Document for THE ESTATE OF xxxxx xxxxxxx xxxxx

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                                ICMAT

SUPERIOR COURT OF CALIFORNIA
COUNTY OF SAN FRANCISCO

Document Scanning Lead Sheet
Jul-16-2009 1:46 pm

Case Number: PES-09-292212
Filing Date: Jul-16-2009 1:41

Juke Box: 001 Image: 02557475
WILL CONTEST

THE ESTATE OF xxxxx xxxxxxx xxxxx

001P02557475

Instructions:
Please place this sheet on top of the document to be scanned.wo Oo WY A HW FF YW N

E}
San Francisco County Suge ie

197 Court
Stephen Gizzi, Esq. [ SBN: 227574 ] JUL 1 6 2009
Kathryn A. Schofield [SBN: 202939]
Gizzi & Reep, LLP mo ORRON, MN GARIGLA Clerk
940 Adams Street, Suite A pL Sa, a
Benicia, CA 94510
(707) 748-0900
(707) 748-0921 facsimile
Attorneys for Contestant
Margaret Schlenker
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF SAN FRANCISCO
Case No. PES 09-292212
IN RE ESTATE OF WILL CONTEST AND GROUNDS
orresd Ca nen S.C] OF OPPOSITION TO PROBATE OF
AR SelneeeR, PURPORTED WILL [PROB. C.

8004(b), 8250 ef se
Deceased. 88 » #1
MARGARET SCHLENKER,

Contestant,

xxxxxxx xxxxx,
Respondent.

Contestant MARGARET SCHLENKER (“CONTESTANT or Ms. Schlenker”) alleges in
this Will Contest and Grounds for Opposition to Probate of Purported Will (“Will Contest”):

1. Decedent EDWARD SCHLENKER (“DECEDENT’) at all relevant times was
domiciled in, San Francisco, California. He died on January 21, 2009 in Phnom Penh, Cambodia,
at age 47.

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2. CONTESTANT is DECEDENT’s only issue and was born of his first marriage on
April 6, 1985, Atall relevant times CONTESTANT has resided in Benicia, California.

3. xxxxxxx xxxxxxxx xxxxx, Respondent (“RESPONDENT” or “Ms. xxxxx”)
married DECEDENT on 2/25/2002 and was legally separated from him on December 25, 2006.
On January 8, 2007, RESPONDENT filed a Petition for Dissolution of Marriage, which was {ater
amended to a Petition for Legal Separation on January 24, 2007. A Separation Agreement was
executed on February 12, 2007, which included a final and complete settlement of all property
rights, claims and obligations between the parties. A judgment of legal separation was entered on
July 30, 2007. RESPONDENT resides in San Francisco, CA.

4, On June 19, 2009 RESPONDENT filed a Petition for Probate of a document dated
October 30, 2005, purporting to be the last will of Decedent; for appointment of Respondent as
Executrix of the will; and for authority to administer the estate under the Independent
Administration of Estates Act. A true and correct copy of that document is attached hereto as
Exhibit A.

5. Ms. Schlenker is the sole beneficiary ofa holographic will dated April 8, 1996. A
true and correct copy of the will is attached hereto as Exhibit B. The original has been lodged with
the court concurrent with the filing of this Will Contest.

6. DECEDENT was bor on June 4, 1961. Until approximately 2004, he was a
successful businessman.

7. DECEDENT married RESPONDENT on February 25, 2002. Shortly thereafter, he
became dependent on and isolated by RESPONDENT. He lost contact and/or was kept from his
longtime friends. Sometime in 2004, he began using his wife’s name as his own - going by
“Edward xxxxxxx xxxxx” (emphasis added) rather than his legal name. Some documents and credit
cards were changed to the adopted name but until his death his passport used his lifelong legal
name: “Edward Albert Schlenker.”

8. The years before DECEDENT’s death are marked by severe mental decline,
irrationality and increasing reclusiveness. He was diagnosed with bi-polar disorder. Among other

potent medications, he was prescribed depakote, a mind-altering drug known to bring on severe

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behavioral and mental side effects. At one point, the RESPONDENT was so concermed regarding
the DECEDENT’s mental state that she sent a broadcast e-mail to all of his friends informing them
of his serious mental illness and of her concern for her personal safety,

9. DECEDENT began traveling the world extensively in 2004. While he was in India,
Ms. Schlenker is informed and believes DECEDENT attempted to execute a statutory form will, of
unknown origin, on October 30, 2005. That purported will was allegedly witnessed by two men;
one of whom speaks virtually no English. DECEDENT informed the second that through the form
will DECEDENT intended to leave everything to Ms. Schlenker, NOT RESPONDENT. Neither
witness actually saw DECEDENT sign the purported will. The purported statutory form will
lodged by RESPONDENT, presumably the one executed by DECEDENT on October 30, 2005, is
not consistent with DECEDENT’s stated intent to the witness that his entire estate was to be
devised to his daughter Ms. Schlenker.

10. Just over a year after the purported statutory form will was executed,
RESPONDENT filed for divorce on January 8, 2007, citing the date of separation as Christmas day
December 25, 2006. She filed an amended petition for legal separation on January 24, 2007. She
then had her attomey draft a Marital Settlement Agreement (“MSA”), which DECEDENT signed
on February 12, 2007. Notably, the DECEDENT was unrepresented by counsel during the
preparation and execution of the MSA.

