Our Ref: MMcD:NG:100071

Your Ref: GBM/3066/11

Please reply to: MELBOURNE

Direct Email: mmcdougall@pearcewebster.com.au

23 May 2011
WITHOUT PREJUDICE SAVE AS TO COSTS

Ben-Meir & Associates

Suite 414,
370 St Kilda Road
MELBOURNE VIC 3004

Dear Sirs,

Re: Christine Chok and Casey Sid

We refer to our letter of 11 and yours of 18 February 2011. To assist in moving this matter forward, it is
essential that there is a full exchange of information (even if there is some duplication of our 11 February
correspondence in the following detailed history) as to :-

• the at commencement contributions;

• the contributions during the marriage todate; and

• the current asset pool, resources and income details, both in Australia and China. To this end we
require the parties to exchange sworn Statements of Financial Circumstances. We are asking our
client to do so immediately and would ask that your client please reciprocate.

ASSETS AT COMMENCEMENT -

Wife -

1. Interest in real estate at 2 Bronte Court, net proceeds of which subsequently applied towards
acquisition of 1 David Crescent - $200,360.00;

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2. Cash of $20,000.00 - $30,000.00;

3. Shares including ANZ, Sigma, West Farmers, Tattersalls - $15,000.00;

Husband-

4. Interest in property at 10 Bowral Court, Bundoora which when subsequently sold in February
2005 yielded some $120,000.00 which was applied to reduce the mortgage on the by then jointly
owned David Crescent property. We note that :-

• The Bowral Court real estate value increased in the four years before sale and the
mortgage balance decreased during the same period; consequently the equity would have been
far less than $120,000.00 at the commencement of the marriage and the at commencement
contribution is therefore estimated at $80,000.00 only; and

• The husband continued to service the Bowral Court mortgage in the period between the
November 2001 marriage and the February 2005 sale, a contribution from the marriage.

• An interest in real estate in Baghdad - value not known.

Employment -

As previously indicated, we are instructed our client had an income of around $100,000.00 whereas your
client's was some $30,000.00.

Please confirm whether your client takes issue with this at commencement summary or whether it is now
a matter of agreement.

CONTRIBUTIONS DURING THE MARRIAGE -

David Crescent -

5. David Crescent was purchased in mid 2004 for $342,500.00. This was funded as follows :-

• $200,360.00 from the wife's Bronte Court sale identified above;

• A Westpac mortgage of $160,000.00;

• A post purchase contribution of about $125,000.00 upon the sale of the husband's Bowral
Court property referred to above, which reduced the Westpac debt to $39,000.00;

• From 2004 we are instructed the husband resided largely in China returning to Australia
only for short trips. From 2004 to 2008, each and every mortgage payment was met from
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funds deposited into the parties joint Westpac Account No. 7330 5965 1164. Throughout
this period each and every deposit into that joint account was made by the wife save for
an instalment of $10,000.00 deposited by the husband in or about May 2009 for roof
repairs. No mortgage instalments were met by the husband at any stage;

• Our client estimates mortgage instalments made by her in that period total around
$80,000.00;

• Save for the $10,000.00 payment made by the husband for roof repairs, the wife was
solely responsible for meeting all rates payments, all insurances, and all routine repairs
and maintenance without contribution from the husband;

Husband's Company -

6. At the request of the husband the wife made contributions to the husband's business totalling
$84,250.00. We note that :-

• These funds were sourced from the joint account - the account serviced only by the
wife.

• We enclose copies of the relevant TT's as follows :-

o 13/04/04 $30,030.00

o 10/08/04 $20,030.00

o 28/10/04 $ 8,030.00

o 25/10/06 $6,530.00

o 02/01/07 $19,430.00

Total $84,250.00

• In or about 2004 and at the request of the husband, the wife made a cash payment to the
husband of $10,000.00, which the husband stated he needed for the business. Yet again
these funds were generated from the wife's income.

Husband's Mercedes van -

7. Prior to the marriage, we understand the husband owned a dilapidated and unsafe van. We note
that :-

• The husband was not in a position to obtain finance to update his vehicle and the wife
accordingly lent him cash of $26,000.00 to effect the purchase;
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• We understand an IOU was drawn up for $26,000.00;

• Consistent with this arrangement the husband began to pay this debt back by instalments
of $450.00. Unfortunately we understand he made only 3, before dishonouring this
arrangement due to financial difficulties;

• In this regard we attach copy loan paper work identifying repayments in April, June and
July of 2001 before the husband defaulted.

