Gabriel M. Daya, et al. - Page 5




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          an undivided one-fifth interest in Mahmoud’s undivided one-half             
          interest in the Foster City residence from Mahmoud to Gabriel and           
          Morhaf.  This gift deed was recorded on March 21, 1996.  On                 
          January 17, 1997, a series of four grant deeds effecting the                
          consolidation of title to the Foster City residence in Mahmoud and          
          Laila, as joint tenants, was recorded.2  Mahmoud and Laila then             
          executed a grant deed on January 24, 1997, and recorded the deed            
          on June 25, 1997, evidencing the transfer of title to the Foster            
          City residence to Mahmoud, Laila, Gabriel, and Morhaf “All As               
          Their Interest May Appear".                                                 
               Mahmoud and his brother Fuad were involved in business                 
          together under the corporate name Daya International Commerce and           
          purchased a restaurant in San Francisco in 1987.  In 1989, they             
          sold the restaurant and accepted a note from the group that                 
          purchased the restaurant as payment.  Later that year the building          
          was destroyed by an earthquake.  The buyers of the restaurant               
          defaulted on the note.  Mahmoud and Fuad attempted to collect on            
          the note, but the buyers filed for bankruptcy.  As a result of the          
          default, Mahmoud and Fuad were liable for approximately a quarter           
          of a million dollars on a note to the previous owner of the                 
          restaurant.  Fuad paid the entire obligation, and Mahmoud                   




               2 One grant deed transferred Gabriel’s interest, one                   
          transferred Morhaf’s, one transferred Fuad and his wife,                    
          Martha’s, and one transferred Mahmoud’s interest.                           




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