11. Ms. Schlenker is informed and believes that at the time the MSA was signed
DECEDENT was acutely suffering from his severe mental condition. Ms. Schlenker is informed
and believes that because of DECEDENT’s mental state and lack of representation he did not
understand the legal meaning of the MSA or the petition for legal separation. The MSA is silent as
to the disposition of property upon the death of either the DECEDENT or RESPONDENT. The
Judgment for Legal Separation was entered on July 30, 2007. The Judgment and MSA is attached
hereto as Exhibit C. DECEDENT was residing in Cambodia at the time. It is unknown if he ever
received a copy of the final Judgment.

12, Just two weeks before his death on January 21, 2009, DECEDENT sent

RESPONDENT an email from Cambodia stating that he believed she “stole” approximately

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$500,000 from him at a time when he was “. » essentially committed to an intensive inpatient
program based, according to (hospital) records on YOUR. (RESPONDENT’S) input...”
DECEDENT’s reference was to the timeframe when the MSA was prepared and signed.
DECEDENT went on to say that he had contacted legal counsel to challenge the terms.

13. RESPONDENT filed a Spousal Property Petition on 3/23/09, requesting that all of
DECEDENT’s property be left to her. She lodged the form will as part of her Petition. However,
her Petition failed to notify the court that she was legally separated and that she was therefore not a
spouse for the purposes of the spousal property petition.' Ms. Schlenker objected to the spousal
Property petition, and RESPONDENT subsequently petitioned for probate.

WILL CONTEST AND GROUNDS FOR OPPOSITION TO PROBATE

14. Paragraphs 1-13 are incorporated by reference.

15. As DECEDENT’s sole issue, Ms. Schlenker is interested in the estate of the
DECEDENT and entitled to contest admission of the purported will to probate.

16. The purported will lodged with this Court by RESPONDENT is invalid, as more
fully described below.

17. Ms. Schlenker has lodged with the court a prior will executed by DECEDENT in
1996; a true and correct copy of that willis attached hereto as Exhibit B. Ms. Schlenker is not
aware of any other will executed by DECEDENT.

18. Ms. Schlenker is not aware of any other person known to be interested in the estate
of DECEDENT.

19. At the time of the alleged execution of the purported will, DECEDENT was not of
sound and disposing mind.

20. CONTESTANT is informed and believes and on such information and belief, alleges
that the purported will of DECEDENT is not and never was the DECEDENT’s will and was made
at the time of its alleged execution as a result of the undue influence of RESPONDENT in that:
RESPONDENT had cultivated a confidential relationship with DECEDENT, especially in the

weeks leading up to the execution of the purported will when DECEDENT was infirmed.

'CA Prob. Code 78(d).

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CONTESTANT also is informed and believes and on such information and belief alleges that the
will was not properly attested to in that, at a minimum, the purported witnesses did not see
DECEDENT sign the will.

21, DECEDENT did not fully understand the nature of his actions at the time the
purported will was allegedly executed. DECEDENT did not understand that despite his stated
intent on or about October 30, 2005 to devise his entire estate to his daughter Ms. Schlenker, that
the purported will allegedly executed on that date did not conform to that intention.

22, _ Even if DECEDENT eventually understood that the purported will stated that his
entire estate was to be devised to RESPONDENT rather than Ms, Schlenker as intended,
DECEDENT lacked the capacity at the time he signed the MSA to understand (1) that he was only
legally separated and not divorced; (2) that the MSA did not serve to terminate the purported
devise of his entire estate to RESPONDENT in that purported will and (3) that an affirmative
action was required to revoke RESPONDENT ’s purported inheritance rights,

23. Probate of the purported will should be denied on the following grounds:

FIRST GROUND

The document was made as a direct result of the undue influence exercised by
RESPONDENT over DECEDENT and is not, and never was, the true last will of the DECEDENT,
nor was it representative of the DECEDENT’s true intent. CONTESTANT on information and
belief alleges that the undue influence consisted of the following:

a. RESPONDENT occupied a position of trust and confidence and as advisor to the

DECEDENT for several years, particularly while he was hospitalized for his mental

and physical illness, before and up to the time of DECEDENT’s death there was a

confidential relationship between RESPONDENT and DECEDENT; and

DECEDENT reposed trust and confidence in RESPONDENT.

b. During this period, by reason of such relationship and the trust and confidence so
reposed in RESPONDENT, RESPONDENT was able to and did control and
influence the mind and actions of the DECEDENT to such an extent that

DECEDENT did whatever RESPONDENT instructed him to do.

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c. Taking advantage of this trust and confidence, RESPONDENT caused DECEDENT
to execute the Document RESPONDENT asserts is the purported will of
DECEDENT.

d. The Document is not the free and voluntary act of the DECEDENT, but represents
the cumulative effect procured by the undue influence of the RESPONDENT.

SECOND GROUND
On the date of the alleged execution of the document, DECEDENT lacked testamentary
capacity. Asa result of DECEDENT’s incapacity:
THIRD GROUND FOR WILL CONTEST
The document was not executed by DECEDENT and attested in the manner and form

required by law for the execution of a will.

24. The names and residences of the heirs of DECEDENT, so far as are reasonably
ascertainable by the CONTESTANT are:

MARGARET SCHLENKER
173 E. Seaview
eee Benicia, CA 94510-2153

WHEREFORE, Plaintiff prays as follows:

1 That the purported will be denied probate;

2. That the will proffered by CONTESTANT be admitted to probate;
3. That CONTESTANT be awarded costs of suit; and
4

For such other and further relief as the Court deems just and proper.
Mt

Mt

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WILLCONTEST AND OPPOSITION TO PROBATE 6

CASE NO. PES 09-292212oO ON DN F YN

N NN N NY Dm me ee mo a sa is

Dated: July /S, 2009

LAW OFFICES OF GIZZI & REEP, LLP
940 Adams Street, Suite A.