• The balance still due to the wife, before factoring in interest, is $24,650.00.

Respective Incomes -

8. With regard to the parties respective incomes we now enclose copies of the following paperwork,
which seem to put beyond doubt the disparity between our clients' respective incomes namely :-

• Copy summary of taxable income figures arising during the period 2001 to 2009;

• Copies of available returns for 2001, 2002, 2003, 2004, 2005, 2008 and 2009 - wife;

• Copy available return material 2002 and 2004 - husband;

• You will note that on the wife's returns cross reference is also made to spousal income.

Joint Visa Account -

9. Between about 2001 and February 2010 the parties had a joint Visa account in which the husband
was primary and the wife secondary cardholder. We are instructed that :-

• As with all other arrangements this card was serviced (on an auto payment) from the joint
Westpac account which itself was serviced throughout the marriage only by the wife.

• The joint Visa card was used for :-

o Medical and health insurance expenses for both parties;

o Food and household supplies (largely for the wife only post 2004);

o The husband's Chinese hotel costs and other business and pleasure related expenses there;

o Australian vehicular insurance for both cars;

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o The husband's airfares between China and Australia - 1 - 2 trip per annum;

o Dining out - both parties;

• Our client conservatively estimates $1,000.00 - $3,000.00 Aust per month into the card for that 9
year period, a sum in excess of $100,000.00.

Family Expenses :-

10. We are instructed that the husband paid the following expenses for his daughter from the joint
Westpac Account No. 7330 5965 1164 namely:-

• University books;

• Contribution towards motor vehicle $2,000.00;

• As stated above, this account was serviced only by the wife;

Investment Property -

11. We are instructed that the investment property at 37/90 Edgars Road, Thomastown was purchased
in March 2009. We note that :-

• The purchase was effected with a Westpac mortgage secured over David Crescent;

• No contributions have at any time made by the husband to the loan or any other outgoings;

• The wife has met rates of approximately $400.00 p.a. and Body Corporate fees as they fell
due;

• The rental yield of $1,247.00 per month has at all times been applied towards the mortgage;

• The monthly rental shortfall of around $500.00 has at all times been met by the wife;

• The mortgage payments have been interest only since the March 2009 purchase;

• At the point when the husband announced the marriage was at an end our client withdrew
$15,000.00 from the offset account into which her above extra contributions had been
deposited, and placed that sum in a term deposit;

• Our client continues to hold that term deposit for $15,000.00 with …………..

• Clearly the husband has made no contribution not just to the accumulation of the term deposit
but with regard to the rates, body corporate and associated property expenses;
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• We understand the mortgage balance (secured over the former matrimonial home) is
$300,000.00 and the Edgars Road property now worth $360,000.00 - $370,000.00;

• The wife now proposes that the Edgars Road property be listed for immediate sale with Ray
White, Thomastown (Tel. 9465 2344) on the following basis :-

o That the property be auctioned in the next 2 months with arrangements to be fine tuned
between the agent and the parties;

o That this firm acts in the conveyancing;

o That the net free proceeds of sale after payment of real estate agent's costs and
commissions, reasonable conveyancing costs and disbursements and repayment of
outstanding mortgage on David Crescent be retained by this firm on behalf of the
husband and the wife, in an interest bearing account for their benefit, pending written
agreement or Court Order. Arrangements will also required to assess and pay CGT on
this disposal. Please confirm the husband's instructions within 7 days.

The Wife's Superannuation -

12. It is correct that the wife has superannuation about which we are instructed as follows :-

• Her current ANZ balance is $168,196.00 (at 18 January 2011) as evidenced by the
attached copy ANZ statement at that date.

• We understand the wife joined that fund in 1988 and we have asked her to let us have
proof of the balance, as at November 2001 when the parties married.

• Clearly a significant proportion of her current interest was derived from pre-marital
contributions as well as post 2004 from when the parties appeared to have lived independently
and certainly without direct or indirect contributions to this superannuation by the husband.

• The wife also has an interest in Uni Super of some $5,000.00, details of which will be
provided as soon as to hand.

YOUR LETTER OF 18 FEBRUARY 2011 -

We turn now to your correspondence of 18 February 2011, and with regard to the matters not already
covered above, we are instructed to reply as follows :-

Westpac Joint Account No. 733059651164

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We are instructed that :-

• In or about 2008 our client opened a new Westpac credit card facility known as Earth Westpac.

