Estate of Hon Hing Fung, Deceased, Bernard Fung, Executor - Page 7




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               In the fall of 1996, documents were filed with the Superior            
          Court of the State of California, County of Los Angeles,                    
          regarding the disposition of decedent’s property located in that            
          State.  Decedent’s wife filed a SPOUSAL PROPERTY PETITION, and              
          later a SUPPLEMENT to such petition, requesting a “determination            
          of property passing to the surviving spouse without                         
          administration” and a “confirmation of property belonging to the            
          surviving spouse”.  In connection with this action, an AGREEMENT            
          ABOUT DISTRIBUTION OF DECEDENT’S ESTATE was filed with the                  
          Superior Court.  The agreement was executed by each of decedent’s           
          five sons in August of 1996 and recited that the residuary                  
          beneficiaries                                                               
               agree to allocate to Decedent’s spouse, FUNG WONG TUEN                 
               WAN, also known as NORAH FUNG, as her 3/8ths share of                  
               the Residue, all of Decedent’s right, title and                        
               interest in the Real Property [defined as the Monte                    
               Vista and Calle Victoria properties], and to allocate                  
               to each of Decedent’s children as his 1/8th of the                     
               Residue, 1/5th of that portion of the Residue located                  
               in Hong Kong.                                                          
               After an uncontested hearing, the Superior Court on December           
          3, 1996, issued an ORDER APPROVING SPOUSAL PROPERTY PETITION.               
          The order confirmed the passing of the Monte Vista and Calle                
          Victoria parcels to decedent’s surviving spouse and her ownership           
          thereof.  On the following day, December 4, 1996, decedent’s wife           
          transferred the interest formerly owned by decedent that she                
          received in these properties, as well as the Vernon parcel, to              
          the Norah Fung Qualified Domestic Trust.  The parties have                  





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