Benicia, CA 94510

(707) 748-0900

(707) 748-0921

WILLCONTEST AND OPPOSITION TO PROBATE,
CASE NO. PES 09-292212ovo oY DA UW FF YW HH &

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VERIFICATION
I, MARGARET SCHLENKER, am the Contestant in the above-entitled action. I
have read the foregoing Will Contest and Grounds of Opposition to Probate of Purported
Will and know the contents thereof. The same is true of my own knowledge, except as to
those matters that are therein stated on information and belief, and concerning those matters,

I believe it to be true.

I declare under penalty of perjury under the laws of the State of California that the

foregoing is true and correct.

WMi/ 4009

. Date g Margaret Schlenker

a SSSSeSFSSSSSSSFeeeseeeeeeeSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSseeeee
WILLCONTEST AND OPPOSITION TO PROBATE 8
CASE NO. PES 09-292212EXHIBIT A fC €

California Statutory Will
INSTRUCTIONS
1, READ THE WILL. Read the whole Will first. If you do not understand something, ask a lawyer to

explain it to you.

2. KILI. IN THE BLANKS. Fill in the blanks. Follow the instructions in the form carefully Do noradd any
words ta the Will (except for filling in blanks) or cross out any words.

3. DATE AND SIGN THE WILL AND HAVE TWO WTINESSES SIGN IT. Date and sign the Will and
have two witnesses sign it, You and the witnesses shoule read and foUlaw the Notice to Witnesees found at
the end of dus Wil

CanoV\ CALIFORNIA STATUTORY WILL OF
Adqet foeces £ fozrasel, xxxxx Mhect SchleonkeaPrine Your Full Name)

1. WL This is my Wl. T revoke all prior Wills and codicils.
2. Speerfie Gift of Personal Residence (Optional-use only if rou want to give your personal residence toa

different Person or persons than vou give the balance of your assets to under paragraph 5 below). { give my
interest in my principal personal residence at the time of my death (subject to mortgages and liens) as
follows:

(Select one choice only and sign in the box after your choice).

~,
(° : _Pibwice One: i : All to my spouse, if my spouse survives me; otherwise to my descendants (my children and
(“the Fic One of my children) who survive me.

ae

BD Choice Two: Nothing to my spouse; all to my descendants (my cl:iddren and the descendants of my
children) who survive me.

[_ ———

3D Choice Three: Ml to the following person if he or she survives me: {Insert the name of the person):

8—0ae_#swsw?009—=@—@S$=S0N9WTyoOS eee

2 Choice Four Equally among the following persons who survive me: (Insert the names of nwo er more
personsy:on

C Cc"

3. Specific Gift of Auromobiles, Household and Personal Effects (Optional-use only 1f you want to give
automobiles and household and personal effects toa different person or persons than you give the balance
of your assets to under paragraph 5 below). I give all of my auromobiles (subject to loans), furniture,
furnishings, household stems, clothing, jewelry, and other tangible articles of a personal nature at the ime of
my death as follows:

(Select one choice only and sign in the box after your choice).

Choice One: All to my spouse, if my spouse survives me; othenvise to my descendants (my children and
the descendants of my children) who survive me.

Q Choice Two: Nothing to my spouse; all to my descendants (my children and the descendants of my
children) who survive me.

(ed

2 Choice Three: All to the following person if he or she survives me: (Insert the name of the person):

(_

OQ Choice Four: Equally among the following persons who survive me: (Insert the names of two or more
persons):

(ee

4. Specific Gifts of Cash. (Optional) I make the following cash gifts to the persons named below who
survive me, or to the named charity, and I sign my name in the box after each gift. If don't sign in the box,
I do nar make a gift. (Sign in the box after each gift you make.)

Name of Person or Charity to receive gift (name one only — please print)
Amount of Cash Gift:

[| —

jap nanwe on this bev ta cake tur gift

Name of Person or Chany to recewve gift (name one only — please print)
Amount of Cash Gift:C Cc
oo

Sign your name in this box to make this gift

Name of Person or Chanty to receive gift (name one only - please print)
Amount of Cash Gift:

nn

Sign your nane v1 this bos to make this gift

Name of Person or Charity to receive gift (name one only — please print)
Amount of Cash Gift:

—__

Sign your name in this box to make this gift

Name of Person or Charity to receive gift (name one only — please print)
Amount of Cash Gift:

(ed

Sign your namie in this box to mnake this gilt

5. Balance of My Assets. Except for the specific gifts made in paragraphs 2, 3 and 4 above, I give the balance
of my assets as follows:

(Select one choice only and sign in the box after your choice. If] sign in more than one box of if [don't sign
in any box, the court will distribute my assets as if I did not make a Wil).

(0 Choice One: All to my spouse, if my spouse survives me; otherwise to my descendants (my childsen and
the descendants of my children) who survive me.

v

Q ice Two: Nothing to my spouse; all to my descendants (my children and the descendants of mr
children) who survive me.

po me ee ee —— ——_—_,

Q Choice Three: AU to the following person if he or she survives me: (Insert the name of the person):C Cc"

2 Choice Four: Equally among the following persons who survive me: (Insert the names of nvo or more
persons):

————————

6. Guardian of the Child's Person. If] have a child under zge 18 and the child does not have a living parent
at my death, I nominate the individual named below as First Choice as guardian of the person of such child

(to raise the child). If the First Choice does not serve, then I nominate the Second Choice, and then the
Third Choice to serve. Only an individual (not a bank or trust company) may serve.