• While both parties accessed this facility it was largely used by the wife.

• As the husband is aware, this card was predominantly used in relation to a Wilmott Forests
Limited Investment which transpires to have had a very poor yield.

• We attach copy Earth Westpac statements for the following periods on which you will note that
the balances coincide with the first three withdrawals effected from the joint Westpac account.
Of course the joint account was entirely serviced by our client. Thus we enclose :-

o Statement beginning 23 April 2009 - closing balance $3,833.51;

o Statement beginning 25 May 2009 - closing balance $5,348.96; and

o Statement beginning 23 June 2009 - closing balance $4,359.71.

• The withdrawals from the joint Westpac account were therefore applied dollar for dollar to
service the joint Earth facility.

• With regard to the remaining withdrawals of $2,500.00, $5,000.00 and $13,516.92 we are
instructed as follows :-

o ………………………….

Business/Income -

• Please now confirm your further instructions in relation to the husband's "business interests
including a trading company in China".

• Please indicate the current monthly income derived by the husband both gross and net from all
sources.

• We note what you write about the shop in China. However substantial further information and
proof of the husband's figure of $27,300.00 must now please be provided.

• Copies of all of the husband's Chinese personal Returns and business Financials and Returns from
1 January 2007 todate, must now please be provided or such other documentary proof as is
available.

Furniture/Fittings - David Crescent -

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• We are instructed that …………………………….

Other Assets - Banks and Shares and Motor Vehicles -

• Our client instructs that details of her bank accounts and shares are as set out below in the section
"CURRENT POOL".

• The shares are listed at this week's ASX prices.

• With regard to her motor vehicle our client believes her 2006 Honda Civic is now worth
$.............. as evidenced by the attached extract from 'mycar.com/carsales.com".

• In the case of the husband's vehicle we understand that he broke the locks on the former
matrimonial home door during a recent visit, took the Mercedes keys and removed the vehicle.
Our client can only assume he has sold that van and confirmation of the sale price with
documentary proof should now please be provided, along with evidence of where these funds
now reside.

Insurance Policies -

We are instructed that :-

• Each of our clients has insurance policies which have now lapsed and the husband is aware
of this.

• Our client did pay premiums on a policy for her nephew totally $1,500.00. However as these
were paid from the joint account serviced exclusively by the wife it is hard to understand
why the husband would have standing to object.

• For completeness we have asked our client for a letter confirming that the policy has lapsed
and will on forward same to you as soon as to hand.

• With regard to allegations of other monies being defrayed upon family members, we are
instructed ……………..

Baghdad Property -

Our client notes with some concern, the husband's explanation for his $1,000,000.00 interest in
Baghdad real estate.

It must go without saying that significant further information will require to be produced to
substantiate the husband's position. Kindly let us have supporting paper work urgently.

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CURRENT POOL -

We are instructed that the current pool consists of the following :-

• David Crescent $550,000.00

• Edgars Road, Thomastown equity $ 45,000.00E

• Baghdad real estate $1,000,000.00E

• Business and shop in China $ Not known

• Furniture and fittings David Crescent $ ?

• Wife's bank accounts $?

• Shares $?

o ………………… $?

o ………………… $?

o ………………… $?

• Wife's motor vehicle $?

• Proceeds of sale of Mercedes $?

• Husband's bank accounts and other investments - value unknown $?

• Wife's superannuation $?

LIABILITIES

SETTLEMENT -

In light of :-

• The disparity in the at commencement contributions; and

• The short day to day cohabitation period; and

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• The absence of significant contributions from the husband at any time during the marriage (save
for upon the sale of Bowral Court); and

• Conversely against that are the very substantial financial contributions by the wife including but
not limited to :-

o income for both parties; and

o asset accumulation in Australia - David Crescent and Edgars Road; and

o business maintenance and growth in China; and

o business expenses; and

o family expenses

• The non financial contributions by the wife in "holding the fort" in the management and
maintenance of the real estate; and

• Having regard to the respective needs and personal circumstances of the parties

- we are of the view that the husband's entitlements (even were the $1,000.000.00 Baghdad
interest to be disregarded) are nominal only.

We now look forward to hearing from you immediately on the question of the sale of the investment
property along with a completed sworn Financial Statement and supporting documentation.

In the meantime we will revert to you as soon as we hold a sworn Financial Statement and suggest there
be a simultaneous exchange of the Financial Statements.

Yours faithfully,
PEARCE WEBSTER DUGDALES

Marion McDougall

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