the useful expenses of the repair of the house ceiling and the comfort room from the amount due payable by the defendant; 16. That the owner immediately filed an action without reconciling with the defendant the provisions in the Addendum to the Compromise Agreement; 17. That we are attaching in this Answer the affidavit of the tenant discussing in detail before the counsel the sequence of events from the time the 1-year lease contract has ended; 18. That we are also attaching copies of the receipts presented to the owner relating to the repair of the house ceiling and comfort room; 19. That we are attaching the Addendum to the Compromise Agreement stating the provision on the offsetting of the useful expenses incurred in the repair of the house ceiling and the comfort from the total amount of rentals payable by the defendant.

Further Affiant sayeth none. IN WITNESS WHEREOF, I have hereunto affixed my signature this 15th day of February, 2013 in Manila, Philippines.

........................................................................ (Signature of Affiant over Printed Name)

SUBSCRIBED AND SWORN before me this 15 February 2013, by the affiant who exhibited to me his CTC No. 22556688 issued on February 13, 2013 and Philippine Passport with Passport Number U123456 issued at Manila, Philippines

NOTARY KRISTINE B. MANGUBAT Notary Public for the City of Manila PTR no. 5166728; January 9, 2012, Manila City IBP No. 12345; January 9, 2012, Manila City Roll No. 54321; April 12, 2004 MCLE Compliance No. IV-8295617, November 23, 2012

Doc. No. .........: Page No. .........; Book No. .........; Series of 2013

ADDENDUM TO THE COMPROMISE AGREEMENT In addition to the provisions stated in the Compromise Agreement signed by the parties before the Barangay Justice of Barangay 491, Sampaloc Manila last August 9, 2012, the owner shall offset the useful expenses from the total amount of rentals payable by the tenant from March 2, 2011 to present basing the amount thereof from the receipts provided by the herein tenant Arnold O. Capistrano. This Addendum serves as an additional provision to the Compromise Agreement and is hereby entered into by the parties this August 9, 2012 for immediate compliance of both parties.

ROSANNA C. ORTIZ Owner

ARNOLD O. CAPISTRANO Tenant ACKNOWLEDGEMENT Republic of the Philippines) City of Manila) S.S

BEFORE ME, a Notary Public for and in Manila City, Philippines, this 09th day of August, 2012, personally appeared: Name Rosanna C. Ortiz Arnold O. Capistrano CTC Number 12345678 87654321 Date/Place Issued August 8, 2012 / City of Manila July 24, 2012 / City of Manila

known to me and known to be the same persons who executed the foregoing instrument and acknowledged before me that the same is their free and voluntary act and deed. This instrument consisting of one (1) page/s, including the page on which this acknowledgement is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal. WITNESS MY HAND AND SEAL, on the date and place first above written.

NOTARY KRISTINE B. MANGUBAT Notary Public for the City of Manila PTR no. 5166728; January 9, 2012, Manila City IBP No. 12345; January 9, 2012, Manila City Roll No. 54321; April 12, 2004 MCLE Compliance No. IV-8295617, July20, 2012 Doc. No. .........: Page No. .........; Book No. .........; Series of 2013