Name of First Choice for Guardian of the Person

Name of Second Choice for Guardian of the Person

Name of Third Choice for Guardian of the Person

7. Special Provision for Property of Persons Under Age 25. (Opsional-Unless you use this paragraph, assets
that go to 2 child or other person who is under age 18 may be given to the parent of the person, or to the
Guardian named in paragraph 6 above as guardian of the person until age 18, and the court will require a
bond; and assets that go to a child or other person who is age 18 or older will he given outright to the person.
‘ing this pa ragraph you may provide that a custodian will hold the assets for the person until the person
reaches any age between 38 sind you chro: a beneficiary of tlds NTs be-veen age 18 aed 25

T nominate the individual or bank or trust company named below as First Choice 2s custodian of the
property. Ifthe First Choice does not serve, then I nominate the Second Choice, and then the Third Choice,
to serve.

Name of Second Choice for Custodian of Assets
Name of Second Choice for Custodian of Assets
Name of Third Choice for Custodian of Assets

Insere any age between 18 and 25 as the age for the person to receive the property: (If you do not choose an
age, age 18 will apply.)

8. | nomunate the mdividual or bank or trust company named below as Furst Choice as executor If the First
Choice does not serve, then | nomunate the Second Choice, and then the Third Chorce, to serve.

a 7"
Name of farst (howe for Executor LOVES [ Z. GK thor _ _.
Namv of Second Choice for Executor Margate? 4 - Se Alen heer

Name of Third Choice for ExecutorC _ €

9. Bond. My signature in this box means a bond is not sae for any person named as executor. A bond

may be required if 1 do not sign in this box:

No bond shall be required. LE faa Cine
(Notice: You must sign this Will in be presence of rvo (2) adult witnesses. The witnesses must sign their
names in your presence and in each other's presence. You must first read to them the following nvo

sentences.)

Thus ts my Will | ask the persons who sign below to be my witnesses.

signed on 30, ek oo x _Rishukeshs tach eastern

(dare) é (curv)
Signature of Maker of Will

Wi : Two (2) adults must sign as witnesses. Each witness must read the following clause
before signing. The witnesses should not receive assets under this Will)

Lach of us declares under penalty of perjury under the laws of the State of California that the following is
true and correct:

a. On the date written below the maker of this Will declared to us that this instrument was the
maker's X'lll and requested us to act as witnesses to it;

b. We understand this is the maker's Will,
c. The meker signed this Will in our presence, all pf us being present at the same time;

d. We now, at the maker's request, and in the maker's and each other's presence, sign below as
witnesses;

e. We believe the maker is of sound mind and memory;

£. We believe that this Will was not procured by duress, menace, fraud or undue influence;

g: The maker is age 18 or older, and

h. Each of us is now age 18 or older, is a competent witness, and resides at the address set forth
after his or her name.

Dated: 22 feof2eos

Signature nen k an Y} a Nat iv CG dane of witness: SAG OAS 425K A Gq +H le
Pontnamehere AN ARID) HANS ARI

fee ae ‘ ¢ SPY ~ aM Ti4u uy
’ ~aN Vy . fo
nary c NA LOUR, TSO rhw ay

Reswtence \ddre:

a 1‘
Lara Aberles iE rel

Porn Gashucan: cngie
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AT LEAST TWO WITNESSES MUST SIGN
NOTARIZATION ALONE IS NOT SUFFICIENTEXHIBIT RB

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oF f Ae ie =eYyYuUIniT & f_ATTORNEY OR PARTY WITHOUT ATTORNEY (Nome, Sif” “number, and adcress): C
Dolores Chong 173635

The Chong Law Group

180 Montgomery Street, Ste. 940

San Francisco, CA 94104

rerepHoneno: (415) 986-1338 Faxnosoponay: 415 986-1231

E-MAIL ADDRESS {Optionai):

ATTORNEYFOR(Neme: Petitioner

SUPERIOR COURT OF CALIFORNIA, COUNTYOF van francisco
srreetaporess: 400 McAllister Street
MARING ADDRESS:

envanozecove:San Francisco, CA 94102

i

San Franciseg County Sj perlor Court

PETITIONER:xxxxxxx xxxxx

RESPONDENT:-xxxxx xxxxx
JUDGMENT
() pissotution {Q} LEGAL SEPARATION () NULLITY
C) Status only :
_— Reserving Jurisdiction over termination of
marital or domestic partnership status
“3 Judgment on reserved issues
Date maritat or domestic partnership status ends:

1. (2) This judgment [C) contains personal conduct restraining orders (CL) modifies existing restraining orders.

CASE NUMBER:

FDI-07-763409

The restraining orders are contained on page(s) of the attachment. They expire on (date):
2. This proceeding was heard as follows: [K] Defautt or uncontested am By declaration under Family Code section 2336
C) Contested

a. Date: JUL 23 2007 ob: Yoh Room: to
b. Judicial officer (name): Mojoné cht (XK) Temporary judge
c. C2) Petitioner present in court CC) Attorney present in court (name} :

d. [2] Respondent present In court (C) Attomey present In court (name):
e. (_] Claimant present in court (name) : oO Attomey present in court (name):
f. (2) Other (specify name):
3. The court acquired jurisdiction of the respondent on(date):01/12/07 L— Thy,
a. [X] The respondent was served with process. Jt My
b. (LJ The respondent appeared. L 3 ly "7

THE COURT ORDERS, GOOD CAUSE APPEARING
4. a. {2} Judgment of dissolution is entered. Marital or domestic partnership status is terminated and the parties are restored to the
status of single persons
(1) C2 on (specify date:
(2) LL] ona date to be determined on noticed motion of either party or on stipulation.
b. CX} Judgment of legal separation Is entered.
¢. (} Judgment of nuttity is entered. The parties are declared to be single persons on the ground of (specify):

@. {() This judgment will be entered nunc pro tunc as of (date):

e.” Judgment on reserved Issues.

f. The [(C) petitioners [2] respondent's former name is restored (specify):

g. CC) Jurisdiction is reserved over all other issues, and all present orders remain in effect except as provided below.

h. (C} This judgment contains provisions for child support or family support. Each party must complete and file with the court a
Child Support Case Registry Form (form FL-191) within 10 days of the date of this judgment. The parents must notify the
court of any change in the information submitted within 10 days of the change, by filing an updated form. The Nofice
of Rights and Responsibilities-Health Care Costs and Reimbursement Procedures and Information Sheet on Changing a
Child Support Order (form FL-192) fs attached.

Form Adopted for Mandatory Use . JUDGMENT
FL-160 (Rev. January 1, 2007) 2 ‘Mastin Dre (Family Law)
: Essent FORMS xxxxxxx CanonSE NAME (Lastname, first name of, party): ‘SE NUMBER:

~DI-07-763409

4. (Cont'd)
i. (QD A settlement agreement between the parties is attached.
j. () Awnitten stipulation for judgment between the parties is attached.
k. [CJ The children of this marriage or domestic partnership.
(1) OQ The children of this marriage or domestic partnership are:
Name Birthdate

(2) (C] Parentage is established for chitdren of this relationship bom prior to the marriage or domestic partnership.
t. CCD Child custody and visitation are ordered as set forth in the attached

(1) CY settlement agreement, stipulation for judgment, or other written agreement.

(2) CQ Child Custody and Visitation Order Attachment: (form FL-341).

(3) () Stiputation and Order for Custody and/or Visitation of Children (form FL-355).

(4) J other (specify):

m[] Child support is ordered as set forth in the attached
(1) (2) settlement agreement, stipulation for Judgment, or other written agreement.
(2) (2) Child Support information and Order Attachment (form Ft-342).
(3) (.] Stipulation to Establish or Modify Child Support and Order (form FL-350).
{4) LL] other (specify):

n. [X] Spousal or partner support is ordered as set forth in the attached
(1) CX) settlement agreement, Stipulation for judgment, or other written agreement.
(2) CY Spousal, Partner, or Family Support Order Attachment(form FL-343).
(3) CY other (specify):

NOTICE: It Is the goal of this state that each party will make reasonable good faith efforts to become self-

supporting as provided for in Family Code section 4320. The failure to make reasonable good faith efforts may

be one of the factors considered by the court as a basis for modifying or terminating spousal or partner support.
0. [X} Property division is ordered as set forth in the attached :

(1) {3} settlement agreement, stipulation for judgment, or other written agreement,

(2) CL] Property Order Attachment to Judgment (form FL-345).

(3y CY other (specify): -

p. J Other (specify):
Each attachment to this judgment is Incorporated into this judgment, and the parties are ordered to comply with each attachment's
provisions. ost mo
Jurisdiction Is reserved to make other orders necessary to carry out this ju NA . , .
Date: JUL 2 3 2007 6 le 1,
C4

5. Number of pages attached: 2 t

NOTICE
Dissolution or legal separation may automatically cancel the rights of a spouse or domestic partner under the other spouse's or
domestic partner's will, trust, retirement plan, power of attomey, pay-on-death bank account, transfer-on-death vehicle registration,
survivorship rights to any property owned in joint tenancy, and any other similar thing. it does not automatically cancel the rights of a
‘spouse or domestic partner as beneficiary of the other spouse's or domestic partner's life insurance Policy. You should review these
matters, as well as any credit cards, other credit accounts, insurance policies, retirement plans, and credit reports, to determine
whether they should be changed or whether you should take any other actions.
A debt or obligation may be assigned to one party as part of the dissolution of Property and debts, but if that party does not pay the
debt or obligation, the creditor may be able to collect from the other party,
An eamings assignment may be issued without additional proof if child, family, partner, or spousal support is ordered.
Any party required to pay support must pay interest on overdue amounts at the "legal! rate," which Is currently 10 percent,

JUDGMENT Page tor?
(Family Law) xxxxxxx CanonC C

LEGAL SEPARATION AGREEMENT AND
SETTLEMENT OF COMMUNITY PROPERTY

THIS AGREEMENT is made and entered into, by and between xxxxx xxxxx, aka
xxxxx A. Schlenker (hereafter referred to as “Husband”) and xxxxxxx xxxxx (hereafter
referred to as “Wife”), both referred to collectively as “the parties,” and are based upon the
following facts, which the parties agree to be true:

A. DATE OF MARRIAGE. The parties were married on February 25, 2002, and ever since
then have been and were husband and wife.

B. DATE OF SEPARATION. The date of separation of the parties was December 25, 2006.

Cc. IRRECONCILABLE DIFFERENCES. Ireconcilable differences have led to the
irremediable breakdown of the marriage, and there is no possibility of saving the marriage
through counseling or other means.

D. PURPOSES OF AGREEMENT. Except as otherwise provided in this agreement, the
purpose is to make a final and complete settlement of all rights and obligations between the
parties, including all property rights and property claims and all rights and obligations, including
spousal support. This Agreement is intended to be effective upon signing by the parties, and
each party understands that neither may remarry until their marriage is dissolved. The parties
agree that no dissolution is contemplated at this time, but nothing in this $ agreement will prevent
either party from obtaining dissolution of marriage at any time.

E. MINOR CHILDREN OF THE MARRIAGE. There are no minor children of this
relationship. Wife is not now pregnant.

F. LEGAL PROCEEDINGS. A petition for dissolution of the marriage of the parties was
filed on January 8, 2007, in the Superior Court of California, County of San Francisco, Case
Number FDI-07-763409. Parties agree that they will proceed by Legal Separation, and Wife
filed an Amended Petition for Legal Separation on January 24, 2007, and that action is currently
pending.

G. _. HEALTH OF PARTIES. The parties are presently in good health, and neither has any
known illness, disability or physical condition which renders either incapable of immediate
gainful employment or makes either subject to extraordinary medical or dental expenditures in
the near future.

Therefore, for good and valuable consideration, including, without limitation, the mutual
promises, conditions and agreements set forth herein, the parties agree as follows:

1. EFFECTIVE DATE: This Agreement shall be and become effective as of the date of
its execution.C C

2. DIVISION OF COMMUNITY ASSETS AND DEBTS: The parties have settled the
community property assets and debts between them.

Family Business. With regard to GetLocalNews.com which is incorporated, the
parties agree to split the shares so that each will own 50% of the shares. The profits
(gross revenue less operating expenses) generated by the company will be distributed as
follows: 25% retained earnings, i.e, 25% of profit will be retained in the business to build
operating capital, and 37.5% to each party to be paid quarterly. The parties will also
share equally the Net Operating Loss of the business, both pre-existing and carried
forward. The parties will cooperate to execute all documents and instruments to take all
actions necessary and appropriate to effectuate the intent of this Agreement, including but
not limited to, executing any corporate resolution(s).

Household items and vehicles. Wife will keep all household items listed in her
Schedule of Assets and Debts, except for the four (4) Larry Morace paintings. Wife will
also retain the 1986 Honda Scooter and 2001 Volkswagon Passat. Husband will retain
the Yamaha Riva Scooter. Wife will pay an equalization payment of $10,000.00 to
Husband as follows: $5,000.00 no later than January 1, 2008 and $5,000.00 no later than
July 1, 2008. Parties agree that such payment shall be interest-free. Each party will
cooperate with the other to timely sign whatever documents to effectuate the ownership
interests as enumerated herein. Items in the Hyde Street storage unit will be sold and/or
otherwise disposed, and the parties will share equally in the proceeds.

Community financial accounts. Community financial assets, including
securities, checking and savings accounts, and cash will be retained by Wife. There will
be no equalizing payment by either party because each party acknowledges that the
community financial assets are equal or almost equal to the community debt, which Wife
will assume responsibility and ownership. The parties agree that all cash and securities
belonging to Eden Muldoon, minor of Wife, will remain her sole and separate property
and the parties acknowledge that her assets are not assets of the community.

Debts. All community credit card debts as listed in Wife’s Schedule of Assets
and Debts will be the sole responsibility of Wife. There will be no equalizing payment by
either party because each party acknowledges that the community debts are equal or

~ almost equal to community assets, which Wife assumes ownership.

Family Home. The family home consists of two (2) units located on 2735 Clay
Street, #7 and #8 , San Francisco (the “family home”), which Husband purchased prior to
marriage, and he refinanced the property during marriage. The parties agree that the
community assumed the mortgage debt at the refinancing, and community assets were
used to pay down the mortgage. The units are part of a building located at 2735 Clay
Street (the “building”), wherein there are other units owned by others, referred to as Co-
Tenants. The First Amended Tenancy in Common Agreement for 2735 Clay Street (the
“TIC Agreement”) governs the actions of all the Co-Tenants, including, but not limitedC. C

to, the use and transfer of the units within the building. The parties acknowledge that the
TIC Agreement restricts and limits Wife from placing her name on title or in any way
placing a lien to protect her interest in the property. The parties further agree that the
community has an interest in the property, which they agree to divide as follows:
Husband retains sixty (60) percent ownership of the family home as his sole and separate
property, and Wife retains forty (40) percent ownership of the family home as her sole
and separate property. The Memorandum of Understanding, Option Agreement and
Rental Agreement, which are incorporated herein, define the rights and obligations of the
parties with regard to the family home.

For good consideration, the parties agree that Wife remains in the family home for
her sole use and benefit to the exclusion of Husband. The parties agree to enter into a
Rental Agreement, subject to the TIC Agreement, to allow Wife to continue to live at the
property without violating the TIC agreement. Husband will take all actions, in
relationship to the TIC Agreement, to keep Wife in possession of the family home during
the rental term. The Rental Agreement will be for a term of six (6) years. Wife agrees to
pay all household expenses to maintain the property, including but not limited to,
mortgage, insurance, property taxes, MRI costs and any required HOA repairs. Wife may
make any repairs she deems necessary at her sole discretion, without reimbursement.
Husband may continue to use the family home as his primary residence for document
purposes and to receive mail at the family home, but he has no right to possession as long
as Wife is lawfully in the family home pursuant to the parties’ agreement(s). The Rental
Agreement, executed February 12, 2007, which is incorporated herein defines the rights
and obligations of the parties.

The parties have or will have entered into an Option Agreement, whereby Wife
has the first right to purchase Husband’s fractional share of the equity in the family home,
and if Wife does not exercise her option to purchase Husband's fractional share, Husband
has an option to buy Wife’s fractional share of the equity of the family home. The buying
party shall assume, if he or she has not already done so, the selling party's share of the
Family Home’s share of any mortgage, deed of trust, encumbrance or lien on 2735 Clay
Street. In the case that Wife purchases Husband’s interest, Husband will convey a
merchantable title subject only to liens and encumbrances that exist as of the date of the
Option Agreement, executed February _/2, 2007. If neither of party exercises their
options to purchase the other’s fractional share in accordance to the Option Agreement,
executed February 12, 2007, the parties agree to sell the family home, divide the proceeds
in accordance to the agreed upon fractional share each possesses and subject to
reimbursements, if any.

Ifat any time, the parties agree to sell the family home, Wife will vacate the
family home in order to stage the home so that the parties may obtain the best price for
the home. At the time Wife actually vacates the family home, carrying costs will then be
bome by the parties, as follows: Husband will bear sixty percent (60%) of the carrying
costs, and Wife will bear forty percent (40%) of the carrying costs. Either party may pay
the carrying costs for the other, and that paying spouse will have a right to reimbursementC C

at close ofescrow. Wife will choose a listing agent of her choice and to prepare the
family home for sale. Husband will cooperate fully and in good faith with Wife to sell
the family home. If Husband is unavailable to execute documents and instruments, he
hereby appoints Wife as his attomey-in-fact to execute al] documents and instruments on
his behalf using a valid power of attomey for real estate.

Wife may terminate the Rental Agreement at any time for any reason without
penalty for early termination of the lease term. Husband may not terminate the Rental
Agreement at any time or for any reason before the end of the term. The Rental
Agreement binds each Party’s successors, agents, attorneys, beneficiaries, and the like,
and will not terminate in the event of either Party’s death. Wife’s option to early
terminate the Rental Agreement is a bargained for exchange in consideration for all terms
of this Agreement. For the same consideration, Wife may also sublet the property instead
of opting for an early termination of the Rental Agreement. Husband may not sublet
without Wife’s consent.

If Wife opts to terminate the Rental Agreement at any time, including at the end of
the lease term, then Wife will give thirty (30) days written notice to Husband at the
following address:

Menri Monastery

Dholanji, P.O. Kotla Panjula
Via Oachghat

Solan, Himichal Predesh 173223
India

Unless otherwise provided in this Agreement, any notice, tender, or delivery to be given
under this Agreement by either party to the other may be effected by

z eel — *

Any purchasing party may tender a payment plan with the other party in the event
of a buy-out from the other party. However, such payment terms must be first approved,
agreed and accepted by the payee spouse.

Should Husband in any way disturb the quiet enjoyment of Wife during the
effective period of the Lease Agreement, Husband will be in violation of this agreement,
and Wife may seek court enforcement and/or claim for damages in Family Court or any
applicable court of law. The parties agree that the Court shall award attorney’s fees and
costs to the prevailing party. If Wife has fulfilled all conditions of the Rental Agreement,
but is forced to terminate the Rental Agreement by ouster or eviction initiated by
Husband, Husband may be liable to Wife for any consequential damages she may suffer
as a result in, including but not limited to, moving costs and rental costs. Furthermore, if
Wife is forced to move before the end of the term because of some action by Husband to

aC C

oust her or evict her, the parties agree that the property will be immediately sold and the
equity divided pursuant to the agreed upon division of the equity of 60/40 as enumerated
herein.

If the family home should suffer destruction or catastrophic loss, rendering the
family home uninhabitable, through no fault of the parties herein, Wife may terminate the
Rental Agreement. If the Rental Agreement is not terminated, the parties will make
repairs, and Wife may be reimbursed for any losses she suffered from any applicable
insurance. In the case of insurance for Josses, Wife will recover one hundred percent
(100%) of her out of pocket costs from insurance due to loss of personal property and
relocation, and the parties shall share equally in the insurance proceeds for the loss and/or
destruction of the family home in accordance to the agreed upon equitable share of 60/40
as enumerated herein and without regard to how the loss payee is designated on any
insurance policy obtained under the TIC Agreement. Any additional insurance separately
obtained by Wife for destruction or catastrophic loss is payable entirely to Wife.

Copies of the Rental Agreement, a Memorandum of Understanding, and Option
Agreement are incorporated herein and are attached as Exhibit A, B and C, respectively.

3. PENSION PLANS: Wife has no pension or retirement plan. Husband has a PERS
pension plan earned prior to marriage. The parties acknowledge that Husband’s
PERS is his separate property, and Wife claims no ownership interest.

Under the terms of this agreement, any community interest whatsoever in the
parties’ individual pension plans, including the right to name beneficiaries other than
the employee’s spouse for death and survivor benefits payable under the plan, is
awarded to the employee spouse. Each party is informed that, under federal law or
the terms of the plan, the non-employee spouse may, but for this agreement, have
become entitled to survivor rights or benefits payable by the plan. If necessary, each
non-employee spouse will timely sign whatever documents, including but not limited
to a stipulated qualified domestic relations order (QDRO), that are required to
implement his or her waiver of spousal rights in the plan, including written consent to
the other spouse’s designation of one or more alternate beneficiaries.

4. WARRANTY OF DISCLOSURES OF PROPERTY: Each party warrants to the
other that all property in which the community has or may have an interest of which
either has any knowledge has been disclosed. Wife and Husband served each other
their Preliminary Declarations of Disclosure Jan. 11, 2007 and Feb. 9, 2007,
respectively. Each party further warrants that neither is possessed of any interest in
any property not set forth in Wife's Preliminary Declaration of Disclosure, whether
community, quasi-community, tenancy in common or joint tenancy.

5. REMEDY FOR BREACH: If either party has any knowledge of any community asset
other than those disclosed and listed in this agreement and in the preliminary
declarations of disclosures served on each party, that warrantor will transfer oru

C Cc

pay to the warrantee, at the warrantee’s election, one of the following:

(a) Ifthe asset is reasonably susceptible to division, a portion of the asset equal to
the warrantee’s interest in it; or

(b) The fair market value of the warrantee’s interest in the asset on the effective
date of this Agreement, plus interest at the rate of 10 percent per annum from
the effective date to the date of payment; or

(c) The fair market value of the warrantee’s interest in the asset on the date on
which the warrantee discovers the existence of the asset, plus interest at the
rate of 10 percent per annum from the discovery date to the date of payment.

This provision will not be deemed to impair the availability, in a Court of
competent jurisdiction, of any other remedies arising from nondisclosure of
community assets.

6. AFTER DISCOVERED PROPERTY: The parties agree that any property or property

interests discovered after the effective date of this Agreement which would have been
their community or quasi-community property as of the effective date of this
Agreement shall be divided equally between them. In the event that either party has
willfully concealed any such after-discovered property, that party shall be obligated to
pay to the other party one-half of the value of the property on the effective date of this
Agreement, plus interest thereon at the rate of ten percent (10%) per annum until paid,
or one-half the value of the property on the date of its discovery or actual division,
whichever is grater, together with any damages including but not limited to costs of
enforcement and attorney fees incurred in obtaining its recovery.

7. DIVISION OF DEBTS AND OBLIGATIONS: The parties agree that they have

provided for the payment of all joint debts between them of which they are aware, and
if any debts for which they are jointly liable are discovered after the effective date of
this Agreement which are not provided for in this Agreement, each party will pay and
hold the other harmless against one-half of such debt.

Each party warrants to the other that, as of the date of separation, neither has incurred
any debt or obligation for which the other may become personally liable or that could
be enforced against an asset held by the other party, except as set forth herein. The
parties acknowledge and agree that any debt or obligation incurred by either after the
date of separation shall be the sole and separate responsibility of that party, and each
agrees to hold the other harmless against any such debt or obligation and agrees to
indemnify the other against any liability incurred in connection therewith, including
but not limited to court costs, attorney fees and all other costs of defense. This
provision will not be deemed to impair the availability, in a Court of competent
Jurisdiction, of any other remedy arising from nondisclosure of such liabilities.C . C

8. TAX RETURNS: The parties agree to file a joint tax return for 2006, and, on a year-
to-year basis, the parties will consider whether to file jointly or not. The only
condition to filing jointly is as long as each party agrees to file jointly. No party can
force the other party to file jointly without his or her express consent.

9. LIFE INSURANCE AND HEALTH BENEFITS: The parties agree that each party
shall not be responsible for health, vision or dental insurance for the other, and each
will seek their own insurance, through their employment or by private purchase.

10. SPOUSAL SUPPORT AND WAIVER: Each party has a duty to be self-supporting,
and each party agrees to make reasonable and good faith efforts to be self-supporting.
However, in consideration for Wife remaining in the family home under terms of the
Rental Agreement, Wife further agrees to pay Husband $800.00 per month as spousal
support. Husband acknowledges that such payments from Wife are taxable income to
him and tax deductible to her.

However, such spousal support shall cease upon the following conditions: 1)
Husband become gainfully employed, 2) the joint business GetLocalNews.com
grosses $1,800.00 per month or more as Husband’s 50% share of the business
receipts, 3) at any time the Lease terminates, 4) either party files for divorce
proceedings, or 5) Husband grosses $1,800.00 or more per month from any other
source.

If any of the events enumerated herein occurs, both parties waive all right or claim
which they may have to receive support or maintenance from the other. This waiver
is an absolute termination of the parties’ respective spousal support rights. Neither
party may ever again request Spousal Support from the other. No Court shall retain
any jurisdiction to ever again award spousal support from one party to the other at any
time regardless of any circumstances that may arise now or in the future.

14. WAIVER OF FINAL DECLARATIONS OF DISCLOSURE: Each party hereby
waives the requirements of Family Code section 2105(a) that the parties serve on each
other final declarations of disclosure and income and expense declarations. As
required by Family Code section 2105(c), the parties hereby declare as follows:

(a) Both parties have complied with Family Code section 2104, and the
preliminary declarations of disclosure have been completed and exchanged;

(b) The parties have completed and exchanged current income and expense
declarations;

(c) Each party has entered into this waiver knowingly, intelligently, and
voluntarily; and

(d) Each party understands that by entering into this waiver he or she may be

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affecting his or her ability to have the judgment set aside as provided by law.

15, JUDICIAL ACTION: This Agreement shall be incorporated in and become a part of
the judgment on reserved issues in the pending court proceeding for the purpose of
merging the Agreement into the judgment, and for the purpose of a court order
requiring the parties to perform the executory provisions of this Agreement.

16, ENTIRE AGREEMENT: This agreement contains the entire agreement of the parties
on these matters, superseding any previous agreement between them. Should any
provision of this Stipulation be held invalid or illegal, such illegality shall not
invalidate the entire Stipulation. Instead, the Stipulation will be construed as if it did
not contain the illegal part, and the rights and obligations of the parties shall be
construed and enforced accordingly.

17. MODIFICATION BY SUBSEQUENT AGREEMENT: This agreement may be
modified by subsequent agreement of the parties only by an instrument in writing
signed by both of them, an oral agreement to the extent that the parties execute it, or
an in-court oral agreement made into an order by a Court of competent jurisdiction.

18. ATTORNEY FEES IN ACTION TO ENFORCE OR MODIFY AGREEMENT: The
prevailing party in any action or proceeding to enforce or modify any provision of
this agreement, or any corresponding provision of a subsequent judgment into which
the provision is merged, will be awarded reasonable attorney fees and costs. For t